From industrials to healthcare, SMEs in Singapore hail from a variety of different industries. Still, all SMEs conduct similar operational procedures, which includes accounting. We’ve broken down the accounting process into 5 specific service areas which help SMEs maximise their business potential.
Bookkeeping, which precedes all other accounting functions, involves the recording and filing of all business transactions. Singapore law requires that all business transactions be properly recorded and accounted for. This administrative task serves a practical purpose in that they describe the financial condition of the company and allow accurate preparation of financial statements.
Gone are the days when handwritten entries were kept in worn-out journals. Today, most bookkeepers use accounting software like QuickBooks for debit and credit posting, invoice creation and inventory management. These tools also automate payroll, credit card reconciliations and the filing of cash receipts. Even so, bookkeepers need solid accounting skills in order to interpret and organise volumes of financial data.
SMEs handle a substantial number of financial transactions on a daily basis. Having your books kept professionally saves you time and resources so that you can focus on the core aspects of your business. It also helps you to track your cash flows so that you can make informed short-term and long-term business decisions.
Generally speaking, financial statements provide information about a company’s financial position and business activity. Different types of financial statements include income statements, balance sheets, cash flow statements and equity statements. All incorporated SMEs are required to file their financial statements on time at the end of each financial year.
As much as financial statements are crucial supporting documents when filing taxes, they also provide useful metrics for potential investors. Investors often look at a company’s bottom line, cash flow and quick debt ratio when evaluating its investment potential. It is thus important to prepare accurate and comprehensive financial statements.
Statements that are defective or inaccurate can cause legal trouble and misguided business decisions. As such, SMEs with little expertise in financial reporting can benefit from the help of professional accountants. Their experience enables them to efficiently prepare financial statements within stipulated timelines.
Tired of transferring your financial records from computer to computer? Cloud accounting solves the inefficiencies of traditional accounting software by enabling you to store your business records as encrypted files on a cloud server. This online data can be accessed remotely through the Internet or a cloud application service provider after authentication. Financial records are also updated automatically, enabling real-time monitoring.
Cloud accounting is a natural choice for SMEs who take their work productivity seriously. It provides reliable, up-to-the-minute data to help you make better business decisions. The availability of backups and multi-factor authentication also gives you the assurance that your data is secure.
Extensible Business Reporting Language (XBRL) is a standard language for electronic communication of business and financial data. The XBRL format is expected for all financial statements submitted to the Accounting and Corporate Regulatory Authority (ACRA).
Given the complexity of XBRL financial reporting, it is no surprise that converting a single set of accounts to XBRL format takes at least 30 minutes. Hiring professionals proficient in XBRL tagging saves you time while keeping your financial statements free from error. Thorough compilations and checks also give you the confidence that your financial statements are in compliance with ACRA standards.
In onsite accounting, the accountant physically reports to the business location to conduct various accounting tasks. They can respond quickly to issues that arise during the accounting process, thereby improving efficiency. Moreover, onsite accounting minimises the dissemination of sensitive data. The information is held in the office, under the care of professional accountants bound by strict non-disclosure agreements.
Whether you need professional assistance with one or all of the above accounting processes, Ares Strategy has got you covered. We offer a broad spectrum of accounting services to ease your accounting woes. Contact us today to find out more.