Accounting Firm in Singapore

Accounting Firm in Singapore

Having good financial advice and Accounting Firm in Singapore is essential for the operation of any company. Accounting is a technique that is responsible for registering, classifying and summarizing the business operations of a company or business to know the state of entry and exit of capital. Accounting is important both to start a business and to develop it and to maintain it, it will depend on the success or failure of it.

Through accounting the information of the company is collected through a financial report, which must be done by an expert accountant, it is also a legal requirement to keep a financial statement of the company. Accounting Firms in Singapore are tools that an entrepreneur has to carry out financial activities such as investments, purchases, and sales of products. When a businessman dispenses with an accounting consultant, he puts the company’s resources at risk and can be subject to many penalties.

Functions of an accounting consultancy

-Control the general accounting plan for proper management.

-To know about the legal obligations related to the accounting of the company and the businessmen.

-Make accounting closures, as well as their accounting adjustments according to the legal regulations in force.

-Manage the annual accounts of the company and the delivery terms of the financial statements before the commercial register

-Take control of the accounting books and carry out the procedures for the legalization of them.

-Advise the client about favorable decisions for the company.

-Manage the assets of the company.

Accounting Regulations in Singapore

  • Fiscal year

-The calendar year (from January 1 to December 31), also called the Year of Assessment (YA). The calculation of income is based on the income made during the previous calendar year (or base year), although the Internal Revenue Authority of Singapore allows companies that do not close their accounts on December 31 to use the accounting year as the fiscal year. Base instead of the calendar year.

  • Accounting rules

-The Singapore Financial Reporting Standards (SFRS) are aligned with those of the International Accounting Standards Board. The Accounting Standards Board of Singapore (ASC) develops, reviews, corrects and approves the accounting standards used by companies, charities, cooperatives, and societies. Public companies can, with the permission of the securities regulator, also use IFRS standards. Foreign companies need to apply SFRS, IFRS or US GAAP if they have a principal listing in Singapore, while those who have a secondary listing only have to adapt their financial statements to the aforementioned standards.

  • Accounting regulation entities

-The Accounting and Corporate Regulatory Authority (ACRA)

  • Structure of the accounts

-Declaration of income tax, income statement, and balance sheet.

Publication Obligations

-Each company must present an income statement and a financial balance. The accounting records must be kept for five years after the end of the fiscal year of each transaction. The audited accounts must be submitted to ACRA annually, but companies are free to choose their fiscal year.

-A company must keep certain reports in addition to the accounting records, for example, the registers of important shareholders, holders of obligations, the participation of the directors and delegated directors, proprietary directors (if any).

-A foreign company is obliged to present its financial statements, together with the audited financial statements of the branch, in the two months following the annual meeting of the head office, or the seven months following the end of the fiscal year if the headquarters does not is bound by law to hold an annual meeting at the place of incorporation.

  • Professional accounting entities

-Institute of Certified Public Accountants of Singapore

  • Certification and audit

-Companies must use a statutory auditor to perform the annual audit of their financial situation. Inactive companies (those that do not record important accounting operations during the fiscal year) and small companies are exempt from meeting the legal audit requirements demanded from other companies.

Why is it important to hire Accounting Firm in Singapore?

Accounting and financial advice are very important when starting a business, since an expert accountant, capable of organizing the economy and finances of a company can guide it to success. Besides, through good accounting, you will be able to know in time the amount that you will have to pay for taxes, remember that paying on time has discount benefits. With the appropriate accounting advice, you can make sound decisions from the economic point of view regarding the investment of the shareholders or at the moment of sales of the shares.

The accounting in the business allows differentiating between current and operating expenses on what the business can generate to optimize resources, its study and its application help the employer to be alert of the investments and the profits of his business. That company that does not have the accounting services will be destined for the closing of the same one. Mismanagement of the company’s resources or absence of management is a sure failure. For that reason at LEE&HEW we have an excellent Accounting firm in Singapore for the administration of any company, be it small, medium or large. Hire our services for the development of your business and remember that you can make your queries online. Your first consultation is completely free.