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9 SME Accounting Services 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 payroll, basic 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.

SME Accounting Services In Singapore: How To Define Small Businesses or SME?

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.

SME Accounting Services In 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 or SME in Singapore that business service providers like Premia TNC 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 accounting, bookkeeping, 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.

SME Accounting Services In Singapore For 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, Premia TNC 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.

Frequently Asked Questions

1. How is accounting for small businesses undertaken?

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.

2. What are the small business accounting best systems?

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.

3. How can a small business benefit by engaging the services of a CPA?

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.

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