The accounting/finance function forms the backbone of any firm, SME or MNC. However, there are so many types of accounting services to be aware of that it is worthwhile engaging an accounting professional. They are trained, organised, accurate and competent, giving you more time to focus on your business and reach greater heights.
If you are looking to outsource your accounting, there are 5 essential services the firm will need to deliver. To make life easy we have detailed the description of each and why they are important below.
Bookkeepers in an accounting firm can help you to keep a record of general ledger reports, trial balances, profit and loss statements, balance sheets and schedules.
Bookkeeping also involves bank reconciliations, which compares your accounting data to what the bank has recorded, helping to identify any discrepancies in your records or possible transaction errors.
An accounting firm doing your bookkeeping also ensures that all relevant documents and information (financial statements, tax computation and supporting schedules, comprehensive profit and loss statements) are kept for easy reference. This helps to speed up the retrieval of documents for statutory reporting and filing of taxes.
With thorough and updated bookkeeping, you can swiftly identify problems related to revenue and cash flow early, helping to avoid any adverse impacts on your business if otherwise left unchecked.
2. Statutory & Governmental Compliance Reporting
As your business grows, there will be a myriad of legal obligations your company has to comply with. These obligations include the notification of changes of share capital if new shareholders or directors are added or removed, as well as the meeting of tax and accounting requirements that could change depending on your business model and activities.
Another key obligation is the filing of year-end financial statements and board resolutions that are needed by Singapore’s Accounting and Corporate Regulatory Authority (ACRA).
A credible accounting firm assists you in the understanding of convoluted statutory requirements and ensures that you comply with the laws.
The last thing you want is an audit by IRAS digging through your past records, wasting even more of your resources and time or worse – issuing a hefty fine to your company for non-compliance and/or errors!
3. Tax Accounting & Planning
While paying taxes is part and parcel of running a business, it is unnecessary to pay beyond what is needed. In fact, you might be able to save on quite a bit of taxes, if you only know what look out for!
A good accounting firm not only provides tax accounting services but also helps you develop a long-term strategy to achieve significant tax savings over time.
Effective tax planning strategies help to lower the amount of taxable income, allowing for greater control over when taxes are paid while maximising tax relief.
An accounting firm can also evaluate the tax consequences of cross-border transactions to improve your firm’s tax position. For example, if your business is spread across different countries, taxes on business operations and/or transactions could be difficult depending on the jurisdictions and availability of tax treaties.
4. Payroll Processing & Cash Management
With a multitude of regulations to be met coupled with a growing number of employees, payroll becomes increasingly complex as your company grows.
Ensuring your employees get paid is one aspect that cannot be overlooked.
In addition to computing gross to net salary and CPF as well as the management of your payroll, accountants can help to prepare your year-end IR8A (employee earnings reporting) forms for filing with IRAS.
Vendor payment taking up a significant portion of your time?
Many accounting firms today also help you with the payment of vendor invoices and employee expense claims via cheques, online banking, electronic transfers, telegraphic transfers or other forms of payment.
5. Management Accounting
Accounting doesn’t just keep you compliant with regulations, it is also a component of good business management that can help your company to grow.
A regional accounting firm has management accountants that can conduct a business analysis of past and present accounting data, as well as help analyse different sales channels, products, services, marketing activities and business models.
Management accountants will analyse the basic data and make forecasts, budgets, performance measurements and plans, then present them to senior management to assist in its operational decision making. A management accountant may also identify trends and opportunities for improvement, improvement, analyse and manage risk, arrange the funding and financing of operations and monitor and enforce compliance.
By staying up to date with industry trends, management accounting can provide and advise on long-term strategies that enable you to surpass your competitors and achieve your business objectives.
Looking For A Trusted Accounting Firm In Singapore?
At Boardroom, we are experts in accounting, helping companies from corporations to fast-growing SMEs, with their accounting outsourcing, allowing them to focus on what matters – growing their business and getting more clients.
From handling tax accounting to managing statutory compliance reporting for companies across Asia-Pacific, we help companies with our full suite of accounting services, allowing them to remain compliant, maximise their tax benefits and stay organised in their bookkeeping.
Contact us today and empower your organisation with greater freedom through our accounting solutions.
Or you can also learn more about our accounting solutions here.