Small Business Accounting Services in Singapore
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.
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.
- Appointing Company Directors in Singapore: Eligibility, Process etc.
- Managing Director vs CEO in Singapore: Roles and Obligations
- Guide to Directors' Remuneration in Singapore
- Directors' Duties in Singapore
- Shadow Directors: Who are They and What Duties Do They Owe to the Company?
- How to Remove a Director from a Company in Singapore
- Removal and Resignation of Company Auditor in Singapore
- Appointing a Company Secretary: Roles and Responsibilities
- Appointing an Authorised Representative for Foreign Companies in Singapore
- Process Agents in Singapore
- 2 Ways to Remove a Singapore Company Shareholder ASAP
- Guide to Paid-Up Capital in Singapore (Is $1 Enough?)
- Preparing a Register of Shareholders for a Singapore Company
- How to Issue Shares in a Singapore Private Company
- Guide to Transferring Shares in a Singapore Private Company
- Your Guide to Share Certificates in Singapore: Usage and How to Prepare
- Shareholder Rights in Singapore Private Companies
- Shareholder Roles and Obligations in Singapore Companies
- Dividend Payments Guide for Singapore Business Owners
- Share Transmission: What Happens If a Shareholder Dies in Singapore?
- How to Reduce the Share Capital of Your Singapore Company
- Buy-Sell Agreements: How to Write & Fund Them in Singapore
- Oppression of Minority Shareholders
- Essential Regulatory Compliance Guide for Singapore Companies
- Dormant Companies and Their Filing Obligations in Singapore
- Anti-Money Laundering Regulations and Your Business: What You Need to Know
- Price-Fixing, Bid-Rigging and Other Anti-Competitive Practices to Avoid
- Legally Conducting Lucky Draws for Singapore Businesses
- Restaurant Inspection and Food Safety Rules in Singapore
- Does Your Company Need a Legal Team (In-House Counsel)?
- How to Change the Name of Your Singapore Company
- Can Directors be Liable for Company Debts in Singapore?
- Company Loans to Directors/Shareholders in Singapore
- 3 Types of Insurance Every Singapore Business Needs
- Creating and Registering Charges in Singapore: Guide for Companies
- Guide to Effective Business Continuity Planning in Singapore
- Business Asset Sale & Disposal in Singapore: How Do They Work?
- Business Partnership Disputes in Singapore: How to Resolve
- How to Commence a Derivative Action on Behalf of a Company in Singapore
- Business Will: How to Pass on Your Business to Your Successors in Singapore
- Record-Keeping Requirements for Singapore Companies
- Company Constitutions in Singapore and How to Draft One
- Company Memorandum and Articles of Association
- Company Resolutions: What are They?
- Board Resolutions in Singapore
- Minutes of Company Meeting in Singapore: How to Record
- How to Set Up a Register of Controllers
- How to Set Up a Register of Nominee Directors
- Guide to Filing Financial Statements for Singapore Business Owners
- Filing Annual Returns For Your Business
- Singapore Corporate Tax: How to Pay, Tax Rate, Exemptions
- Start-Up Tax Exemption Guide for New Singapore Companies
- GST Registration: Requirements and Procedure in Singapore
- What is Withholding Tax and When to Pay It in Singapore
- Singapore Influencers: Here's How to Calculate Your Income Tax
- Tax Investigation of Tax-Evading Business Owners in Singapore
- Small Business Accounting Services in Singapore
- Company Audits in Singapore: Requirements and Exemptions
- Suspect a PDPA Data Breach? Here's What to Do Next
- Must You Notify PDPC About a Data Breach in Your Business?
- Summary: Your Organisation's 10 Main PDPA Obligations
- Essential PDPA Compliance Guide for Singapore Businesses
- PDPA Consent Requirements: How Can Your Business Comply?
- Is It Legal for Businesses to Ask for Your NRIC in Singapore?
- Here's a 7-Step Plan for Companies to Prevent Unauthorised Disclosure When Processing and Sending Personal Data
- Cloud Storage of Personal Data: Your Business’ Data Protection Obligations
- GDPR Compliance in Singapore: Is it Required and How to Comply
- Appointing a Data Protection Officer For Your Business: All You Need to Know
- How Can Companies Dispose of Documents Containing Personal Data?
- Check the Do-Not-Call Registry Before Marketing to Singapore Phone Numbers
- How to Legally Install CCTVs for Home/Business Use in Singapore
- Is Web Scraping or Crawling Legal in Singapore?
- Legal Options If Employees Breach Confidentiality in Singapore
- Dealing with Defamation of Your Business: Can You Sue?
- Sending Email Newsletters That Comply With Singapore Law
- A legal guide to drafting a social media policy for your company
- Your Guide to a Media Release Form in Singapore
- Your Guide to an Influencer Marketing Agreement in Singapore
- Outdoor Advertising: How to Legally Display Public Ads in Singapore
- Voluntary Suspension of Business in Singapore: How to Handle
- Winding Up a Singapore Company: Grounds and Procedure
- Closing Your Singapore Business: What You Need to Settle
- Striking Off a Company
- Can a Company that Struck Itself Off the Register Later Apply to Restore Itself?
- Dissolution of partnerships in Singapore
- What Should a Creditor Do When a Company Becomes Insolvent?
- How to File a Proof of Debt Against a Company in Liquidation
- Insolvency: Claw-Back of Assets From Unfair Preference and Undervalued Transactions
- Validation of Payments Made by Companies Being Wound Up