Business entities across the globe have to report financial performances based on IASB [International Accounting Standard Board]. IASB has issued International Financial Reporting Standards that are widely used to measure the company’s financial health. Every company started on or after 1st January 2003 has to adhere to SFRS.
Complexities of Singapore Financial Reporting Standards
In Singapore, there is a majority of Small & Medium-sized entities [SMEs]. The SMEs were not feeling confident about their compliance status. If SMEs comply with the full SFRS [Singapore Financial Reporting Standards] their valuable small resources are burdened. To resolve this issue, the IASB issued IFRS focused on SMEs around the world. The key question that arises among SMEs is which account reporting standard to comply with – full SFRS or SFRS for small entities.
Bookkeeping and accounting are crucial components of every successful corporation. From its core functions associated with payments, bookkeeping, and audits to tax advice, preparation, and reassurance, there is not a single part of the business that doesn’t involve an accountant.
It is universally approved that the importance of accounting in Singapore or anywhere around the world cannot be ignored. The standards in Singapore are called SFRS or Singapore Financial Reporting Standards. In Singapore, there are 41 different standards like FRS 1, FRS 2, etc. Everyone covers specific topics like financial statement presentation, revenue recognition, inventories accounting, etc. It is sensible to take professional help from trustworthy and experienced Jaz Corporate Pte Ltd.
Importance of Account Services To Your Business
Advice on compliance to SFRS
Until a couple of months ago every entity registered in Singapore adhered to full SFRS regardless of its size. Now, there is an introduction of simplified or new SFRS for SE. Companies have to review their business nature and growth plans before they adopt the standards.
Professional accountants can help you to identify which standard to comply with – full SFRS or simplified SFRS for SE. They will take into consideration the challenges like future plans, transition cost, financing, and impact on other holding companies [if any].
Offers insightful financial analysis
The business goal is to look for opportunities that help them expand. An in-depth and detailed accounting analysis can help to manage the key costs as well as identify business opportunities. When your business grows its capacity and complexity also escalates. Efficient accounting analysis can help to keep cash flow smooth and scale business opportunities efficiently at optimal costs.
Offer robust financial statement
Accounting is not just counting money. It is also about monitoring every transaction in a systematic way including the sales, expenses, payments, and reimbursements. Professionals make sure that the bookkeeping and accounting performance of each department is documented properly. It can be crucial to evaluate employee performance, make core business decisions, or even if there is a need for tax audits.
Offer vital tax service and advice
Accountants are the first point of contact when the subject is about business tax planning, preparing, and filing. Every SME needs professional help from accounting services to prepare their annual tax statement to file their yearly returns. Tax reporting does not feel time-consuming and overwhelming as professionals ensure that timelines are maintained and returns are prepared properly.
Focus better on business growth
You started a business to expand and flourish. Therefore, focus on what you are good at rather than keeping up with the bookkeeping and accounting elements. Financial matter handling needs plenty of attention to the nitty-gritty and staying updated about the protocols associated with tax laws.
If you spend time understanding the financial reporting standards and tax laws then the core business activities you are passionate about will suffer. Therefore, shift financial responsibilities on competent accounting services in Singapore.
Cash flow management
Cash is crucial for business survival. Financial status determines your business’s success or collapse. At the time of significant business growth, you feel tempted to ignore accounting tasks. Lack of accounting can lead to mismanagement of collections or financial analysis. This can soon lead your business to the verge of bankruptcy.
Improper cash flow management is risky and becomes the core cause of business failure without your knowledge. Hiring a reliable accounting firm is helpful because they are skilled in proper cash flow management.
Bills need to be paid on time, if ignored you will have to handle unhappy vendors as well as lose discounts. Invoicing delays can jeopardize business cash flow. A committed accounting firm will ensure that your payments and invoicing process are on time. This defines the healthy status of your business finances.
Partnering with credible Singapore accounting services means you tap in well-trained and vast experienced staff. Regardless of the business size, they are focused on making the right financial decision, especially financial reporting standards and tax matters. If your company accounts are being neglected and need extra attention then choose a reliable accounting firm in Singapore with talent and resources to enhance your financial status.