In any company, accounting services are of critical importance. Companies that fail to acquire the necessary accounting services can expect to experience many problems. On the other hand, a company with people who can adequately and competently carry out accounting services will benefit greatly from such services.
A key step in the incorporation of a company in Singapore is the installation of accounting services. Accounting services in Singapore can help you to do more than just meet any tax and reporting requirements.
Accounting Services Commonly Offered in Singapore
Some of the accounting services that are commonly sought for are cash flows and working analysis, account consolidations, management reports and accounts, and the financial planning and budgeting. Let’s take a look at them individually!
1. Cash Flow and working capital analysis
Small Medium Enterprises (SMEs) and start-ups are usually clueless when it comes to analyzing and identifying, assessing, and addressing their working capital and cash flow. They include:
Drafting of engagement letters
Conducting pre-project diagnoses
Integration of measures proposed by business owners
Conducting management review sessions
Any field of feedbacks on how the company can improve on its expenses and revenue
2. Accounts consolidation services
Account consolidation services are required to allow management team to understand the company’s current financial status. The consolidation reflects all of company’s assets and original entities.
The service includes calculation of goodwill on consolidation, inter-company transactional processes, adjustments form cost to equity, fair value adjustments as well as purchase price allocation.
3. Financial planning and budgeting
The purpose of planning and budgeting services are to help SMEs to structure and implement proper budget practices while managing their financial resources. Some services included are:
Analysing of past financial performance regarding revenue and expenses
Developing implementation roadmap
Developing and integrating of customised templates related to company’s finances
Integrating of insights to initiate and structure budgeting processes of SMEs
Advantages of Outsourcing Accounting Services
More companies in recent years have chosen to outsource their accounting services after comprehending the significant benefits that arises when accounting services are outsourced. Some of the advantages include:
1. Less likely for fraud to occur
Fraud is an unfortunate yet common occurrence among providers of in-house accounting services of SMEs. In-house accountants will find it easier to manipulate numbers in order to make them appear more favorable to the individual companies and hence, the level of trustworthiness and accountability is compromised.
On the other hand, while outsourcing for accounting services, the accountants that are not directly related to the information given will be overseeing all reports, minimising the chances of committing a fraud.
2. Reduced cost
The costs of hiring in-house staff for the purpose of handling accounting services to the cost of using an outsourced accounting service is much more expensive.
Accountants that were outsourced tend to be more proactive and it would be more efficient for the company as compared to in-house accountants. This is because an outsourced accounting team generally consists of many experienced accountants with high level of compliances and reliability.