Small Business Accounting Services in Singapore

Last updated on February 14, 2020

man using calculator

Accounting plays a vital role in business. It allows businesses to understand their financial positions and comply with statutory requirements. 

However, accounting may be time-consuming and costly for smaller businesses. For one, staff may have to be hired to perform accounting, and having such employees on payroll might place a significant strain on the business’ finances.

Hence, businesses today may consider outsourcing their accounting services to a professional accounting services provider.

This article will explore the importance of accounting operations, and some of the benefits of outsourcing such services if you run a small business in Singapore.

Difference between Accounting and Bookkeeping

Businesses should first understand the difference between accounting and bookkeeping. 

As a subset of accounting, bookkeeping is the recording of financial transactions within a business. It consists of activities such as producing invoices and completing payroll.      

On the other hand,  in accounting, an individual interprets and uses the information prepared by a bookkeeper to understand the financial performance of the business. This involves activities like posting adjusting entries, preparing financial statements and completing income tax returns using the transactions recorded by bookkeepers. 

As a result, skills like analysis and interpretation are vital for accountants since they have to interpret and analyse transactions prepared by bookkeepers. 

What Do Accounting Operations Consist of?

Accounting operations may consist of:

  • Bookkeeping services
  • Preparation of periodic management reports
  • Processing of accounts payable and receivable     
  • Preparation of budgets, financial analysis, business reviews etc.
  • Bank reconciliation
  • Auditor and tax liaison
  • Drafting of financial statements, as their filing is required under the Singapore Companies Act.

Why Outsource Your Business’ Accounting Operations?

If you are considering outsourcing your business’ accounting operations, you may engage an accounting firm to do so. The following are some of the benefits of outsourcing your business’ accounting operations:

1. You save time

Outsourcing your business’ accounting operations can help you to save time. Tasks like data entry and paperwork can be time-consuming, and outsourcing such tasks can allow you to focus on the growth of their businesses.  

2. You tap on professional accounting expertise

By outsourcing your business’ accounting operations, you can also let someone with the expertise take care of your accounting. For instance, they can help you to prepare your financial reports. You can then utilise the information to make decisions regarding business operations and plans. 

3. You save costs

Outsourcing can help you to save on employment costs, since you will not need to hire full-time staff to take care of your accounting operations. You will also save on the recruitment and training of employees. This is especially advantageous for smaller businesses since manpower is costly.

4. You can get assistance on other services from the same firm

The company you outsource your accounting to may also be able to help you with other services. Such services could include corporate secretarial services and applying for any licences/passes required for your business. Again, this frees up time for you to focus on business development.

How Much Will it Cost to Outsource Your Business’ Accounting Operations?

Accountancy firms may offer different fees and services for companies of different sizes and needs.

As an example, an accounting firm may charge from $600 per annum for bookkeeping, and $300 per annum for the compilation of financial statements. Some firms also offer packages with different services bundled together ranging from $299 to $1,899 a month.

You can get a quote for accounting services in Singapore here.

What Will You Need to Do to Outsource Your Business’ Accounting Operations?

Decide which services you require from accounting firms

To outsource your business’ accounting operations, you should first decide what services you require from the accounting firm. As mentioned above, different firms offer different services, and there are also various accounting operations that may be outsourced. Hence, you should first decide which types of services you want to outsource to the accounting firm. 

Prepare the relevant information and ensure its security 

You should also prepare the relevant information, such as financial data, to hand over to the accounting firm.

On a side note, you should ensure that information is handled in a secure manner as there may be risks associated with sending financial data via email.

For instance, you should check with the accounting firm on their network security and encryption methods to ensure data privacy.

— 

Outsourcing your accounting services can bring about many benefits to your business. Since accounting firms have financial expertise, they have the potential to help you achieve your business and financial goals.

If you require accounting services for your small business in Singapore, please get in touch with us using this form.

Compliance
  1. What are Annual General Meetings (AGMs) in Singapore?
  2. Anti-Money Laundering Regulations and Your Business: What You Need to Know
  3. Price-Fixing, Bid-Rigging and Other Anti-Competitive Practices to Avoid
  4. Dividend Payments Guide for Singapore Business Owners
  5. Company Audits in Singapore: Requirements and Exemptions
  6. Guide to Transferring Shares in a Singapore Private Company
  7. How to Hold Extraordinary General Meetings (EGMs) in Singapore
  8. How to Issue Shares in a Singapore Private Company
  9. How to Reduce the Share Capital of Your Singapore Company
  10. Legally Conducting Lucky Draws for Singapore Businesses
  11. Dormant Companies and Their Filing Obligations in Singapore
  12. How to Hold a Board Meeting in Singapore
  13. Paid-Up Capital in Singapore: A Complete Guide (Is $1 Enough?)
  14. Restaurant Inspection and Food Safety Rules in Singapore
  15. Essential Regulatory Compliance Guide for Singapore Companies
  16. Finding a Suitable Corporate Secretarial Firm in Singapore
  17. Oppression of Minority Shareholders
  18. Process Agents in Singapore
Company Management
  1. Shadow Directors: Who are They and What Duties Do They Owe to the Company?
  2. Guide to Directors' Remuneration in Singapore
  3. 3 Types of Insurance Every Singapore Business Needs
  4. How to Change the Name of Your Singapore Company
  5. How to Remove a Director from a Company in Singapore
  6. Appointing Company Directors in Singapore: Eligibility, Process etc.
  7. Company Loans to Directors/Shareholders (& Vice Versa) in Singapore
  8. Share Transmission: What Happens If a Shareholder Dies in Singapore?
  9. Business Will: How to Pass on Your Business to Your Successors in Singapore
  10. Shareholder Rights in Singapore Private Companies
  11. Removal and Resignation of Company Auditor in Singapore
  12. Shareholder Roles and Obligations in Singapore Companies
  13. Creating and Registering Charges in Singapore: Guide for Companies
  14. How to Commence a Derivative Action on Behalf of a Company in Singapore
  15. Managing Director vs CEO in Singapore: Roles and Obligations
  16. Appointing an Authorised Representative for a Singapore Business
  17. Business Partnership Disputes in Singapore: How to Resolve
  18. Appointing a Company Secretary: Roles and Responsibilities
  19. Directors' Duties in Singapore
Company Documents
  1. Company Constitutions in Singapore and How to Draft One
  2. Company Memorandum and Articles of Association
  3. Minutes of Company Meeting in Singapore: How to Record
  4. Guide to Filing Financial Statements for Singapore Business Owners
  5. Filing Annual Returns For Your Business
  6. Memorandum of Understanding (MOU): Does Your Business Need One?
  7. Company Resolutions: What are They?
  8. Board Resolutions in Singapore
  9. How to Set Up a Register of Controllers
  10. How to Set Up a Register of Nominee Directors
Company Resolutions Templates
  1. Your Guide to Resolutions Passed at a First Directors’ Meeting
  2. Your Guide to Resolutions to Appoint a Company Secretary
  3. Your Guide to Resolutions for Authority to Act on a Share Purchase and Subscription Agreement
  4. Your Guide to Shareholders’ Resolutions for Share Allotments
  5. Your Guide to Resolution for Authorisation of Investment in the Shares of Another Company
  6. Your Guide to Share Certificates in Singapore: Usage and How to Prepare
  7. Your Guide to Resolution for Transfer of Shares
  8. Your Guide to Resolution for Change of Registered Address
  9. Your Guide to Board Resolution for Approval/Allotment of Shares
  10. Your Guide to Resolutions to Increase a Company's Share Capital
Tax and Accounting
  1. What is Withholding Tax and When to Pay It in Singapore
  2. Singapore Influencers: Here's How to Calculate Your Income Tax
  3. Corporate Tax in Singapore: How to Pay, Tax Rate, Exemptions
  4. When to Register for GST, How and Responsibilities after Registration
  5. Start-Up Tax Exemption Guide for New Singapore Companies
  6. Tax Investigation of Tax-Evading Business Owners in Singapore
  7. Small Business Accounting Services in Singapore
Data Protection
  1. Essential PDPA Compliance Guide for Singapore Businesses
  2. Cloud Storage of Personal Data: Your Business’ Data Protection Obligations
  3. How Can Companies Dispose of Documents Containing Personal Data?
  4. Here's a 7-Step Plan for Companies to Prevent Unauthorised Disclosure When Processing and Sending Personal Data
  5. Appointing a Data Protection Officer For Your Business: All You Need to Know
  6. Summary: Your Organisation's 9 Main PDPA Obligations
  7. Check the Do-Not-Call Registry Before Marketing to Singapore Phone Numbers
  8. GDPR Compliance in Singapore: Is it Required and How to Comply
  9. Drafting a Comprehensive Privacy Policy For Your Singapore Website
  10. Is It Legal for Businesses to Ask for Your NRIC in Singapore?
  11. PDPA Consent Requirements: How Can Your Business Comply?
  12. Legal Options If Employees Breach Confidentiality in Singapore
Marketing
  1. Complying with Singapore Law When Sending Email Newsletters
  2. Outdoor Advertising: How to Legally Display Public Ads in Singapore
  3. A legal guide to drafting a social media policy for your company
  4. Dealing with Defamation of Your Business: Can You Sue?
Franchising
  1. Starting a Franchise in Singapore: What Franchisors Should Look Out For
  2. Running a Franchise in Singapore: What To Look Out for as a Franchisee
Debt Restructuring
  1. Informal Debt Restructuring and Workout in Singapore
  2. Schemes of Arrangement: How They Work and How to Apply
  3. Judicial Management: What is It and How Does it Work?
Ending a Business
  1. Insolvency: Claw-back of Assets from Unfair Preference and Undervalue Transactions
  2. Striking Off a Company
  3. What Should a Creditor Do When a Company Becomes Insolvent?
  4. Dissolution of partnerships in Singapore
  5. Validation of Payments Made by Companies Being Wound Up
  6. Can a Company that Struck Itself Off the Register Later Apply to Restore Itself?
  7. Closing Your Singapore Business: What You Need to Settle
  8. How to File a Proof of Debt against a Company in Liquidation
  9. Winding Up a Company