Accountants Pricing - Options for your Company

Accountant Pricing

Are you looking for accountants but unsure about the pricing today? You may be a business owner of a small and medium enterprise (SME), a hiring manager of a local company, or perhaps a Human Resource Manager recruiting a new accountant for your multi-national company's Singapore office.

As a finance hub, Singapore has a mature and well-developed pool of capable workforce in the finance sector, particularly good and experienced accountants. The accountancy practice is largely governed by a few accreditation bodies in Singapore, which offer professional certification and recognition to qualified accountants.

However, accountants take up multiple roles in today's evolving business environment. So much so that accountants is too broad a term for the many functions they may specialise in. From cost accounting to financial reporting, from tax preparation to forensic accounting. The wide range sometimes makes the comparison a little too complex. However, we will attempt to simplify these and let us explore the various options that a company has if they need to hire an accountant.

Types of Accountants in Singapore

There could be as many as 10 broad types of accountants in Singapore, each offering very niche services. The classification may differ in various geographical locations. We have listed the following types of accountants and their duties or responsibilities. More often than not, some accountants may take up two, three, or even more roles due to the magnitude of the different companies. Some accountants may also have a vast spectrum of skills, making them highly appropriate for companies requiring considerable expertise.

Financial Accountants/Financial Reporting Accountants

Financial accountants are essential accountants who work in one or more processes that contribute to a firm's financial reporting. A financial reporting accountant is primarily in charge of financial reporting and is required to be proficient in accounting standards and financial statement preparation. The financial statements will largely include the Balance Sheet, Income statement, statement of cash flow, and notes to the financial statements. In larger entities, there may be a need to draft consolidated financial statements.

Ledger Accountants

This could be in relation to a specific ledger or sub-ledger, such as Accounts Receivable, Accounts Payable, or Fixed Assets. The experience requirements for such accountants are generally lower. In a bid to reduce company expenses, more companies are exploring the usage of shared service centers or outsourced accounting, especially if these ledgers contain a high volume of transactions.

Management Accountants

A very specific type of accountant that is prevalent in the manufacturing and production industry. They prepare financial reports for management to assist with operational decision-making. These financial records are mainly used for internal stakeholders and, as such, do not require compliance with accounting standards. Also commonly known as cost accounting, a widely recognised accreditation known as the certified management accountant is awarded to cost accountants with a notable level of experience and proficiency.

Public Accountant

A public accountant, also known as an auditor, offers professional services and requires a high level of experience and integrity in their work. Many public accountants work in professional firms such as the Big Four accounting firms, which are the largest accounting firms offering assurance and compliance services.

Forensic Accountant

With compliance services in the spotlight, the compliance departments of large institutes, professional service companies, and statutory boards will require a forensic accounting team. By analysing financial transactions, financial data, and business activities, these dedicated experts in forensic accounting use both accounting and investigative techniques to combat financial crimes.

Tax Accountant

The expert in tax, the tax accountant handles a range of taxation activities that are not just confined to corporate income tax returns. Tax accountants may be involved in many areas of tax, ranging from tax planning to tax compliance, indirect taxes (GST Filing, Withholding Tax Filing), and international taxation. Tax accountants may serve in an accounting firm offering taxation services to clients or could be part of an in-house tax department. Although they focus on tax, these accountants will still be required to interpret financial statements.

Project Accountant

Companies that offer project-based services or products usually require project accountants. Project accountants are experts in areas such as budgeting, tracking expenses, managing sources of income, and general financial planning. The project accountant may also assist in financial management by providing valuable insights over the course of the project. An industry that may require such accountants could be large-scale construction, reclamation, or energy-related projects.

Bookkeeper

Bookkeeping is quite similar to that of a ledger accountant. The difference is that bookkeeping will require a person to know the full set of an accounting cycle. However, the service fees for bookkeepers are usually not considerable as the experience requirements for bookkeepers are comparatively lower. Bookkeepers typically use accounting software and tend to be the hands-on experts for essential bookkeeping duties. Bookkeeping services tend to be more appropriate for general and straightforward industries with minimal complexity and experience requirements. For companies requiring expert service, seeking consultation from accountants with the proper knowledge and advanced certifications would be appropriate.

Payroll Accountants

The rise of payroll software makes payroll computation less complex. However, the range of services offered by payroll accountants usually goes way beyond payroll computation. A good payroll accountant should work with the finance team to optimize internal equity and comply with statutory changes and tax filing. In today's context, the accounting and payroll function is usually synchronised by having a compatible payroll module that links up with accounting software. Most accounting services providers will also offer bookkeeping services and payroll solutions as a combined accounting package.

Investment accountants

Commonly found in financial institutes, these accountants focus on tasks relating to evaluating financial records and portfolio financial performance. They are usually more savvy in financial products such as derivatives, bonds, and other financial tools that are iconic in an investment firm. In other cases, investment firms make informed decisions based on financial statement review and analysis performed by these accountants.

Hiring an Accountant and other Options

Internal Hiring

From the above section, there are certainly many different types of accountants. Depending on each individual's specialization area, an accountant with multiple skill sets may offer a wider range of services. However, there are common areas in which accountants are inevitably involved—that is, financial figures. Accountants, regardless of their level of experience, are likely to be involved in a company's financial figures, whether it is an internal or external stakeholder-related document. From the perspective of a hiring manager or HR department, hiring the right accountant to fit the job scope is always essential. Thus, it will be relevant first to understand the different areas of accounting, the candidate's field of experience and expertise, and the necessary soft skill sets for someone to excel in that position.

Outsource freelancer

With more accountants being trained over the years, there is no doubt that Singapore has an overly healthy pool of trained accountants. This leads to deflated prices for accounting services, especially for those seeking a side income by offering part-time accounting services. Companies, usually smaller entities, will likely turn to freelance accounting due to their highly affordable price plan. Service standards, accountability, and level of expertise are usually the downsides of freelance accounting.

Outsource Accounting Firms

Viewed by many as having the best of both worlds, outsourced accounting firms usually offer competitive pricing without sacrificing quality. Accounting firms usually offer a certain level of service standards and review mechanisms to ensure accountability. In addition to in-house accountants or freelance accountants, companies also have the option to engage accounting services providers to outsource their entire accounting practice or department.

With the rising cost of employing in-house accountants, it is no surprise that the competition for accounting services has been increasing over the years. Small accounting businesses have emerged to service small and medium enterprises (SMEs) at competitive accounting accounting service rates. However, do not be surprised that this small accounting business sometimes offers surprisingly complete and dedicated client services. You may read more at this article here for the comparison of outsource accounting.

Accountants Pricing

The cost of having a dedicated team of accountants serve a company will largely depend on the profile requirement and the candidate's level of experience. A financial reporting manager may command a gross salary of S$6000 per month, while niche accountants such as forensic accounting managers may reach higher levels. Due to the many possibilities affecting an accountant's salary, it will be difficult to illustrate clearly the true cost of an accountants' pricing.

For the service accounting industry, the pricing is more transparent. Professional accounting firms will quote their service fees depending on the types of accounting services required. The fierce competition usually ensures that service fees are maintained at a competitive level. However, for business owners and management, there should be a few things in mind to consider on top of just accounting fees being quoted:

Client Management

One of the most critical factors is client management. Large accounting firms don't always translate to good services to clients. The accounting service rates may offer some indication of how well the accounting firm is run and how much time is committed to each project. Exceptionally low fees may be red flags. (Accounting firms and accountants still have bills to pay.) Good service is not just about being prompt but also about being committed to the cause of the client's business.

Transparent pricing model

All accounting companies should offer clients a transparent pricing model. Most accounting firms will have to know more about the client's accounting requirements, complexity, and volume to provide an accurate pricing quote. As a consumer or client, be sure to check out fees from a few accounting firms for comparison if you are unsure about the fair pricing structure.

Sometimes, as a client, you may require specific business advice recommendations from your finance team. If you had to outsource your accounting and payroll function to a service provider, they may be your only point of contact and advice for certain business matters. Some firms separately charge a service fee for business consulting, while others may provide this as a goodwill service. Ultimately, it is crucial to have a good forecast of what advanced solution you may require, thus being able to find a dedicated team to support your business goals.

Service standards

It is indeed challenging to check on an area where you do not have expertise. Business entrepreneurs and owners who do not have the necessary knowledge in the accounting industry may find it challenging to validate accounting firms' work. Whether it is accurate bookkeeping or financial statement preparation, ensuring the quality of work is up to expectations is quite a challenge. Thankfully, the accounting industry is regulated, so look for accounting firms with the necessary accreditation. It is also advisable to speak to potential firms to understand more about the team's level of experience.

That being said, a service accounting firm usually offers a cheaper and more economical solution than hiring in-house accountants. A straightforward accounting job for low-transactions firms may be in the range of a few hundred dollars on a monthly basis. Larger and more complex firms may be more expensive, with larger entities hitting a few thousand dollars per month. This pricing is competitive when you compare it against in-house accountants, but there are pros and cons in both situations. Business owners must select the right option that fits their business. For more tips on shortlisting a good accounting firm, you may refer here.

Conclusion

The article discusses the pricing of accounting services and highlights the importance of comparing fees among different firms to ensure a fair pricing structure. It emphasizes the need for clear communication with an accounting firm to understand the scope of services, including business consulting, which may incur additional charges. The challenge of validating the quality of work as a non-expert in the field is acknowledged, stressing the importance of choosing firms with the necessary accreditation and experience. Hiring external accounting services can be more economical than employing in-house accountants. Larger firms may charge significantly more, depending on the complexity and volume of transactions. Ultimately, business owners must consider both options carefully to find the best fit for their needs. In conclusion, understanding the pricing structure and service standards is crucial for making informed decisions in accounting services.

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DISCLAIMER: The views and opinions expressed in this article are those of the author and do not necessarily represent the views and opinions of any individuals or organizations with which the author may be affiliated, either in a professional or personal capacity, unless explicitly stated.

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