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Bookkeeping Service Singapore – What Your Business Truly Needs

Jun 3

6 min read

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Bookkeeping
Bookkeeping? Essentials of a business!

Bookkeeping Services Singapore


In the dynamic landscape of Singapore's business environment, small and medium-sized enterprises (SMEs) often find themselves juggling multiple roles—from operations to customer service. Amidst these responsibilities, maintaining accurate financial records can sometimes take a backseat. However, the importance of bookkeeping or accounting for companies cannot be overstated. It's not merely about balancing ledgers; it's about ensuring your business's financial health and compliance.


Whether it is through having a bookkeeping services provider or having an in-house accountant, there needs to be someone who is financially and accounting trained to ensure the books of accounts are in order. As a business owner, you may be wondering what the actual value is behind monthly bookkeeping (or even yearly bookkeeping). Let us explore some of the bookkeeping purposes, how essential bookkeeping can ensure compliance, and most importantly, how it can help improve your business.


What Is Bookkeeping and Why Is It Crucial for Singapore Businesses?


Bookkeeping involves the systematic recording, categorisation, and maintenance of financial transactions. For businesses in Singapore, maintaining proper books will assist companies in being compliant with regulations (such as annual returns filing purposes). Accurate financial statements, including balance sheets and profit and loss statements, are the minimum requirements.

Depending on the different companies’ size, nature, and criteria, there might be varying degrees of expectation for financial statements and bookkeeping records. Financial statements serve multiple purposes:


• Tax Compliance: Tax preparation relies on financial statements. Accurate records ensure that businesses can file their company tax returns correctly, ensuring statutory compliance and avoiding penalties from the Inland Revenue Authority of Singapore (IRAS).

• Audit Preparedness: Well-maintained books facilitate smoother audits, reducing the risk of discrepancies and fines. Having reliable bookkeeping services makes such important business documents less likely to face statutory compliance issues.

• Financial Transparency: Clear financial records build trust with stakeholders, including investors, creditors, and regulatory bodies. Beyond compliance, bookkeeping provides valuable insights into a company's financial health, guiding strategic decisions and fostering growth.


The Importance of Bookkeeping Services: Beyond Compliance


While compliance is a primary reason for maintaining accurate books, the benefits extend far beyond that. The essence of this article seeks to highlight how business owners can fully utilise timely bookkeeping services and accounting records as a tool for business growth.


Cash Flow Management


For SMEs, cash flow is the lifeblood of operations. Regularly updated financial records (Cash flow statements, income statements) allow businesses to monitor their cash inflows and outflows, ensuring they can meet obligations and avoid liquidity crises. For instance, by tracking accounts receivable and payable, companies can identify late payments and promptly address them, maintaining a healthy cash flow. Business owners can use such records to maximise turnover and reduce idle cash. Depending on the risk appetite, aggressive owners may seek to reduce the cash buffer, which may translate to higher returns. Conversely, good and up-to-date bookkeeping records allow business owners to plan for payment obligations, ensuring businesses avoid significant liquidity risks.


Informed Decision-Making


Timely business decision drives businesses. Accurate financial data offers precious business insights and empowers business owners to make informed decisions. Whether it's expanding product lines, entering new markets, or adjusting pricing strategies, having up-to-date financial information enables businesses to assess the potential impact of these decisions on profitability and sustainability. For small companies like retail, e-commerce, or even production and manufacturing, accounting records allow business owners to prioritise segments that truly earn or have a higher margin. Accurate financial information also enables business owners to know the true picture of profitability.


Access to Financing


When seeking loans or attracting investors, financial institutions and potential backers require detailed and accurate financial statements. Regular bookkeeping ensures that such documents are readily available, enhancing the company's credibility and increasing the likelihood of securing necessary funding.


Cost Control and Profitability Analysis


Detailed records help businesses track expenses and identify areas where costs can be reduced. For business nature where cost control is essential, having a comprehensive and timely accounting solutions facilitate business transactions analysis. By analysing spending patterns, companies can implement cost-saving measures without compromising quality, thereby improving profitability.


Strategic Planning and Growth


Timely financial information allows businesses to set realistic budgets, forecast future earnings, and plan for expansion. Whether it's hiring additional staff or investing in new technology, having a clear financial picture ensures that such decisions are sustainable and aligned with the company's goals.

This is especially important for small businesses. Whether you are a home-based bakery considering to rent a F&B space or a small-scale retail shop looking to open a 2nd chain store, such business transactions are relatively huge investments. They may be a win-or-break decision for business owners. Having good and timely bookkeeping records allows businesses to interpret useful information that translates to more accurate forecasts. While all businesses have risks, having accurate financial information reduces these risks and facilitates strategic planning.


Financial Reporting and Report Preparation


Some companies are required to report to shareholder regarding the performance of each financial period. This could be in the form of monthly management report and is usually prevalent in larger corporations or small local subsidiary where there is an overseas parent company. Monthly bookkeeping services will be an essential financial process of the larger set up and allows the group to evaluate accounting period accurately.


Some companies may require comprehensive reports while others may err on simple report of the primary statements. Nevertheless, most headquarters will require access to reports which will be evaluated and used for sound business decision-making.


How Our Company Can Support Your Business


Understanding the significance of bookkeeping is the first step; implementing it effectively is the next challenge. Deciphering and using the information is the true essence and purpose of having proper accounting records.


This is where professional services can make a difference. Having an experienced accounting service provider will ensure proper accounting records and ensure accurate bookkeeping services.

Our accounting firm offers a comprehensive range of accounting and bookkeeping services tailored to the unique needs of small businesses in Singapore. Managed by our expert team of qualified accountants, we ensure the accounting process fits each business operation's needs. We assist business owners in day-to-day financial operations through:


• Maintaining Accurate and Timely Records: We ensure that all the recordings of financial transactions are prompt and accurate. Using an accounting software provides a clear picture of your company's financial status. Our professional accountant will ensure the financial reports are accurately prepared on a periodic basis for stakeholder usage. Getting this right at inception will ensure you begin on the right page; a good start is half the battle won for newly incorporated companies.


• Simplifying Compliance: Navigating the regulatory landscape can be complex. As a Singapore-based accounting firm, we are familiar with the local landscape. We help ensure all financial documents and financial reports are prepared and comply with Singapore Financial Reporting Standards (SFRS), IRAS, and ACRA requirements, reducing the risk of penalties and audits. Our dedicated accountant will also advise businesses on good practices within their financial operations.


• Providing Actionable Insights: Beyond numbers, our team of accountants interpret financial data to offer insights that can drive business strategy and growth. By working with business owners, we offer professional insights and interpretation which will assist in their decision making.

• Collaborative Partnership: We work closely with business owners to understand their goals and challenges and provide support to help achieve them. The numbers on the financial statements may look daunting, but it is our job to present such management reports as a set of valuable tools to achieve your business goals. By entrusting your bookkeeping to professionals, you can focus on what you do best—running and growing your business—while we handle the financial intricacies.


Bookkeeping Service - A Necessity


In the competitive and regulated business environment of Singapore, efficient accounting service is not just a best practice; it is a necessity. It ensures compliance, facilitates informed decision-making, and supports sustainable growth. By recognising its importance and seeking professional assistance, business entities can navigate the complexities of financial management with confidence, paving the way for long-term success.


At OakTree Accounting and Corporate Services, our professional team offers a comprehensive range of services to assist companies in various areas. Apart from bookkeeping services, additional services include expert services in HR advisory, corporate secretarial services, corporate income tax filing and employee payroll services. We believe each business is unique and tailored solutions should be offered depending on the requirements of each business. Our dedicated team will be more than happy to advise you on more information. 

 

 

DISCLAIMER: The views and opinions expressed in this article are those of the author and do not necessarily represent the views and opinions of any individuals or organizations with which the author may be affiliated, either in a professional or personal capacity, unless explicitly stated.

Jun 3

6 min read

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