As more and more companies from all over the world, especially in Singapore, utilize an outsourced year-end financial report filing service, it is important to evaluate if you would require it. In today’s financial world, being one step ahead of the competition might mean the difference between success and failure.
Operating your own company, whether a small business or a large corporation, comes with its own set of problems and benefits. Scroll down to read about the important aspects of an outsourced year-end financial report filing.
What does a ‘year-end’ mean?
The completion of an accounting period is popularly known as year-end. The accounting period does not inevitably relate to the calendar year. For the fiscal or financial year of Singapore government authorities, the period from 1st April to 31st March is considered.
WHAT IS OUTSOURCED YEAR-END FINANCIAL REPORT FILING?
One of the most popular outsourcing tactics currently is year-end financial report filing. Many businesses are now outsourcing their accounting obligations to independent third-party professionals to focus on essential company activities.
Because of the numerous benefits, it delivers to the business, financial report filing outsourcing is used by many companies from all over the world operating in various sectors.
HOW CAN OUTSOURCED YEAR-END FILING HELP COMPANIES IN SINGAPORE?
1. Streamlines Data Collection
The end of a fiscal year is frequently peak season for in-house accounting and finance professionals, who must consolidate all financial data for the year and create budgets for the next year and submit corporate tax papers by the deadlines.
During this busy season, it may be unrealistic or impossible for these departments to acquire all the data required to cover all bases and allow maximum Singapore tax savings.
When a Singapore company outsources its year-end financial filings to a third-party organization, it will handle the tedious work of data gathering, consolidating, and sorting throughout the fiscal year. This frees up internal financial departments to search for the data required for paperwork filings.
2. Ensures Tax Laws Compliance
Singapore’s tax rules are constantly altering to reflect industry trends and government objectives as a rising business-friendly regime. Keeping up with new Singapore tax regulations may be difficult for in-house accounting and finance professionals, who must remain on top of other financial tasks and commitments to their parent company.
Outsourced accounting companies may be relied on for up-to-date knowledge regarding corporate tax modifications that affect businesses due to their unique specialization in accounting and tax services. Outsourced accounting companies with an extensive customer base will also be knowledgeable about how new tax guidelines affect clients from various industries and will advise clients on future moves accordingly.
This frees up in-house financial professionals to focus on building strategies based on the in-depth information outsourced accounting companies offer, rather than worrying about non-compliance or losing out on tax-saving opportunities.
3. Data Protection
Financial data security is vital for the proper filing of business tax returns. Critical corporate data need to be both accessible and safe simultaneously, which is a difficult balance for Singapore enterprises.
During peak season, accountants may be required to access data while on the go in order to fulfil tight deadlines. Personal devices and unprotected networks (such as public Wi-Fi connections) expose this data to hackers, breaches, and theft.
Outsourced accounting businesses that handle huge volumes of tax and financial data in their databases typically invest in enterprise-level data security and protection technologies to safeguard the security of client data. To maintain these enterprise-level safeguards, they will also be required to keep their clients up to date on the most recent data privacy and security problems.
4. Maintain Data Consistency
The importance of thoroughness in a company tax return cannot be overstated. Accountants preparing paperwork must not only ensure that all statistics are right. They must also have a thorough understanding of tax regulations in order to meet numerous circumstances that may arise throughout the fiscal year.
Such thoroughness may not be realistic or practicable for many Singapore enterprises, which may have in-house accountants combining bookkeeping with other administrative and finance chores.
External accounting companies and corporate service providers like Relin Consultants can give their clients specialized filing services, reducing mistakes and omissions. Outsourcing to a firm that manages filing deadlines for several customers ensures that papers are submitted on time, allowing Singapore companies to avoid legal ramifications and penalties.
5. Allows Businesses To Focus On Core Products
Value creation is critical to the success of any organization, particularly in a competitive market like Singapore, where industry players aspire to thrive locally and regionally. Corporate tax filing may be a time-consuming procedure that consumes time that could be spent on more valuable services and activities.
This is especially important for small companies and enterprises in their first five years when company development and high-value generation are critical for survival and establishment.
Outsourcing corporate tax filing to an external accounting company helps speed up the process of locating required documents, reducing the time it takes to submit. The outsourcing of company tax filing also boosts productivity and profitability by enabling account and finance executives to focus on tasks such as client servicing, value generation, marketing, and business growth.
6. Lower Cost
Outsourcing the annual compliance function can help save on company administration expenditures by doing the following: –
Hiring and onboarding new talent can be time-consuming and costly, and when people leave, their knowledge and skills may follow them. New tools for running a business, such as accounting and compliance software, may be costly and time-consuming to learn. If the company data is not maintained properly, it may lead to data security problems as well as significant fines.
IMPORTANCE OF YEAR-END FILING IN SINGAPORE
1. Document financial transactions
Accounting year-end processes help in documenting a company’s financial activities for a fiscal year. Year-end accounting offers important information for the creation of financial reports.
2. Critical Business Insights
The reports created based on year-end accounting give useful business insights that help in the analysis of the company’s business performance. It also displays the company’s strengths and faults.
3. Monitor income and expenditure
Keeping a record of the business’s income and expenses is beneficial.
4. Calculate tax estimations
The year-end accounts assist in determining the firm’s tax liability for the preceding fiscal year.
5. Evaluate the company’s finances
The financial reports created based on year-end accounting assists in reviewing the company’s real financial situation.
6. Bank statement reconciliation
Accounting year-end processes play a crucial role in bank statement reconciliation. It enables the detection of any errors in the bank accounts.
7. Business development
Based on the year-end accounts, financial reports indicate the real business performance. By analyzing these data, management can develop a business plan to help the company flourish.
IMPORTANT YEAR-END TASKS THAT I SHOULD KNOW OF
- Examine financial records
- Analyze asset cash flow trends and patterns
- Assess company performance and define objectives
- Justify accounts receivable and collect on past-due accounts
- Gather tax paperwork
- Estimate tax obligations and take into account possible year-end deductible expenditures.
- Conduct a December data clean-up.
- Maintained payroll and benefits records, as well as vendor data.
- Restock supplies and align inventory records.
- Examine your company’s website and communication tools.
Relin Consultants are highly experienced when it comes to the outsourcing of year-end financial filing for companies in Singapore. Our accounting specialists are well-versed and highly dependable, so you will be at ease if you outsource your year-end financial filings with us. If you are interested, contact us at +65 8756 2027, and we will be in touch.
KEY ELEMENTS FOR OUTSOURCED YEAR-END FINANCIAL FILING
Among the key elements for outsourced year-end financial filing are as follows: –
Bookkeeping is the process of documenting and tracking every financial transaction made by your company. Every accounting transaction is documented in the general ledger, often known as the company’s “books” — hence the term “bookkeeping.”
Accurate bookkeeping is critical to the success of your organization since it allows you to: –
- Come to a decision
- Complete your taxes.
- Establish your budgets.
- Prepare financial statements
- Prepare for audits.
b) Accounts payable and Accounts receivable
Accounts payable is a short-term (current) debt owed to a creditor for purchasing goods or services without paying cash in advance. After you authorize an invoice for the transaction, you establish accounts payable.
Accounts receivable is the opposite of accounts payable, as it is a current asset that reflects money you owe for selling your goods or services.
c) Month-end close
Each month’s transactions must be different and structured for proper reporting to management, lenders, investors, and regulators. Because companies don’t halt their operations on the first of the month, you’ll need a mechanism to distinguish last month’s transactions from this month’s.
The month-end accounting methods of each firm will change based on the type of business, the financial accounts it has, and the accounting technique it employs.
d) General ledger reconciliation
To keep your books balanced, each transaction must have an equal and opposite transaction. As a result, every transaction necessitates a debit from one account and a credit from another.
General ledger reconciliation is an internal control method that exists to detect these errors (and other occurrences such as fraud) so that they may be corrected and accurate financial information can be provided.
e) Financial controller
The controller is the accounting department’s leader. Controllers have more technical jobs than operational jobs, although they still have certain managerial responsibilities. Budgeting, anticipating future performance, guaranteeing accurate financial reporting, maintaining compliance with laws and regulations, building and monitoring internal controls, and deploying new accounting systems are all responsibilities of the controller.
What Are The Possible Trade-offs If I Outsource The Year-end Financial Filing For My Company?
- When it comes to outsourcing certain activities, the cost is a major consideration. However, remember that when you hire an outside agency, you only pay for the services you require.
- For example, an in-house accountant may spend considerable time doing work that a lower-paid employee might do just as well.
- Outsourcing will also save your company money on payroll taxes, health insurance, paid leave, training to keep up with any tax law or regulatory changes, and continuing education needs.
- If you hire someone to handle the functions of your CFO or controller, that individual may not be available to you immediately if a financial issue emerges. Meetings with the CPA company must be organized and booked in advance. You’ll also need to figure out how financial data will be transferred between your organization and the accountant delivering these services. Some jobs could be challenging to complete remotely.
What Does A Senior Accountant’s Role For A Third-party Outsourcing Company?
Senior accountants are in charge of guaranteeing the correctness of “lower-level” accounting activities. Bookkeeping, recording of accounts payables and receivables, month-end closures, and general ledger reconciliations are examples of such responsibilities.
What Are The Types Of Financial Statements?
- Balance sheet
Contains information about your assets, liabilities, and owner equities at a specific time.
- Income statement
Contains information about your income, costs, and earnings at a specific point in time.
- Statement of changes in equity
Contains information on the changes in your company equity of the past periods, including retained earnings, share capital, and other reserves (if applicable).
- Cash flow statement
Describes your positive and negative cash flow from business operations, investments, and financing.
Is Outsourcing The Year-end Financial Filing A Good Choice For My Company In Singapore?
Outsourcing finance and accounting activities is a wise decision for many businesses. We strongly recommend you contact our agents to explore the possible benefits it may bring to your company in Singapore.