Accounting Services Singapore: Bookkeeping Tips for Small Businesses

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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.

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.

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.

Hire Accounting Services Singapore & Keep Your Book of Records Updated

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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.

Do You Not Feel the Need of Hiring Professional Accounting Services Singapore?

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Outsourcing to Accounting Services

Time is money for a small business owner. Spending it on technically challenging and a time-consuming task like preparing financial statements is a kind of a waste. Moreover, doing it accurately does not earn the business any money as it is a non-core activity. Have you ever thought about hiring one of the experienced accounting services Singapore to do it?

Save Resources by Outsourcing to Accounting Services

Here is a situation that you must tread cautiously to ensure your accurate and timely statutory compliance as dictated by ACRA. You need to decide whether to hand over your books of accounts to a third-party accounting firm in Singapore or keep them close to your chest. You can do them yourself or hire an in-house permanent accountant for the task.

By the way, the term ‘third-party’ may have raised doubts in your mind about the sanctity of your financial transactions. The accounting firms in Singapore employ professional accountants are well versed in the Singapore Financial Reporting Standards. They are tight-lipped and are known to keep their clients’ confidences. Your business data is safe with them.

The Certified Accounting Professionals (CPAs) have industry-wide experience. They use state-of-the-art accounting software, and obviously, they are aware of the latest changes in the rules and regulations. It helps in ensuring the accuracy while preparing their clients’ financial statements.

The accounting services fees are affordable as they charge by the volume of transactions. If you search far and wide, you may even find more than one accounting services Singapore willing to offer your Small and Medium Enterprise (SME), a customized package.

Accounting Firms in Singapore Helps in Reducing Overhead Costs

The small business owners need to invest every minute of their time in selling their products and services and maximize their returns on investment. In most of the cases, these individuals multitask to do so. It is the only way they can face the competition and stay in the business.

To put it in bold letters, they cannot afford to spend time on their accounting books. Appointing one of the experienced accounting firms in Singapore is a very viable option for them.

Benefits of Accounting Services in Singapore

Accounting services Singapore extend themselves in order to accommodate their clients’ needs. The businesses seeing a significant jump in the volume of their business transactions during the particular seasons, festivals or due to other circumstances can ask their accounting firms to upscale its services. And during the slack, they can ask to downscale it. Following are the services a business owner can expect from the accounting services like SBS Consulting:

  • 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

Appointing a reputed and experienced accounting firm in Singapore proves beneficial to the owner of the small businesses. The payment of a small amount of fee guarantees them the services of veteran bookkeepers and CPAs.

Moreover, they do not have to hire an in-house accountant and invest in computer servers and costly software tools. It also absolves them from managing leaves, holidays, CPF contributions, employee benefits and etc. overheads that are associated with the hiring of a permanent employee.

One of the benefits of using accounting services is that the SMEs and the start-ups do not have to invest in computer, latest software, and related IT services. They simply need to outsource their accounting needs to these qualified professionals who take care of their statutory compliance in the most satisfactory way.

Singapore Accounting Standards: How Crucial are Those for Your Business?

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Singapore Accounting Standards

Over the years, Singapore has attracted an enormous amount of foreign investment with its openness towards free trade, geographical advantages, world-class infrastructure and pro-business policies. For every business in Singapore, adhering to the local regulations is the key. Most of the businesses take help of accounting services Singapore like SBS Consulting. One of the statutory obligations is to file the financial report as per the Singapore accounting standards. In an attempt to attract foreign investors, these standards are designed as per the international accounting standards.

The result of non-compliance could be as severe as incarceration. The defaulters may face fine, penalty and court summons. So, it is better to get acquainted with the on-going laws and procedures. Alternatively, you can hire the professional accounting services Singapore.

This blog is highlighting the details of Singapore accounting standards followed by the certified and experienced CPAs working in accounting services Singapore. Understanding these standards may help you to compile a factual and compliant-friendly financial statement for your business.

What is Accounting Standards?

In brief, the accounting standards are reporting frameworks consisting a set of principles and conduct of policies for management of accounting transactions of business. Based on the accounting standards, business transactions and other events are recognized, measured, presented and disclosed in a financial report.

What is Financial Statement?

A financial statement or report is an official report compiled by a business, person or entity to keep the record of their financial activities. These statements are presented in a structured manner so that anyone can easily understand it. A true, accurate and fairly presented financial report is fundamental for the smooth functioning of the business as it helps the business owner in making critical financial decisions. The format of financial statement can vary from one jurisdiction to another.

Singapore Accounting Standards

Singapore accounting standards are formally known as Singapore Financial Reporting Standards (SFRS). The Accounting Standards Council (ASC) is responsible for the preparation and declaration of accounting standards in Singapore. The standards are based on International Financial Reporting Standards (IFRS). All locally based companies with the financial year starting on or after January 1, 2003, have to abide by the Singapore Financial Reporting Standards (SFRS).

The SFRS includes approximately 39 standards including Financial Reporting Standards (FRSs) and SFRS for Small Entities. Each standard covers specific topic such as revenue recognition, property, accounting for inventories, statement of cash flow, presentation of the financial statement, etc.

Why Compliance with SFRS is Necessary for Your Business?

To prepare the financial statement as per the SFRS is a mandatory requirement for every business. The national regulator, ACRA (Accounting & Corporate Regulatory Authority) demands the business to fulfill this legal obligation. Failing to comply may result in ACRA taking some severe actions such as

1) Issuance of advisory

2) Issuance of Warning Letter

3) Fine by offer of composition; and

4) Prosecution leading to fines and/or imprisonment

In addition to these, ACRA may ask the company to modify the deficient financial statement, either in the next set of reports or by having the current set of financial statement restated, re-audited and re-filed with ACRA.

Singapore Accounting Services Helps Your Business Stay Compliant and Competent

Keep your business safe, compliant-friendly and flourishing by hiring a good accounting firm in Singapore. When you engage a qualified team from the Singapore accounting services, you can rest assured that your accounting activities are in safe hands. The professionals working in these firms stay abreast of the changes in accounting requirements and eventually, they compile the financial statement as per the rules and regulations in force.

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

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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.

Maintain Clean Accounts in Singapore- Improve Your Profitability

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Accounting for Small and Medium Enterprises

Is hiring accounting services for the small businesses, a superfluous expenditure? From the small business owners’ perspective, doing their business’ accounts on their own can save them a few dollars. However, the question is, “Is it a really profitable adventure?” An inadvertent mistake in the accounts, leading to the business being flagged by the Inland Revenue Authority of Singapore (IRAS) for the breaking of rules is not at all a good news for any startup or small business.

Accounting for Small and Medium Enterprises

The startup or Small and Medium Enterprises (SMEs), may it be one-man-show or a concern helmed by the owner having a proper support staff, can do without getting tangled with the Singapore authorities. The owners have their plates full, without being further burdened by an amateur accountant determined to mess with the business’s accounts. On close introspection, hiring one of the top accounting services for a small business like SBS Consulting will stand out as a great prospect.

Accounting and Singapore Business Owners

Accounting for small businesses has never been easy. More often than not, the owners of these businesses are juggling multiple tasks at a time. Time is one commodity they are short of and the fact is that, most of them cannot invest in a full-time accountant. However, at a fraction of the costs that they would need to invest in a trained accountant, hardware, software and IT support, they can retain an experienced and professional accounting service in Singapore.

Specialized Accounting Services for Small Business in Singapore

SBS Consulting employs experienced and certified accountants to deliver effective accounting services to its clients. Under its accounting services for small businesses, the firm offers efficient bookkeeping services. For any small, medium or big, multinational business, maintaining its books of accounts in proper order is of at most importance.

An experienced accountant, after going through the business records can easily arrive at a conclusion whether the business is going up or down. The CPA’s working in the SBS Consulting does sound an alarm to their clients if the things are not as they should be.

They even give advice on how to force improvements to take the business in the right direction. The firm’s accounting services include the following:

  • Managing clients’ accounting software

  • Offering data entry services and posting transactions to the appropriate accounts

  • Developing account charts for the client’s suppliers and customers

  • Shouldering the task of generating monthly reports

  • At the end of every month, giving advice on the clients’ monthly profit and loss statement, cash flow, and balance sheet

  • At the end of a year, the CPA’s appointed by the SBS Consulting closes the accounts for the clients assigned to them

  • Accounts are then finalized, according to the Financial Reporting Standards

Fees Levied by the Accounting Services

The accounting services in Singapore charge their fees per transactions. SBS Consulting even goes further and provides scalable services according to the need of its clients. The firm utilizes more of its resources to accommodate the increased number of its client’s business transactions. On the other hand, the client can request to scale it down when the business is slack.

Accounting Services and Taxes

In addition to maintaining the books of accounts, which reflects their financial health, the businesses also have to take care of the payroll processing, taxes and other tasks. The calculations involved in it are really no business of amateurs. These tasks must be handed over to the professionals. When it is taken in relation to the strict rules and regulations and the control maintained by the IRAS on its subjects, it is really worth to appoint one of the professional accounting services for small business.

By outsourcing their accounting function to third party accounting services, the Singapore businesses can ensure that their accounts are cared for by the experienced and qualified professionals. They also do not have to invest money in implementing infrastructure and hire trained accountants. Even big companies benefit from this move, as it frees their staff which they can reassign to the core functions of the business.

XBRL Filing in Singapore: Know What ACRA Expects from You

XBRL filing in Singapore

Benefits of XBRL Filing in Singapore

ACRA (Accounting and Corporate Regulatory Authority) has decreed that every Singapore company, unlimited and limited by shares, must take benefit of XBRL filing while filing their financial statements. It has already published revised XBRL filing requirements that came into effect from 3 March 2014. It has also provided BizFinX filing system and a preparation tool for the users. The tool is a free offline software application. The task is new, requiring the business to hire services of XBRL filing services in Singapore like SBS Consulting.

The introduction of this format means companies are no longer allowed to file their statements in Excel sheets, Word documents, and etc formats. The goal of implementing XBRL filing in Singapore is to improve financial analysis through the gathering of structured business data. The uniformly structured data is easy to transmit to and use at the destination computer system. It goes a long way in the aggregation and analysis of financial data on the national level.

What Are the Full XBRL Filing Requirements?

SBS Consulting provides its expertise and assists its clients in fulfilling the requirements of XBRL filing in Singapore. The service is really helpful to the Small and Medium Enterprises (SMEs) lacking in resources or technical knowledge. SBS even takes care of the XBRL filing of the bigger businesses and leaves them to take care of their core goals. The requirements are as follows:

  • A company must provide Directors’ statement or financial statements prepared by the independent auditors.

  • The company must provide statements giving its financial position, income, and cash flow.

  • The data in a company’s disclosure note must include its share capital, income and expenses, and expenditure on the employee benefits. The note must also give details about the company’s property and equipment, government grants, provisions and revenue, trade and other payable.

Why There is a Need of Uniform Data Format?

The importance of having a uniform financial reporting format can be seen from the way XBRL filing helps the accountants when there are mergers or acquisitions. Before the parties finalize or reject the deals, they need to access and study their respective financial worth.

If they are using different formats for their financial reporting, then the accountants have to study each and every entry in the statements of the other party. However, if they are using XBRL format, it helps in automation of the process through the use of software programs. The uniformity in format simplifies the process drastically.

Benefits of XBRL Filing in Singapore

Taking care of the (http://www.sbsgroup.com.sg/singapore-xbrl-filing-requirements-with-acra/) XBRL filing requirements in Singapore is a must for bringing transparency in the financial data communicated by the businesses to the authorities. It fulfills the business reporting goals and objectives and, also makes it easy for the investors, financial analysts, and regulators to access and study the data to base their decisions on.

  1. Information Sharing: The XBRL filing Singapore is meant for sharing data between business entities and regulatory authorities. The format promotes the reuse of the financial data without further processing. SBS Consulting stands out because of its seamless XBRL filing services.

  2. Data Transparency: The investors, stock traders, and brokers need reliable data to make their investment decisions. The government regulators, stock exchanges, financial and economic analysts need accurate and reliable financial information.

  3. Fund Raising: Filing their statements in XBRL format assists businesses in acquiring capital from the market because their books are open for every to see and draw conclusions from.

  4. Financial Health of the Businesses: The data is also useful to the financial analysts in predicting the financial health of the businesses and in advising the investors. It also assists the businesses with filing their tax returns and conveying information like production output, inventory etc.

Singapore authorities like ACRA, do their best to raise the awareness of the XBRL filing requirements in Singapore. Time and again they conduct free BizFinX Training Seminars to educate the business owners and managers. These programs typically cover the Singapore XBRL filing requirements, details about BizFinX portal, use of BizFinX preparation tool and Annual Return form. However, if you are a businessperson short of time and who believe in letting the experts handle the financial data, outsource XBRL filing to SBS Consulting.

Accounting Services Singapore: How it is different from Bookkeeping ?

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                                                 Accounting Services Singapore

In a nation like Singapore where a set of rigorous laws have been laid down by the governing authority such as ACRA (Accounting and Corporate Regulatory Authority), companies are obliged to follow the regulations. Given the importance of compliance requirements, companies are turning to third-party firms specialized in accounting services Singapore.

Even if companies are using the services of accounting firms in Singapore, a common question swirling around their owner’s mind is whether there is any difference between bookkeeping and accounting. This blog excerpt will make an attempt to distinguish these two crucial aspects of business and throw light on Singapore accounting services.

What is Accounting Services?

Accounting is a method which helps the businesses to record the financial transactions in a systematic and comprehensive manner. Precisely, it is the process of classifying, interpreting, analyzing, reporting and summarizing the financial transactions of a business. It is essential for a company to keep its accounting data in order right from the day one of its business operation. If left unorganized, someday it may lead to disaster. An organized accounting record can give an idea of the present and future financial health of a business.

Accounting is a broader concept and encompasses a range of financial activities. A few of them are listed below:

  • Preparation of chart of accounts

  • Setting up the general ledger

  • Compilation of financial statements

  • Cash flow management

  • Account Receivable and Account Payable

  • Bank account reconciliation

  • XBRL filing

What is Bookkeeping?

Bookkeeping is a subset of the process of accounting. It is an activity of keeping records of basic accounting transactions in the chronological order on a daily basis. It includes issuing and recording invoices, recording cash receipts, paying suppliers, processing payroll, tax return, and inventory management. Bookkeeping can also be termed as record-keeping. Essentially, it is considered to be the financial information base of a business, which should be precise, comprehensive and timely.

How is Accounting different from Bookkeeping?

As mentioned above, accounting is a broad concept and bookkeeping is a part of it. Accounting is the measurement of financial state of a business whereas bookkeeping is a process of keeping its accounting records. It has been noticed that bookkeeping and accounting may appear to be same for a novice as both functions deal with the financial aspect of an entity. However, if you take a closer look at both of the services, they are way different. On the other hand, it is worth mentioning that first step to accounting is bookkeeping.

Leaf through the below-illustrated table to understand the difference between accounting and bookkeeping.

Basis

Accounting

Bookkeeping

Definition

Accounting is a process to analyze and verify the recorded information of bookkeeping.

Bookkeeping is a process of organizing, storing, collecting financial transaction of an entity.

Nature

A language of business

A subset of Accounting

Scope

Broad and wide

Narrow and limited

Activities

Balance sheet, Financial statement, Director’s report, Account management, Bank account reconciliation

General Ledger and journal

Methods/ Types

Financial Accounting, Corporate Accounting, Forensic Accounting, Cost Accounting,

Single Entry and Double Entry of Bookkeeping

Sound Decision Making

Yes

No

Determination of Financial Position

Yes

No

Despite the differences, both of the aspects are interlinked with each other. Basically, bookkeeping serves as a base to the accounting processes of a business entity. For instance, if bookkeeping is organized and timely, then it is expected that accounting of the business will be in perfect shape and vice versa. The job of a bookkeeper is more clerical in nature and requires less accounting knowledge whereas accounting job is an analytical one and needs sound knowledge on the specific area.

Why is Accounting Services Singapore essential for Businesses?

In Singapore, to stay compliant with the laws of ACRA is of utmost importance for every company. A set of accounting compliance has been put in forth by ACRA which must be followed to avoid any legal penalty. Following are the compliance requirements related to accounting services Singapore for companies.

  • Keeping Accounting Record: Each Singapore company must keep accounting records for 5 years after the completion of the transactions.

  • Filing Annual Return : Each Singapore company must file annual returns with ACRA within one month of its AGM.

  • Preparation of Financial Account: At the end of the financial year, a Singapore company must prepare its annual financial accounts in compliance with the Financial Reporting Standards of Singapore.

  • Annual General Meeting (AGM): Company must hold an Annual General Meeting (AGM) once every financial year. The first AGM must be held within 18 months of the company incorporation.

  • Filing Annual Tax Return with IRAS: A Singapore incorporated company must file the annual tax returns with IRAS by 30 November (paper filing) or 15 December (e-filing).

The purpose of hiring accounting services Singapore is to streamline the accounting of your business. When you engage an accounting firm in Singapore, you can rest assured that your accounting tasks have been carried out in an effective manner while adhering to the statutory obligations of ACRA.

Lastly, after browsing through the blog, you are well versed with the difference between bookkeeping and accounting. Now, you know why accounting is as important as other key aspects of business for long-term survival of your company. Avail professional accounting services from a reliable firm, keep growing and stay ahead of the competition.