Accounting Services in Singapore: Essential Guide for Startups
Singapore has rapidly evolved into a powerhouse for startups, boasting over 4,500 new ventures since the startup scene took off in 2012. This significant growth stems from a strong tech scene, excellent infrastructure, and supportive government policies. While opportunities are abundant in this city-state, it’s also important for startups to prioritise keeping their business finances organised. If you are a startup contemplating organising your business finances or getting your internal staff to perform the financial tasks, you might consider accounting services in Singapore. Now, you might wonder why. This comprehensive guide will explain the importance of accounting services for small businesses in Singapore, the different types, their benefits and selecting the right accounting services. Let’s dive in.
Accounting services encompass maintaining accurate financial records, ensuring regulatory compliance and providing important insights for decision-making – essential for a company’s financial health and strategy.
Managing finances while focusing on core business activities can feel overwhelming for startups. Accounting services help maintain financial records, meet deadlines and ensure compliance, making it easier to attract investors and drive growth. Here are the key reasons why accounting services are essential for startups:
Recording transactions
Accounting forms the foundation of all businesses, and one key component is recording transactions. It helps startups track their income and expenses, providing a clear picture of their financial performance. Though entrepreneurs know the importance of recording transactions, improper record-keeping – such as failing to separate their business accounts – can lead to non-compliance.
Cash flow management
Proper accounting practices for managing cash flow help startups ensure they have enough funds to cover their expenses and for future investments.
Budgeting and forecasting
Professional accountants can assist with creating budgets and financial forecasts, enabling startups to plan their operations and make informed decisions.
Tax obligations
Beyond financial management, accounting services help startups meet tax obligations. Compliance can be overwhelming, with statutory audits, goods and service tax (GST), and different tax applicability to track. Experienced accountants can offer valuable advice and simplify these complexities, ensuring businesses stay compliant.
Annual filings
Singapore’s startups are required to prepare financial statements and accounts and submit them to the Accounting and Corporate Regulatory Authority (ACRA). Experienced accountants can ensure startups have the correct set of accounts and financial statements.
Types of Accounting Services for Small Businesses
Accounting services in Singapore offer a broad spectrum of services tailored to small businesses’ diverse needs. Depending on your business needs, here are the different types of accounting services for small businesses in Singapore:
Bookkeeping Services
Bookkeeping is essential to financial management and compliance. It involves recording daily transactions, maintaining ledgers, and reconciling accounts to ensure accurate transactions. The service also consists of preparing monthly financial reports, such as a balance sheet, profit and loss statement, and cash flow statement.
Tax Preparation and Filing Services
Tax accounting is another type of accounting service that ensures businesses comply with tax laws and minimise liabilities. It covers tax preparation, filing and strategic planning. Accounting services help businesses prepare tax returns and ensure accurate tax filing with the Inland Revenue Authority of Singapore (IRAS) while optimising tax benefits and ensuring compliance.
Payroll Management Services
In Singapore, it’s essential for businesses to pay their employees on time. Payroll management services ensure timely and accurate employee payments. This includes calculating wages, Central Provident Funds (CPF) contributions, taxes, and other statutory deductions. Accounting services also generate payroll reports for management and compliance. By using professional payroll management services, errors will be minimised, and compliance with regulations will be ensured.
Benefits of Outsourcing Accounting Services in Singapore
At this point, you may wonder, ‘Why outsource accounting services?’. What are the benefits? Outsourcing accounting services for small businesses in Singapore offers numerous benefits, including reducing errors in financial reporting, improving time efficiency and driving revenue growth. One key benefit of outsourcing accounting services is gaining access to professional financial expertise and regulatory compliance. It also frees up your time to focus on scaling your business. Aside from financial risk and efficiency, here are other benefits of outsourcing accounting services in Singapore:
Tax obligations – Experienced accounting services ensure your paperwork is prepared properly and complies with tax obligations. In addition, the experienced accountant will provide guidance on all tax-related matters.
Accurate bookkeeping – When outsourcing accounting services to an external corporate service provider, you can leverage their latest accounting software and technology for accurate record-keeping and compliance. These advanced technologies can streamline your work processes and enhance efficiency, ensuring accurate and timely reporting.
Cost-efficiency – Outsourcing accounting services can help startups reduce costs, improve accuracy, and ensure regulatory compliance.
Scalability—One advantage of outsourced accounting services is their ability to scale up or down, depending on the business’s growth.
Ultimately, outsourcing accounting services provides numerous benefits and can cater to companies of all sizes—from small startups to large enterprises. Startups in Singapore might consider outsourcing their accounting services when they want to spend more time concentrating on the core business functions, lack internal resources, or need assurance that they comply with complex regulations.
How to Choose the Right Accounting Service Provider in Singapore?
Given the number of accounting service providers available in Singapore, choosing the right one can be daunting. If you are a foreign entrepreneur, you might be confused about where to begin. For a start, you want to assess the following essential factors:
- The size of the company
- The complexities of business transactions
- The number of employees
- The accounting services you require
Accuracy and compliance are crucial for startups in Singapore, as any non-compliance will result in penalties, which would be bad for the business’s reputation. Therefore, choosing the right accounting service provider can impact your business’s efficiency and financial health.
Cost of Accounting Services for Small Businesses
Similarly, choosing the right accounting services for small businesses involves understanding the cost and value of the service. The cost of accounting services for small businesses like startups varies depending on their size and the type of accounting services they need. The prices typically scale with your business needs. It can also be determined by several factors, such as technology integration, industry-specific requirements and reporting frequency.
Lanturn provides comprehensive accounting services, including bookkeeping, financial statements, payroll, and tax filing. Our experienced accountants are skilled in the numbers and fully up to speed with the latest tax regulations, ensuring your business is always in good hands.
Choose Lanturn For Your Accounting Services
Outsourcing accounting services is about ensuring the accurate and timely filing of financial reports and annual returns while boosting efficiency. By partnering with experienced accountants, you can ensure compliance. At Lanturn, our experienced accountants stay up-to-date with evolving laws, possess bookkeeping skills and ensure timely payroll processing. Our cloud-based platform helps your business streamline your bookkeeping and financial management. We also provide our clients with tailored business solutions that align with their specific needs, ensuring they get the right level of support. Let us handle the complexities while you focus on growing your business. Schedule a call with us, and start your entrepreneurial journey with us!
