How Accounting Firms in Singapore Help the Businesses Become Productive?

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It comes as no surprise that accounting is a vital aspect of business. An accountant collects, records, gathers and analyzes financial information in a single place. This financial information is crucial to the business as it often provides the true and actual status of the financial condition of business. Hence, accounting must be handled by an expert who has the profound knowledge of bookkeeping and accounting. Instead of hiring an in-house staff, one can opt for the outsourcing option. The accounting firms in Singapore are helping businesses grow their bottom lines.

Why Outsourcing to Accounting Services Singapore?

Accounting is a language of business, and it lays a strong foundation to build a promising future. The businesses benefit when accounting department of the company has been handled by a professional adept in the process and legal compliances. Ideally, the experts of the professional accounting services Singapore stay updated and compliant with the regulations. Once you understand the concept of outsourcing better, you are more likely to see why outsourcing accounting to a good Singapore accounting firm makes sense.

It is worth noting that there are numerous benefits of outsourcing accounting services. The cost of outsourcing is almost half of the expense a company usually made on in-house staffs. When you outsource, you simply need to pay the accounting package fees. Sometimes, it can be on hourly, monthly, quarterly or annually basis. Whereas, you need to invest a huge amount of money throughout the year to pay a typical in-house employee. The cost will include monthly salary, bonuses, insurance benefits, infrastructure and so on.

For the competitive fees, you would get a higher level of expertise since the accounting firms in Singapore bring industry-wide experience. The highly qualitative accounting service is done in much less time without any disruption in work due to sick leave/ vacations of employees.

One of the key perks of outsourcing accounting service for small businesses is objectivity. The experts of an outsourced firm can guide and assist the clients even on most sensitive issues of the business. However, an in-house staff may not be well versed in such topics. The firm being an accounting partner of the business, is well aware of client’s confidential information and foster a relation to remaining as a trusted business advisor to the client.

Some Myths about Accounting Debunked:

Given the multiple benefits of outsourcing of accounting services has to offer, many businesses regardless of size and type, are turning to accounting firms in Singapore. Outsourcing not only just act as a one-stop service provider but also help businesses to boost its overall capabilities. However, a section of small businesses may not be clear about the concept of outsourcing services. It seems that it is due to some myths they may head about outsourcing.

One will lose control over its company’s finances if the accounting process is outsourced. Contrarily, a company can have more control over its financial condition with the help of a third-party firm. The experts of the firm will rigorously work on to standardize the financial process of your organization. You will get real-time data, allowing you to focus on weaker areas. You will be able to take more informed and best business decisions ever.

Outsourcing is not for small and medium enterprises. It is meant only for large corporations. This the need of the hour to wipe out such misconception from the root level. Outsourcing brings wellbeing to all business and industry type regardless of the size. Surprisingly, it saves the cost of labor of almost 50%. Plus, outsourcing streamlines the process and ensures efficiency.

Sharing confidential information with the third-party firm is not safe. They tend to think that these firm will disclose the information to the rivals or competitors. On a flip side, a good and reliable firm left no stone unturned to keep your data safe and secure by using online encryption security system. They foster a relation with clients with purely based on trust and integrity. By no means, they will disclose any of your information to the outsiders. Reiterating, you indeed get a trusted advisor who will guide you on very sensitive issues of the business.

Outsourcing is expensive, and it is not worth the money you invest in. But, the reality is contrary to this belief. It helps you save money to be invested in installing accounting software, in-house staffs, and infrastructure. Most of the accounting packages of these firms come at competitive prices. So, you do not even need to shell out an exorbitant amount of money to avail outsourced accounting services.

Moreover, these firms help you keep a constant track on your cash flow. They will prepare financial statements, XBRL Filing Report, Director’s Report and compilation of unaudited statements. You no longer needed to grapple with filing XBRL report, Annual Returns and convening Annual General Meeting as the experts will do on your behalf. They will free you up to fully concentrate on the core competencies of the business while keeping track of financial condition. This smart move is a surefire way to become prolific enough to achieve your business feat. In a nutshell, accounting firms in Singapore are paving ways for businesses to become productive and successful.

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Monthly Accounting Services Singapore for the Small Businesses

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Monthly Accounting Services Singapore

Monthly accounting services Singapore are absolutely essential for the businesses operating in Singapore. The startups and small businesses trying to make a living with a shoestring of a budget have so much to worry about. Their main concern is how to find customers by offering quality services and products.

Moreover, the owners also need to pay careful attention to their cash flow. It makes them aware of how much money is coming in and going out of their business. A carefully selected accounting firm Singapore can point out to them where they need to economize increasing their profitability and the chances of survival.

Singapore Company Act states that every business should regularly update its books of accounts. The accounting services offering monthly or quarterly bookkeeping services are in good position to do it for them. The firms go through all the financial transactions of the business and record it in a precise manner forming a basis for the further compliance related accounting work.

In addition, the accounting services Singapore offers monthly accounting or quarterly accounting as per the schedule and requirements of their customers. They prepare monthly profit and loss statements clearly showing the sales and expenses from the previous month. They also prepare the cash flow statements that are easy to understand for the business owners.

Singapore companies must determine whether they need to opt for Goods and Services Tax (GST) registration. The qualified accountants hired by the accounting firms in Singapore assist them in doing it. After the GST registration is accomplished, these firms prepare necessary documents and assists with the GST filing.

The directors of the Singapore companies need to supply certain reports to ACRA (Accounting and Corporate Regulatory Authority). Accounting firms in Singapore help them with the preparation of compilation Report/ Director’s Report. They also ensure their clients’ compliance by supplying error-free unaudited financial statements.

Depending on the chosen accounting firm Singapore and the charges involved, the accountants working in the firms may also help their clients with the end-of-the-year accounts, balance sheet, income tax returns and payment, bank statement, etc.

The major benefit of hiring one of the trustworthy monthly accounting services Singapore is that it relieves the management from the drudgery of fulfilling the statutory compliance requirements. It sets them free to pay their complete attention to the core goals and ensuring the future of the company.

Why Small Businesses Should Use Accounting Firms in Singapore?

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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.

 

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.