The government in Singapore has made it mandatory for every business to maintain detailed financial records so that it will pay taxes properly. These records include accounting records of all the payments received and made by the business. If proper records are maintained, it will be possible to comply with the requirements of the local regulatory authorities like IRAS, ACRA. Most businesses, especially small businesses do not have competent staff for business accounting and processing of payrolls. One of the most effective methods to overcome this problem is outsourcing corporate accounting services in Singapore to a competent service provider
Accounting & Bookkeeping
It is compulsory for companies in Singapore to keep updated books of accounts. In addition to the balance sheet, Profit & Loss account, it is also necessary to provide an equity and cash flow statement. These records should comply with Singapore’s Financial reporting standards (SFRS). The accountants of the service provider will maintain the accounting records for the company, so that the business can get accurate financial information. Auditing services are also provided.
Goods and services tax (GST) returns
GST tax is imposed on various good, services consumed in Singapore. Businesses having revenues exceeding $1 million should register with IRAS for GST while others can voluntarily register with IRAS. The registered companies should file their GST returns quarterly with IRAS, and this work can be outsourced.
It is compulsory for Singapore companies with a turnover of more than S$10 million, have a corporate shareholder or at least 20 shareholders to get audited. Companies should also file the report of the independent auditor and the directors annually. These reports are necessary to ensure that the companies conform to the recommended financial practices, and the service provider will draft the reports on behalf of the company.
Since December 2013, it is necessary for Singapore companies to file financial statements in the Extensible Business Reporting language(XBRL) for easy analysis and greater reliability. The outsourcing company will convert and file the financial statements accordingly on behalf of their client.
The process of calculating the salaries for employees is a complex task. In addition to basic wages, other payments like overtime, bonuses, there are deductions like provident funds and donations to funds like the levy for skill development. It is important to ensure that all the salaries and deductions are calculated accurately and the employees are paid on time, else the company could face legal issues with the government as well as the employees. Hence outsourcing payroll processing to a reliable service provider is recommended, so that the Singapore company complies with all the regulatory requirements.
Many employees incur expenses on behalf of the company they are working for, especially while travelling. The company will reimburse the expenses of the employee when he files a claim. The claim processing is usually manual, often resulting in errors, especially if the receipts provided are missing or faded since the amount claimed and amount paid out do not match. To overcome this problem, a suitable software can be used by the outsourcing company to reduce errors and save money and time for their client.