Accounting services Singapore

4 Money Mistakes Made by Businesses That Are Always Short of Funds

by admin on August 24, 2015 Comments Off

Managing the funds of a business is perhaps one of the hardest tasks for a business owner. Entrepreneurs could easily drown in a pile of work and stress. The result? Tons of mistakes which could be costing the business its money, lots of money. Ultimately, you will be just surprised that you are already lacking cash! Sure you can find accounting services Singapore firm to help you out, but could it really solve all your problems?

Take time to reflect to ask yourself, “Am I doing things wrong?”. The answer to this question could be a ‘Yes’. If this is the case, then you should take matters seriously. It will determine whether the future of your business will be a boom or a bust. Let’s take a look at some mistakes cash-deficient businesses do always or almost all of the time.

  1. Careless accounting

One of the worst blunders an owner can make is to rely on inaccurate records. Reports are there to guide us monitor businesses, but where do you think the company will go if the guide itself is faulty? Have time analyzing every aspect of your bookkeeping services/accounting process, and improve ineffective systems through strict internal controls. For a more effective review of your business, there’s a lot of accounting services in Singapore which could help you out. You may also use some accounting software for a more seamless accounting flow for your business.

 

  1. Wonky resource allocation

Another major concern for owners should be financial planning. Your shortages might be caused by plans that are not thoroughly made. As an advice, create a two-tiered plan – one which is an annual budget, while the other is presented month by month. Should you need to create adjustments on a particular month, be sure to effect the changes on the annual budget as well.

 

  1. Impulse buys

Impulse buys usually happen when the owner is so much enticed by a friend’s suggestion or by a good advertisement. This habit will get you nowhere but bankruptcy. Have a plan and stick with it. If it is a big purchase and it is not in your budget, better get it off your head right now. You can plan on buying it the next year if you really want it. Also, be careful about using funds tagged as “miscellaneous” or “others”, it should just be used for IMPORTANT things which are trivial in amount.

 

  1. Under quoting to clients

Your business might have a tough competition, but it’s not enough reason to price your goods or services too low. Create an analysis of your costs in order to determine the best price in which you’ll have a pretty good margin, at the same time still be competitive in the market. Find out what’s the best practices used in your industry to further lower your costs, and ultimately, your price.

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Principles and Importance of Accounting for a Business

by admin on August 22, 2015 Comments Off

Many business owners will tell you that managing a business is hard, and accounting for it is even harder. What they don’t realize is that accounting actually eases the burden of operating a business. Things look hard if you don’t understand them. Learning accounting will take some time. If you don’t want to go for the extra mile, then you can just hire some accounting firm providing accounting services Singapore. But tell you what, you will be paying for some duties you can (and must) do on your own.

 

Types.

Accounting may be cash or accrual basis. Cash basis accounting records income as cash is received and expenses as they are paid. Small businesses usually opt for this one. On the other hand, accrual basis of accounting records income as they are earned and expense as they are incurred.

For example, an owner uses a leased building for his store. On December 31, 2014 he paid the full rent for January 2015. Under the cash basis, the rent will be recorded as expense in the year it was paid. Under accrual basis, it will be recorded as expense in 2015, the year it was incurred.

 

Features.

As you can see in the previous illustration, cash basis does not allocate income and expense in the period they are earned and incurred. Nevertheless, it is still advisable for small businesses to use cash basis because of its simplicity. Besides, due to the small number of transactions, matching of income and expenses wouldn’t be of much issue.

 

Functions.

Businesses use the concepts of management accounting and financial accounting. Financial accounting is focused on bookkeeping services of the organization’s transactions and subsequently generating financial statements out of these records. Meanwhile, management accounting provides decision-making tools for the management. Management accounting process reports such as forecasts, budgets and financial statement analysis.

 

Considerations.

You might be into deciding which to use, accounting software or maybe just the manual system. Before you pick one, take into account the costs and benefits involved. Costs include money and the efforts to bring the chosen system into place. The benefits you reap should always be greater than the total costs you will incur.

 

Expert insight.

You will be finding it difficult to do the accounting work alone. You may seek for help from some professionals who have extensive experience in providing accounting services in Singapore. Although they will be of much help, never just give in to the price they will be billing. Always consider how much time and expertise they can bring you in determining the best price for the deal.

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Is Accounting a Good Career Choice?

by admin on August 20, 2015 Comments Off

The title has already left a thousand minds in limbo. These people, usually students cannot decide for themselves if accountancy is a good choice or not. With the rise of the need for a lot of accounting services Singapore, demand for accountant is irrefutable. But how else can we justify the brilliancy of pursuing an accounting profession?

 

Stability.

For one, accounting has a stable market for itself. Even if the economy moves different states, from recession to boom, businesses will always need professionals to crunch the numbers for them. Whether it’s a loss or it’s an income, not everyone in the corporate organization can interpret them the way accountants do.

Organizations need to report to authorities no matter what. We’re referring here regulatory bodies, tax authorities, board members, shareholders or even to the public. Accounting is the language organizations use to communicate with various stakeholders. Thus, accounting is a must for every business.

 

Compensation.

Accountants are among the best paid professionals anywhere on Earth. Their knowledge is very much appreciated by employers. Nevertheless, the salary will still depend on the level of experience, educational background, job description, location, etc. Accounting technicians and bookkeepers on average are paid $15,000 to as much as $35,000 every year. Newly certified accountants typically make $30,000 to $60,000 annually. On the other hand, seasoned and top management accountants can receive as high as $200,000 per annum. These are of course, just averages. If you want higher salaries then you need to be more competent though studying and gaining professional experience.

 

Diversity.

There are a lot of different fields within the accountancy profession. You can specialize on tax, business law, management advisory services, auditing, accounting information systems, fraud detection or any other specialization being offered on the market. Because of the vast number of people who wants to study accounting, you can also earn a living by writing books.

If you think you can’t thrive by working inside an office, you can go work on your own by freelancing. Just be sure you already have enough knowledge and experience to show to your clients. There are a lot of businesses looking for freelance accountants to run their accounting software for them. Most of the jobs are overseas, but if you want, you can go local by specifying you’re only offering to do accounting services in Singapore. It’s good to start first by providing SME (Small and medium enterprises) accounting.

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Purpose of Accounting: It’s Practical Importance

by admin on August 18, 2015 Comments Off

Accounting, being the language of business is one crucial element in fulfilling a successful entrepreneurial venture. Though modern times have seen a lot of changes in the needs of owners, the very heart of those needs is still accounting. Accounting services Singapore had learned to evolve with the business industry. Those who are still quite unacquainted with accounting must be scratching their heads right now asking, “What use really is accounting for?” Well there are more answers than one.

The ultimate purpose of accounting is to provide financial information to decision makers in order for them to render an informed judgment. This concept is embodied in the following definition by the American Institute of Certified Public Accountants:

“Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions, in making measured choices among alternative courses of actions.”

It is a common misconception to consider accounting as bookkeeping services only. Note the following definition from the American Accounting Association:

“Accounting is the process of identifying, measuring and communicating economic information to permits informed judgment and decision by users in making economic decisions.”

If you are planning to tap accounting services in Singapore from accounting firms or individual professionals, you must first think what you need from them. You cannot just hire them and ask them to provide service for you without telling them what outputs you are expecting from them.

Following are the accounting information accountants can provide to you or your organization:

  1. Results of Operations

The main goal of every business is of course to earn income. You cannot just say you are earning income just because you sold X number of your inventory. Accounting helps you to accurately measure the income you earned during a specified period of time. Perhaps the most common report to measure the results of operations is the income statement.

  1. Financial Position

Accounting can also provide you the details of your assets, your liabilities and your equity in the business. The balance sheet is formulated for this purpose.

  1. Solvency and Liquidity

Companies, whether they are large or they belong to the small and medium enterprise category, must always have enough level of assets to pay off their debts. Accounting helps monitor your level of liquidity and solvency, so as to prevent bankruptcy. It’s easy to get lost in your budgets if you don’t have accounting by your side.

  1. Cash Flows

The most important asset of every business, cash, should always be monitored. Maintaining enough levels of cash is crucial to paying suppliers or purchasing new assets. Cash flow projections are also important when applying for business loans. You must have a ready program on how to pay your creditors.

  1. Other information

Accounting is dynamic. It can be used to provide other information such as share ownership, financial projections and budgets, tax base and others. Some experts say accounting is also an art. Feel free to experiment on figures in order to get your specific needs.

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Accounting Certifications to Boost your Career Potential

by admin on August 15, 2015 Comments Off

The accountancy profession has always been an attractive career path for upcoming college students. Demand for accounting services Singapore is stable. Even though technological advances allowed different accounting software products to emerge, it is still inevitable for businesses to need accountants for complex processes.

 

Considering the accountants’ market is becoming more competitive than before, how can one stay relevant? One proven way these professionals do is to get certified in their area of expertise. Certifications give potential employers assurance that a certain accountant is proficient in his field. So, what certifications are available for accountants?

 

  1. Certified Public Accountant (CPA)

 CPAs are your jack-of-all-trades accountant. They have passed a series of rigorous exams given by the state, in order to assess their knowledge of accounting subjects like accounting principles, auditing, management advisory services, business laws and taxation. Their license is recognized only in the country it was issued. Most accounting services in Singapore are rendered by CPAs because of their wide-ranging knowledge of accounting.

 

  1. Certified Management Accountant (CMA)

Other accountants ought to have certified in a specific accounting field. One of the certifications these accountants run into is the Certified Management Accountant license issued by the Institute of Management Accountant. Unlike the CPA certification, CMA is recognized worldwide. CMAs are particularly proficient in financial analysis, financial management and management advisory services.

 

  1. Certified Internal Auditor (CIA)

CIAs are experts of internal controls, internal audits and risk assessments. This certification is issued by the Institute of Internal Auditors, and is recognized globally. To have a license, you must pass a four-part exam, and must have 2 years of related experience.

 

  1. Certified Financial Planner (CFP)

Do you think you have a knack for financial planning? Try to be a Certified Financial Planner. This will add credibility to you as an expert when it comes to personal finance. Being certified means you are exposing yourself to a bigger market of individuals who are looking for professionals to manage their wealth.

 

  1. Certified Information Systems Analyst (CISA)

This is a global recognition granted by the Information Systems Audit and Control Association to professionals who proved to be adept in auditing, controlling and monitoring an organization’s information systems and technology. Due to modernization, some accounting firms in Singapore are opening up posts for CISAs to meet their client’s needs.

 

Which is best for you?

Salary should not be the main consideration here. Anyways, if you are good in your job, you will earn the compensation you deserve. First thing in your mind should be, “Which field am I interested the most?” From there you can trim down your choices until you find the best certification for you. Choose a career that is fulfilling for you.

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Roles and Importance of Professional Accountants in Business

by admin on August 12, 2015 Comments Off

One of the most important employees in a business is the accountant. They can perform a wide variety of value-adding activities. With the advent of modernization and globalization, more things are expected from accountants when performing accounting services Singapore. But are we overrating or are we underrating the roles of accountants? Here we discuss what we should be expecting from these professionals in general.

 

Roles of Professional Accountants in Business.

Professional accountants are employed to answer businesses’ challenging questions. This is particularly special in small and medium enterprises where usually the accountants are the only professionally qualified members or staff. Those belonging to the operations group are hired to do bookkeeping services duties. However, accountants in the top level of management promulgate corporate strategies for use in governing the organization. As Chartered Financial Officer, they are tasked to monitor the overall financial health of the business.

Accountants can also be internal auditors. As such, they are involved in risk management, governance and internal control procedures. They can also be proactive in fraud investigations. Employing such procedures does not mean there’s a fraud that happened. Investigations cover activities which are by nature pre-emption, detection and evaluation.

External auditors on the other hand are concerned with providing an unbiased opinion as to the fairness of presentation of the financial statements of an entity. They should be independent from the company they are auditing. Given this, accounting firm, aside from offering the usual accounting services in Singapore, are usually tapped to provide external auditing to clients.

 

Protectors of Public Interest.

Because accountants are entrusted with a lot of confidential information, they are always expected to act with integrity. Nevertheless, if they are summoned by proper court to divulge some information, they should do so. This is due to the fact that they should always protect public interest.

Oftentimes, external auditors are seen to perform this duty. This is because they are the ones who usually detect fraudulent activities through their independent examinations. Nevertheless, the role of other types of accountants should never be discounted. All accountants are expected to be promoters of interest of the community as a whole.

 

Competing demands.

Often accountants are faced by the dilemma of conflicting interests of the public and their own self. They should always exercise professional judgement though. They should favour a particular party on the basis of the Code of Ethics of their profession. They always expected to act with integrity, objectivity, professional competence, due care, confidentiality and professional behaviour.

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How to Become a CA: What It Really Takes

by admin on August 11, 2015 Comments Off

C and A – accountancy students and professionals alike strive for years just to earn these two letters. To them these letters are the symbols of their dedication and hard work towards reaching their goals. To obtain the title Chartered Accountant, one must finish a difficult accountancy course then afterwards pass rigorous national exams. No wonder, most accounting services in Singapore are performed by CAs.

The destination is high and the path is rough. Though nothing can beat passion and persistence, there are still some simple tips which could ease out the hardships an aspirant might face. Let’s take a look at some of them.

 

Know the requirements

Determining the specific qualifications of the state from which you want to be certified should be the foremost step an aspiring licensed accountant needs to take. In Singapore, those who want to be a Chartered Accountant should undergo the Singapore Qualification Program. This program, launched in June 2013 is open to both accountants and non-accountants. This is the initiative of the Singaporean government in promoting the country as a major accounting hub by 2020.

Preparing for the exams

The low passing rates of the previous CA exams will tell you that it is indeed difficult. That’s why a lot of hard work should be done if you really want to be issued a license. You should always allot sufficient time to absorb the lessons; avoid procrastination.

Obtain a list of topics so that you can create a study guide for yourself. Assess your proficiency in each topic by taking practice exams. The lower the scores you get on a certain subject, the more time you should consume in reviewing it. Learn by doing- answer as many problems as you can. Retention is better if you actually practice what you learn.

Pushing yourself… consistently

After studying a chapter or two, people usually tend to be lazy. Well, it’s a human thing. Maybe the reason why only a handful of examinees pass is because only a few among those aspirants can actually resist the distractions around them.

Study when it’s time for you to study and sleep when it’s time for you to sleep. You need to balance everything. Should you have long study hours, take short breaks in between them. A lot of studies show that quick breaks or naps are very powerful agents for refreshing the mind and the body. When facing temptations, always remind yourself of the rewards you will get after passing the exams. Imagine yourself as a CA- having all the rights to perform accounting services in Singapore- not everyone can claim that!

Inside the examination room

If you prepared enough for the exams, then, the test itself is just 1% of your battle. Clear your mind; don’t study in the room, that’s procrastination. Manage your time wisely. Be positive but not overly confident.

Conclusion

The title Chartered Accountant is available only to those who deserve it. It’s a symbol of excellence and an emblem of achievement. It’s not just something that appears when you want it; you have to work for it!

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Accounting Principles and General Financial Ethical Standards

by admin on August 9, 2015 Comments Off

Like all other professionals, accountants are expected to abide by the principles and ethical standards set in their profession. You cannot just perform accounting services Singapore if you are known to be dishonest or incompetent. Even simple projects like bookkeeping services should be following the proper regulations. In order to build reputation, businesses, however small, should assure that their books and financial statements are always compliant with relevant laws or standards.

US Generally Accepted Accounting Principles

One set of accounting principles which gained worldwide recognition is the US GAAP or the US Generally Accepted Accounting Principles, promulgated by the US Federal Accounting Standards Board (FASB). GAAP presents how accountants should conduct their deliverables and how they should present their reports. Two of the main focuses of standardization are the comparability and transparency of accounting reports.

Competence

Accounting services should always be accurate, that’s why it is imperative for accountants to be always competent. Competence does not only mean that the professional is a graduate of an accounting course but rather, he/she should be actively engaged in Continuing Professional Education (CPE) programs. CPEs will enhance the accountant’s competence by supplying him/her updates relevant to his work.

Objectivity

One of the key principles nations want to instill to their accounting professionals is objectivity. Accounting services in Singapore are monitored closely by the government to ensure all dealings are done with full honesty and integrity. Accounting firms in Singapore are very careful not be involved in any dishonesty scandal as it will tarnish their reputation, consequently losing their customers.

Adherence to objectivity also means avoidance from conflicts of interest. Accountants or firms should avoid performing bookkeeping or other accounting services to companies in which they have vested interests. Even if by fact, an individual or accounting firm performed objectively, doubts will still be casted upon the real intention of the engaged professional.

Confidentiality

When performing services, accountants are exposed to a great deal of sensitive business information. The data we’re discussing here are not just the financials; rather it includes all other non-financial ones. It could be the client’s tax IDs, investors’ personal details or upcoming expansion plans. Confidentiality suggests that professionals should avoid divulging their client’s data, unless being required by a proper court of law.

An accounting engagement is a fiduciary contract, which means that the accountant should always act for the client’s benefit. Information gathered should never be used to gain unethical or illegal advantage.

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Importance of Accounting: Basic Financial Concepts to Know

by admin on August 5, 2015 Comments Off

Some business owners are doubtful about the importance of learning accounting. For them accounting is just for accountants, and they will just have to rely on what their accountants say. They tend not to analyze financial statements because they are relying upon the presentations of their CAs. But, how important really is accounting? Is it worth to be studied, especially by owners and managers? One thing is for sure, accounting is important. Come to think of it, if it isn’t necessary, then why are accounting services Singapore booming? This article will help you realize the significance of accounting.

Types of accounting.

First to learn are the types of accounting. There’s accrual basis of accounting and the cash basis of accounting. Both methods may be used to communicate financials, only that they are different in terms of timing of recording income and expenses.

Cash basis of accounting records income as they are collected and expenses as they are paid. So, even if you performed a service in June, but the collection was made in July, you still have to record the income in July.

Meanwhile, accrual basis of accounting records income as they earned and expense as they are incurred. Citing the previous example, if you performed a service in June, you will have to record the income in June even if collection will still be in July. Because of the delay in the receipt of cash we have to record the income first as Accounts Receivable. For expenses we may use different accounts such as accounts payable, interest payable and utilities payable.

The best method to be used is determined by the size of the entity and complexity of transactions. If you find it hard to decide, you may seek guidance from accounting firms in Singapore.

Why accounting matters

Accounting is not just about bookkeeping services. It is actually the language of business. Learning it will make you realize that the figures produced by your accounting books mean a lot. It will help you pinpoint areas for improvement. Accounting can also assist you in planning for future expansion. Authorities use accounting books in order to determine tax liabilities. Accounting is wider than you expect.

Tracking business performance.

If you we able to sell 100 pieces of your product in a month, you can’t simply say you have a profit. Financial statements, income statement in particular, will tell you specifically how much you have lost or earned in a month. In other words, it will help you track your business performance with certainty. Balance sheets on the other hand will guide you in monitoring how much are your assets, liabilities and equity in a given period. This will help you to determine if your business is actually growing or not.

Cash movements, on the other hand, can be examined through the Statement of Cash flows. You will see here what items are your cash coming from or going to.

Accounting software in Singapore

Should you want an accounting system for your business, you have a lot of choices like Xero accounting, Quick Book or MYOB. Nevertheless, you may also opt to choose actual persons performing accounting services in Singapore.

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Accounting Tech Trends To Watch For

by admin on August 3, 2015 Comments Off

Technology is evolving so fast; small businesses can only barely catch up. As a result, business owners are afraid of trying out new innovations like business and accounting software or cloud accounting. They ask, “Is adopting technology worth the risks?” Yes it is! Actually, there are already a lot of people who are enjoying the benefits of modernizing their business. These people are just relaxing in the comfort of their own homes, while remotely managing their small businesses. There’s a lot of accounting services Singapore catered to assist owners in implementing new business technology.

Interestingly, things are still getting better and better. What should business owners look forward to in the years to come? Let’s list down the innovations which would soon invade offices.

 

Working on-the-go

Want to work anywhere you want? It’s no longer a problem. Soon enough, nobody will even be worrying about it. There’s a lot of technology advances which would help you work remotely. You can do your bookkeeping on any device via cloud accounting and after which, storing your files in a cloud storage.

 

Online accounting

Bookkeeping services is a lot easier if you can work it through any device. Input those accounting entries, produce trial balances and create financial statements in just a few clicks. Some software even lets you produce partial financial results in real time.

There’s a variety of accounting software in Singapore. One good product is Xero accounting. Xero accounting automatically produces and e-mails invoices, pays and stores incoming invoices in the cloud. Moreover, this software can import information directly from your bank account, so there’s no need for constant reconciliation of your cash balances!

 

Taking payments from anywhere

Tired of the usual process of collecting receivables? Soon it will be a thing of the past. More and more businesses are now taking in payments almost from anywhere. If your business is in Singapore, it wouldn’t prevent you from taking payments from Europe or South America. You just need a good accounting software to do this. The more you can receive from, the more opportunities for income!

 

Mobile friendly websites

Technology moves so fast that even desktops may face extinction in the future. A lot of business software and websites are now compatible with mobile devices. Soon, businessmen will no longer need bulky laptops or desktops to do business. All they will need is their smart phone. Pretty convenient, right?

 

With all these benefits, do you still think trying new technologies is not worth your time? If you’re still quite anxious, you can seek out help from firms offering accounting services in Singapore. They will definitely help you out find the best accounting software for your business.

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