Why to Hire Third-Party Accounting & Bookkeeping Services for Small Businesses?

Singapore Accounting Firms

Hire Bookkeeping & Accounting Services for Small Businesses

The need to minimize the operational cost is one of the key challenges every small business faces. Many small business owners end up wearing many hats on their own to save just a few dollars. However, as the business grows, the job of handling various tasks becomes extremely hard for a single person. At that point, you will realize that delegating a few of them can save you from bogging down into a sea of work. Eventually, outsourcing of non-core tasks has gained immense popularity among the business and the third party bookkeeping and accounting services for small businesses is growing at a staggering rate.

Today, many small and medium businesses prefer to outsource their non-core tasks such as accounting, bookkeeping, taxation, audit and payroll to professional service providers to keep their business efficient and compliant-friendly.

Third-party Bookkeeping & Accounting Services in Singapore

In Singapore where law and order are strict, and enforcement actions are rigorous, third-party accounting and bookkeeping services succor the businesses to maintain sound financial record while complying with the obligations of authorities like ACRA and IRAS. A good accounting firm in Singapore tends to provide a host of services as listed below:

  • Provide assistance using advanced accounting software

  • Help in setting up the chart of accounts

  • Maintain record of monthly accounting or quarterly accounting

  • Issue balance sheet, income statement, trial balance

  • Monthly or quarterly bookkeeping services

  • General ledger

  • Bank accounts reconciliation

  • Fixed assets register

  • Account Receivables and Accounts Payables

  • Balance Sheet and Income Statement preparation

  • GST registration, quarterly GST return filing

  • Compilation Report/Director’s Report and unaudited financial statements

  • Singapore XBRL filing with ACRA

  • Cash Flow Management

  • Provide advice or assistance as per Singapore Accounting Standards

There is a common misconception that only large or corporate organizations are likely to hire the services of certified accountants. However, the truth is that small and medium businesses also need the professional assistance of accountants to remain efficient in every aspect. Given the importance of law abidance and business efficiency, outsourcing of finance and accounting needs to a third-party accounting firm has become common practice in Singapore. Moreover, this practice has proven to be more beneficial and lucrative than having an in-house accounting department or staff.

Why to Hire Third-Party Bookkeeping & Accounting Services for Small Businesses?

If you want to grow your business’s bottom-line, you must focus on productive activities of the business instead of non-core functions such as bookkeeping and accounting. This could be possible only if you relieved yourself from doing non-core tasks by hiring third-party bookkeeping and accounting services Singapore. There are some reasons to outsource your accounting needs apart from just being getting rid of the hassles that come along with counting numbers. Let us leaf through the reasons:

  • Utilize the Time and Resource in Productive Activities:

    When you hire third-party accounting firm in Singapore, you free up time and resources that can be better spent on productive activities of the business. Focus on improving your products and services and attracting new customers, which is necessary to give a boost to your productivity.

  • Get Accessed to the Technology and Expertise of Accountant:

    A good Singapore accounting firm delivers services using advanced accounting software coupled with the expertise of accountants. You do not need to spend hefty of money on buying accounting software. Accountants are well-acquainted with the laws of authorities and ensure to deliver compliant-friendly and efficient services.

  • Minimize Fraud and Mismanagement of Finance:

    When you will keep constant tabs on the financial records of your business, there will be no chance of fraudulence charge of account mismanagement.

Now that you have noticed how beneficial outsourcing the accounting for small business is, the next step is to find the right accounting firm in Singapore and trusting it.

How to Choose the Right Accounting Services Singapore for Your Business?

Accounting can be a boring and tedious job for those who find number crunching to be a daunting task. Having expertise, knowledge, and experience in the specific area of interest is important when it comes to rendering accounting services Singapore. All the laws about accounting activities performed in Singapore companies are administered by an authority called ACRA (Accounting & Corporate Regulatory Authority).

Singapore has long been known for its rigorous laws and strict enforcement actions. Thereby, no businesses could afford to ignore their statutory obligations. As a result, more and more businesses are relying on the outsourcing services of the accounting firms in Singapore. These accounting firms are adept at delivering quality services while adhering to the law.

The ever rising demand for third-party services, the number of Singapore accounting firms are surging at a staggering rate. It is worth to note that there is no dearth of fraud and dubious vendors in the market. Also, depending on the type of industry and the requirement, the right accounting vendor may vary from business to business. So, one must be careful enough to find out a right and trustworthy accounting companies in Singapore.

The big question is – with thousands of Singapore accounting firms, how would you select the right one for you? In choosing the best accounting services Singapore for your small businesses, you should consider the following facts:

  • How well do they understand and know your industry?

    Search for an accounting firm that understands your industry and speaks your language. A firm having years of hand-in experience in the same industry as yours would be the best bet for you.

  • Is the firm you are hiring going to act as a business advisor as well?

    Your accountant is not just a person who count the numbers only. He/she must have the capability to guide you in every aspect of Singapore accounting. Be it monthly accounting, account management, financial statement preparation, XBRL filing, tax computation or compliance matter of ACRA.

  • How responsive the professionals of the firm are?

    Are the accountants or CPAs of the firms available when you need them the most? Do they share their contact number? How long do they take to answer your calls or emails? Ideally, the accounting team of the firm must be readily available for you at the time of need. Their responsiveness signifies that they care about your business as much as you do.

  • What is their reputation or image in the marketplace?

    Be sure to conduct an in-depth research before zeroing in on the firms. Try to get an idea about the reputation of the firm by contacting their previous clients. The reviews of clients play a vital role in understanding their credibility and reputation.

  • How is their accounting fee structure?

    We often get what we pay for. However, cost plays a major role in business. We are bound to spend within the budget of the company. However, try to find the good one at best possible price in the market. Many good accounting firms provide high-quality services at affordable prices to thrive in the highly-competitive market of Singapore.

  • Are they the right size for your business?

    It is apparent that a small or start-up business could not afford to hire the service of Big4 accounting firm. Similarly, a global giant or MNC will not go for an unknown small scale accounting firm. Choose the firm according to your business size and budget.

While a right accounting firm can build and grow bottom line of your business, a wrong choice could ruin it. Thus, picking the right accounting services Singapore is a crucial decision. The facts mentioned above would help you figure out the best out of many. Precisely, success will be at your feet when you have the right accounting service around.

Why Small Businesses Should Use Accounting Firms in Singapore?

accounting firms singapore

Outsourcing to a Capable Accounting Firm in Singapore

Singapore businesses need to have good an accounting system. It helps them in estimating their financial health, an important step in ensuring their survival. Many large companies hire permanent accountants for the task. The startup and small businesses who cannot afford it, hire accounting firms in Singapore.

The Need of Appointing Accounting Services Singapore

The authorities expect Singapore businesses to constantly update their books of accounts like cash book, sales invoice, credit book, debit book, cash payment vouchers, credit purchase book, stock book, assets records, bank transaction book, and payroll records. It is a tall order to accomplish manually for the small businesses having limited resources. Appointing an experienced accounting firm in Singapore to discharge their statutory responsibilities gives them the breathing space.

Outsourcing to a Capable Accounting Firm in Singapore

Even MNC’s shy away from the accounting function as it plays havoc with their goal of focusing exclusively on their core business. They know all too well that in today’s competitive world, losing their grip on the execution of their core goals may spell DOOM even for them. Moreover, they don’t get any mileage out of the filing of faultless accounts. It is a non-core task and is going to remains so. Ultimately, they outsource the task to accounting companies in Singapore.

Accounting Firms for Small Businesses in Singapore

The small business owners are very much in touch with their day-to-day business activities. It is an advantage when it comes to providing their services and products and ensuring customer satisfaction. However, there are only a few limited hours available to them. It does not leave them with a lot of time to discharge their statutory obligations. The accounting services assist them with faultless monthly accounting or quarterly accounting responsibilities. They start the activity by providing monthly or quarterly bookkeeping services and by meticulously recording all the financial transactions of their clients’ business.

CPA Accounting Services for to Uphold Your Statutory Compliance

The accounting firms assign certified accountants to ensure their clients’ compliance. These professionals are aware of the latest changes in the rules and regulations. They forcefully stick to the Singapore Financial Reporting Standards (SFRS) while preparing the financial documents like cash flow statement, profit and loss statement, balance sheet, etc. They use their industry-wide experience and latest accounting software for the preparation of compilation Report/ Director’s report and unaudited financial statements for their clients.

Goods and Services Tax (GST) Registration

The businesses that are seeing growth in their business activities must also check whether they qualify for the Goods and Services Tax (GST) registration. The accountants in the appointed accounting firm in Singapore help them in the task. After completing the registration formalities they also assist their clients in the quarterly GST return filing.

According to ACRA (Accounting and Corporate Regulatory Authority), the directors of Singapore companies are responsible for their company’s annual filing. In a recent update, ACRA has cited that even listed companies in Singapore are still making mistakes in filing their cash flow statements. After such an incidence, the directors get warned by the ACRA officials in the form of a notice or advisory. They may also get called on and made to explain the failure in compliance. They may also get penalized for it which underlines the importance of the job done by the accounting firms in Singapore in ensuring their client’s compliance.

 

Accounting Services Singapore: Bookkeeping Tips for Small Businesses

accounting firms in Singapore

Bookkeeping Tips for Small Businesses

Unless you are a proactive accountant and an avid lover of number crunching, bookkeeping is the most mundane task that one has ever experienced. Nevertheless, you cannot ignore the importance of proper and timely bookkeeping in business. If you want to see your business successful, good record keeping (bookkeeping) is mandatory. Having a good system and process in place is necessary to maintain a timely record of your cash flow. It can also help you stay away from having a clash with the national revenue agency. In this line, you may either hire an in-house employee or outsource to some good accounting services Singapore. You just make sure to adopt the practice of keeping a record to avoid costly mistakes in future.

This blog excerpt will outline the bookkeeping tips for small business. These tips will help the businesses keep the financial footing sound and healthy.

Keep Daily Records:

Keeping daily record accurately is the most basic rule one must apply. If you failed to keep your records in good shape, your business would be at stake. Unfortunately, it could fall apart. A sound and healthy accounting record depicts the exact picture of your financial state. Apparently, business is monitored through its records on a regular basis, so that one can find out the weaker areas to rectify them. If you cannot measure a business, you will never be able to manage it as effectively as it needs to be.

Track Your Expenses:

Expenses can be hard to track if you use cash-mode to pay your bills. Many experts recommend business owners to use the credit card and debit card as these enable you to view the transactions right away and ensures all business expenses are kept together. Plus, it helps you avoid issues with taxes. Thereby, business credit card or debit card is the handy tool to keep the expenses in order under one umbrella.

Maintain an Audit Trail:

Maintaining an audit trail can be as simple as keeping records of invoices and checks in numeric order. But, keep in mind that denote them as “voided.” This ensures no gaps in the numeric sequence of invoices and checks and leaves an effective trail for your accountant. In addition, you are advised to keep the business and personal bank accounts separate. It is better to have a good system that allows the users to retrace the company financial activities.

Use a Right Accounting Software:

Gone are the days when accountant relied on the manual calculation. Accounting software has come a long way over past few years; automation simplifies the task of cash flow management. The market is flooded with numbers of accounting software. You must buy the one that is affordable and meets your needs perfectly. It enables you to capture and retrieve data, in a jiffy. Since the data are stored in the secure server or cloud, there is no fear of losing data. Moreover, online accounting software is a great way to save time and money.

Hire accounting services Singapore:

Reiterating, businesses in Singapore are facing fierce competition. So, they prefer to focus more on core activities of the businesses. For this reason, many companies are turning to good accounting firms in Singapore. When you outsource, the firm will assign a dedicated accountant to handle the end-to-end activities of your accounting and bookkeeping services Singapore. You can rest assured that your recording keeping is up-to-date and sound.

Accurate and timely bookkeeping is crucial to keep your business afloat. Many small businesses tend to neglect this aspect of their business until they face some serious penalties from the regulatory authorities. If you want to lead a smooth and sound business life, make sure to implement the bookkeeping tips mentioned above and keep the business running.

Appointing Accounting Services for Small Business in Singapore

accounting services Singapore

Hiring Accounting Services for Small Business

The regular updating of books of accounts is an obligation to the Singapore businesses. A time-strapped owner has the option of hiring accounting services for small business to take care of his or her compliance responsibilities.

Accounting Tips to Manage Your Business’ Finances

Accounting for your business is an endless task that you need to take care of throughout the year. However, you can exert better control over it by paying careful attention to tasks that are listed below.

1#. Accurate Record Keeping is a Must

An owner must track all business expenses, profits, earnings, losses, and other financial transactions. Having updated books as the reference will save time while preparing reports, financial statements, and audit.

The accounting services for small business take care of the task for you during the bookkeeping & accounting process. They also store client’s financial information and ensure quick access to it.

2#. Certified Public Accountants (CPAs)

Investigate accounting services Singapore employing Certified Public Accountants (CPAs) before appointing one. These individuals have industry-wide experience and are in the position to advice on how to improve financial processes and operations, cash flow management, maintaining assets, earning more profits, and other finer aspects of management of finances.

3#. Update Your Books of Accounts

Most of the accounting services for small business offer customized service to their customers in Singapore. They provide monthly or quarterly bookkeeping services and also assist with the monthly accounting or the quarterly accounting of their client.

The accounting companies in Singapore also lend their expertise for the preparation of Compilation Report, Director’s Report, and unaudited financial statements of the businesses. For the clients, they also take steps to ensure their compulsory or voluntary GST registration and faultless quarterly GST return filing.

4#. Accounting Software

Even after hiring Accounting firms in Singapore for the task, some businesses choose to use software to track, organize, and structure certain financial tasks. If you are one of these entities, you can ask your service provider for a recommendation. You can also go to the firms offering Singapore IT Consulting services or opt to outsource IT development to a reliable company.

5#. Maintaining Attendance and Time-Sheets

Maintaining attendance and the timesheets for employees a tricky business. If you do it manually, you need to assign an individual to see it is done correctly. It is wastage of qualified resources. Ask your accounting service if they have any solution to automate the non-core tasks of the business.

You could use the biometric finger scanners for the task. It helps in accurate recording of actual work hours and overtime of your employees leading to the calculation of exact salaries. It saves you from underpaying or overpaying them.

6#. Establish Paperless Office

As far as possible, try to digitize your record keeping. Paper-based records can get lost, misplaced, read by unauthorized persons and easily damaged. They also take premium space in the office. They also need to be searched manually requiring wastage of valuable time.

Hiring accounting services for small business is one of the effective decision that you can take to improve the productivity of your organization. You leave your finances in capable hands without having to worry about hiring, training or firing them. It also enables you to lower the overhead costs of your business.

Director’s Report: An Essential Part of Singapore Accounting

accounting services small business Singapore

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.

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.

Accounting-Services-singapore

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