Why Should You Hire an Accounting Service for Your Business in Singapore?
Accounting Standards in Singapore
Accounting standards in Singapore are called Singapore Financial Reporting Standards (SFRS) and these are based on International Financial Reporting Standards (IFRS). All companies in Singapore with financial period beginning on or after 1 January 2003 need to comply with SFRS.
One of the main principles of Singapore accounting standards is accrual-based accounting. Thus financial statements are prepared on the accrual basis of accounting according to which the effects of transactions and other events are identified when they take place and not as cash or similar is paid or received. These are recorded in the accounting records and are reported in the financial statements of the related periods.
Since the world is ever changing and becoming demanding, complexities in the accounting standards are increasing. So, it becomes increasingly difficult for small businesses to know whether they are compliant or not. Here they can take help of accounting services Singapore, because sticking to the full SFRS is challenging for small and medium-sized businesses, as they find the requirements burdensome on their valuable little resources.
If you are a small or medium-sized business in Singapore and trying to find out ways to save money and time in maintaining your business’s statutory compliance, outsourcing the task is an excellent way to do this.
The reason for this is quite simple. The task is non-core and creates no profit and revenue for your business. Instead, it engages your skilled human resources and every now and then, whenever they struggle to meet a deadline, introduces anxiety in your work environment.
According to the Accounting and Corporate Regulatory Authority of Singapore (ACRA), it’s the responsibility of a company’s directors to do the company’s annual filing. It’s also binding for them to update its books of accounts. Nevertheless, the predominant view is that the task must be done without disturbing the focus on the core goals of the company.
Hiring an accounting service in Singapore to manage the business accounting is perfect because it removes all the stress associated to the task out of your workplace and makes it a cool place to focus on your core goals.
In addition, you even don’t have to invest in hiring a permanent in-house accountant, providing employee salary, perks, infrastructure etc.
All in all, hiring an accounting service is always beneficial for businesses in Singapore. So, have you started looking for one?