How to Switch to Third-party Accounting Services Singapore?

accounting-services-singapore1

 

Finally, you are ready to hire the third-party accounting services Singapore for your growing business. Getting ready to switch to an outsourced firm is not as hard as you consider. Make the process of transition a smooth sailing experience by following a few important tips. Before diving deeper into the tips, let us discuss how important the outsourcing accounting is for Singaporean companies/business.

Why is Outsourcing Accounting Essential for Singapore Business?

When doing business in Singapore, you must make sure to fulfill the compliance requirements. The government of the Republic encourages the companies to remain compliant so as to maintain a prosperous and healthy business environment within its jurisdiction. No one can assist you better than a professional when it comes to complying with statutory obligations. There are plenty of professional accounting & bookkeeping services Singapore available. Getting started with the right services provider can be a challenging feat unless you know the procedure.

Make the Switch from In-house Accounting to Outsourcing

At present, you are more likely to have either in-house staff and Doing-It-Yourself to complete the accounting tasks. Also, chances are there that you have not kept the accounting books in order considering it to be small in volume. But as the business scales, the need for timely accounting records arises to maintain a healthy cash flow.

Over the years, outsourcing has proven to be more beneficial for businesses when compared to in-house staffs and DIY method. If you want to have a more stable business, make sure to hire a third-party accounting firm in Singapore.

At the foremost, make sure to have a right process in place to make the transition as smooth as possible. You do not need to take stress about the changes. After all, the third-party accounting services Singapore is there to make your business life easier. When you entrust an accounting firm with the task of handling your financial records, plan for 15 days – 1 month before things get rolling in. They may require even more time if your books are lagging behind.

You also ensure to ask the firm about their process for setting up a new client. A good and reliable firm will firmly answer your question and will explain it. Contrarily, the wrong one will dodge the question.

Here are the few tips to be taken into account before hiring the accounting services Singapore:

Hire the firm during the off-peak time in the year:

If you have a fair understanding of accounting and taxation, you might be aware of the fact that how busy the accounting firms are during the tax or audit time of the year. It is better to avoid the peak time and make the switch during down time.

This is an important tip which deserves to be mentioned. Make sure your business get time to get accustomed to the change and you and professionals of the firm discuss the requirements in detail. They must not be in a hurry when you initiate the outsourcing process. The experts of the firm must dedicate time and listen to you. After all, you are in the process of building a strong financial system which will scale as your company grows. That is worth the focus and attention.

Develop an accounting plan:

Create a roadmap for the accounting activities with the help of the expert team of the accounting firm. Set the goals and make the calendar of the activities to be completed in the accounting year. Let the person with accounting knowledge of your company work directly with the accounting team so that they could get everything they want about your company’s accounting records as soon as possible. Make sure to be in liaison with the accounting team throughout the year. It helps you keep track of the on-going activities.

Get the core accounting activities within few days:

Although it takes some time (approx. 15 days to 1 month) to get into the full swing, let the experts work on core accounting issues within few initial days. This way the outsourcing team will be able to get accustomed with the essentials quickly.

Now that you have an overall idea of the process of switching to outsourcing accounting services, the next important thing for you is to go and actually hire a good accounting firm in Singapore. Not all accounting firms are the perfect choice for all business. The right choice must be made considering a few crucial factors such as the size of the business, requirements, budget, industry expertise and so on.

Also, make a list of what other qualities you are going to look in a third-party accounting service before choosing it. Once you are done with the search, the process of transition will be a breeze for your business.

Why Small Businesses should Outsource Payroll Services in Singapore?

Payroll Services Singapore

Payroll Services in Singapore

 

Are you spending a huge stack of money, time and resources in managing the non-core aspects such as payroll services & accounting instead of being focused on the productivity of your business? You are not alone in doing such expensive mistake in business. The majority of small business owners tend to wear many hats on their own for the sake of saving a few dollars. But, as the business grows and the competition becomes tough, they fail to manage the task efficiently. The third-party firms save the business from facing some undesired turmoils in business.

Outsourcing of non-core functions including payroll has always been advocated by the business consultants given its manifold advantages. It helps the businesses not only in managing the accurate data but also assist in complying with the local statutory laws. Outsourcing of payroll services in Singapore has been embraced by more and more companies as it is the easiest way to cope up with the ever-changing rigorous laws of IRAS (Inland Revenue Authority of Singapore). Secondly, they could get more time to concentrate on core competencies of the business.

Nevertheless, a section of small business owners is still using the Do-It-Yourself approach to keep fuller control over the internal functions. They pay less heed to the growth rate of their business and eventually, many of them are forced to cease their business within as few as five years of the company incorporation. Let the blog explain you the reasons why small businesses should outsource their payroll services Singapore.

Meet the Compliance of IRAS:

Meeting the statutory obligations of IRAS is quite challenging and stressful for the businesses in Singapore. They fail to keep the pace with its stringent laws due to their business workloads. However, the Singapore payroll consultants of the firms keep themselves abreast with the laws and help the businesses to fulfill the legal requirements easily.

Get Access to Technology and Professional Expertise:

An advanced Singapore Payroll firm provides services to their clients using technology-driven software and expertise of the consultants. Many of them have been processing payroll for years and can deal with the odds without breaking a sweat.

Reduce Business Cost & Save Money:

Outsourcing your Singapore payroll services can help you save money. The fees of these firms are competitive and way less than the cost of an in-house employee. When you employ an in-house payroll consultant, you would have to pay for the salaries, benefits, insurance, infrastructure and so on, which can burn a hole in your pocket. Cost saving is the key driving force behind the rising popularity of outsourcing Singapore payroll services.

More Data Accuracy is Ensured:

A good and trustworthy payroll service provider is less likely to make a mistake and is sure to deliver accurate data. The ever-rising competitions in the market prompt them to deliver high-quality services within the specified period. The delivery will not be affected by any illness or vacations which you otherwise have to face in the case of in-house staff. Plus, it eliminates the fear of fraudulence and payment manipulation.

Outsourcing your payroll service can prove to be a smart strategy to keep your business growing by focusing on your core competencies. Also, you get plenty of benefits as mentioned in this blog. So, what more you are waiting for? Search a good payroll Singapore firm, outsource to them and lead a peaceful life.

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.

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.

Hire Accounting Services Singapore & Keep Your Book of Records Updated

accounting services Singapore

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.

Outsource XBRL Filing & Tackle Your Compliance Satisfactorily

XBRL Filing Services in Singapore

Singapore XBRL Filing Requirements

 

ACRA (Accounting and Corporate Regulatory Authority) is a strict but just governing agency in Singapore. It has ordered that all incorporated companies registered in Singapore must resort to XBRL filing for submitting their full set of financial statements. The mandate applies to the companies that are unlimited or limited by shares unless they are exempted by the authorities.

What is XBRL Filing?

The ACRA’s mandate came into effect on 3 March 2014 and clearly mentions that the XBRL filing must be as per the revised filing requirements. ACRA has provided the companies with BizFinx, web portal, for the filing purpose. The agency has also provided the XBRL preparation tool on this portal. It has been a quite a while since the implementation of the mandate but still newly registered Singapore companies need to get acquainted with it.

XBRL is an acronym for eXtensible Business Reporting Language. The purpose of using it for the filing of financial data is to make the data easily accessible and retrievable in a structured manner. The financial data accumulated by the ACRA as well as the other governing bodies all over the world represents a very valuable source.

The data needs to be made available to the Auditors, Regulators, Financial Analysts and the organizations that are interested in studying economic factors. These professionals can use the data to predict the market trends and to forecast the changes in economies.

XBRL filing assists ACRA in delivering value-added financial data to the experts. It also helps in formulating a worthwhile response to the market trends by making changes to the regulatory environment. It is expected to improve transparency and dissemination of financial information in a realistic time-frame to improve its usefulness.

XBRL Filing Requirements for Different Types of Companies

Following table details the filing requirements set by ACRA for the different companies.

Type of Company

Filing of Financial Statements

Public / Private companies (limited/unlimited by shares), except those under

(a) and (b)

Full set of XBRL financial statements

specific companies regulated by MAS, i.e. commercial banks, merchant banks, licensed insurers, finance companies regulated by MAS

(Note: Only the above-specified types of companies regulated by MAS are exempted from filing of a full set of XBRL financial statements. Other types of companies regulated by MAS, e.g. money changers, are required to file a full set of XBRL financial statements.)

Financial statements highlights (FSH) in XBRL format + PDF copy of financial statements

companies allowed by law to prepare accounts in accordance with accounting standards other than SFRS, SFRS for Small Entities and IFRS

FSH in XBRL format + PDF copy of financial statements

Solvent exempt private companies (EPCs)

Exempted from filing financial statements, but are encouraged to file with following options:

  • full set of XBRL financial statements or

  • FSH in XBRL format

Insolvent EPCs

Options of:

  • full set of XBRL financial statements; or

  • FSH in XBRL format + PDF copy of financial statements

Companies limited by guarantee

PDF copy of financial statements
(XBRL filing not required)

Foreign companies and their local branches

PDF copy of financial statements
(XBRL filing not required)

(Source: ACRA)

How to Do XBRL Filing?

The best recourse for the Singapore companies, both, existing and start-ups in dealing with the XBRL filing requirements in place is to appoint an accounting services like SBS Consulting. The experts in such services use latest software tools to accomplish the task. By paying affordable XBRL filing fees, the companies can ensure their statutory compliance in the most satisfactory manner.

Of course, they have the option of doing the task on their own by visiting the ACRA portal BizFinx.  ACRA has made the directors of the companies responsible for the annual filing of their company’s financial statements. That is why they must keep in mind that it is an important task and any mistakes in the filing are not tolerated by the officials. They can be summoned for an explanation and may face fines and/ or more.