Accounting services Singapore

Ignore that Accounting Problem – At Your Own Risk

by admin on August 2, 2015 Comments Off

No small can blind the eye, that’s accounting. Even the smallest difference can make a big difference in your financial statements. Ignoring a single incorrect entry will not solve the problem; rather, it will just worsen everything as it will pile up with other mistakes. At the end, you’ll find yourself starting right from the start again! You wouldn’t like a mess like that.

Error correction might be a difficult one. If you or your accountant can’t handle the problems, you may seek help from some accounting services Singapore. Even if you already realized you can’t solve it, you still must not stop from finding solutions. Let me give an example.

There is an entry for a sale which your accountant recorded as accounts payable amounting to $150 instead of $75 dollars. He should have made a correcting entry. But due to fear of being apprehended by the boss, he kept it to himself. Come payment time, the check prepared by the cashiering was only for $75, the amount recorded as accounts payable… and they all thought it was over.

After some months, a billing statement for $125 came to the company. It involves a principal amount of $75 and the rest are interest and late payment charges. In other words, ignoring to create a correcting entry has cost the company $50, and what’s more, it cost them their reputation to the vendor!

Let’s have a different example. Suppose an accountant, unintentionally, overstated the expenses related to depreciation. The result was a significantly lower taxable income. No correcting entries was made due to fear of being apprehended, at the same time, the error cannot be detected by the owners anyways. The company paid the tax due… and they all thought it was over.

The next month, the business received a notice from the tax bureau, citing a possible tax evasion on their part. Apparently, it was due to the uncorrected entry stated above. In this scenario, the cost to the company will be the penalty to be imposed by the tax bureau plus a bad image record!

So, why not just buy an accounting software, rather than hire an actual accountant? Well, it doesn’t matter, either choice makes mistakes. Accounting software might even give business owners more headaches, because problems they might cause are technical ones, and solving such will involve the need for IT technicians. Now that’s double the costs!

The better solution would be to hire a trustworthy and competent accountant. Accounting firms in Singapore are aware of this, that’s why they constantly give their accountants lots of trainings. Perhaps this could be the reason why accounting services in Singapore are among the best. So, next time you got an accounting problem, solve it at once!

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The Significant Role of Accounting in Today’s Business

by admin on July 29, 2015 Comments Off

With the onset of rapid financial innovations, it has become more important for everyone to learn accounting- the basics at least. Accounting is the so called ‘language of businesses’, so if you want to understand the commercial revolution happening around you, you better learn accounting. This subject is no longer exclusive to neatly dressed citizens who wear neck ties. Though there are those who can offer accounting services Singapore for you, you still need to learn it yourself.

In today’s corporate world, accounting is used not just for bookkeeping services, but also to determine past, present and future actions of the company. It provides accurate measurements of the entity’s performance. Most of the time, executives depend their decisions on financial reports forwarded on their desktops. Extension of accountants‘ function is more prevalent especially now that there’s a lot of accounting software which can do the routine tasks.

Earning profits is perhaps the ultimate goal of a business. Accounting can be used to manage the financials of a company to achieve proper balance, consequently to gain maximum profitability given their organization’s resources. Because monitoring can be done, costs can be reduced and sales can be increased.

Accounting plays a major role in expansion prospects of companies. By using it, executives will know how much the cost of their plan is. They will also know how much of their earnings should be kept and how much they can give to investors as dividends. Managers can project their cash flows in order to determine if they will have enough cash for their expansion. If they are cash deficient, they can choose to finance either through loans or additional shares of stocks.

Another major role of accounting is the detection of red flags in an organization. Accountants can determine which controls are weak and are therefore potential sources of misstatements or fraud. They can then suggest improvements to create a smoother and more reliable process flow for the company.

You can also find accounting services in Singapore which offers help on how you can handle your money. They can teach you how, where and when to invest your cash.

Learning accounting can directly affect your life. You can use it to calculate your interest in that education or mortgage loan you are planning. Or maybe you would like to compute, at different tenors, your monthly installment payment on a motorcycle or car you are eyeing. You can also use accounting to plan and monitor your daily expenses and savings.

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Bookkeeper? Accountant? Chartered Accountant? What is the difference?

by admin on July 23, 2015 Comments Off

When it comes to accounting, three professionals are often mistaken to be the same: bookkeeper, accountant and a Chartered Accountant of Singapore (CA). Although these three can all perform accounting services Singapore, there are still lines that separate each from the other. So what are the differences among them? Which one is the best to hire? Let’s find out.

 

Bookkeepers.

Bookkeepers are hired to record transactions and provide financial reports. To decrease workload, most bookkeepers now use an accounting software like Xero accounting or Quickbooks. These brands of software are often used for routine duties.

Though they produce financial statements, bookkeepers do no provide financial analysis. These professionals also do not provide tax advice. What they can provide a firm is to keep the financial books accurate and updated.

 

Accountants

Accountants, aside from bookkeeping services, can provide detailed financial reports for a business. You may ask them to provide a simple cost analysis or profitability report. They may also do internal audit for your company. They can help you detect red flags in your organization.

These professionals can also help you out in preparing tax returns. You must bear in mind that if accountants prepare your tax returns, they cannot legally sign and report that return for you, nor can they appear in a tax court for you.

 

Chartered Accountants (CA)

Chartered Accountant (CA) of Singapore are accountants which passed the national exams and the statutory requirements of the state in order for them to perform accounting services in Singapore. They are mostly employed in accounting firms in Singapore.

Given their license, they can perform the widest range of accounting services: accounting, preparation of tax returns, advisory services and audits. The organization of CAs is called the Institute of Singapore Chartered Accountants.

 

Which one do you need?

Your choice from bookkeepers, accountants and CAs will depend on the level of expertise your business transaction requires. Most small and medium businesses can go with bookkeepers and accountants. Nevertheless, from time to time they will need CAs to perform complex activities like resolving tax issues or auditing the company.

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Accounting: Basic Financial Concepts to Know

by admin on July 20, 2015 Comments Off

Entrepreneurs’ engagement in businesses arose from the passion they have for their craft. They find themselves being experts in carrying out their skills, but, when it comes to accounting for the revenues and expenses, they feel uncomfortable. Perhaps, these businessmen often don’t do the work themselves but instead looks for some external accounting services Singapore.

A lot of people look for accounting firms in Singapore to interpret their statements for them. What they don’t realize is that analyzing the profit or loss statement is an easy task. A business owner need not to be a Certified Public Accountant, he just have to know some basic concepts and terminologies. Owners will benefit a lot from knowing how to monitor their business’ performance, and so efforts to learn it is never a waste of time but rather an investment.

First, it is imperative to know that Profit and Loss statement is the same as Income Statement. They differ in name, but the layout is the same. Both have three main elements: income, expenses and the net income (or net loss if the expenses are greater than the income). We will discuss the profit and loss statement from top to bottom.

The topmost portion presents Sales (if your business is in merchandising/manufacturing) or Gross Revenue (if your business sells services). These accounts represents the total gross income of your business, meaning no expenses have been deducted yet.

Next to Sales is Cost of Goods Sold. This line item represents the direct cost of creating your product. In merchandising businesses, that’s the cost of purchasing the product; for manufacturing, it represents the cost of producing the product. For service companies, the account next to Gross Revenues are the Cost of Services, which includes cost of labour, cost of supplies and the likes. Sales less Cost of Goods Sold is Gross Margin.

Next to be discussed are the selling, general, and administrative costs. Selling costs are the direct costs of selling your products (e.g. salary of selling agents); general costs are cost that cannot be attributed to any particular business activity (e.g. janitor’s salary); and lastly, administrative costs are the costs of office professionals working to run the business (e.g. documents processor).

Some Income Statements show Net Income / Profit as the difference between Gross Margin and Selling, General and Administrative costs. But then, some bookkeeping services add Fixed Costs to the statement. So, to arrive to the final bottom line, these fixed costs should be deducted first.

Learning some accounting is a must if you want to be a successful entrepreneur. If you already know, at least to read the profit and loss statement, you will need less help from external accounting services in Singapore.

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3 Accounting Habits To Install Right This Minute

by admin on July 18, 2015 Comments Off

Are you stacked with accounting duties at the end of every week? Is it because your business is picking-up momentum or is it because of some inefficient routines? Whatever the reason is, the bottom line is, at the end of every week you’re always burnt-out. Before you google “accounting services Singapore” to seek help from someone else, why don’t you try out first forming the following habits?

 

Build a paper/ (eg, digital trail)

Whenever you’re purchasing materials or paying your business utilities, always take a snap shot of your receipt. If you’re using a cloud accounting software like Xero accounting, all you have to do is store it in a cloud storage, else, just keep it in your phone memory. Storing supporting documents of transactions will help you a lot when reconciling.

At the end of every week, reconcile your receipts with the movements in your bank accounts. If you have an accounting software with the capability to import your bank transactions, then your reconciliation will be a lot easier. Using snap shots as trail for your business is more reliable than memory alone, isn’t it?

 

Be proactive

Just because you’re not the one handling the bookkeeping services duties doesn’t mean you’ll not involve yourself in the process. It’s your business so know it as much as you can. Take time to reconcile the recorded items with the actual source documents. In this way, you’ll be more familiarized with the transactions. Should a discrepancy or mismatch arise at the end of the week, you are more likely to pinpoint the problems.

Don’t let things pile up. If you can finish something within a day, then do it. Sometimes the reason we cannot spot a small mistake is because a lot of our transactions are still unorganized and unrecorded.

 

Check your work

How can you achieve perfection? By repetition. Though you can’t have a perfect set of books, you can still have something close to it by checking and rechecking on your accountant‘s work. Even a dollar of mistake will make your books unbalanced. If you think you need a comprehensive checking, you may hire accounting services Singapore firm which offer auditing services. Audits can reveal inefficient processes you didn’t know your business has.

Each of these habits won’t really take much of your time. Nevertheless, you’ll be surprised how much stress you will avoid by following these!

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The Significance of Accounting in Today’s World

by admin on July 16, 2015 Comments Off

In the business world, accounting is considered as a great asset that everyone should acquire. It is very important to have some knowledge in accounting, because it can be applied in a wide variety of concepts regardless of your job position or specialties. Its importance has been utilized and promoted for more than a couple of decades up to the present day.

First and foremost, one must have a basic background in accounting education because its general notion can be used on a daily basis, especially within a financial and business environment. Accounting services Singapore are already utilizing the advantages of bookkeeping and accounting software that aids them in managing check books and other financial transactions. This advance cloud accounting tool allows business managers and financial specialists to keep track of daily, weekly, monthly and annual business statements. An accounting firm secretary who has great background in accounting services keeps the integrity of the company strong and accurate. Executive leaders can also evaluate the performance of a business from past to present through the proper use of advance tools and bookkeeping services Singapore.

Business students are also required to have a formal education and basic knowledge of accounting to avoid financial discrepancies and some unlikely cases which had happened in the past. Once an individual works within any growing company, one is held accountable with every action that has something to do with financial statements. The Enron and WorldCom crisis are examples why accounting is very important. When independent auditor Arthur Anderson failed to report illegitimate practices, SEC has been forced to closely monitor public corporations to avoid any future misstatements.

In addition, it is vital and practical that everyone not just business students to have a great understanding of accounting for personal benefits. People use accounting on a regular basis like reading monthly bills, bank statements, grocery receipts, home mortgages and other related financial matters. However, business management may require wider and greater depths of accounting to maintain the framework and its order.

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The 7 “No Brainer” Reasons Why Your Business Needs To Know About Cloud Computing

by admin on July 14, 2015 Comments Off

Now that internet and computers are improved and enhanced to be useful in a lot of purposes, you can also use this for the accounting records of your business. As you consider the Accounting Services Singapore, you may want to know how to use the Cloud Computing to lessen your stress and worries on the proper accounting record. When it comes to the bookkeeping services procedures, this is the system that you will be able to use for a more secured data storage that you can easily access anytime you want. Here are some reasons why Xero Accounting is helpful for you and your business:

  1. Free and automatic software upgrade. This software automatically updates and upgrades for free, and you do not need to download additional software to update its operation. You can use it in its latest version for as your accounting software.
  2. Easy access. As long as you have the internet connection, you can easily access your information in this software. This is a great way of doing your business wherever you are.
  3. Future proofing ability. With this software, you are putting your business on the advanced technology of cloud computing. As one of the accounting services for small business Singapore, you will be able to enjoy the high technology of this software as you take full control of your bookkeeping and accounting procedures conveniently.
  4. More reliable system. The Cloud accounting is far more reliable and will not go down easily, even when servers are slowing down. This is because of the unique system of the software that allows you to operate it anywhere you are.
  5. User-friendly on gadgets and smartphones. You can use your iPhones and other smartphone and gadgets to access your account to update your records or to use the data for needed information.
  6. High security assurance. When it comes to security, using the Xero Accounting as your accounting software is better compared to other software. It provides the security that you want as you guard your private business information.
  7. Time-saving system. Because Xero accounting software can be directly linked to any of your business’ bank account, you can easily access all your needed data to complete a transaction. This allows you to save on time, effort, and money, giving you extra time to focus more in managing the business. The Accounting Services Singapore are now made better to suit your satisfaction and requirements for your business.
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The Importance Of Accounting In Small Business Shared by A Small Business Owner

by admin on July 12, 2015 Comments Off

I have been managing small businesses since I was in college. I have always the passion of being an entrepreneur and I do believe the importance of its concept in building a strong business. Before building or establishing a business, one must be aware about the entire process of a growing firm. You need to make sure that you have the necessary tools, accountant associates and know how to build rapport between you, the clients and your employees. Everything must set in a great balance as well.

I was running my e-commerce company a few years before and I was handling the business with my own efforts. I did everything from accounting, management, sales and customer service. I acted as the president and the accountant at the same time. This was not a very easy task. I realized that although I possess this wide range of skills, running profitable business on my own is not going to be effective and a wise decision.

I considered my experience as my biggest hurdle. If I can provide a piece of advice to any accounting services Singapore, just make sure to put attention and balance on the aspect of accounting and business management. As a small business owner you must have a great understanding about accounting and bookkeeping services Singapore. You need to be able to handle this efficiently, because what we’re dealing with are cash flows, revenues, bills and other financial related transactions. Having a small business may have a limited budget to be able to hire an accounting firm. Consider utilizing accounting software like Xero Accounting. It’s a type of program that allows you to monitor your daily client expenditures without a hassle. This advance accounting tool provides you a real time accounting information even beyond business hours.

When I started doing the small business, I was using an Excel Spreadsheet where I gather, record and monitor financial data. Once the business got bigger, that’s the exact moment when I realized that I needed to use a lot more advance accounting tool to make sure that my records are always accurate and reliable. Xero Accounting and Quickbooks are two affordable services that can help a small business efficiently handle the accounting books.

As a firm manager of a small company, it is highly important to keep up with your accounting. You need to monitor this from time to time to make sure that your records and financial data are always correct. There are a lot of priorities in running a business, like generating revenue, drawing in clients and keeping the numbers within the base of support. However, if you take accounting for granted all these priorities will be devastated and will fall like domino. Accounting helps you determine the performance of your small business and it helps you decide the next action for your growing firm. It is very important to keep your accounting method and numbers buttoned up on a regular basis. Running a business means time and money should not be wasted. You can either have reliable accounting software or hire a professional accountant associate who can handle the accounting for you. These are the best options and you have to make it.

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How To Hire A Good Accountant For Your Business

by admin on July 7, 2015 Comments Off

In order to reduce costs and improve overall efficiency, you might be thinking of using an accounting software to run the books of your business. Nonetheless, never underestimate the abilities of an accountant or accounting firm in performing value-added duties to your company. Certified Public Accountants are present in every successful company. CPAs are not just your regular accountants as they passed a rigorous national license examination. That’s why a lot of accounting services Singapore are performed by these people.

Finding the right accountant might be a bit hard. The person will handle some of your most sensitive information so the person must be trustworthy. At the same time, you will be relying on this person so he must be competent enough to produce high quality reports.

One must learn first the areas of expertise an accountant can offer.

Business advisory services. Accountants crunch numbers in order to get more meaning from them. Accounting software will just provide figures like a net income of $550; accountants can do it too, plus a lot more! They can tell which product provided you with most income, what expenses you are incurring most or if your fixed investments are earning well. These professionals can also compare your business performance per period, or even compare it with how your competitors are doing.

Accounting, bookkeeping services and record keeping. Perhaps, these are the bread and butter of accountants. Software will do only what is programmed it to do, and so if very complex transactions exists, the software can no longer function as intended. Manual intervention by accountants is now needed. There’s a wide range of accounting entries accountants can do.

Tax advice. It could be tax planning or tax compliance. Tax planning will reduce your taxes while tax compliance will help you comply with all the requirements of your tax bureau.

Auditing. Auditing is done to give owners an independent opinion regarding how well the business is being managed. It will expose red flag areas that the company needs to improve on. Audit can also detect fraudulent activities.

Now you have seen how important an accountant is, it’s time for you to find one. But before you interview candidates, you must first know what qualities to look for.

Services. You can either look for an accountant or an accounting firm for your accounting needs. Just be sure he/they can provide you with the broadest range of services. Ask him/them about his/their proficiency in each of the accounting areas listed above.

Personality. The candidate must be professional, timely and most of all honest!

Fee. It’s good to have at least five candidates. Ask each of them the fees they will require, and benchmark it with the average fees for accounting services in Singapore. Don’t choose the cheapest, rather, choose the one who can fill your business needs with the least amount of fees.

As an additional measure, you may ask the references they indicated in their CVs. In this way, you’ll get to know more about your potential accountants, and you will be able to choose the best one.

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The Year-End Accounting Missteps of Rookie Entrepreneurs

by admin on July 6, 2015 Comments Off

The calendar year is about to end, and, for most growing companies, that means the closure of the fiscal year as well. It means that there are several bookkeeping services tasks that need to get done before another year flips in. Some of these are obvious, but some key points are less known especially to the first time entrepreneur.

It is necessary to consider reconciling your accounts. Among all the annual bookkeeping and accounting services tasks, reconciliation is considered the most important. An entrepreneur must reconcile with the “Aged Accounts Payable” balance to “Accounts Payable” balance and your “Aged Accounts Receivable” balance to “Accounts Receivable” balance on the balance sheet.

The bank balance needs to be reconciled with the accounting books, records and financial data too. These ensure that the necessary financial assets and transactions have been tracked and recorded efficiently. Reconciliations are usually done before the end of the year and then rolled forward to include year-end.

The next thing to consider is to organize contractors. Lots of small business started out as one or two-person enterprises that collaborate with contractors. Business owners who hire independent contractors and provide them more than $600 per year are required by the law to forward them a form 1099 by the 31st of January of the next following year. It is necessary to gather required information from the contractors that include legal name, address and social security details as well. Always keep of the amount paid for the services the contractors have provided.

Make sure to collect outstanding bills and financial transaction by using reliable accounting software. This advance tool allows entrepreneurs to keep track of the outstanding invoices that carry over into a new fiscal year with less hassle. It is also important to determine the clients or customers that have past due charges and make sure to turn up the heat and do the necessary collections. If the attempts to collect would be fruitless, first, stop the services for this client. Second, write off the bad debt and acquire a tax deduction. Entrepreneurs may need to establish reserves as well. If products with warranty are being sold, make sure to have a “Reserve” account to cover future issues related to claims based on historical rates of charges. This assessment is ideally done during year-end.

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