First things first, in terms of compliance and tax requirements, nothing is as important as accounting services. It is second only to company secretarial duties when it comes to ensuring that the statutory and legal ramifications of the organisation are kept in check. A knowledgeable and experience accounting professional would be able to perform the service of ensuring that all tax assessments are filed in the accurate manner within the deadlines stipulated by the authorities. Small businesses might often overlook details to their detriment because inaccurate tax returns will definitely result in penalties ranging from minimal to severe. A professional accountant would be able to ensure that all data and records are accurate enough that tax returns are filed according to requirements at all times so that the business will not be fined a huge sum.
Secondly, accounting services is powerful as it has the ability to seek out opportunities for the organisation. In terms of growth and expansion, accounting services would be able to provide a forecast based on current financial situation of the company. These figures, reports and information would then be able to be utilised to provide a direction of the organisation. For example, the Singapore government has recently in 2013 provided numerous grants, programmes and schemes for businesses which are in the field of new energy creation and developing innovative technology research. If the accounting division were to be able to forecast such figures to ensure that the business is able to utilise the funds as provided by the government, it would have then created an important avenue for the long term growth of the business.
Accounting is also important as the manager of any division would need to have feedback on the viability of his own division. Any student of accounting will tell you that analysis and ratios conducted on the financial figures would be able to pinpoint accurate readings on the current financial situation and profitability of each division. Overall, it would also be able to ensure that the organisation is managing cash flow appropriately, that debt ratio is at manageable levels and that inventory management is aligned so as to ensure that there is little or no wastage that occurs. Therein lies the importance of accounting to any organisation.
Since accounting services is essential to the well being and continued growth of the organisation, it is also highly important that only professionals and skilled workers are undertaking the responsibility. If there isn’t anyone in your organisation capable of taking this role, perhaps it would be wise to contact a professional accounting and financial services to assist you in this matter. It is advisable that you do this as soon as possible to ensure that the data and input in your accounting records is kept as accurate and up-to-date as possible.
Find out what are the Accounting Services for SMEs here
Paul Hype Page & Co, a public accounting firm, full practicing member of ICPAS issuing IRAS approved audit report. Our CPA firm offers Singapore tax advisory, auditing service and accounting service to solve IRAS & ACRA annual filing for Singapore Company and business auditing, taxation and accounting requirements.