Accounting Services Singapore can Lighten Your Statutory Burden

 

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Managing a start-up Singapore company is the task in itself. There are too many variables the business owners has to concentrate on. And when the business starts rolling in, they get busy with the providing of the services or products to the customers. For them, the time is money. In such a situation, hiring one of the accounting services Singapore makes sense.

Choose an Accounting Firm in Singapore

For a start-up, the initial customers are worth their weight in gold. If the owner and the employees of the business are multitasking, there is hardly any time in their hand for doing the bookkeeping and updating the accounts of the business. The start-up has the option of hiring an in-house accountant, a freelancer, or an experienced accounting firm in Singapore.

Prefer a Certified Public Accountant for Your Small Business

However, trained and certified accountants working in the accounting services are, generally, more dextrous and vigorous in the handing of accounting needs of their clients. Their industry-wide experience, sorts of, makes them more mature in these matters. It may enable accounting services Singapore to extricate if the need arises, your start-up from a tight spot.

Options in Hiring an Accountant for a Start-up

The choice of an accountant depends on the start-up’s budget and the mindset of the owner. Some of these may not be able to hire a permanent employee due to lack of resources. Some of the owners may hesitate to hire a freelancing accountant. And a few of them may not be inclined to trust even the well-known accounting services for small business Singapore with their financial information.

Whatever the case, it is important to note that the Singapore authorities like ACRA (Accounting and Corporate Regulatory Authority) expect businesses to comply, in full, with the relevant statutory regulations. You must never forget that the business owners and company directors are responsible for the annual filing of the financial statements of the company. By appointing accounting services Singapore, they can avoid the submission of inaccurate statements and being penalized.

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Hire Accounting Services Singapore & Keep Your Book of Records Updated

accounting services Singapore

Hire Accounting and Bookkeeping Services Singapore

Timely and accurate bookkeeping is vital to keep the business running. Thus, it is important to businesses of any sizes. Bookkeeping refers to the maintaining a timely and updated records of accounting and financial documents such as the journal, general ledger, financial statements, income tax records and so on. Unfortunately, small business owners seldom realize the importance of keeping the books of account updated. You may either do-it-yourself or outsource it to some good third-party accounting services Singapore, but, you simply cannot avoid it.

What is Bookkeeping?

Bookkeeping is an integral part of accounting. It is a process of systematic recording, analyzing and interpreting, on a day-to-day basis, of the financial transactions and other information related to business. The businesses doing bookkeeping on a regular basis can rest assured that their financial transactions are accurate, up-to-date and comprehensive.

The significance of bookkeeping cannot be overemphasized, but below are the reasons why it is crucial to the survival of business.

Track Cash Flow

The success of a business highly relies on the nature of their cash flow. Thus, management of cash flow is one of the vital aspects one must take into account. Keep a track record of cash flow through account receivables and account payable. The monitoring of accurate cash flow can only be done with proper bookkeeping. A healthy cash flow can keep the business growing. Hire a good and experienced accountant for your Singapore accounting to keep the finance organized and perfect.

Tax Obligations

An accountant takes good care of his company’s tax obligations. He keeps on tracking every piece of business related information and document to accomplish annual tax requirements. Now, you are no longer required to find out the bills and expenses during tax time. The accountant will plan and optimize your tax commitment and also made the tax return process easier with a set of documents like balance sheet and cash flow statement. The accountant can also provide sound advice on various aspects of tax obligations laid down by the tax authority, IRAS (Inland Revenue Authority of Singapore).

Monitor Expenses

Ideally, the business expenses must be paid from the corporate bank account of the company. It is the accountant who will monitor the outgoing cash of that bank account for tax calculation purposes. Thus, monitoring of business expenses on a regular basis falls under one the of the key responsibilities of the accountant. It ensures that your business expenses have not been merged with personal expenses.

Reporting to Investors Made Easy

When your book of account is in order, you can easily acquire the information required for preparing the report that you will submit to the investors of your business. This report has to be presented to show the financial status of your business to the investors (who has currently invested or shown interested in investing in the future).

Bookkeeping is a necessity for every business that has the vision to expand and outshine in the competition. Believe it or not, poor or unhealthy financial record has been counted as one of the culprits for the downfall of many companies in Singapore. Therefore, it is essential for every business to hire either an in-house employee or outsource the accounting and bookkeeping services to a good third party firm. There are good numbers of professional accounting services Singapore whose accountants are seasoned and proactive in delivering high-quality services.

Outsource XBRL Filing & Tackle Your Compliance Satisfactorily

XBRL Filing Services in Singapore

Singapore XBRL Filing Requirements

 

ACRA (Accounting and Corporate Regulatory Authority) is a strict but just governing agency in Singapore. It has ordered that all incorporated companies registered in Singapore must resort to XBRL filing for submitting their full set of financial statements. The mandate applies to the companies that are unlimited or limited by shares unless they are exempted by the authorities.

What is XBRL Filing?

The ACRA’s mandate came into effect on 3 March 2014 and clearly mentions that the XBRL filing must be as per the revised filing requirements. ACRA has provided the companies with BizFinx, web portal, for the filing purpose. The agency has also provided the XBRL preparation tool on this portal. It has been a quite a while since the implementation of the mandate but still newly registered Singapore companies need to get acquainted with it.

XBRL is an acronym for eXtensible Business Reporting Language. The purpose of using it for the filing of financial data is to make the data easily accessible and retrievable in a structured manner. The financial data accumulated by the ACRA as well as the other governing bodies all over the world represents a very valuable source.

The data needs to be made available to the Auditors, Regulators, Financial Analysts and the organizations that are interested in studying economic factors. These professionals can use the data to predict the market trends and to forecast the changes in economies.

XBRL filing assists ACRA in delivering value-added financial data to the experts. It also helps in formulating a worthwhile response to the market trends by making changes to the regulatory environment. It is expected to improve transparency and dissemination of financial information in a realistic time-frame to improve its usefulness.

XBRL Filing Requirements for Different Types of Companies

Following table details the filing requirements set by ACRA for the different companies.

Type of Company

Filing of Financial Statements

Public / Private companies (limited/unlimited by shares), except those under

(a) and (b)

Full set of XBRL financial statements

specific companies regulated by MAS, i.e. commercial banks, merchant banks, licensed insurers, finance companies regulated by MAS

(Note: Only the above-specified types of companies regulated by MAS are exempted from filing of a full set of XBRL financial statements. Other types of companies regulated by MAS, e.g. money changers, are required to file a full set of XBRL financial statements.)

Financial statements highlights (FSH) in XBRL format + PDF copy of financial statements

companies allowed by law to prepare accounts in accordance with accounting standards other than SFRS, SFRS for Small Entities and IFRS

FSH in XBRL format + PDF copy of financial statements

Solvent exempt private companies (EPCs)

Exempted from filing financial statements, but are encouraged to file with following options:

  • full set of XBRL financial statements or

  • FSH in XBRL format

Insolvent EPCs

Options of:

  • full set of XBRL financial statements; or

  • FSH in XBRL format + PDF copy of financial statements

Companies limited by guarantee

PDF copy of financial statements
(XBRL filing not required)

Foreign companies and their local branches

PDF copy of financial statements
(XBRL filing not required)

(Source: ACRA)

How to Do XBRL Filing?

The best recourse for the Singapore companies, both, existing and start-ups in dealing with the XBRL filing requirements in place is to appoint an accounting services like SBS Consulting. The experts in such services use latest software tools to accomplish the task. By paying affordable XBRL filing fees, the companies can ensure their statutory compliance in the most satisfactory manner.

Of course, they have the option of doing the task on their own by visiting the ACRA portal BizFinx.  ACRA has made the directors of the companies responsible for the annual filing of their company’s financial statements. That is why they must keep in mind that it is an important task and any mistakes in the filing are not tolerated by the officials. They can be summoned for an explanation and may face fines and/ or more.

Accounting Services Singapore for Small Businesses: Think Beyond Big 4

Accounting Firms in Singapore

Different Types of Accounting Services

Managing financial accounts of business regardless of sizes has always been a tiresome affair. Essentially, bookkeeping is one of an essential part of your accounting function that helps you keep your financial records and transactions organized and categorized. One wrong or missed entry in the book can lead to serious problem in future. Accounting services Singapore could offer businesses with professional assistance to handle these matters.

Now, a question might be lingering in your mind, “What type of accounting firms in Singapore is suitable for your business?” For small businesses, it is better to hire a good small accounting firm that has hands-on experience in the areas of your interest. Since small businesses are likely to run on a tight budget; there is no use of going for a costlier option like Big 4 accounting firms.

Big 4 Accounting Firms: Not an Ideal Option for Small or Startup Business

The big four accounting firm, most commonly referred to “The Big 4” are the world’s largest and most reputed accounting services providers. KPMG (Klynveld, Peat, Marwick, and Goerdeler), Ernst & Young, Price Water House Coopers (PWC) and Delloit are the four accounting giants, termed jointly as Big 4.

Why Small/ Start-up Business should not hire Big 4?

  • The accounting services of Big 4 are costlier choices when compared to service of smaller accounting firms. The more reputed it is, the expensive their service will be. It would not suit the tight budget of small or start-up business.

  • The client- base of these accounting firms is enormously broad. So, getting personal attention or advice for each and every job is not feasible.

Ideally, the service of Big 4 accounting firms is meant for the well-recognized and international players in the market. The start-up or small businesses, running on a shoestring budget, must search for a good yet cheaper alternatives. There is no dearth of good small accounting firms in Singapore who can provide quality services equivalent to that of accounting giants at very competitive rates.

Smaller Accounting Services Singapore: A Perfect Choice for Your Business

If your business is either new or small in size, it makes no sense in hiring the pricey services of the big 4 when you have the cheaper alternatives. A good and experienced accounting firm in Singapore could offer similar services to that of a big four at a lower fee. These vendors do not even compromise with the quality of their services. They hire experienced accountants and bookkeepers from diverse fields and strive to serve the clients with best accounting services in Singapore.

When a business engages their services, they assign one accountant to look after the each and every aspect of the client’s accounting department and deliver service accordingly. Apart from taking care of end-to-end aspects of your Singapore accounting, the experts of these firms are open to offering advice and consulting services on other allied matters of your business as well. In short, you get an adviser who will help you reinforce your efficiency.

The Bottom Line

In a nutshell, entrusting your business finances to a good, reliable and small accounting firm in Singapore is the fastest way to achieve success. Take a note that the name and reputation of Big 4 are all worth when you can afford them. So, a small business must think beyond big four accounting firms and find a right alternative to keep the business growing!

Enlisting an Outsourced Accounting Services Singapore

accounting services Singapore

According to the mandates of ACRA (Accounting and Corporate Regulatory Authority) every business in Singapore needs to maintain their books of accounts. In fact, it is good for a business to record its daily financial transactions to know its financial standing. Singapore is a well-known accounting hub and to the benefits of businesses, houses qualified accounting services.

Moreover, accounting needs vary from business to business. A dormant business that generates no revenue and profit will obviously have no need to update its accounts. On the other hand, a growing business will need to keep a tight check on its accounting. Such a business can handle the task in-house or by appointing accounting services Singapore.

Facts about Outsourcing to Accounting Services Singapore

There was a time when businesses use to be proud about their large and self-sufficient accounting departments. However, today’s cut-throat competition has taught them to outsource the activity to the accounting firms in Singapore. Basically, accounting is a compliance related activity that is useful in the filing of annual statements of the business to ACRA.

However, from a business’ point of view, it is a non-core task. It produces no revenue and profit for the business, rather, it distracts the management from its core activities. In the case of small business owners, it adds the stress of an extra and unprofitable core.

Many of these individuals multi-task to keep the business going and cannot allocate enough time to update their books of accounts. Again, only a few of them have technical background and knowledge to handle the task. That is why they find it easy to hire accounting services Singapore like SBS Consulting and let the expert accountants work for them.

Services Offered by the Accounting Services in Singapore

  • Singapore Accounting Software Assistance
  • Singapore Professional Accounting Service
  • Recording Full Set of Account Transactions
  • Preparation of Cash Flow Statements
  • Singapore Group Consolidation
  • Singapore Bank and Other Accounts Reconciliation
  • Accounts Payable (AP)
  • Financial Statements Preparation
  • Directors Report /Compilation Report Preparation
  • Compilation of Accounts
  • XBRL Statement Preparation

Benefit of Employing an Accounting firm in Singapore

The outsourcing of accounting services Singapore proves to be a win-win situation for the owners as the accounting services fees are affordable. This simple decision ensures their accurate statutory compliance as per the Singapore Financial Reporting Standards.

The qualified and experienced CPAs (Certified Public Accountants) from accounting services are a real help to the owners of the Small and Medium Enterprises (SMEs). These professionals take care of all the business and legal needs of their clients. Most of these services charge by the client’s volume of transactions.

Most importantly, the hiring of accounting services takes the stress out of their life as the filing of accurate financial statements is their responsibility. Inaccurately filed statements can bring them penalties in the form of fine or imprisonment. The act also sets them free to completely focus their energies on the core goals and ensure the growth of their business.

About Us: SBS Consulting is one of the leading corporate services provider in Singapore. It specializes in Company Incorporation in Singapore, accounting services Singapore, Preparation of director’s report, Taxation, GST, Payroll, XBRL Filing, IT software development and maintenance, etc.