February 24 2 MIN READ

The Secret to Successful Accounting – Small Business Solutions in Singapore

Small Business in Singapore

Small businesses in Singapore are booming, with many entrepreneurs taking the plunge to start their own companies. As a business owner, you need to have an accurate understanding of your finances and tax obligations.

Accounting services in Singapore can help small business owners manage the financial aspects of their business more effectively. With the right accounting services, it is possible for small businesses to get better control over their accounts to ensure that they remain profitable and compliant with all legal requirements.

Definition: What is Accounting?

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. In Singapore, accounting is governed by the Singapore Financial Reporting Standards (SFRS), which are issued by the Accounting and Corporate Regulatory Authority (ACRA).

The main purpose of accounting is to provide information that is useful for making business and economic decisions. This includes providing information about a company’s financial performance, such as its revenue, expenses, and profits, as well as its financial position, such as its assets, liabilities, and equity.

There are two main types of accounting: financial accounting and management accounting. Financial accounting is concerned with the preparation of financial statements that are presented to external users, such as shareholders, creditors, and regulators.

These financial statements include the balance sheet, income statement, and statement of cash flows. Management accounting, on the other hand, is concerned with providing information to internal users, such as management and employees, to help them make informed decisions about the operation of the business.

In Singapore, companies are required to prepare and file financial statements on an annual basis in accordance with the SFRS. These financial statements must be audited by an independent auditor in order to provide assurance that they are accurate and reliable.

Corporate income tax exemptions for start-ups in Singapore
when Tax Exemption (Year of Assessment 2020 Onwards) Example for first S$200,000
First 3 Years of Assessment 75% exemption on the first S$100,000 of normal chrageable income, and further 50% exemption on
the next S$100,000
S$75,000 for the first S$100,000, and S$50,000 for the next S$100,000
Fourth Year Onwards 75% exemption on the first S$100,000 of normal chrageable income, and further 50% exemption on
the next S$190,000
S$75,000 for the first S$100,000, and S$95,000 for the next S$190,000

Benefits of Accounting Services

Accounting services are becoming more and more important for businesses in Singapore. Good financial management is essential to the success of any organization, and accounting services can help optimize your business’s finances.

With a wide range of accounting services available, it’s easy to find an experienced professional who can help you manage your finances effectively. This article will discuss the various benefits that businesses in Singapore can reap from utilizing accounting services.

Types of Accounting Services

Here are several types of accounting services that are commonly offered in Singapore:
Bookkeeping services:

These services involve maintaining a company’s financial records, including recording transactions, preparing invoices, and reconciling bank statements.

Tax preparation services:

These services involve preparing and filing a company’s tax returns, as well as providing advice on tax-saving strategies.

Audit and assurance services:

These services involve reviewing a company’s financial statements and processes to ensure that they are accurate and in compliance with relevant laws and regulations.

Financial statement preparation services:

These services involve preparing a company’s financial statements, such as its balance sheet, income statement, and statement of cash flows.

Financial planning and consulting services:

These services involve providing advice and assistance to businesses on financial matters, such as budgeting, cash flow management, and investment planning.

Payroll services:

These services involve processing a company’s payroll, including calculating and distributing employee salaries and benefits.

Corporate secretarial services:

These services involve handling the administrative and compliance tasks required for maintaining a company’s legal status, such as preparing and filing annual returns and maintaining statutory records.

Business registration services:

These services involve assisting businesses with the process of registering and setting up a company in Singapore.

Cost of Professional Services

The cost of professional accounting services in Singapore can vary widely depending on the specific services being provided and the size and complexity of the company. Some factors that may affect the cost of accounting services include:

The type of service being provided:

Different types of accounting services may have different pricing structures. For example, bookkeeping services may be charged on an hourly basis, while tax preparation services may be priced as a flat fee.

The size and complexity of the company:

Companies with more complex financial operations or a larger number of transactions may require more time and resources to handle, which may result in higher fees.

The experience and qualifications of the accounting firm:

Firms with more experienced and qualified staff may charge higher fees for their services.

The scope of the engagement:

The scope of the accounting services being provided will also affect the cost. For example, a full audit of a company’s financial statements will typically be more expensive than a review of a single financial statement.

It is important to discuss the cost of accounting services with the firm you are considering hiring in order to get a clear understanding of the fees involved.

Many firms offer fixed-price packages or will provide a detailed estimate of the costs involved before starting work.

Can I do my own bookkeeping?

Yes, it is possible for business owners to do their own bookkeeping. However, it is important to keep in mind that bookkeeping involves maintaining accurate and up-to-date financial records, which can be a time-consuming and complex task.

If you decide to do your own bookkeeping, it is important to familiarize yourself with the principles of bookkeeping and the specific requirements for your business. This may involve learning about accounting software and keeping track of transactions, preparing invoices and reconciling bank statements, and maintaining accurate records of your business’s financial transactions.

If you are not confident in your ability to handle the bookkeeping tasks for your business, or if you do not have the time to devote to this task, it may be more efficient to hire a professional bookkeeping service to handle these tasks for you.

This can help ensure that your financial records are accurate and up-to-date, which can be important for tax purposes and for making informed business decisions.

Conclusion: Find the Right Fit

In conclusion, the key to successful accounting lies in a combination of insight, strategy, and expertise.

An experienced accountant or consultancy firm in Singapore can help you make the most of your business’s finances and ensure long-term success. By leveraging the latest technology and industry trends, they can provide customized solutions tailored to meet your needs.

With the right professional support, small businesses in Singapore can unlock their full potential for financial success. So take advantage of this opportunity and build a secure foundation for your business today!.