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ACCOUNTING AND BOOKKEEPING SERVICES IN SINGAPORE
Regardless of your company structure or location, accounting and bookkeeping are very important aspects that you should take note of. There are a lot of key elements when it comes to outsourcing accounting services in Singapore. Relin Consultants addresses all critical parts of accounting and bookkeeping outsourcing in Singapore.
WHAT EXACTLY IS BOOKKEEPING IN SINGAPORE?
Bookkeeping entails tracking and categorizing all financial activities in your company. It records how much money your company spends and how much money it gets. Depending on the sort of accounting system the company uses, each financial transaction is documented using supporting documentation. That paperwork might be a receipt, an invoice, a purchase order, or any sort of financial record demonstrating that the transaction occurred.
Bookkeeping transactions can be documented manually in a journal or electronically using a spreadsheet tool such as Microsoft Excel. Most companies today keep records that show their financial activities using specialist bookkeeping computer applications. To record financial transactions, bookkeepers can utilise either single-entry or double-entry bookkeeping.
WHAT IS THE DIFFERENCE BETWEEN BOOKKEEPING AND ACCOUNTING?
- Bookkeeping is an important but preliminary role in the accounting function of a business. A bookkeeper gathers evidence for each financial transaction, writes it in an accounting journal, categorizes it as one or more debits and one or more credits, and arranges it according to the company’s chart of accounts.
- Although all financial transactions are documented, they must be summarised after specified periods. Some businesses need quarterly reports, while other smaller businesses may simply require reports at the end of the year to file taxes.
- The accountant takes over after the relevant period and analyses, analyses, interprets and reports financial information for the company entity. The accountant also compiles the company’s year-end financial statements and accounts. The accountant’s year-end reports must correspond to the standards specified by the Accounting standards council Singapore, often referred to as the Generally Accepted Accounting Principles (GAAP).
WHY IS BOOKKEEPING SO IMPORTANT FOR BUSINESSES IN SINGAPORE?
- Monitor Cash Position
Bookkeeping and accounting service providers advise their clients to maintain their company’s liquidity. Practically speaking, it entails keeping an eye on the money and making sure you have plenty of it. The business should have enough money on hand to cover the current and future expenses, at the very least.
Having money on hand is a sign of how financially healthy the company is and is necessary for building a strong connection with the suppliers and creditors.
- File invoices
The company must file and keep the accounting records on file for at least five years in accordance with ACRA regulations. These records assist in verifying the sale and purchase in addition to helping the business comply with the legal requirements. They also act as proof of purchase when it comes time to file the taxes with IRAS at the end of the fiscal year.
- Reconcile accounting records
The business should periodically check to see if the transactions listed in the books of account and those listed by the bank are the same. When creating financial statements and management reports, updated records are helpful. These records are necessary to create the annual accounts.
- Tax preparation
One of the most stressful tasks is filing the taxes. Things get even more difficult when planning and filing taxes at the last minute. However, the tax filing process will therefore go more smoothly if the business has access to all the payments and record sheets.
WHY SHOULD YOU OUTSOURCE YOUR SINGAPORE COMPANY’S ACCOUNTING AND BOOKKEEPING SERVICES?
Cost savings
Outsourcing accounting and bookkeeping in Singapore can be a cost-effective arrangement depending on your business structure. Instead of hiring a full-time employee, companies can choose to outsource the whole accounting and bookkeeping function. In addition, most business owners might not be accounting savvy, unless the company hires an experienced accountant otherwise there is a risk that the accounting is not done accurately.
Time savings
A business owner outsourcing the entire accounting and bookkeeping function can save a lot of time. From advertising to recruiting an employee who fits the position can be extremely time-consuming. Whereas you can engage a professional firm such as Relin Consultants and kick-start the bookkeeping in one week.
Prioritise
Business owners can fully focus on other important aspects of the business, such as sales and marketing. This will usually result in improved efficiency and better profitability.
Access to expertise
A team of qualified and experienced accountants with extensive knowledge of the Singapore financial reporting requirements and regulatory deadlines operates most accounting firms. In addition, accounting firms will usually also use software such as XERO, MYOB, and Quickbooks to update your company’s financial records completely.
WHY CHOOSE RELIN CONSULTANTS AS YOUR OUTSOURCED ACCOUNTANT IN SINGAPORE?
Dedicated accountant
A dedicated account manager who is an experienced accountant will be introduced to our client once complete the onboarding.
No hidden fees and unreasonable contract periods
All Singapore book-keeping service fees will be quoted upfront, and no surprises or hidden fees along the way. We also allow our clients to terminate our accounting and bookkeeping services at any time without an unreasonable commitment period.
Access to accounting software
Our clients will be provided access to the accounting software. We provide instructions and a manual to our clients on how to access and read certain reports and data needed for business purposes. This will avoid the bottleneck in the operations.
Strong support network
Our team of accountants will provide you with support or information within 24 hours of the request. We understand the importance of accounting and business decisions. Relin Consultants is a licensed accounting firms in Singapore. We specialize in accounting services for small businesses in Singapore.
Flexible payment terms
We understand the importance of cash flows, and we provide flexible payment terms to our clients.
PROCESS OF OUTSOURCING MY ACCOUNTING AND BOOKKEEPING TO RELIN CONSULTANTS
Relin Consultants’ team of accountants in Singapore has extensive experience providing accounting services in Singapore. If you are considering outsourcing your accounting and bookkeeping functions to an account firm. We can assist you with these simple steps.
- Reach out to our team of accountants at enquiry@relinconsultants.com
- Our Singapore accountants will review your Singapore company corporate documents and assess your operations and provide you with a detailed fee quote.
- If you decide to proceed with us, our team will designate an experienced accountant who will send over a list of accounting documents required. Our representative from the accounting outsourcing services department can also visit your office to collate all the required documents if necessary.
- The accountant will commence work on your accounts once we receive the preliminary documents and finalize a list of queries that requires inputs from the directors.
- Once the above is sorted, our accountants will send you a set of draft management accounts to the client director or person in charge for review and comments.
- The accountant will also prepare a set of financial reports required for filing at the end of each financial year.
HOW DOES THE BOOKKEEPING SERVICE IN SINGAPORE WITH RELIN CONSULTANTS WORKS?
- Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for our accounting services in Singapore.
- Introduce the company and give a brief overview of how your firm functions when you get in touch.
- Specify the precise accounting services you need such as bookkeeping, the creation of financial statements, tax planning, or other relevant services.
- Share relevant details about your company that could make it easier for our team to comprehend your accounting needs.
- Relin Consultants will offer you an affordable package of the required services according to your business circumstances and budget.
FAQs
What are the important elements of bookkeeping?
Understanding the company’s fundamental accounts is required for effective bookkeeping. The chart of accounts for the company is made up of these accounts and their sub-accounts. The accounts that comprise a company’s balance sheet are assets, liabilities, and equity.
Assets
Assets are the company’s assets, such as inventory and accounts receivable. Fixed assets, often plant, equipment, and land, are also included in the definition of assets. When you look at the arrangement of a balance sheet, you’ll notice that the asset accounts are displayed in the order of their liquidity. Since cash is fully liquid, asset accounts begin with it.
Following the cash, accounts are the accounts for inventories, receivables, and fixed assets. These are tangible assets, and you can touch them. Intangible assets, such as customer goodwill, may also be included on a company’s balance sheet.
Liabilities
Liabilities are what the company owes to its suppliers, bank and business loans, mortgages, and any other debt on the records. A balance sheet’s liability accounts comprise both current and long-term liabilities.
Accounts payable and accruals are common examples of current liabilities. Accounts payable often refer to what the company owes to its suppliers, credit cards, and bank loans.
Equity
The investment that a business owner and any other investors have in the company is referred to as equity. The equity accounts comprise all of the owners’ claims against the company.
The business owner has made an investment, which may be the company’s lone investment. If the business has taken on more investors, this is shown here.
You must balance your bookkeeping records at the end of the year. The bookkeeper must maintain close track of these elements and ensure that transactions involving assets, liabilities, and equity are recorded appropriately and in the correct place. You may use a simple formula to ensure that your books are always balanced, which is called the accounting equation. The formula is as follows.
Assets=Liabilities + Equity
The accounting equation states that whatever a company has (assets) is weighed against claims made against the company (liabilities and equity). Liabilities are demands for money owed to suppliers and lenders. The remaining assets are subject to claims by the owners of the business (equity).
Why do smaller companies require bookkeeping services?
An accurate, well-kept set of books is a good place to start when it comes to running a profitable business. Below are the reasons why –
- You can ensure that you are earning more money than you are spending.
- You will have accurate financial data for planning and budgeting purposes.
- You can predict and avoid a cash crisis by keeping track of when you need to pay suppliers and when you might expect payment from consumers.
- You are more likely to discover improper payments (or even fraud) that might cost you money.
- You are capable of completing accurate tax returns.
- Having your financial information organized makes it easy to collaborate with others, such as lenders, investors, and accountants.
How does the bookkeeping process work?
Recording and reconciliation are the two most crucial duties in proper small company bookkeeping. Further explanations of the recording and reconciliation process are as follows.
Recording every transaction
- Keep records of your sales. Traditionally, this was accomplished by entering them into a cashbook or punching them into a spreadsheet. Sales data from point-of-sale or invoicing software is increasingly being downloaded straight into the books of business owners.
- Keep track of your transactions. Every business-related purchase must be documented.
If you intend to claim the expenditure as a tax deduction, you should also save the evidence of purchase. Again, you may record this information in a book or spreadsheet. Alternatively, you may automate the process so that all debits from your company bank account go into your bookkeeping software.
- Whether you use cash or accrual accounting, you might record income and costs at various periods.
Reconciling every transaction
- Reconciliation is routinely comparing your business records to your bank accounts to ensure that the transactions and balances match – and determining why they don’t. Bank fees, interest payments, deposits, and payments that have not yet been received in your bank accounts must frequently be accounted for.
- Depending on the number of transactions in your organization, you may perform bank reconciliation daily, weekly, monthly, or less regularly. However, you will very certainly be forced to reconcile your records before submitting tax returns.
- The sooner you reconcile transactions, the sooner problems may be discovered and fixed. It might be a good idea to do it daily so that the work doesn’t pile up.
How can the usage of software help in the bookkeeping process?
Many smaller companies utilize online bookkeeping software to expedite these tasks and reduce the likelihood of human data input mistakes. These tools can do the following –
- Retrieve transaction data directly from POS systems, invoicing applications, and banks.
- Significantly accelerate bank reconciliation.
- Automatically pay invoices.
- Send automated invoice reminders to individuals or entities that owe you money.
- Receive notifications when sales invoices are paid.
- Monitor cash flow from your phone.
Want to know more about Relin Consultants’ bookkeeping services? Drop us an inquiry at enquiry@relinconsultants.com, and our bookkeeping specialists from Relin Consultants will contact you.
When I will need bookkeeping or accounting?
Companies will be able to assess their performance reliably once they commence bookkeeping and accounting. Directors can also make strategic business decisions after reviewing the accounting information. A Singapore-incorporated company should commence its accounting once the company starts its operations.
Is it mandatory to do bookkeeping in Singapore?
Yes, as per the Singapore companies act. All companies must prepare and retain a set of financial records including profit and loss and a statement of financial position once the company is incorporated.
What kind of accounting services Relin Consultants will provide?
Our team is qualified to provide you with monthly, quarterly, and annual accounting and bookkeeping services depending on your business needs. We can provide consolidation services and tax advisory services.
Why accounting is important in Singapore?
Accounting is important as it helps a business to remain compliant with the authorities. By tracking your income and expenditure accurately, a company will not be overpaying taxes and the management or business owners can make sound business decisions using the data.
For example, if the accounting is done properly, a company can easily understand whether a product is still profitable. Such information is crucial for a business in the long term.
What are the accounting standards in Singapore?
The accounting standard council in Singapore is the governing body overseeing and implementing the accounting standards in Singapore. The key accounting standards in Singapore are mainly as follows.
- Singapore Financial Reporting Standards (International) (SFRS(I))
- Financial Reporting Standards (FRS)
- SFRS for Small Entities
- Charities Accounting Standard
Can I switch from another accounting firm to Relin Consultants?
Yes, you can switch to Relin Consultants easily by reaching out to us at enquiry@relinconsultants.com
What is the price of accounting services in Singapore?
The price for accounting services in Singapore can differ significantly depending on the industry of your business and the complexity and volume of the transactions.
Certain accountants may charge you a flat price, an hourly rate, or even a percentage of your sales. It is recommended that you reach out to Relin Consultants to obtain a free quotation for your business.
How to outsource accounting services in Singapore?
You can outsource your accounting services in Singapore by reaching out to a professional accounting firm that specializes in accounting and tax services. Most public accountant firms and consulting firms will have an accounting department specializing in accounting and bookkeeping.
What are the common abbreviations used in bookkeeping?
Among the common abbreviations that are used in bookkeeping are as follows –
- A/c: Account
- A/R: Account receivable
- A/P: Account payable
- B/S: Balance sheet
- G/L: General ledger
- P/R:Payroll
- TB: Trial balance
- EAT: Earning after tax
- PAT: Profit after tax
- Depr: Depreciation
What exactly does GAAP mean, and what are its objectives?
The Generally Accepted Accounting Principles (GAAP) are a collection of accounting rules and regulations for financial reporting that are generally followed. GAAP aims at enhancing the clarity, uniformity, and comparability of financial information communication.
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