February 28, 2023
Why Make the Move to Cloud Accounting Services Singapore
Let your business work smarter and faster by investing in cloud accounting services Singapore.
There is no perfect time like the present to switch to cloud-based accounting services from using desktop software or spreadsheets. Regarding cloud-based software, companies can get many benefits from on-premise solutions by allowing users to work anywhere, anytime. It also automates the time-consuming manual processes, enhances accuracy in transactions, and hastens financial operations without exerting much effort.
Corporations can even get more benefits depending on the software, including more straightforward prediction of software costs, reduced spending on hardware, less IT overhead, improved disaster recovery, enhanced threat and security monitoring, increased levels of availability, and excelled performance and scalability.
This article’s main feature is to highlight is to answer the question, “Why is cloud accounting beneficial to businesses in Singapore?” It will also take readers into an overview of the cloud and an in-depth discussion of what cloud accounting is all about. Stay tuned and continue reading below!
An Overview of This Thing Called the Cloud
At its core, “the cloud” is the servers that run and are accessible through the internet and the software and databases on those servers. Data centres contain cloud servers, and they are located all over the world. If you think about the cloud, think about internet banking, and you are using the cloud when you access your bank data.
Moreover, the cloud ensures that data and software are easy to access by users online anytime, anywhere, and from any device. It makes the hard drive of your computer or laptop no longer require functioning as the central hub.
What Is Cloud Accounting?
With cloud accounting, any company can keep their business books online. Record of income and expenses, and assets and liabilities are included. Only people with login credentials can access the data, since the information is encrypted.
In case you did not know, a few businesses started using cloud accounting software, also known as online accounting software, as early as the 2000s. At that time, most software only includes quoting, invoicing, and managing bills tools. Many features have been developed to fully harness the potential of the cloud in different business setups, not only accounting.
Through the year, many service providers began to offer cloud accounting services Singapore to assist enterprises in managing their business finances. A corporate firm like ContactOne is a reliable business solutions provider, particularly cloud accounting services, to many companies. For more cloud-related services, get in touch with us today. We will be glad to hear from you!
Cloud Accounting: How It Works?
Users may subscribe to or be provided with an online accounting software solution by a service provider. Once it has been set up, users will transfer their books to the cloud. The information will be accessible to the user’s account when they login to any web browser or smartphone app.
It is worth noting that many users connect cloud-based accounting to their bank accounts. This way, bank transactions flow seamlessly from the bank to the business books, saving time and many data entries.
Benefits of Cloud Accounting Services Singapore Every Enterprise Should Take Advantage Of
No matter what type of business you have or regardless of your business goals, making a move to a cloud accounting software system can help improve efficiency and allocate real-time updates on financial standing. Learn more about the benefits of cloud accounting below.
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Less Administration
Because business owners are accessing the software online with cloud accounting, they can take away the need to attend to software installation, backups, and other administrative tasks.
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Automation
Software in the cloud is always up-to-date. This way, it automatically runs transactions to business books and accounts for the changes in real time. The cloud-based accounting system also automates many accounting and banking processes.
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Compliance
Through the production of accurate financial statement, cloud accounting help various companies with tax compliance, including quarterly tax estimates and yearly tax returns.
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Data Security
Getting businesses on board regarding cloud accounting can be challenging because of potential online risk. But cloud-based services are enhanced with rigid security measures to ensure data safety and other business information.
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Scalability
Scalability is one of the most appealing features of cloud accounting services in Singapore. It can flex and scale to meet your business needs.
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Accuracy
Cloud accounting can improve accuracy in every transaction by eliminating various error-prone steps manually using a spreadsheet.
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Customisation
Because every business is different, cloud-based accounting is ideal as it can be customised according to a company’s needs and accounting requirements.
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Reporting and Data Visualisation
Reporting and data visualisation is real-time, compared to using spreadsheets or paper processes.
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Integration
Cloud accounting solutions can be integrated into other business applications with the same central database, depending on the provider.
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Collaboration
Since financial data are accessible online, cloud accounting makes it easier to collaborate with team members.
Get In Touch with ContactOne Today!
For more reliable cloud accounting services Singapore, do not think twice about getting in touch with ContactOne. Call us on +65 6333 0633 or +65 8666 3633. You also visit our website at www.contactone.com.sg.
February 27, 2023
The Relevance of Online Accounting and Bookkeeping Services in the Modern-Day Corporate World
If you take a closer look at history, today’s business industry is a product of everything that happened in the past, both good and bad. We cannot take away history’s contribution to shaping our future because, after all, there are fragments of the past in the present. For example, the previous three industrial revolutions have led to periods of political and institutional change. While the fourth industrial revolution is on its way, what does it mean to many businesses, especially in a progressive business hub like Singapore?
Even if experts have not considered this period of history, it is not hard to see the onset of an entirely new industrial revolution. The increasing number of automations has started integrating computers and machines into a vast spectrum of industries, not leaving accounting and bookkeeping behind. Apps and analytics have replaced piles of papers to help accountants and bookkeepers switch to modern-day financial advisers from task-oriented project coordinators.
All this impacted business operations, shifting terms of productivity and changing perspectives on innovations. Financial operations have become more efficient, organised, and productive with easy access to smart software programs, automated tools, and online accounting and bookkeeping services. Continue reading below to learn more about the relevance of technologies in the modern-day corporate world.
How Online Accounting and Bookkeeping Services Impact Businesses in Singapore
The impact of technology on accounting and bookkeeping diversified the role of an accountant because it has become so critical. Now that things can easily get done with just a few clicks of fingertips, like major accounting time-consuming tasks, accountants and bookkeepers can focus more on understanding data. It is then used to make better-educated business decisions and create strategies for clients. Since primarily everyone can view and interpret data remotely, industry analysis has become a smooth process. Also, innovations in accounting software and applications allow specialised work for accountants.
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Benefiting Non-Accounting Professionals
Even non-accounting professionals can now understand financial dealings and structures with consumer-friendly applications. There is no exemption to the main aspect of accounting, which is client and consultant interaction. It has also been changed by phasing out of the on-site consultation since the parties involved simultaneously have access to real-time data online. The result is easier business operations, and clients get to enjoy efficient services. It is indeed a win-win situation for all.
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Reshaping of Accounting and Bookkeeping Functions
Social media is the greatest technological innovation of this age. It is easy to understand the influence of this platform for personal gain and business. As the most prevalent technology, social media help reshape many functions in accounting and bookkeeping. It even went as far as catching the eye of major market players. Now they use social media to connect with existing and possible clients. Businesses in Singapore and constantly finding more ways to reach new markets. With social media added to their business development strategy, they can allocate aid to target their goals.
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Ensuring Accuracy, Reducing Errors
Without a doubt, the roles of online accounting and bookkeeping services have transformed the section with newer and more advanced applications and software. All this made it possible to ensure accuracy and lessen errors, preventing businesses from tax penalties and other problems caused by noncompliance with Singapore’s ever-changing business laws. With efficient accounting and bookkeeping services, organising audits in a highly efficient manner is also easier.
Not just accountants, but professionals in different industries, should embrace the changes that innovations bring to ensure knowledge is still relevant. Acquiring new knowledge can be achieved through expert courses, like online accounting and bookkeeping, provided by a reliable corporate firm.
Skills Future Accounting Professionals Must Acquire
It goes without saying that future accountancy should be tech savvies in order to keep up with the changes in the industry. As innovations become prevalent and many enterprises transfer their information to cloud-based systems, accountants and bookkeepers must be proficient in taking advantage of the cloud. This way, they can provide clients with updated financial analysis and stay competitive in a saturated economy like Singapore. Moreover, experts who want to leverage blockchain need to be familiar with essential software programs and how information transferred to ledgers, contracts, and records work.
Turn to ContactOne Today for Reliable Business Solutions Services and More!
If you want the latest business solutions that work, do not think twice about getting in touch with ContactOne today. For a more comprehensive look at who we are and what we do, please take time to explore our website at https://www.contactone.com.sg/. Your questions will be accommodated at +65 6333 0633 or +65 8666 3633. Call us today because we like to hear from you!
Are you searching for trusted company incorporation, business formation, corporate secretarial, compliance management, accounting and taxation, payroll management, and corporate administrative services for startups and small to medium enterprises? ContactOne is the right place for you.
January 27, 2023
Switching Service Providers: X Reasons for the Shift
The consistently growing Singaporean landscape is a playground for investors and a paradise for start-ups or established businesses looking into more ways than one to expand their market. This is because of Singapore’s competitive business environment, where one can generate more profit with the right strategy.
Starting a business in Singapore means having world-class infrastructure at arm’s reach. Not only that but also easy taxation policy, corruption-free government, high literacy rate, favourable geographical location, and good weather conditions all in one place.
However, behind all the goods are certain challenges a business may face while building a foundation in the business hub. Although these challenges are sometimes difficult to overcome, corporate service providers are fully equipped to help entrepreneurs make a mark through their businesses. Working hand in hand with a reliable business solutions provider will remove some of the burdens of managing a business.
While, most of the time, the significance of hiring a corporate service provider is always talked about, the possibilities brought by shifting from one provider to another have yet to be tackled. This article will highlight the reasons why some companies are switching services providers. Stay tuned and continue reading below.
Why Businesses Are Switching Service Providers
The benefits of partnering with corporate firms to businesses are non-debatable. They assist growth, promote compliance, and provide a competitive advantage to any company in Singapore. With all these advantages, it indeed becomes questionable when a specific enterprise has to make a leap of faith in changing a corporate firm partner. Here are some of the possible reasons for the big shift.
Price and Value Are Unmatched
Customers always want value for their money.
As a pro-business place, it is without a doubt that corporate firms are going above and beyond to make their way into Singapore. The more business solutions providers, the more options there are for businesses. Even if a company is already working with a service provider, the possibility of changing their minds until they reach the satisfaction is close to reality. When companies see potential corporate firms to work with, switching service providers becomes the first step because they think about their partner and their takeaway from working with them.
Moreover, the chances of businesses switching service providers are increased if they find similar services at a lower and more reasonable price. As soon as everything goes down to this phase, companies look at the new service provider as cost-effective and, if not equal, a better alternative.
Poor or Lacking Customer Service
Excellent customer service goes a long way in providing paths for new customers to engage in corporate services. It can also mean the difference between loyal clients and fair-weather ones. Besides pleasing customers, effective customer service creates a personal relationship with them. This encourages customers to return for business solutions they deem necessary for their businesses.
Preventing customers from switching service providers means setting up a chain of processes that scores as many resources as possible. Side by side with that is to employ the right group of people to decide what goes to customers without waiting for the green light.
Customers Suffer Brand Fatigue
While brand fatigue is more evident in the retail industry, business solutions can also fall victim to this phenomenon. It is not made up; overexposure can harm a service. When there is a surplus of new services competing for market share from many service providers, customers become tired of the brand. They will always find another one to have it replaced. What it means to corporate firms is to not rest on their laurels. They may be enjoying a significant market today, which can change overnight.
Not Understanding Customers Enough
Suppose a service provider does not know why customers avail of their services. In that case, they won’t also see the reason for switching service providers. Customers will always reach out to another corporate firm if their needs are not satisfied. The good thing is that this can be prevented in a couple of ways, and willingness to engage with customers directly is all it takes. Try these barometers of customer sentiment: conduct online and in-house surveys, listen and interact on social media, and always engage with customers.
Switching service providers is a real threat to corporate firms. After all, every company only wants the best for their business. It has to be done, if that means hiring another business solutions’ provider.
Call ContactOne Today for Reliable Business Solutions Services
Get the latest corporate services from ContactOne and bring your business to a different level of success. Visit our website at https://www.contactone.com.sg/ to learn more about us and what we do. You may also call us on +65 6333 0633 or +65 8666 3633.
If you need company incorporation, business formation, corporate secretarial, compliance management, accounting and taxation, payroll management, and corporate administrative services for startups and small to medium enterprises, don’t hesitate to reach out to us.
January 18, 2023
Advantages of Xero Accounting in Singapore
Accounting is not easy, as it takes the right knowledge and skill set to ace an accountant’s job. But as industries are becoming more competitive and leading more expectations to meet, getting things done should be easier than ever. That is why providing corporate solutions, like accounting and taxation, is done using online cloud accounting software nowadays.
Traditionally, spreadsheets were used to tabulate business accounts, expenses, and more. While a few companies are still using them, a more advanced method can pull off almost everything in one go. Many businesses have been using Xero accounting in Singapore. It is a game-changer and will significantly impact handling business finances.
What Is Xero Accounting Software?
Xero is an online cloud accounting software that is accessible through the internet. Instead of installing it physically on a computer, you can access Xero on the cloud. The software’s origin can be traced back to New Zealand in 2006. Today, Xero is a big player in the cloud accounting market, leading in New Zealand, Australia, and the United Kingdom. All in all, there are more than 2 million users of Xero.
Benefits of Xero Accounting Software to Users
The benefits of Xero accounting software to businesses are undeniable. Because it is cloud-based, Xero efficiently supports users to be organised amidst carrying out essential bookkeeping functions and other accounting activities.
Find out more about the software’s benefits in the list below.
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It Stores Files in the Cloud
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It Is Accessible Anywhere
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It Is Safe and Secure
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It Has Free Product Updates
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It Makes Collaboration Easy
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It Allows Upgrade When Needed
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It Is User-Friendly
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It Takes Care of Invoices and Quotes
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It Has an Array of Add-Ons
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It Makes Conversion Easy
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It Takes Care of Payroll
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It Offers Easy Report Customisation
Things can get cramped up in an office with paperwork and documents. But this can be different for a business that uses accounting software like Xero. Since it is cloud-based, everything is stored online.
The benefits of Xero accounting in Singapore are not limited to cloud-based storage. One of the best things about this tool is it is accessible anywhere as long as you have internet coverage and a device.
It is hard to get someone on board with cloud computing because of an information breach. They need to realise that it is safer since data are securely stored online and encrypted using industry-standard encryption. Other than that, there is also a high level of physical security for the servers.
The business industry is ever-changing, and Xero ensures to adapt to these changes. That is why users enjoy the software’s latest version all the time through free product updates. As a subscription service, users are no longer required to download from a disc or the internet.
Collaboration between a business’s bookkeeper, accountant, or financial adviser is easier with Xero accounting software. Hard copies and faxes are no longer required when everything is right at your fingertips.
With the different levels of subscriptions to choose from, businesses can select the one that suits them most. They can upgrade the subscription as the needs and requirements evolve.
The modern user interface is a major selling of Xero accounting software. The way things are arranged and organised is user-friendly and ergonomic. For first-time users, online courses are available to get familiar with how the software works.
Businesses can send invoices or quotes to clients and create customised templates as desired. In return, clients can pay directly from those invoices or quotes. This method is a lot faster compared to the traditional hard copy.
Creating an entirely customised experience in Xero is easy with a massive variety of add-on applications. Get these from the Xero Marketplace and leverage the benefits.
Besides sending invoices or quotes, it is easy to pay and receive bills in different currencies with Xero. It means that converting exchange rates is more convenient than ever.
When it comes to taking care of payrolls, Xero never disappoints. You can even integrate it with a payroll partner. Employees can also access their payroll through a portal, allowing them to lodge timesheets, view payslips and income statements, and apply for leave.
While there are plenty of ready-made reports in Xero, you can freely customise reports according to your needs. It doesn’t matter when you need these reports because they are easy to make when necessary.
Be On Top of Your Business’s Accounting Needs with ContactOne
Using Xero accounting software, you can also link bank accounts for automatic updates and streamline accounts payable. There is no denying that Xero has an endless list of benefits businesses in the Singapore business hub can take advantage of.
If you want to learn more about this accounting software, ContactOne can help you. Let’s catch up on these numbers: +65 6333 0633 or +65 8666 3633. You may also explore our website; exciting things await you there.
November 7, 2022
Everything You Need to Know About Deductible and Non-Deductible Expenses
A complete report of business expenses is expected when filing for corporate income tax in Singapore, as the Inland Revenue Authority of Singapore mandated. This covers resident and non-resident enterprises and requires them to declare all they have spent managing and growing their businesses. The declaration should include payments for advertising, renovation, wages, and CPF contributions, to name a few. But it is not something that you should be worried about. Do you want to know why? The IRAS does not allow deductions on all you have spent on your businesses. You are obliged to separate corporate costs into deductible expenses and non-deductible expenses. If you want to learn everything related to business expenses, specifically deductibles and non-deductibles, continue reading this article.
Check out more details regarding deductible and non-deductible expenses in Singapore below. The information is sourced from IRAS, meaning this content is reliable and created with business owners in mind.
What Does Tax Deductibility of Expenses Mean?
Before we delve deeper into the criteria of deductible and non-deductible expenses, let us take time to understand when taxes are charged on business expenses. To clear the air, tax-deductible or deductible expenses are business costs that IRAS allow for deductions from earned income, thus reducing a Singaporean company’s taxable income. In other words, the tax-deductible expenses would lower taxes to be paid.
Meanwhile, non-deductible expenses are not part of an enterprise’s income tax bill. To be more exact, non-deductible expenses are to be added back to your taxable income if you have accounted for them in your financial statements. The IRAS disallows the deduction of these business expenses and you will not be able to enjoy deductions from your taxable income.
For example: If your company’s annual income is S$100,000.00 and it declares business expenses with an amount equivalent to S$20,000.00 (with S$15,000 deductible expenses and S$5,000.00 non-deductible expenses), then the taxable corporate income will be S$85,000.00. To achieve this, you must subtract the S$15,000.00 deductible expenses from S$100,000.00 of your annual income.
Understanding Deductible Business Expenses
Now that you have a good grasp on the overview of what expenses are charged taxes on by IRAS, it is the right time to dig a bit deeper into what qualifies as deductible expenses. In case you are hesitating about what you declare your company’s deductible expenses, here is the cardinal rule. According to IRAS’s published policy on business expenses, deductible expenses encompass costs that entirely and exclusively incur from all the company’s income-generating activities.
Note the accompanying conditions of deductions for business expenses from the list as follows:
- Singapore’s Income Tax Act should not prohibit the deduction of the deductible business expenses
- The expenses must be generated from the revenue and not business capital
- No contingent liability of expenses, which means they should be incurred without the need to peg them on situations that may or may not happen in the near future
- All expenses must be incurred purely for the sole purpose of generating business income
Understanding Non-Deductible Business Expenses
On the other hand, non-deductible business expenses are the direct opposite of deductible expenses. In short, the costs to be categorised as non-deductible should be incurred outside income generation. What exactly does it mean? Capital expenses like the funds spent on fixing assets, company incorporation, and personal expenses incurred by employees, including entertainment and travel costs, are considered non-deductible expenses.
Deductible Expenses For Business
- Accounting fees
- Administrative expenses
- Advertisement costs
- Auditors’ remuneration
- Ad-hoc contributions to employees’ Medisave accounts
- Bank charges
- Cash spend in topping-up of Employees’ CPF Minimum Sums
- Costs for periodicals and newspapers
- Digital taxes imposed through turnover taxes (not income taxes)
- Directors’ fees
- Employee Equity-Based Remuneration (EEBR) Scheme payments
- Employee’s income tax paid by the employer
- Employment Assistance Payment (EAP)
- Exchange loss (trade and revenue in nature)
- Insurance costs for underwriting bad trade debts
- Interest expenses
- Interest incurred on late payment of fees to a Management Corporation for a Strata Title Plan (MCST)
- Interest incurred on loans intended for re-financing previous loans or borrowings
- Intellectual property (IP) licensing expenditure
- Legal and professional fees incurred in trade and revenue transactions
- Medical expenses
- Motor vehicle expenses – including upkeep, maintenance, plus running and financing costs of goods / commercial vehicles
- Office upkeep expenses
- Payments for Insurance premiums
- Statutory CPF contributions
- Voluntary cash contributions to self-employed persons’ Medisave Account
Non Deductible Expenses For Business
- Acquiring fixed assets
- Amortisation
- Bad debts (non-trade debtors)
- Bills before the commencement of business
- Certificate of Entitlement (COE) for motor vehicles
- Digital taxes imposed as income taxes
- Dividend payments made on preference shares
- Donations
- Exchange loss (non-trade or capital in nature)
- Fines
- Goodwill payments
- Impairment loss on non-trade debts
- Interest incurred on late CPF contributions
- Interest expenses on non-income-producing assets
- Legal and professional fees for non-trade or capital transactions
- Motor vehicle expenses for S-plated and RU-plated cars
- Voluntary contributions to CPF
- Singapore’s income tax and any tax on income in a country outside of Singapore
- The installation of fixed assets
These are only a few of the costs under deductible and non-deductible business expenses. Should you wish to find the complete list, visit IRAS official website.
Talk to Us Today!
For reliable corporate solutions in Singapore, turn to ContactOne. Our services have been designed to suit our customer base’s needs. Whether starting or growing a business, we have proper solutions for that. Call us on +65 6333 0633 today!
October 14, 2022
SME Accounting Services, Creating Significant Change to Your Enterprise
Business owners encounter many challenges in getting on top of their businesses—from outdated bank reconciliation and transactions to unbalanced accounts. You name it! Even though executives go above and beyond to avoid these scenarios, they occur more often than expected. The impacts of these uninvited guests include actual trading activity not reflecting on management reports, increasing risks of fraud, strained relationships between businesses, time-consuming workaround, and more!
The best solution is to hire the right workforce to work on your business, especially managing finances. If your business is a small- or medium-sized enterprise, SME accounting is an option worth considering. Either hiring an in-house accounting or outsourcing accounting services will work in your favour as long as you go through the extensive process of finding ideal partners to help grow your business.
Benefits of Good Accounting for SME in the Singaporean Business Landscape
Excellent accounting and bookkeeping are only the beginning. Your company can establish the foundation for accounting’s ultimate benefits when your accountant keeps accurate records. Suppose you want to reap what you sow. In that case, onboarding a competent corporate solutions provider or accountant is one thing you can utilise to make these things happen. Check out what you could take advantage of when working with qualified SME accounting services:
- Make informed decisions
- Manage your working capital
- Forecast accurately with built-in seasonal fluctuations
- Create budgets that are not just a wish list
- Compare current results with prior periods
- Perform strategic analysis with complete data
- Identify capital requirements for expansion with bank support justification
- Vastly improve the selling price of your business
Growing your business starts with essential record-keeping done by an experienced accountant. Although you have to spend for the services’ expenses, the value made in the long run will pay for the cost many times over. Singapore is a saturated market with competent businesses. If you want to achieve breakthroughs, make it a habit only to hire individuals who can work on the same phase as you. More than that, take time to undergo an extensive onboarding process and set out qualifications in the best interest of your enterprise.
Here are a few things to remember when hiring an accountant or accounting services.
What to Look for From Accountants/Accounting Services
Many references have covered what makes a good accountant. However, you should prioritise your business requirements when hiring an accountant or SME accounting services. Begin with determining your needs first and try to work your way around them. Having a full understanding of the essentials of your company will get you far in managing your enterprise. Continue reading below to learn more about the things to look out for when choosing accountants/accounting services:
Previous Experience
Commercial experience is a good start when hiring an accountant or a service provider of accounting services. A long list of previous experience in handling commercial businesses ensures that your company is in the right hands. It can be challenging to hire an individual or firm with little to no business experience. The result is that they will learn as they progress in their work, and this can cause delays and is time-consuming. Get the best results by partnering with established individuals or firms.
Accounting Skills
Hire an accountant or accounting service provider with the right skills to get things done. They should know how to perform a complete and thorough review of your systems, people, as well as processes. Besides that, a corporate accountant should be knowledgeable about documenting your company’s processes so that other employees can follow them. Another vital skill is creating checklists and timetables to guide the business in doing things.
While accountants have many duties and responsibilities, they should pay more attention to one of the essential parts of the job. An accountant should know how to pay your company’s dues. When this is not properly addressed, the possibility of more serious problems is high. Don’t wait for this to happen by meticulously choosing who manages your business’s finances.
Knowledge of the Law
Some businesses in Singapore hire an accountant or accounting services to ensure they comply with ACRA and the laws and regulations set out by regulating bodies. That is why it is important to hire someone knowledgeable about the country’s ever-changing business laws. If an enterprise fails to submit all the requirements in the given period, penalties will be on the way. This is the last thing you want to happen to your firm. Get a reliable accountant or provider of accounting services to keep your business afloat.
Partner with ContactOne Today for Reliable SME Accounting Services in Singapore
Turn to ContactOne today and discover an array of corporate solutions that work. Our services are tailored to client’s needs, ensuring effective and straightforward problem-solving. Call us on +65 6333 0633 or +65 8666 3633. You may also visit our website to get to know us better!