A guide to choose the best bookkeeping service provider

Posted by Jaden fok on May 6th, 2019

A guide to choose the best bookkeeping service provider

The traditional way of accounting that mainly focuses at only keeping a detail record of financial transaction of any business organisations in Singapore, is no more enough in the modern age. With the advancement in technology the accounting needs of business firms has also changed. Keeping a track of your financial data is no more enough. But, entrepreneurs nowadays need to make decisions and manage risk on the basis of accountant’s advice.

 Analysing financial data and advising on crucial business decisions is the core role of any accountant. So that he could assist the business owner to avoid unnecessary mistakes and enhance the business’ profit and goodwill.

Below mentioned are a few points that explain the vital characteristics, your bookkeeping service provider in Singapore should possess.

Know the difference between bookkeeping and auditing.

According to corporate laws in Singapore, a business house whose turnover is less than five million Singaporean dollars or the one firm that doesn’t have a corporate shareholder, do not need to go through the process of auditing.

It is the responsibility of the bookkeeper that each and every minor transaction records should be noted down. So as to ensure that the financial statement doesn’t lacks anything that may be necessary in the near future in order to comply with the demand of financial reporting standards of Singapore.

     Know the difference between taxable profits and accounting profits.

This concept may be unknown to many individuals. But a qualified accountant or a company providing bookkeeping service in Singapore will be well aware about the difference between the above two. In Singapore taxation laws, certain expenses are considered for taxation while others are exempted. For example, suppose you are using your personal s-plate car for business related meetings and other business purpose. It is an expense that should be considered while maintaining accounting records. But according to Singapore IRAS, such s plate car use expense is ignored.

A keen knowledge of Singapore financial reporting standards is mandatory

In Singapore, the understanding and application of SFRS is of utmost need as it is the most effective tool that should be applied so as to prevent errors.

Without invoice, no account should be included in income account.

Bank reconciliation statement should be in a form that is neat and is easily understandable.

As it is mentioned earlier, SMEs doesn’t require auditing mandatorily, but it is up on the business owner that he keeps an eye to each and every single financial details. Maintaining accuracy in bookkeeping is the core to successful business. Hence even if it may not be required at present, but can cause trouble to the business in future. Proper and error free accounting simply maintains the health of a business firm.

Thus from the above detail description it may be clear to you that what  actual value do bookkeeping and accounting service in Singapore have on a business entity, to gain its goal in the long run and avoid any dispute or difficulty.

Technology enabled bookkeeping service is now a common way to keep the transactions updated.Historical bookkeeping no more exists as change has hit every sector and bookkeeping service is no different. Experts who are savvy and an expert in handling cloud based accounting software are necessary to keep pace with the modern time and business’ requirement.