9 Accounting Services for Small Businesses in Singapore

9 Accounting Services for Small Businesses in Singapore

9 Accounting Services for Small Businesses in Singapore

Often, entrepreneurs carry out general accounting services for small business Singapore by themselves. Yet, as there is not much time each day, the business owner might find this task trivial compared to the essential aspects of operating a business.

As a result, small businesses tend to neglect payrollbasic bookkeeping, and even tax reporting. When this happens, problems can arise. Still, many entrepreneurs are driven and brilliant people who can work out a solution. 

While various accounting software can facilitate the management of accounting needs, the big question for most business owners is if they should really be performing these tasks!

Read on for all the essential details about accounting services for small business Singapore.

Accounting Services For Small Business Singapore: How To Define Small Businesses?

As mentioned in Singapore Financial Reporting Standards (SFRS) for Small Entities, a small business if it is a private company and meets two or all of these criteria:

    1. Holds gross assets at a total of SGD ten million or less, 
    2. Employs 50 or fewer workers, or 
    3. Annual revenue is SGD ten million or less.

Such a business is also exempt from audits. This is an important aspect to consider when seeking accounting services for small business Singapore.

Accounting Services For Small Business Singapore: What Services Are Needed?

We cannot deny that accounting is vital in operating a business. It helps business owners to track revenue and expenditures and safeguard statutory compliance.

On top of that, it provides the government, investors, and management with quantitative financial data that is useful in making decisions regarding the business. 

This is a list of the various accounting services for small business Singapore that business service providers like SJH Advisory offers:

Bookkeeping and Accounting

Bookkeeping is the daily routine of recording monetary details and dealings. All financial transactions must be appropriately documented and posted as a debit or credit account to ensure that the business is stable in its finances. 

On top of that, invoices must be generated, current and historical accounts in the accounting books balanced, and payroll completed on time. In addition, monthly accounting reports exist as a critical company function. Thus, besides timely bookkeeping, accurate accounting stays of paramount value to the continuing performance of any business.

Typically, small business accounting involves three main reports: the cash flow statement, income statement, and balance sheet. The report on the cash flow shows where the money came from and how it was spent or appropriated. The income statement shows the business’ income or loss for a given period. In contrast, the balance sheet shows the company’s financial position on a given date in terms of its assets, liabilities, and capital or equity.

Bank Reconciliation

Bank reconciliation is also one of the essential accounting services for small business Singapore. This task involves matching the bank and internal records of the company’s bank account. Naturally, this results in making the necessary adjusting entries to the in-house books to align the two. On top of that, this is vital in ensuring that the recorded cash amount of the business is accurate, besides detecting any possible bank error.

Cash Flow Projections

Another important accounting services for small business Singapore is cash flow projection. This task entails the examination of the cash receipts and disbursements of a business that reveals essential data on the current cash flow standing, viability, profitability, besides overall performance. With qualified finance experts conducting a complete cash flow study, it is easier for the business to carry out its financial reporting tasks.

Financial Analysis

Financial analysis is another significant accounting services for small business Singapore. This accounting service also provides business owners with high-quality financial planning. For example, doing a full investigation of the company’s cash flow produces reports and insights on the business finances. As a result, it enables small business owners to stay updated on the overall financial standing of their business.

Internal Auditing

Any business must have a comprehensive internal audit covering all processes from a single procedure to the company-wide system. In this way, there is a much higher possibility of uncovering any hidden financial prospect in the company.

Management Reporting

Management reports remain a system of business acumen as they contain performance figures and analysis. Their purpose is to assist management in making decisions and advising senior executives. Frequently, these reports consist of proprietary information for in-house use only.

Operational and Finance Function Support

This service comprises the supporting of day-to-day accountingbookkeeping, and finance back-office work. Its purpose is to help with the streamlining of processes and increasing utilization, besides bridging gaps between technology systems and the business. 

This may include tasks such as book cleanups, maintenance of ledgers on fixed assets, accounts receivable and payable, and the general books of accounts.

Payroll Services

This accounting service provides payroll administration of timely salary releases to employees, tax filing of withholdings, and CPF or Central Provident Fund registration. It also includes issuing form IR8A for the employees’ taxes, preparing documents, and submitting the required information for the Auto-Inclusion Scheme to IRAS. That also includes calculating figures, ranging from the gross salary to the net take-home pay of employees and their corresponding CPF.

Statutory Compliance

In reality, this is the most common reason for small businesses to have an in-house accounting team or engage the services of an accounting firm. After all, every company must file a tax return each year. Today, businesses even opt to use accounting software to save time and human resource costs, besides ensuring correct work execution.

Accounting Services For Small Business Singapore: Startups And Small Businesses

Auditing is inevitable unless the business is subject to a particular law involving a local authority. Still, audit covers most companies, including startups, incorporated as private firms in ACRA. For this reason, SJH Advisory understands that small businesses and startups face many challenges in keeping their financial books intact and our consultants are ready to provide accounting services for small business Singapore.

Hence, we provide Singapore businesses with professional accounting services within their means. Most of these businesses find it cost-effective to have us carry out their accounting tasks. Rest assured that whatever accounting service the company needs, we can help ensure its financial health.

Accounting Services For Small Business Singapore - Frequently Asked Questions

Typically, accounting services for small businesses Singapore involve preparing three critical statements, as stated above. Companies complete daily accounting tasks using accounting software, either internally, or through outsourced professional services.

Essential small business accounting practices include keeping the business’s finances separate from the finances of its owner, maintaining accurate books of accounts, and tracking expenses and income. Likewise, small firms may consider hiring certified accountants or automating their process using accounting software.

Although many single proprietors manage without hiring an accountant, working with one benefits corporations and LLCs. CPAs can “read numbers” while analyzing bookkept records, assist with tax and payroll requirements, offer financial advice, and even represent the business during IRAS audits.

Contact Us

If you have any enquiries, please feel free to contact us. We will answer your question as soon as possible, Thank You!


Other articles that might interest you

Related Content

cash flow statement Singapore

How important is a cash flow statement for Singapore business?

Cash is the lifeblood of any business, providing the fuel it needs to operate, expand, and thrive in the competitive marketplace. Fortunately, there is a financial tool that can shed light on the inflows and outflows of money within your organization: the cash flow statement. This vital financial statement serves as a comprehensive record of your business’s cash activities, providing a clear picture of how cash is generated and utilized over a specific period.

In this blog post, we will delve into the significance of a cash flow statement Singapore businesses should know about. Read on to discover how this financial tool can empower your business and drive it toward success.

Read More »
Singapore GST Hike 2023

How to Handle Singapore GST Hike 2023 for Singapore Businesses

To adapt to Singapore’s changing economy and cater to the increasing demands of its population, the government has announced Singapore GST hike 2023. As a business owner or executive, it’s crucial to stay informed and prepared for this upcoming change. The GST hike will significantly impact your organization’s financial strategies and operations. In this article, we will provide key considerations and actionable advice to successfully navigate the Singapore GST hike 2023.

Read More »
Singapore Budget 2023

The Key Highlights of Singapore Budget 2023 for SMEs

On 14 February 2023, the Singapore Budget 2023 Statement was officially delivered. The budget is designed to cushion the impact of global economic uncertainties on the local economy and to support the nation’s recovery from the COVID-19 pandemic. In this article, we will explore the key highlights of Singapore Budget 2023 for small and medium enterprises (SMEs), including increased financing, taxes for multinational enterprises (MNEs), the Enterprise Innovation Scheme, higher monthly CPF contribution by 2026, and more.

Read More »
nominee director in singapore

The Complete Guide To Appointing a Nominee Director In Singapore 

When incorporating a company in Singapore, it is mandatory to appoint at least one local resident director. For foreign entrepreneurs who do not have Singapore citizens or permanent residents among their team members, appointing a nominee director becomes a necessity. In this article, we will discuss the reasons why it is mandatory to appoint a nominee director in Singapore, the risks involved, and the duties of a nominee director Singapore companies may choose to appoint.

Read More »