Outsourcing to Payroll Processing Services Singapore is a Solution for Small Businesses

payroll services Singapore

Appointing Payroll Processing Services Singapore

The payroll processing is a non-core activity for every business as it does not generate any revenue. However, it is important from the point of view of complying with the Employment Act of Singapore and healthy atmosphere at the workplace. The act holds every Singapore employer responsible for paying the salaries within a week at the end of the payment cycle. To do this time-consuming task properly, you need to assign competent resources to it. On the other hand, you can outsource it to the reliable payroll services Singapore.

Reasons for Appointing Payroll Processing Services Singapore

Today’s trend is to appoint payroll processing services Singapore. However, if you believe in doing it yourself, you must know that, in reality, it is not that difficult. You can do it yourself if you know accounting.

However, there are a lot of salary components involved in the process. Mistakes start creeping in the calculations as the fatigue sets in and concentration wavers. These can also be caused because you forgot to update yourself on the latest changes in the rules and regulations. They can also happen if you are using an absolute software.

Moreover, the time you need to invest in DIY payroll processing is huge and at the end you do not get any medals for doing it precisely. For a Small and Medium Enterprise (SME) owners, it is wise to outsource it to payroll processing services Singapore. By doing so, you get to benefit from the latest payroll software used by the service and the careful attention lavished on your Singapore payroll calculations by the professionals in the employ of the service.

Hiring payroll services in Singapore is also a good option for the small businesses having an in-house payroll activity. Your decision frees your employees who you can reassign for the core goals of the business.

A Typical Payroll Processing Task Involves Following Activities

Salary Calculation:

  • Capturing and updating employee details, allocating employee benefits, etc.

  • Calculating gross salaries as per the company pay cycle

  • Arriving at the net salaries after deduction of CDAC, CPF, MBMF, SINDA or ECF

  • Adding bonuses and similar payments into the net salary

Managing Employee Leaves:

  • Recording and keeping an accurate count of each employee’s leaves

  • Managing the leaves to maintain optimum workforce to keep the work going

  • Taking into account leaves without pay and other claims by employees

Preparing Employee Payslips:

  • Depositing paychecks to employees’ registered bank accounts using bank GIRO transfers

  • Preparing and sending electronic as well as hard copies of payslips to employees

Handling IR8A and IR21 Forms:

Preparing and filing taxes of employees according to the prescribed regulations and time limit

Choosing a Payroll Service Provider Singapore

When you start searching for a capable payroll service provider in Singapore, see to it that it offers what you want. If it is not the case, ask whether they can customize their service to meet your business requirements.

Bear in mind that the different business circumstances force the owners to look for different kinds of payroll services. You may hire an payroll consultant or outsource it to a good accounting services in Singapore. Consider your business’ budget and choose a payroll service after analyzing your needs so as to optimize your employee management and the mandatory statutory compliance.

A competent payroll service provider in Singapore will eliminate the stress of payroll compliance for you by doing it accurately. It will also keep your employees satisfied and will foster the feeling of appreciation among them. Most importantly, you will have plenty of time to focus on the core goals of your business and to stand up to competition in the market.

Advertisements

Follow MNC’s, Outsource to Accounting Services Singapore

accounting services Singapore

Outsourcing to Accounting Firms in Singapore

It is very reasonable to think that a small business owner remains occupied throughout the day. The fact is truer for the one-man-show business owners. One cannot expect these individuals to spend another couple of hours at the end of a hectic day to record every financial transaction of their business. For these individuals accounting services Singapore provide adequate assistance.

Advantages of Outsourcing to Accounting Firms in Singapore

Sooner or later small companies with a few or no employees need to take a decision about their accounting function. Since they cannot afford the luxury of appointing an in-house accountant to take care of the task, outsourcing to accounting services Singapore is an option open to them. However, not every one of the business owners likes to involve third-party firms and letting them have complete access to the business’ financial data.

Hiring Certified Professional Accountants (CPAs)

The business owners can also hire services of a freelancing individual, but, the Certified Professional Accountants (CPAs) in the employ of the accounting services stands out as the better option. These qualified professionals have industry-wide experience and are world-weary. They are in tune with the latest changes in the rules and regulations by the authorities and render in-depth services to their clients.

Cost Saving

Cost-wise, outsourcing of accounting services is very beneficial to the small and start-up businesses. It allows them to reduce their cost of compliance by more than half. By selecting a trusted accounting firm in Singapore, they can ensure accurate processing of their books of accounts.

Employing an Accountant

When you hire an accounting service, you as good as hire their accountant. However, you don’t have to worry about his or her leaves, holidays, benefits, CPF, etc. It also means that you do not have to advertise a vacancy, interview, hire, train, and fire your accountant.

So by appointing an accounting service in Singapore, you take a major step towards simplifying your management of human resource. Accounting services fees charged by these firms are affordable as they are based on the hourly rates or by the volume of transactions of the business.

Accounting is not the Core Goal

A business does not benefit by accurately doing its accounts. It is not a profit producing activity. So there is hardly any point in doing it in-house unless you want to have total control over the accounting process.

Outsourcing it frees your staff. You can assign them to the core task of the business to enhance your revenue and profit margin. The appointed accounting services also maintain the backup of the business’ data.

Hardware Setup and Latest Software

The CPAs working in the accounting services Singapore use latest accounting software. It helps them immensely in accommodating the latest changes in the rules. When a business hires an accounting service, the decision saves it the cost of establishing the setup, licensing fees of the software, and IT training.

If are in need of outsourcing of your accounting function, but, are yet to take a firm decision about it, remember that the accounting services Singapore are trustworthy firms. That is why multinational companies have been outsourcing to accounting firms in Singapore for a long time.

Demand for Professional Accounting Services Singapore is Surging

accounting services Singapore

Benefits of Accounting firm in Singapore

Despite the emergence of a massive number of technology-driven accounting software in the market, the demand for accounting services is still growing. Many a time, people tend to think that accounting software can fully replace the professional services of an accountant or a third-party firm. But, that is not true. Yes, accounting software has transformed the manner in which third-party firms operate. Plus, it has automated the various day-to-day operations of a business and eventually, reduced the chances of manual error. However, it cannot supersede the expertise and experience of an accountant. This is why accounting services Singapore is still growing and in demand.

A modern accounting firm in Singapore harnesses the power of both, accounting software and talents of accountants to deliver unmatched services to their clients. The businesses, with an aim to stay financially fit, outsource accounting functions to a reliable third-party firm. Secondly, the stringent laws of the Accounting & Corporate Regulatory Authority (ACRA) drive demand for professional services. Since a Singapore accounting firm takes good care of all compliance-related issues of its clients, the businesses can rest assured that their accounting activities are in safe hands, and compliance will be fulfilled in a legal manner.

Why Outsourcing to Accounting Services Singapore is On the Rise?

The surge in the number of outsourcing of accounting services in Singapore suggests its rising demand and bright future. There are some advantages such as access to talented resources, time saving, cost reduction, a chance to focus on core competencies, and faster turnaround time which primarily drive businesses to adopt outsourcing.

Save Time:

A study says an average entrepreneur works 50 to 52 hours a week, but still they could not manage time to get everything done. If they have to wear many hats and handle accounting activities, the outcome will not be a satisfactory one. And eventually, the business is likely to encounter an unforeseen setback. But, an outsourcing firm ensures to provide end-to-end services to their clients. Be it the reviewing financial statement, meeting compliance requirements, developing budgets or cash flow management. Everything will be done within the guaranteed period. And, the entrepreneur will be free to focus solely on business activities.

Compliance Assurance:

The legal acts and compliance requirements of ACRA and IRAS (Inland Revenue Authority of Singapore) are bit complicated and daunting in general, which makes handling of compliance issues, and tax matters a challenge for most of the businesses in the city-state. Each business must abide by the statutory regulations of these authorities.

Even if there are good numbers of accounting software present in the market, but using those without an expert accountant or tax consultant can be risky. These professionals keep themselves aware of the ever-changing laws of ACRA and IRAS and use updated software accordingly. Thereby, the professionals of accounting firms in Singapore help their clients in meeting stringent rules of the authorities.

Apart from these, here is a list of other benefits an accounting firm in Singapore has to offer:

  • Cost Reduction: Businesses using accounting services Singapore is believed to have minimal operating costs and improved business productivity levels. As a matter of fact, they do not need to spend money on typical in-house employees of the accounting department.

  • Access to Talent Pool of Accountant: Outsourcing allows the businesses to get access to a vast talent pool of the firm. The Certified Professional Accountant (CPA) are efficient and useful for your business to scale up.

  • Quality-driven Solutions: The ever-rising competition has motivated the accounting firms to adopt the latest technology and customer-focused business strategies. As the services could not afford the risk of losing their valuable clients, they make sure to provide quality-driven solutions to each of their clients.

  • Faster Turnaround Time: In short, accounting firms ensure to deliver quality services within the deadline, thus helping the businesses in many ways. You get quality services with faster turnaround time.

  • Concentrate on Productive Work: Although accounting activities essential in business, these are deemed to be non-productive activities. When you outsource, you get ample time to concentrate on productive activities of your business.

From the excerpt described above, we can conclude that accounting services Singapore do not seem to have any risk of being doomed in future. But the competitive price pressure will mount as more and more services providers are mushrooming in the Singapore market.

Search, Evaluate, and then, Outsource to Accounting Firms in Singapore

accounting services Singapore

Accounting Firms in Singapore

Singapore is a unique business destination for the Small and Medium Enterprises (SMEs). The island nation employs transparent policies, lower company tax rates, start-up ecosystem in place, and has easy company incorporation process. The business owners also benefit from the number of support schemes run by the government for SMEs.

On the other hand, Singaporean authorities entrust its businesses with accounting, bookkeeping, and tax related compliance responsibilities and demand that they execute them consistently. The accounting firms in Singapore play a vital role in fulfilling the statutory compliance needs of SMEs.

In the case of a compliance failure, the authorities from ACRA (Accounting and Corporate Regulatory Authority) hold the director and to some degree, company secretary of the company responsible.

Engage Accounting Services or Do-It-Yourself

A large percentage of the small companies all over the world cannot afford to hire a permanent accountant on their payroll. Some business owners, to control the administrative costs, try to deal with their accounting on their own. It is a good option to take for some, but its drawback is that it takes the mind of the owners off their business goals.

Executing the accounts accurately and fulfilling statutory requirements do not generate any revenue and profit for the business. This option saves money, but it wastes valuable resources. The option is not for the business owners with a burning desire in their heart to succeed.

Accounting is a Profitless Activity

Accounting is a non-core activity and should be treated like one. These business owners should leave it to the Certified Professional Accountants (CPAs) working for the accounting services. By getting rid of the paperwork, the owners will have time enough to improve their operational efficiency and maximize their efforts to realize their core goals.

Be Open about your Business Needs

It is important for the business owners to discuss their needs with the decision-making authority in the chosen accounting service and set up reporting steps and procedures. Be clear about the standards to use before outsourcing of your payroll processing, GST filing, and accounting needs.

The accounting firms in Singapore like SBS Consulting, depending on your needs, can prepare full sets of accounts on a monthly, quarterly, or yearly basis. The accounting services Singapore offered by SBS are as follows:

  • 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

Be Prepared to Let Go of the Absolute Control

When a business appoints a third-party accounting service to manage its compliance requirements, there is a clash of values, cultures, and perceptions. The outsourcing of the task to an accounting service may also make the business owners listless or insecure as they feel the dilution of control in compliance monitoring or the lack of customization in the services offered.

Think about Long-term Investment

A business owner has to resolve insecurities over the loss of control and such issues before committing to outsourcing to one of the best accounting services in Singapore. Outsourcing is more about the mindset than the logistic.

The owners need search and select a few accounting firms in Singapore for the investigation. Get in touch with them and thoroughly explore their services and benefits to you before choosing a qualified one. Once you have selected an accounting service, be prepared to trust it within reason.

Outsourcing is for the business owners, directors, managers, and CEO’s who believe in full-scale engagement with the core goals of the business after outsourcing their non-core tasks. These professionals weigh their association with the accounting firms in Singapore as the long term investment.

Hire Accounting & Bookkeeping Service to Get Your Business Finance in Order

accounting services Singapore

Accounting & Bookkeeping Services Singapore

 

Small business owners need to wear many hats. It means, for various reasons, they want to do everything themselves and do not want to delegate the different tasks of their business. Such approach is also called as Do-It-Yourself (DIY) approach. But, savvy and smart entrepreneurs know the importance of professional services. When it comes to financial management, they are not reluctant to hire accounting and bookkeeping services for their small businesses.

Reiterating, the existence of a small business highly depends on its financial aspect. In short, they thrive and decline by their cash flow management. While timely and accurate transaction records coupled with proper assessment enable a small business owner to take right decisions, mismanagement of financial records may bring adversity. To keep finance in good shape is paramount for your business and an accountant could help you to achieve this. When you hire experts for accounting and bookkeeping services, the chances of business success are relatively high.

For instance, in Singapore where accounting laws are very rigorous, the professional accounting services Singapore are in high demand. Apart from streamlining the financial activities, they are helping the businesses to stay adhered to the laws of ACRA. This strategy is highly needed to strike the balance in business growth and compliance requirements.

How Bookkeeping and Accounting Services help Keep the Finance in Order?

Both bookkeeper and accountant of an accounting firm in Singapore play the vital roles in keeping the financial records of the businesses in order. To understand how bookkeeping and accounting services help the companies to keep their finance organized and accurate, you must know the role of a bookkeeper and accountant first.

  • Role of A Bookkeeper in Business

  • Keep Timely and Accurate Financial Record: Records of every financial transaction are maintained in order. Reconciliation of bank accounts. General ledger report compilation.

  • Manage Account Payable and Account Receivable: Keep the record of the incoming and outgoing invoices of the business.

  • Stay Abreast of New Laws and Regulations: The bookkeepers and accountants keep themselves aware of the new changes in tax legislation and other regulations to ensure your business remain compliant with the on-going requirements.

  • Stay Updated with the Latest Accounting Software: The bookkeeper is the person who handles accounting software to accomplish all the jobs related to bookkeeping.

  • Stay a Tune and Work with the Accountant: Both accounting and bookkeeping jobs go hand in hand. A bookkeeper needs to be in touch with the accountant to ensure efficient delivery of work.

  • Role of An Accountant in Business

  • Manage Financial Data: An accountant ensures that company’s financial data are maintained as per the statutory laws. He develops, implements and maintains the financial databases.

  • Analyze Data and Give Advice: An accountant may undertake analysis of financial data that is crucial for making sound decisions for businesses. He further assists the business owners with advice on areas for enhancement.

  • Prepare Financial Statement: An authentic and true financial statement can depict the actual picture of the financial health of an organization. An accountant is a person who compiles this important report.

  • Take Care of the Compliance Issues: Accountant helps in achieving compliance of the company by generating accurate financial statements.

  • Work in Cohesion with Other Officials: Often, accountants work with officials from different fields. They provide advice to the management based on accounting report. And sometimes, they may provide data to the auditors, tax consultants and the public accountant for various official matters.

From the above-stated analysis, one can easily understand the significance of accounting and bookkeeping services in business. Here, one question may swirl within your mind. Is it necessary to hire an accounting firm in Singapore instead of in-house accountant and bookkeeper? The answer is obviously, Yes! There are umpteen number of benefits of hiring the professional accounting and bookkeeping services Singapore. A few of the advantages are low cost, comprehensive solutions, timely services and a peace of mind.

Hiring an accounting firm in Singapore may sound unnecessary expenditure to a business who prefer to use Do-It-Yourself (DIY) approach. However, this method may keep your business from coming to a harm. The truth is that a professional accounting and bookkeeping service can help the businesses keep afloat and stay ahead of the competition.