The small enterprises in Singapore are familiar with the accounting standards, and after the definition for the SME is changed in April 2011, many companies are able to access the government incentives. The Accounting Services Singapore provides many SME to comply by preparing the Financial Reporting Standard for Small Enterprises. This allows them to qualify as a small entity, whether a manufacturing company or not, for the incentives offered by the government.
The SME Definition is revised to provide most of the SME or small medium enterprises with benefits. These enterprises in Singapore are offered by the government with incentives that will help them establish and build their business. The accounting services for small business include business advices that you may need to understand the revision and how it will benefit your company. With some specific criteria, these enterprises have the chance to qualify for the incentives. A 30% of the ownership should belong to Singaporean citizens. Aside from that, there should be an annual turnover of $100 Million or that there should be not more than 200 number of employees, which are both the parameters for the SME Definition starting April 2011 whether it is a manufacturing or non-manufacturing company.
Reasons for the Revision
- Manufacturing companies in Singapore reduce their acquisition of assets and equipment, which makes the FAI no longer used as measurement as to how small or big the company is.
- It provides benefits to small enterprises that are eligible for the government incentives.
- With the SME definition revised, small enterprises are now comparable to other big enterprises in other countries.
Proper bookkeeping is important for any small enterprises, not just to qualify in the new SME definition, but also to ensure that no mistake will be committed. Most of these types of companies will benefit a lot from the incentives provided that they have the proper recording of transactions. With the help of the experts in accounting services in Singapore, many companies are able to comply to the criteria. It became easier for the enterprises to have access on the benefits while they make their companies become productive and successful.
If you own a company in Singapore, you should take advantage of the services offered by reliable accounting firms in Singapore. They will not only help you maximize your business in its productivity, but will also guide you on your managerial decisions as you qualify for the government incentives for small enterprises.