Accounting And Tax Services
The Singapore Companies Act and the Income Tax Act both require proper accounting and bookkeeping in Singapore. Directors must follow proper accounting and bookkeeping to reflect a company’s financial status and provide sufficient justification for its transactions, according to Section 199 of the Singapore Companies Act. Our qualified accounts professionals and certified accountants in Singapore follow proper filing procedures and maintain statutory accounting standards in the books of accounts. Proper accounting provides detailed and accurate financial information to directors and shareholders, as well as insight into a company’s current state of affairs. At APacTrust, we provide accurate accounting services in Singapore and analytical information on corporate finances to help clients manage their businesses successfully and maintain corporate liquidity.
Suggested Read: Accounting Services in Singapore
Why accounting services are so important to Singapore businesses
Accounting services are essential to Singapore businesses for several reasons. Singapore is a highly regulated and competitive business environment, and proper financial management is vital for companies to succeed. Here are some reasons why accounting services are so crucial to Singapore businesses:
Compliance with Regulations:
Singapore has strict laws and regulations governing financial reporting, taxation, and corporate governance. Accounting services can help businesses navigate these regulations, ensuring that they comply with all the necessary requirements. Penalties, fines, or legal issues may arise if specific regulations are not adequately followed.
Proper financial reporting is crucial to any business. It provides information about the financial situation of the company and helps stakeholders make informed decisions. Accounting services can help businesses to prepare and present financial statements that are accurate and comply with Singapore Financial Reporting Standards (SFRS).
Singapore has a complex tax system with different tax rates and regulations for various types of businesses. Accounting services can help companies to understand and comply with tax laws, minimize their tax liability, and take advantage of any tax incentives or credits.
Accounting services can help businesses manage their finances effectively. This includes bookkeeping, budgeting, cash flow management, and financial analysis. Proper financial management is crucial for companies to make informed decisions and ensure that they have enough cash flow to operate and grow.
Business Planning: Accounting services can provide valuable insights and advice to businesses on financial planning and strategy. This includes forecasting, budgeting, and financial analysis, which could be used to assist companies in future planning and achieve their goals.
In conclusion, By outsourcing accounting services, businesses can focus on their core activities while leaving financial management to the experts.
Why Do Singapore Businesses Need To Outsource Accounting Services?
- The need to maintain proper & accurate accounting records
- With well-prepared financial statements to reflect the financial health of your company
- With ageing reports, you can get a great grasp on your company’s cash flow
- A better grasp on your company’s cash flow with ageing reports
- To provide ready-made financial statements and reports for the AGM
- To get an accurate and timely Annual Filing
Why Are Singapore Companies Outsourcing Their Accounting And Tax Services?
Accounting services are crucial to Singapore businesses because they help ensure compliance with regulations, accurate financial reporting, effective tax planning, proper financial management, and sound business planning. For this reason, more and more businesses in Singapore are now looking to outsource non-core tasks such as bookkeeping and accountancy. Appointing qualified & experienced accounting service providers allows them to concentrate on their primary business objectives, such as client satisfaction and profit. By outsourcing accounting services, businesses can focus on their core activities while leaving financial management to the experts.
Benefits of Outsourced Accounting Services In Singapore!
In recent years, more companies in Singapore have chosen to outsource their accounting services after realizing the tremendous benefits that come with outsourcing accounting services. Some of the advantages include:
- Good Business Practice From The Beginning
Many start-ups and small businesses in Singapore are so focused on revenue-generating activities that they overlook accounting and bookkeeping responsibilities, leading to panic as well as anxiety when tax deadlines approach.
If you’re used to outsourcing these accounting services from the start in Singapore, it will be much easier to develop and maintain good business habits like keeping accurate records, submitting regulatory compliance on time, having complete control over expenditures, and preventing dishonesty among all employees.
- Reliability & Proactiveness
Outsourced accountants in Singapore are generally more proactive than in-house accountants, and they are more efficient for the organization. This is due to the fact that an outsourced accounting team often consists of a large number of competent accountants with a high level of compliance and reliability in providing good quality accounting services in Singapore.
- Cost Effective
You can save money by outsourcing your accounting needs in Singapore. If you want to have an in-house accounting department, you need to pay salaries and contribute to the Central Provident Fund (CPF). You will also need to spend money on the infrastructure and set aside office space for the department. Outsourcing your accounting services is still the way to go!
- Less Likely For Fraud Occurrence
Fraud is a regrettable but all-too-common issue among Small and medium-sized enterprises when in-house accounting is concerned. In-house accountants may find it easier to modify data to make them appear more advantageous to particular entities, compromising the level of trustworthiness and accountability.
On the other side, when accounting services are outsourced in Singapore, accountants who are not directly involved in the information provided will oversee all reports, reducing the risk of fraud.
- Free up Your Time
In general, entrepreneurs in Singapore often multitask a lot in their business operations, which includes making business decisions. Outsourcing tasks such as accounting services free up time for them to plan, enhance business strategy, gain new customers, compete, and expand their company.
- Stress Reduction
You will have to spend time & resources searching, advertising, interviewing, and recruiting accounting employees. However, you may have to deal with concerns such as evaluating their performance, providing incentives, promoting them, and offering other employees benefits. Much stress could be reduced by outsourcing the entire accounting process to a reputable accounting service provider in Singapore.
- A company whose principal. activity is that of investment holding; and
- A company that undertakes property development for sale, for investment, or for both investment and sales.
- The company must be incorporated in Singapore; and
- The company must be a tax resident of Singapore for that YA; and
- The company’s total share capital is beneficially held directly by no more than 20 shareholders throughout the basis for the YA where :
- all shareholders are individuals; or
- at least one shareholder is an individual holding at 10% of the issued ordinary shares of the company
- We will work with you one-on-one to achieve your accounting requirements
- We will review and organize documents in preparation for the development and maintenance of accounts ledgers
- We will assist with financial statement drafting for statutory submissions
CORPORATE TAX SERVICES
Corporate Taxation In Singapore
When comes to the corporate tax rate, Singapore has been consistently ranked as one of the lowest in the world. It is no surprise that business opportunists are attracted to this country because of its low corporate tax rates and substantial financial incentives provided by the government (IRAS). Here are some useful resources for learning more about Singapore’s corporate taxes.
Corporate Tax Rates In Singapore
Regardless of whether a company is foreign or locally owned, chargeable income is taxed at a flat rate. The corporate tax rate is currently set at 17%.
Company Tax Exemption Scheme In Singapore
Qualifying companies for tax exemption in Singapore will be given the following exemption on the first S$200,000 of Chargeable Income.
Let’s look at the first 3 consecutive Years of Assessment (YA) :
Exempted from Tax (Percentage)
Amount Exempted From Tax
* Qualifying conditions for Start-Up Companies :
The tax exemption is open to all except for these 2 types of companies :
* Eligible companies must qualify these 3 conditions :
Why should you engage APacTrust services to handle your accounting in Singapore?
You can stay on top of the financial information you need to keep your business going forward with us on your side. Our professional team is well-versed in the accounting functions of Singapore. And how much does it cost to outsource your bookkeeping? A fraction of the cost of hiring an in-house position for sure! Here are the reasons why choosing us is the right choice.
Making the switch of your Accounting Services to APacTrust!
Every firm in Singapore is accountable for upholding its reputation as a financially healthy and trusted company. Maintaining good books will assist businesses in meeting the compliance requirements set forth by regulatory bodies such as ACRA and IRAS. Almost all directors of Singapore companies are aware of this and are concerned about the correctness and timeliness of their annual filings because the ACRA holds them accountable.
You can outsource your accounting services to us, our competent accountants will assist in dealing with complex tax issues that cannot be resolved internally. If you’re dissatisfied with your current service provider, switch over to us before it’s too late. Switching to APacTrust’s accounting services in Singapore is simple, just fill out the inquiry form below or contact us via phone or email to let us offload that accounting burden from you.