Accounting Services Needed for SME or MNC firm
If you intend to set up a company in Singapore, there are some requirements that you need to meet. One of the essentials is ensuring sound book keeping and accounting records. It is the duty of every business to harmonize their accounting books. While this enables them to stay in compliance with the authorities such as ACRA and IRAS, the business also gains the trust of its customers, suppliers and creditors. Accounting services are generally needed by most companies in Singapore. The size of a company (big or small) does not matter.
Bookkeeping and accounting services needed?
For all Singapore companies, preparing a book of accounts is essential. It comprises of a balance sheet, cash flow statement, equity statement, profit and loss account. All these documents must be set out as per the guidelines of Singapore Financial Reporting Standard (SFRS). The records must be the true representation of your organization’s financial situation. Sometimes, you may be asked to audit your accounts if your company is not exempted from audit.
Estimated chargeable income – Are you required to File?
Estimated Chargeable Income, abbreviated and also known as ECI, is defined as an estimate of the full chargeable income over the Year of Assesement. IRAS requires that you present this estimate after every three months from the end of your financial year. Failure to submit the ECI may attract substantial fines and penalties.
Preparation of auditor’s report
As you do the annual returns filing, you are required to forward a report of your audited accounts also, from an independent auditor with an audit opinion. This requirement applies for companies with a turnover that is beyond $5 million Singapore dollars and over 20 shareholders. The auditor’s report is forwarded together with the director’s report. The two documents are used to ensure that best financial practices are followed as well as to guard the shareholders’ interests. Recently, the rules for mandatory audit had changed and you may now be exempted from the requirements of audit.
Your company is either audited or exempted from audit. If you are unaudited, it is compulsory to prepare the unaudited financial statements report for all private limited companies in Singapore.
Tax filing is needed every year
It is a rule in the country to present annual tax returns to the IRAS. Tax returns are made on November 30, each year. It is worth noting that the Singapore government subscribes to the preceding-year method of basic taxation. What this means is that you file returns based on the profits of the ending year. Still on the requirements of the tax authority IRAS, if you supply services and goods in the country, you will need to submit Goods and Services Tax (“GST”) and be GST registered. This is especially, if the taxable supply goes beyond a million Singapore dollars.
Payroll processing
It is a requirement that every company in Singapore pays their employees on time. All deductions must also be made and presented to the CPF board. Some of the main components of payroll processing include the calculation of overtime wages, basic wages, bonuses and the like. If you want to be in the good books of the authorities, payroll processing is necessary.
Accounting services needed to keep business running
Failure to provide the aforementioned information in the expected time could lead to paying hefty fines and incur penalty. You can either place measures to ensure that your accounting records and tax returns are made on time. Alternatively, you can outsource the accounting tasks to J Accounting Services so that you save money and time, a more appealing option that many companies have adopted instead of retaining an in-house accounting team, which could be costly.
