Knowing the ropes of what you do well is of utmost importance when you’re a business owner. Would you be running a design business or an F&B establishment if you only have a faint idea of what’s it all about? But when it comes to the company’s keeping of books, managing of financial accounts and annual reporting, many business owners don’t have the same confidence or solid foothold as they do in other business matters. Many are also under the impression that the professional services of a Singapore Accounting Firm come at an exorbitant cost, which is certainly not the case, and would rather entrust the job to a family member who is willing to help out, or delegate it to someone in the company who may not be able to cope when business starts picking up.
Singapore Accounting Services
Before you decide if engaging the services of a professional Singapore Accounting Firm, which can start from as little as S$100/month, is a viable option for your company, you might want to ascertain if your company and you are exhibiting signs that status quo, where handling of company books and accounts is concerned, can no longer be maintained.
1. Your company books are always not up-to-date
Can you really have a firm handle on your company’s finances when your books are, more often than not, outdated, or just not reflecting what is most current? When a backlog of paperwork, untracked receipts and payments, and unassigned income and expenses await to be reconciled and assigned, it’s a sure sign of poor monitoring on the part of your finance team that could affect your company, as failure to keep records of invoices, serially numbered receipts, income records, purchase and business expense records, accounting and statement records for at least five years can result in penalties and cancellation of licenses. Failure to monitor your account payables and account receivables continuously will also lead to unforeseen debts and bills that could compromise the financial stability of your company.
2. Last Minute Rush When Tax Season comes
When the annual tax season comes along, it is not uncommon to see many companies, especially start-ups, finding themselves scrambling to understand the complexity of IRAS’s requirements, and to make matters worse, find the required and properly maintained financial records and accounts that are supported with invoices, serially numbered receipts, income records, purchase and business expense records and other records of financial transactions related to your business, so that income earned and business expenses can be determined and proved. This is especially overwhelming if your business has been growing and your company has been negligient in maintaining income and expense records.
If you find yourself without properly maintained books and accounts come tax time, and there is difficulty understanding what is required to be submitted to IRAS, then it is time to seriously consider outsourcing your books and accounts to a professional Singapore Accounting Firm.
3. Missing out on the tax deductions your company is entitled to
Do you know that Bank charges, Book-keeping services, Exhibition expenses, Motor vehicle expenses, Printing and stationery, Staff training, Telephone bills are some of the Deductible Business Expenses listed by IRAS? You can certainly use these deductible items to offset your total business income and reduce the taxes you’re liable for. So if you have been missing out on these obvious write-offs because you never tracked them or your in-house “accounts people” didn’t assign transactions and expenses to the correct categories that are tax-deductible, or everyone was just too busy last minute to beat the filing deadline, then that is another sign you really will benefit from professional Singapore Accounting Services.
4. Handling the books and accounts is exhausting you
And on a more personal note ….
Trying to learn bookkeeping and accounting while trying to run a business, especially a start-up, may lead you to lose more than you gain from saving on hiring Singapore Accounting Services. Doing your own daily upkeeping of nitty-gritty financials will detrack you from the focus it takes to efficiently market and grow your business. If you spend too much time handling your financial records, payroll, and other related accounting matter, so much so that you have little energy left, it may be time to look into outsourcing your accounting services to professionals with thre right set of skills and experience to free up time and headspace.
5. Paying too much for an in-house accountant
Are you paying too much for housing your own bookkeeping and accounts staff (when you really don’t need one)?
Every business, depending on its size and scope, needs to execute financial record keeping differently. Big organisations would require a more sophisticated bookkeeping system and personnel, while a new company of modest size may just require recording keeping of 25 transactions a month with little fuss. Business owners who could be paying, let’s say S$100-350 monthly for 25-100 transactions, are certainly guilty of creating unnecessary expenditure by hiring an accountant for the company.
You can contact a Singapore Accounting Firm or use an online quote calculator to find out the bookkeeping and accounting (annual filings too) charges based on your company’s needs, and make a more informed decision after comparing the expenses.
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