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

accounting services Singapore

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.

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Outsource Bookkeeping and Accounting Services to Drive Your Business Forward

Accounting Services Singapore

Outsource Bookkeeping and Accounting Services Singapore

Let your business thrive by developing a better control over finance and accounting process of your organization. Together with this, other factors like low management cost and use of advanced technology are equally important for a business to grow in an exponential manner. Small businesses using Do-It-Yourself approach could hardly manage to achieve all these essential factors at the same point in time. Along this line, accounting services Singapore let you avail all these features under-one-roof to empower your business venture.

Since ages, we all have consistently been reminded about the importance of accounting for the businesses. In fact, accounting and bookkeeping are also widely regarded as the “languages of business” due to the manner in which these two aspects record the company’s financial dealings. Earlier, companies used to have the in-house accountant and bookkeeper to look after their finance and accounting activities. But, as years passed by, things started to change drastically regarding the way a company perceives to fulfill its finance-related requirements.

Why Businesses Prefer to Outsource Bookkeeping and Accounting Services Singapore?

Get Access to the Advanced Technology:

Singapore small businesses prefer outsourcing to accounting firms in Singapore that have access to advanced software. This allows the small businesses to have access to the talented resources and latest accounting software by paying a small fee. Buying an expensive accounting software is not an easy task for a small business and even mid-sized businesses with a tight budget.

Bring Your Business Cost down:

It is always a better idea to outsource your business accounting to one of the reliable accounting services Singapore. It saves time, energy and money and assures your compliance regarding Singapore accounting and bookkeeping tasks such as general ledger, cash flow management, balance sheet and compiling financial statements. Most importantly, you get insight into the financial status of your business from the highly-experienced professionals of the appointed firm.

Stay Focused to Core Competencies:

The productive activities of business require a high level of concentration and hard work. Accounting and bookkeeping activities are considered to be the non-core tasks. Outsourcing of these non-core tasks to professional services lets you focus on core operations and gives a boost to the productivity of your business.

Get the Financial Statement Ready:

The highly-experienced and knowledgeable accountants of Singapore accounting firms prepare and compile the financial statement of their clients as per the Singapore Financial Reporting Standards (SFRS). It helps them stay compliant with the laws of ACRA.

Lastly, running a business is like riding a roller coaster. You will come across myriad obstacles on your way to achieving success. However, the journey would be less challenging when you have right people and resources around. The professional accounting and bookkeeping services in Singapore are known for providing comprehensive support to the companies in streamlining the processes, which is crucial for every successful business.