Outsourcing accounting related services of small and medium sized companies in Singapore can reduce the operating costs of enterprises. In line with the cost-effective principle, outsourcing of SME accounting can streamline the organization and reduce the need to hire extra manpower for provision of financial support for enterprises. Companies are not required to invest in the daily maintenance and system upgrade costs of financial services equipment. Therefore, outsourcing of accounting services to small and medium enterprises can significantly reduce the operating costs of enterprises.

As SMEs have smaller scale in economies, limited capital, and relatively simple business operations, hiring special accounting staff have increased the cost of operation in order to receive accounting information. Contracting out to accounting service agencies, such as Cohesion Management, SMEs can obtain high-quality accounting information by paying only a small service fee, which is in line with the cost-effective principle.