Director’s Report: An Essential Part of Singapore Accounting

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Professional Accounting Firm in Singapore

 

A Director’s Report is a part of every Singapore-based company’s audited or unaudited account and annual report. Typically, it is presented with the balance sheet, financial statement, and other accounting documents. Often, the director’s report is compiled and presented as it is one of the compliance requirements stated by the Accounting & Corporate Regulatory Authority (ACRA) for every company based in Singapore.

But, compiling the Director’s Report can be a challenging task unless you are well accustomed to the ins and outs of Singapore accounting laws and practices. Moreover, implementation of full XBRL filing (from March 2014) of company’s audited account has made the task even trickier. The good news is, you can take the help of professional accounting services Singapore to prepare the report on your behalf.

When to Prepare and Submit a Director’s Report in Singapore?

Reiterating, a Director’s Report is an indispensable part of a company’s audited or unaudited account, and thus, it has to be prepared and submitted whenever accounts or annual reports of the company have to be submitted as per the law.

ACRA decreed the newly incorporated companies to submit their Annual Returns ( incorporates Director’s Report as well) to the authority within 18 months from the date of their incorporation. An officer of the company or a representative from a professional accounting firm in Singapore can submit the Annual Reports (ARs) with ACRA. Existing companies are required to submit their Annual Report on an annual basis.

What Entails in a Director’s Report?

As per the section 201 of Singapore Companies Act, a Director’s Report must meet following requirements:

  • A Written Resolution by Director

  • Signed by at least two directors (one in case of single director)

  • Company’s Profit and Loss Statement for the financial year

  • Statement of the company’s affairs at the end of its financial year

  • List the names of the director in company as at the date of the Director’s report

  • Disclosure of each director’s interests in the company

Who should Compile a Director’s Report?

A professionally Accredited Chartered Accountant is the right person to draft or compile an effective Director’s Report for you. He may be an in-house employee of your company or an expert from the Singapore accounting firm you have hired.

No matter whoever drafts or compiles the report, it is the directors of the companies who sign off will be held responsible for the statements made in the Director’s Report and its completeness. The directors will be the one who needs to answer the questions and face the legal penalties, in the case of any legal issue arising out of it.

A Director’s report can be evaluated or judged by your potential investors, business partners, suppliers or consumers. It must be drafted in an impressive manner while adhering to the recommendation of ACRA. A good and experienced accounting firm in Singapore such as SBS Consulting can ensure to draft an effective Director’s Report. Thereby, consider hiring a trusted professional firm and get a Director’s Report that is highly arresting, informative and compliance-friendly.

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Outsource to Reliable Accounting Companies in Singapore

Every Singapore business must invest in strengthening its accounting function. However, I don’t mean that they should go for an in-house accounting setup, rather, they should outsource it to one of the experienced accounting companies in Singapore.

An in-house setup means that a business needs to hire a qualified accounting professional, buy computer hardware and the latest accounting software. It is not possible for every startup and the small businesses. However, they still need to do their annual filing as a part of the mandated statutory compliance. It means they need to keep their books of account updated. That is where accounting services come to their rescue.

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Accounting companies in Singapore extend their support as per the needs of their clients. They provide monthly accounting, quarterly accounting, and quarterly bookkeeping services at the affordable prices. Moreover, the business owner has the option of upscaling or downscaling of the services to accommodate his increased or decreased volume of transactions. Continue reading

Accounting Services Singapore Can Make Your Business Better

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Accounting Services Provider in Singapore

Since a long time, many small business owners have seen outsourcing accounting services Singapore as a strategy meant for large organizations and MNCs. The emergence of modern technology allowed the small and medium businesses to implement the strategy. For many small organizations, it has been proved to be a fruitful tool. Precisely, it has made a coercive impact on the growth and productivity of the businesses.

More often than not, small entrepreneurs in Singapore have a tendency to avoid outsourcing just to save few more bucks. But they failed to realize the value of opportunities they lost. When they adopt Do-It-Yourself approach, they sink too much time and energy in mundane task of number crunching. Moreover, the result is also not a satisfactory one. To put it simply, they save money, but, fails to make money.

When to Outsource Your Financial Needs to Accounting Firms in Singapore?

Accounting records of a business must be maintained in a consistent and effective manner. No matter how big or small your business is, you must keep timely records of the financial activities. Ideally, a start-up business should start keeping the financial records right from the day one of the business operation. On a precise note, the sooner you start counting the number of accounting book, the lesser you have the chance of facing the financial mess in the future.

For every business, the right time to indulge in outsourcing option may differ. The company having in-house accountant to manage the day-to-day financial functions, may need the help of a third-party firm to subside the burden of projects. When a company’s employees fails to handle the accounting task, it is the time to search for a good accounting firm in Singapore. However, many experts recommend outsourcing it, right from the beginning of the company’s operation.

Finding the Right Accounting Services Provider in Singapore

Before you entrust someone with financial records of your business, you must make sure that you are engaging a trusted partner. It makes sense to do some research and diligence ahead of hiring the Singapore accounting firms. Do not ever take any decision in a hurry because the selection process is the most vital part of outsourcing. Even though technology has made the process easier, you cannot afford to ignore the idea of ‘word of mouth’. Ask your friends, colleagues or acquaintances if they can recommend the best accounting services in Singapore.

Apart from this, there are good numbers of online marketplaces where entrepreneurs can find and foster business relation with service providers. Nowadays, social media platforms such as Facebook, Twitter, and LinkedIn, serve as a dynamic tool to find people from all across the globe.

No matter which platform you have used to find the service provider, the key motive is to find a right and efficient accounting firm. Finding the suitable service provider means having access to the right resource. You do not have to worry about the performance when you have the right resources around.

Reaping the Benefits of Outsourcing Accounting Services Singapore

The process of outsourcing allows the business owners to build a great team of efficient professionals without having to hire full-time employees. It, eventually, reduces the expenses (salaries, bonus, insurance, provident fund benefits) of employing the typical in-house employees. Also, you do not necessarily need to pay full-time attention to get a task done. So, you save a large chunk of time, which you earlier spent on gauging numbers.

Outsourcing to accounting services Singapore alleviates you from all the record keeping burdens and lets you focus on the core competencies of the business. All in all, it is a cost-effective and proven strategy for giving a boost to your business productivity.