Accounting is one of the essential functions your business requires for robust financial management, no matter how small or large your company is. However, many business owners still engage an in-house accounting team to take care of these tasks. This not only takes up their valuable time but also heightens the risk of compliance issues that could cost their business in the long run. 30% of Singapore start-ups fail within the first three years, and poor financial management is one of the principal causes.
In Singapore, there are a number of accounting requirements your business needs to fulfil if they don’t want to be penalised, which could be stressful for your company to manage and be compliant with if you are low on resources.
This is where outsourced accounting services rise to the forefront. Outsourcing professional accounting services offers a multitude of benefits that go beyond just bookkeeping. These services help facilitate the financial operations and planning of your company, allowing for better management, cash flow, and compliance, whilst giving you more time to focus on your core business goals.
Discover what different types of accounting services are essential for business success, ranging from advisory to tax filing, and why getting them outsourced to a reputable accounting firm is pivotal to propelling your company to even greater heights.
Types of accounting services
There are numerous services that fall under the blanket of accounting, all of which need to be paid careful attention to in order for your business to run smoothly and efficiently. When you engage an outsourced accounting service provider, you should ensure they can deliver the following essentials:
- Tax Accounting & Planning: Supports with all taxation-related matters, including but not limited to tax filing, tax preparation, and tax strategy.
- Bookkeeping: Provides regular maintenance of all your company’s important records, reports, statements, and so on.
- Statutory & Governmental Compliance Reporting: Ensures your company is operating in accordance with local laws, such as preparing financial statements in XBRL format.
- Management Accounting: Conducts business analysis, identifies trends and opportunities, and advises on long-term strategies.
Accounting services: understanding why to outsource
What with all the different components of accounting, a high level of effort and expertise is required in order to carry out all these tasks correctly and in a timely fashion. Doing this in-house could prove to be a huge strain on many businesses, potentially resulting in errors and inefficiencies. By outsourcing these services to a professional accounting team, your company can effectively relieve all of these stresses, giving you access to individuals proficient in various areas of accounting, be it tax management or bookkeeping. This opens up the possibility of a range of benefits for your business, such as:
- Staying compliant with statutory requirements and regulations
- Saving on hiring costs and recruitment training time
- Enjoying professional accounting advisory services from experts in the field
- Gaining a clearer picture of your company’s financial health to make informed decisions
- Maximising your tax savings and deductions
- Establishing an organised and automated accounting flow
What is the upside of accounting advisory services?
Accounting advisory services guarantee your business gets the best, most credible advice on any accounting issues you need to handle, no matter how technical or specific these instances may be. By nature, professional accountants have extensive knowledge of all aspects of financial reporting processes in accordance with local laws, which includes the Singapore Financial Reporting Standards (SFRS). They will also keep your business up-to-date with all the latest rules and regulations, making sure you know what is going on at all times, and thus ensuring you stay compliant in a field that is constantly evolving and changing.
What can accounting and bookkeeping services do for my business?
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 services, 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.
Why does my company need statutory accounting and tax compliance reporting services?
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!
How can tax and accounting planning services help my business?
While staying compliant is of critical importance, outsourcing your tax and accounting services in Singapore allows you to enjoy tax breaks and exemptions that you might have been unaware of, whilst helping you develop long-term planning strategies to help you achieve significant tax savings over time.
Moreover, if you conduct business overseas, there are numerous tax treaties that you may be unfamiliar with. This could lead to double taxation, causing you to pay more taxes than you need to.
A professional accounting firm can advise you on all the tax benefits you are entitled to along with helping you obtain them so that you minimise costs and keep profits high.
If your business is spread across different locations, these services can also evaluate the tax consequences of cross-border transactions to improve your company’s tax position, having a breadth of knowledge of different jurisdictions. In short, they are readily equipped to support and advise on all your tax accounting needs.
How will management accounting services help my business?
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.
Do accounting services include accounting software?
As part of their service offerings, some outsourced accounting firms use specialised accounting software to streamline business operations – such as Xero Cloud Accounting System, which BoardRoom can help set your business up with as a Xero Platinum Partner.
It takes more than just getting the software set up in order to boost your accounting efficiencies, which is why working with a team of experts who are well-versed in the accounting system’s implementation is crucial. By assisting with set-up and optimisation, your company can then fully leverage the benefits of accounting software, whilst having peace of mind that your financial data has been transferred securely and correctly.
Choose BoardRoom as your outsourced accounting services provider in Singapore
Whether you’re running an SME or are part of a multinational organisation, hopefully this article has helped you better understand why your business will appreciate the advantages of outsourced accounting services.
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 in Singapore and 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.
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