Accounting services are offered to help with all aspects of financial management. They can help solve everyday bookkeeping issues and provide long-term business planning. According to the Singapore Accounting Services Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022), the Singapore accounting services market is expected to grow at a CAGR of 5% during the forecast period of 2022 to 2027. This is driven by increasing statutory compliance, as the Companies Act, Financial Reporting Standard 110 (FRS 110), and FRS 104 require Singaporean businesses to file statutory returns, maintain proper accounting records, and submit annual reports with XBRL statements. This has led to smaller businesses outsourcing their accounting requirements to professional service providers. Other Singapore Accounting Services Market Trends Include: a growing emphasis towards a virtual economy, increasing internet and smartphone penetration rates, and a growing focus on risk management and cybersecurity due to the number of cyberattacks.
Accounting services are offered to help with all aspects of financial management. They can help solve everyday bookkeeping issues and provide long-term business planning. This guide offers expert insights into the accounting services businesses expect and need in Singapore. You’ll also know the answers to the following: why are accounting services important? What accounting services do experts offer? When should you invest in professional accounting services? Accounting services variables to consider; what can you expect from your accounting services? The SMEs Go Digital Programme has contributed to an increased usage of technology in the back-office operations of small- and medium-sized enterprises, according to a report by the Government Technology Agency of Singapore. The programme supports SMEs in the use of digital technologies, digital tools, and digital skilling to upgrade from accounting and bookkeeping manual processes.
Importance of Accounting Services for Singaporean Businesses
Understanding the Business Readiness Stages of Accounting Start-ups. The aim of this research is to explore the preparation stages of entrepreneurs who employ and rely on the services of professional accountants. Aspiring entrepreneurs planning to verify their business plans want to clearly understand the importance of accounting in a business, the importance of accounting to the market (entrepreneur), and accounting skills as assets of an entrepreneur. At the same time, accounting start-ups that provide financial services aspire to achieve market development goals. It’s possible that formal business coaching will help entrepreneurs seeking business improvement to connect with growth-oriented accounting start-ups, promoting collaborative outcomes that build a mutually valuable CPA (entrepreneur) program. This book helps knowledge-seeking entrepreneurs verify their beliefs about accounting in the form of a self-teachable instruction manual, and it helps inform CPA urban accountants aspiring to enhance their communication style. Through our research, we hope to contribute to accounting services literature, accounting practice guidelines, policy, and regulations specific to small businesses.
Even a company that is growing well can ultimately lose its stability if there is no financial accountability. Consequently, entrepreneurs need trustworthy professionals who can do the accounting tasks and offer them precious financial advice. Aspiring entrepreneurs start to prototype their business plans, they need to understand the significance of accounting in a business. This book helps knowledge-seeking entrepreneurs seek the truth about accounting. Through six separate chapters that cover the whole accounting field from the normative beliefs about accounting to accounting information systems, the answers to these questions are clarified and shared. In addition, they include the standard publishing conventions recommended in academic accounting, undergraduate accounting, and business education.
Ensuring Compliance with Singaporean Accounting Standards
There are a myriad of accounting teams that possess varying processes and procedures; however, there’s also something else that businesses in Singapore should keep a close eye on – technology. With nearly 100% of Singaporean businesses comprised of small and medium-sized enterprises (SMEs), many businesses are demanding more tech-savvy accounting solutions. However, some accounting firms are more entrenched in their legacy systems, and don’t offer enough transparency or online accessibility for businesses. Embracing digital platforms in order to support workflow automation, service enhancements, connectivity and a whole raft of other opportunities is the most surefire way for a forward-thinking accounting firm to bring in new clients, and for businesses that are after the most efficient solutions. One particular way through which technology could work in favor of the client is through access to data.
It’s never a good idea to ignore the telltale signs that an accountant is needed. But too often, Singaporean businesses enter the partnership stage too late, opening the doors to a number of complications. With compliance, cost, relevance to business size and other factors to consider, let’s first drill down into what businesses really need from accounting services Singapore. Ensuring that your business is fully compliant with the IFRS and the Singapore Companies Act is crucial. However, many businesses find themselves lacking the resources in-house, and therefore need to work with a good external accountant who is familiar with the accounting standards in Singapore.
Managing Financial Records and Reporting
Good records allow management to make better, informed decisions and are a prerequisite for a business to meet its financial reporting obligations. Record-keeping is also a prerequisite for the preparation of annual financial statements that are required for tax purposes. Record-keeping involves keeping the following information: details of classified income and certain expenses, a list of assets and liabilities, and further accounting records of all the business’s financial transactions. Effective record-keeping is also crucial for ensuring compliance with the various tax acts, such as the Income Tax Act, the Value-Added Tax Act, the Second-Hand Goods Act, the Skills Development Levies Act, the Unemployment Insurance Contributions Act, and the Employment Tax Incentive Act.
Accounting encompasses a complex variety of processes in recording, summarizing, and interpreting financial information. It is daunting for many businesses, but it is absolutely essential for any business, new or established. If you simply cannot handle the accounting facet of the business, then outsourcing to a bookkeeping and accounting services provider would be quite wise. Furthermore, regulations are constantly changing, and non-compliance can result in fines and prison time – unavoidable even if you are an innocent beginner business owner. When compliance is not an issue, a business plan trumps everything else in accounting when it comes to starting and operating a business.
Key Accounting Services for Singaporean Businesses
Singapore is amidst the top business locales today. Though it is a small nation with a population of less than six million, the country gets to be known as a paradise for immigrants seeking work or to start businesses on its sunny shores. Its being an enticing business location is made possible via numerous and gentle tax structures, political stability, as well as competitive business legislations. What enterprises with offices located elsewhere fail to do in other locations, it is the ease of doing business. Singapore tops challenges, and it is both efficient and crystal clear with least hurdles and different risk protection conditions. Honest entrepreneurs though are familiar with the importance of solid accounting.
Singaporean businesses are bound by law to comply with regulatory and filing requirements as set forth by ACRA, or Accounting and Corporate Regulatory Authority. First and foremost, an enterprise may retain support services from an external provider, rather than managing its finances and accounts in-house. But the types and features of services are multifarious, and it is important to first define what requirements fall onto your enterprise when choosing between the different types and features.
Navigation in the area of business services is difficult due to the variety that exists, yet cost and quality are at stake when businesses must make their choice. Figure out how accounting services could work for you and your enterprise with this article.
Bookkeeping and Financial Statement Preparation
Bookkeeping and financial reporting go beyond credit card and bank entry balances. The accounting expert should reconcile the bank’s entries to its schedule, not the statements. The balance in the bank’s schedule should be equal to the reconciled balance in the organization’s books. Moreover, the information on assets and loans resting with third parties should be investigated. Bank statements are not always indicating outstanding checks, and the bank balances that earn interest actually depend on the name of the account. Users should be critical of any accounting professional who does not explain those differences during negotiations.
Experts in Singapore agree that maintaining your records digitally can save you significant time and money, where they integrate in a cloud accounting software. Even a 1-man operation can avoid fines and penalties under the Companies Act for late filing of financial statements. Choose a responsible service provider who can ensure compliance with government regulations with a fixed fee and will meet your deadlines. The general ledger should tie to the trial balance, and the trial balance in turn will tie to the financial statements. When comparing your cloud accounting solutions, the ease to comply with reporting deadlines should be an important factor in your decision, as the next concern in these experts’ opinion – be compliant.
Bookkeeping and Financial Statement Preparation. Many start-up businesses, though legally required under the Companies Act to prepare financial statements, do not have enough transactions to appoint an auditor. All companies, however small, must prepare their financial statements in compliance with the Companies Act. Startups should find a license filing agent to prepare and file professional financial statements to see if their business is viable. When looking for a bookkeeper, business owners should ask them if the bookkeeper knows the legal implications of processing transactions and how the file is prepared to be integrated into the financial statements of a company.
Tax Planning and Compliance
Tax planning and continuous monitoring are important with the new products and services offered by the company as well as data reliability. Securing capital gains appointments for the business must be included, as there is a limit to the amount of capital gains applicable to the company. The organization needs to maintain revenue, handle expenses, and evaluate the indexing plans in less risky investments. Also, employees in the company are responsible for the relief they are entitled to and the tax breaks they receive. Upon approval by the controller of tax administration, the organization would require the entities and accountings. Ordered recognition of dividends should be established for all businesses to cause management policies are in place. Every dollar will contribute to customer satisfaction, cash flow, and integrity in the business. Minimizing tax firm liability results from a timely financing method which also downsizes the expenditure of any tax payments. The institutionalization of flat rates is established by tax practices and includes each client, and provides consistent and reliable economic advice while considering variables such as advances and pensions.
Since the objective of tax planning is to retain the income tax to an absolute minimum amount appropriate in accord with the tax laws, this process requires a yearly upgrade. Since continuous changes to the tax laws are being made by the government and regulatory authorities, engaging the layman to ensure accountings are accurate and on time would help minimize unnecessary fines, have a clean record, and capture offsets. For tax compliance to be successful, good bookkeeping has to be applied to keeping the business afloat and healthy, which is made possible by tax planning.
Payroll and Employee Benefits Administration
If the 15th falls on a Saturday, Sunday, or public holiday, the due date will be the next working day. For organizations which have a small number of employees, the business owner himself may be able to handle payroll. Companies may also utilize several off-the-shelf and cloud-based platforms that provide do-it-yourself payroll services. There are also payroll services that employers could outsource to from accounting and corporate secretarial firms, HR consultancies, as well as payroll services firms and even technology companies. Such specialist firms can assist with remuneration rules, local labor law, tax regulations and file IR8As for you. Navigating payroll regardless of how simple or complex it might be can be time-consuming. Hence, it is common to outsource the payroll function to keep the maintenance of payroll and CPF laws, avoid potential penalties, and ensure timely and accurate filings. Payroll and Human Capital Services will be able to help you with setting up as well as looking after both needs. Further to the above, it is important to ensure that you are well-informed of where your payroll taxes are heading to. Failing which, owners might find themselves in a position with complications from tax agencies and potentially risk jail time. Another regular area related to payroll and talent management is providing tax-related services. Providing tax compliance, employment compliance, and any HR risks assessments. A larger practice generally would have dedicated individuals who focus solely on payroll compliance-related products. Positioning your firm through cloud-friendly payroll solutions can help to automate the outsourcing of payroll, improve collaboration efficiencies in your practice as your firm transitions to become more cloud-based.
Payroll is an important part of the accounting system for many businesses in Singapore and it can be provided as a service. Apart from regulatory obligations, one of the key considerations will be the timing of payments for Companies and Income Tax Authority of Singapore (IRAS) requirements under their e-filing and payment scheme. The due dates fall on the 15th of every month, as per the below table.
Choosing the Right Accounting Service Provider for Singaporean Businesses
In this chapter, we and our panel of seasoned accounting professionals set out to explain and clarify the ins and outs of the various accounting service providers available for Singaporean businesses. While price considerations are discussed, cost is not the entire focus; instead, our conversations and expert insights are split across the unique offerings, value additions, and practical takeaways of each service provider category. Statements and opinions reflect our accounts’ personal experiences and observations while anonymizing their identity and thereby assuring open, honest, and candid responses from them. Information was gathered through a structured questionnaire, with ticking boxes and rating scales, as well as with open-ended, free-format comments to help give context and bring color to the raw data. A background of our seasoned accounting professionals can be found at the conclusion of this chapter.
• Quality of accounting support, ethics, and character. Establish whether the accounting provider is service-oriented, like time management, response times to your inquiries, and so on. Moreover, you should ask about their confidentiality ethics, security of data, and potential conflicts of interest with your other service providers.
• Level of expertise and services. Firstly, the accounting provider should offer a range of services to grow alongside your business, from basic bookkeeping to forecasting and planning. Also, the team should have the necessary qualifications, certifications, and real-life expertise, all of which must be clear from their portfolio. Experience in your industry also counts since accounting and tax obligations can vary by sector.
With the need for professional help established, the next task is choosing the right accounting service provider that can add value to your books and help your business grow. To guide you in your search, we compiled the most important factors according to our panel of accounting experts.
Assessing Expertise and Experience
Then, evaluate the frequency that the previous company engagements were performed and the success they achieved during and after said engagements. Once completed, ask for references weighing the overall SPF service offering, professional presence, desire and ability to assist across all lines of the professional service offerings, fee structure, and availability for continued business development services long after the transaction.
Next, assess the experience that the professional can bring in these specific areas. Make sure to require that your potential accountant has previous experience working with a similarly scaled company in the past – ideally companies within the same service or manufacturing industry and region. Due diligence and experience in relevant and detailed operational and financial areas of your company are critical to providing your business with the attention to detail needed for short term operational and long-term strategic goal success.
Firstly, consider the level of expertise and specialization the accountant can bring to the table. CPAs should be specialized based on which CPA Exam and the specific national and state-level courses they have passed. An entrepreneurial-oriented CPA will likely be more resourceful and innovative than a more traditional service provider. As an entrepreneur, you need an accountant who can prioritize which financial and bookkeeping services are necessary at every stage and can provide you with outside opinions and potential financial explanations as to why their specific recommendations are important to the growth of your organization. Be wary of accountants who try to generalize and put slight focus on internal bookkeeping and tax-related services.
When evaluating and selecting an accountant, it is essential to assess their level of expertise. Ideally, you should select someone who has a background in accounting and has also passed the CPA exam. On top of that, relevant experience with a company or organization similar to yours can be useful. Experience with a variety of services is also essential, given that these professionals often provide an array of services that are all crucial to the success of your business.
Considering Industry Specialization
When looking for an accounting service in Singapore, also consider availability and communication. These aspects are essential in the Singapore business climate. Not all firms are the same in terms of the time they are willing to invest in building a relationship with their customers. Once you have found two, three, or four suitable accounting services Singapore, you can set up meetings with their representatives to explore what they have to offer. Each meeting provides an opportunity for you to discuss your perspectives and needs, allowing the firms to determine if they can meet your requirements. Busy service representatives who are unlikely to spend time with you will only waste your time without providing any necessary mutual benefits.
Consider if the prospective accounting firm has specific qualifications or knowledge of your particular industry. Services like tax accounting cover all industries, but the best services have at least a basic understanding of your industry, whether it’s technology, logistics, biotech, real estate, or professional services. If the service has experience working in your industry, it is advantageous for your company. These services can structure accounting software systems to suit your needs, making it easier for you to track your business finances and identify any problems specific to your industry. A good accounting service can help you approach your accounting processes in a new way, taking into account the specific traits of your industry.
Evaluating Service Fees and Pricing Models
Many people who are thinking of using the service of an external accountant feel that the most important factor to consider is service quality or the technical competence and professional credentials an accounting professional possesses. As such, obtaining a service of an individual who is an Institute of Certified Public Accountants of Singapore-registered individual or a full-fledged member of the Association of Chartered Certified Accountants or the Chartered Accountants of Singapore or an accomplice of any of the official professional bodies emerged as the top factor respondents considered when engaging the assistance of an external accountant or an external accounting firm. Customers find the monthly service fee model convenient as the payment is usually linked to the regular service work done. This fee model also allows customers to obtain the full suite of services they require whilst not having to experience large financial expenditures at a sum, which could be prohibitive, especially during periods in which the business is at the proposed or development stage of growth or if personal finances are segregated from business usage.
One of the many challenging aspects of developing an accounting system is the selection of a service provider, such as an external accountant. This decision-making process is usually exacerbated by fee and pricing concerns as various pricing models or fee pricing strategies available to accounting firms, including time and cost recovery pricing, value pricing, and fixed pricing or outcome-based pricing. Not only will service fees impact clients’ accounting software decisions, but they will also affect their decision to outsource their accounting and bookkeeping needs to an external accountant or accounting firm. That is, although service quality is considered to be the most important factor people who are looking to outsource consider when selecting service providers, people seldom realize that service fees also influence a decision to outsource.
