Singapore Financial Statement Compilation Services
Understanding Financial Statements Compilation (FS Compilation)
Navigating the complexities of Singapore's financial regulations can be challenging. Financial statement compilation provides a streamlined solution for businesses needing to present their financial data accurately and efficiently. This service focuses on transforming raw financial information into a structured financial report, adhering to the relevant Singapore financial reporting standards, without the intensive scrutiny of an audit.
Definition of Financial Statement Compilation
Financial statement compilation is a service where an accountant assists management in presenting financial information in the form of financial statements. The accountant is essentially required to compile financial statements based on data provided by the company’s management. In practice, the accountant will extract accounting information and data (usually from an accounting software) and present it in accordance to financial reporting standards. This compilation process does not involve providing assurance on the financial statements, distinguishing it from audit services.
Purpose of Compilation of Financial Statement
The primary purpose of the compilation of financial statements is to present a company’s financial position and performance in an organized and understandable format. This is particularly useful for private companies and small companies exempt from a full audit, allowing them to meet their financial reporting obligations for the annual general meeting without incurring the costs associated with assurance on the financial statements.
FS Compilation also allow the company to compare and analyse key data, in particular against previous year financial information. For companies that are larger, FS compilation is a required process to present financial information to stakeholders. Companies that require audit use this compiled FS as a starting point for the audit process.
What is Financial Statement Compilation?
Who Needs Financial Statement Compilation?
Businesses Requiring Compilation Services
Startups and small companies in Singapore often find financial statement compilation to be an ideal solution. These entities may not have the resources for a full audit, but they still need to present their company’s financial position effectively. For some firms, their accounts are prepared once a year and it is common to complete the accounts and prepared the financial statements (FS compilation) at the same time.
Startups and SMEs – FS Compilation for practical uses
While there are no mandatory regulations that require businesses to prepare financial statement, the directors are expected to maintain a management account as part of their duties to understand and monitor the company’s financial situation. A compilation of financial statements offers a cost-effective way to meet basic financial reporting requirements and provide stakeholders with a clear financial report, ensuring a degree of financial transparency without the extensive procedures of an audit.
SMEs may make use of a compiled FS for many uses. Common uses includes:
Loan and Financing
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Securing new loans – Banks and financial institutes may evaluate the financial statements during their loan approval process
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Lower borrowing costs – A favourable financial statements allow company to negotiate for better interest rates for existing financing options.
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New financing products – A strong FS may open new opportunities for financing options. This may include trade financing, factoring or other option that improve your company’s operation
Investors and Expansion
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Onboarding of new investors – A compiled FS is the basis for investors to understand your new company. It provides them with the fundamental financial information to evaluate your firm and hence, a compiled FS is the bare minimum to onboard new investors.
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Valuation – Partial sales of shares, selling a business segment or even sales of the whole business. While valuation of the business is a complex process, a well-structured financial statement is always a good starting point
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Expansion – Expansion plans, especially in a new geographical market, will require forging new relationship with stakeholders. From customers, suppliers, bankers to statutory board, the financial statements will be one of the key documents to present the company’s health to these new stakeholders.
Auditors and Compliance
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Auditors – Auditors begin their work on a compiled FS. Having a compiled FS will facilitate the audit process
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Compliance – For regulated industries, companies may be required to furnish a compiled FS as part of the compliance requirements. Statutory board may also require the financial statement of certain companies.
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Grants, incentives and statutory audit – Prior to the approval of certain grants and/or incentives, it is common for statutory board to require for management accounts or a compiled FS for evaluation.
Professionally Prepared FS Compilation
OakTree Accounting offers professionally prepared FS compilation services in Singapore, ensuring that your company’s financial statements are accurately compiled in accordance with Singapore financial reporting standards. Our team of experienced accountants can help transform your raw financial information into a clear and concise financial report. With OakTree Accounting, you can ensure that your financial statements are properly compiled to meet regulatory requirements. We prepare compiled financial statements for submission or internal analysis.
Add-ons: Business Analytics - Understanding your Financial Statements
In addition to financial statement compilation, OakTree Accounting provides add-on services like business analytics to help you understand your financial statements better. Our experts can analyze the compiled financial statements to identify key trends, strengths, and weaknesses in your company’s financial performance. This valuable insight can inform strategic decision-making and drive business growth. Understanding your company’s financial position is essential for making informed choices. This is essential for growing SMEs or for companies that are facing an unexplained dipped in financial performances.
Add-ons: Reviewing your business performance and making SMART Targets
OakTree Accounting goes beyond simply compiling financial statements. We offer add-on services that include reviewing your business performance and helping you set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) targets for future growth. By understanding and analysing your financial statements, we identify key opportunities and potential weakness that the management should be focusing on in the year ahead. Working with you, we helped companies to develop strategies for achieving your business goals. This service has the future in mind and we seek to transform historical data analytics to future profitability.
How OakTree Accounting & Corporate Solutions Can Help
Looking to improve business performance?
Speak to our expert accountants and find out which services suit your firm best. At OakTree, our full-suite of solution seek to:
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Fulfill compliance requirements
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Analysis of Financial Information
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Transforming “numbers” into business goals
Engage us in a discussion to find out what is best for your business.