What are the benefits of company registration in Singapore? Due to growing economy in Singapore, it is rapidly becoming the target of future business and foreign investments. There are lenient and generous policies for registering any company, due to which more people are attracted to start their business in Singapore and look for its benefits and future investments.
A Good Outsourcing Company Can Help Keep Accounts Properly
Proper accounting is a mark of a company’s efficient working. Anyone who is planning to invest in your company will only look at the accounting statements and that will tell them everything. This is why you must maintain your accounts properly. It is also mandatory in Singapore to maintain the accounts up-to-date and submit when needed. There are many other benefits of maintaining the accounts well. it is helpful to the company in knowing the exact financial position and also to keep track of the transactions. For many companies, it is more beneficial to avail accounting services from outsourcing companies than do it themselves.
The Benefits Of Availing Outsourcing Services
The main advantage is that the company can save money and also get more beneficial work done by the employees. For most small and medium companies appointing an accounting professional is a big burden. They cannot afford to pay the salary and other perks. With the same money, they can get a person who will directly benefit the company by bringing in more business. Outsourcing the work will prove to be more advantageous as they need to pay only for the services they use.
Moreover, when the work is handed over to the experts you can be sure of getting all the necessary reports that will help you guide the company in the right direction. Outsourcing companies will also ensure that the financial statements are submitted on time to the ACRA. The service providers offer different flexible packages which can make it convenient for you to avail of just the required accounting services for small businesses in Singapore.
Use Cloud Technology To Maintain Your Accounts
Using software helps to make your work easier. It can prevent repeat tasks and free valuable manpower that you can use elsewhere. But installing the software in your office computer system may prove to be costly. Moreover, when you want to install the software in your system you may need to add more hardware which is going to add to the cost. You will also need experts to install and customize the software to suit your purposes.
When your accounting service provider offers your cloud computing technology the company is taking the whole burden on itself. The software is installed on their server, which means that you don’t have to purchase the software. You can use the software as a service for your needs. You only need to install the user interface in your computers which doesn’t require much space. Your IT guys will not be burdened with additional work.
The advantages of cloud accounting software don’t stop there. You can view your accounts from anywhere with an internet connection as it is stored in the server which is working all the time. You can get your receivables list any time and make use of it to get your collections on time. Cloud accounting is easy to operate without any training. This means that your existing employees can easily make their entries and generate whatever reports you need.
Get Excellent Audit Services And Compilation Of Statements
Auditing is a must for all businesses in Singapore barring a few that are exempt. An auditor must be appointed before the completion of three months from the date of registration of the company. The auditor must check the accounts before you submit them to the ACRA. When you outsource your accounting work, you can also make use of the auditing work done by the company.
Many small companies need not get their accounts audited. Such companies have to file unaudited financial statements by the year-end. Companies with a turnover that is less than S$5 million with no corporate shareholders need not get their accounts audited. These companies must not have more than 20 shareholders. Such companies can file an unaudited statement with the help of the accounting companies in Singapore.
Outsource To File Financial Statements In XBRL Format
The ACRA has mandated that the financial statements must be submitted in a format that is being followed internationally. The eXtensible Business Reporting Language or XBRL is being used in many countries for the sake of business reporting. When Singapore introduced this format for the financial statements it has made it easy for companies with branches in different parts of the world to have a uniform financial statement.
The XBRL format allows auditors to directly access your financial records online. This makes work very easy for them. Others in the business, like experts in finance and analysts, can use the report easily to get the information they want. Regulators also find it easy to monitor the accounts of the companies. The information that you must have, is available to you without any delay. It has also improved the transparency of the agencies.
The problem with filing the reports in this format is that it requires special training. The companies that offer accounting services in Singapore employ experts that are specially trained to prepare the financial statement in the XBRL format. Most companies find it difficult to get such trained people and such companies should take the support of the accounting service providers.
Maintain Your Books Perfectly And Be Compliant
It is essential to maintain an accurate record of all your financial transactions. This is mandated by the ACRA. This is a very time-consuming job that also requires a lot of concentration and expertise. Keeping a person specifically for this job can prove to be expensive. It is better to hand over the job to experts at the service providers. They can do the job in the best manner and ensure that you stay compliant.
More than the compliance factor, bookkeeping is highly beneficial for properly running your business. Bookkeeping helps the owners to analyze the income and expenditure for any period. They can also check what expenses are increasing or where the revenue is not coming as expected. This will greatly help in bringing in the proper systems that can reverse the trend. This kind of maintenance of records can help reduce expenses and improve the company’s profits.
Bookkeeping helps greatly in budgeting. You can check the income and expenses and prepare the correct budget for the future. With proper bookkeeping, the company bosses can forecast their revenues and make plans for expenditure. They can prepare the budget based on past records and ensure that the company doesn’t exceed spending. It is also possible to use the money that is saved for investment purposes.
Bookkeeping helps in preparing your tax returns on time. When you have all the records it is easy to properly use the exemption facilities and reduce the tax burden. You can also settle any disputes with your suppliers or customers about payment using these records. The outsourcing companies will also extract various reports that will help you work better.
A Perfect Accounting System Is Essential For Your Business
If there is one task that you should start for your company even before it is set up, it is the accounting. You get money from other investors too. You purchase a lot of things before the company is set up. Various expenses are incurred by you even before the company has started functioning. This means that you need to record all these expenses and for that, you need an accounting system.
It is not easy setting up a proper accounting system that will take care of all your needs. You need an expert for this job and this is where a good accounting service provider can help you. These accounting companies can analyze your requirements and help create the necessary account heads.
Consolidation Of Accounts For Multinational Companies
There are many multinational companies in Singapore whose parent companies are situated elsewhere. Separate accounting systems are created for both the parent and the subsidiary companies. But they cannot be separated from each other as the parent company is the one that controls the subsidiary. The consolidation of both accounts is essential for presenting the company’s financial position to investors. This consolidation can be effectively done for you by the accounting service companies.
They will prepare a statement of accounts that represents all the elements of the multinational group so that a complete picture is available to all the stakeholders in the company. This will be an accurate representation of the financial status of the company.
Maintain Accounts For Your Dormant Company
There are times when certain businesses are at their low points. Sometimes some types of industries face low business due to various factors. All businesses are today dependent on conditions that prevail all over the world. So even international events can affect business in all the countries. This may create a need for temporarily stopping the business.
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