1.
Hiring an In-House Accountant
For an SME, hiring a full-time accountant involves multiple cost components:
| Cost component | Monthly Cost (SGD) |
| Accountant’s salary (Mid-Level) | S$3,500 – S$5,000 |
| Employer CPF Contribution | $595 – $850 |
| Software & office costs | $300 – $500 |
| Total cost | $4,395 – $6,350 |
This calculation excludes additional hires, such as an account assistant, which would further increase payroll expenses.
2.
Outsourcing to an Accounting Firm
Accounting firms typically charge SMEs based on transaction volume, complexity, and services required. Here’s a common pricing range in Singapore:
| Monthly Transaction Volume | Monthly Cost (SGD) |
| ≤50 | S$250 – $400 |
| 50 – 100 | S$400 – $700 |
| 100 – 300 | S$700 – $1,500 |
| 300 – 1000 | S$1,500 – $3,000 |
For the SME examples above:
- Consulting Firm (50-100 transactions): $400 – $700 per month
- Retail Store / Café (700-1,000 transactions): $1,500 – $3,000 per month
Estimated average cost savings per month from outsourcing bookkeeping work to an accounting firm is in a range of minimum S$1,395 – S$3,350.
Other Benefits of Outsourcing
- No Hiring and Training Hassles
Recruiting and retaining good accountants can be difficult and costly. Outsourcing eliminates recruitment, training, and retention worries.
- Access to Expertise and Compliance Assurance
Outsourced accounting firms stay updated with tax regulations and accounting standards, reducing the risk of compliance issues.
- Scalability and Flexibility
As business grows, outsourced accounting services can be adjusted accordingly without the need to hire additional staff.
- Focus on Core Business Activities
Business owners can focus on growth and operations instead of dealing with financial reporting, tax filings, and payroll processing.
