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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.

  1. It Stores Files in the Cloud
  2. 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.

  3. It Is Accessible Anywhere
  4. 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.

  5. It Is Safe and Secure
  6. 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.

  7. It Has Free Product Updates
  8. 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.

  9. It Makes Collaboration Easy
  10. 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.

  11. It Allows Upgrade When Needed
  12. 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.

  13. It Is User-Friendly
  14. 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.

  15. It Takes Care of Invoices and Quotes
  16. 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.

  17. It Has an Array of Add-Ons
  18. 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.

  19. It Makes Conversion Easy
  20. 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.

  21. It Takes Care of Payroll
  22. 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.

  23. It Offers Easy Report Customisation
  24. 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!

October 14, 2022

Saving Time and Money Through Cheap Accounting and Tax Services

The thing about business growth that business owners should think about deeply is that it is crucial to the long-term survival of their companies. Suppose they settle for what the business has at the moment. In that case, it won’t be able to sustain future operations and transactions. A company that aims for growth acquires assets, attract new talents, and fund investments, which are vital in driving performance and profits.

It is usual for business owners to find ways to improve their systems, increase profit, and reduce spending. Otherwise, they won’t hit the goals they set up for their enterprise. One of the best options to consider when it comes to growing a business in Singapore is to hire an accountant or service provider of cheap accounting and tax services. Both can help with saving time and money.

Other than that, here are some of the benefits you will enjoy:

Updated Business Spending

Catching up on neglected financial reports can take a lot of time and effort. Hopefully, your company doesn’t have to go through all this hassle. This happens to quite a few small businesses because the business owner is too occupied with other aspects of handling the company. Hence, they don’t have time to partake in monthly accounting. If you find it hard to stay updated with business transactions, don’t wait for the worst to come. Hire an in-house accountant or avail of cheap accounting and tax services from one of Singapore’s reliable corporate solutions providers.

It is a good idea not to procrastinate and let everything pile up. Staying consistent with tracking financial information, whether weekly or monthly, removes the burden from accumulated accounting and taxation tasks. Thickened paperwork on the table causes delays to any transaction or operation in which the documents are needed. More than that, business owners will feel obliged to take care of pending documents as the highest-positioned officer in the enterprise. When this happens, focusing on critical elements for business growth becomes divided, which should not be the case for emerging firms in a competitive business hub.

Keeping on Track of Business Write-Offs

Tax season, if not the most, is one of the most restless times of the year for the finance department. When it is time to file business taxes, having good documentation of expenses that covers the period of business write-offs makes things easier and more straightforward. The results of not keeping an updated record of write-offs slow down the company’s ability to comply with taxes on time and correctly. Avoid this by hiring an accountant to track company expenses. The more comprehensive financial information you have, the nearer you are to ending another fiscal year.

When your company is a step ahead of any business operation, getting things done becomes less time-consuming. The same goes for accounting and taxation activities. If you are on top of your finances, managing them does not take too much of your time, and this gives you more to spend on growing your business. And most importantly, efficient management of business finances saves operations costs.

Outsource Payroll

Did you know that payroll can be an expense that adds up? It is especially true if you are paying the salary of an in-house employee to manage the processing of payroll. In this case, it is best to take a look at the real cost of internal payroll management. Assess what you have seen and work your way around it. You will likely realise that outsourcing payroll is much less expensive. Besides saving money, you can also designate the employee to work on other tasks within the company.

Note that many streamlined systems can be utilised to make outsourcing payroll easier. Make sure to identify your company’s needs because these systems cater to the various payroll requirements. Only trust the experts when looking for a qualified accountant or service provider of cheap accounting services in Singapore. Weigh all your options before working with an individual or firm because their presence in your company will make or break it.

To Save Both Money and Time, Only Get Accounting and Tax Services from a Reliable Service Provider

Cheap accounting and tax services will bring another level of advantages and rewards to small businesses and established companies in Singapore. These services provide companies with suitable solutions for their organisation. Most small companies are torn between cutting costs to save on what they believe are pointless expenditures. But the truth is that each expense the business makes is crucial. You have to make money to pay money.

Hence, the first thing you must do to keep your business afloat is to find accounting and tax services provided by professionals like ContactOne. We have an array of business solutions and services to choose from. Talk to us and let us know about your concerns on +65 6333 0633 or +65 8666 3633. Or explore our website to get to know us and what we do better.

September 28, 2022

Consequences of Not Hiring Tax Accounting Services

Are there consequences of not hiring tax accounting services? If you are one of the many business owners who thought about it, the answer is yes. Of course, every action leads to various outcomes. And your decisions make the difference between a successful business and an outright corporate fiasco. Learn more about accounting tax services and the effects on your business of overlooking professional corporate support.

Everything You Need to Know About Tax Accounting Services

Business finance management has many structures, and one of those is accounting tax services. According to Investopedia, tax accounting mainly involves business taxes rather than focusing on the appearance of public financial statements. Moreover, corporate tax accounting is Singaporean businesses’ most popular accounting service.

Accountants carrying out tax accounting services prepare tax returns and help people and businesses file forms and pay taxes. These experts know the laws and regulations related to Singapore’s taxes. With ever-changing business policies, working with a tax accountant is crucial for efficiently handling business finances. Moreover, a professional working on anything related to taxes allows your business to save resources, especially money.

Managing your business’s taxation activities totally works just as fine. But make sure that the person on top of it knows what they are doing and only focuses on corporate tax. Because the more things they have on their plates, the more they will not be able to do their jobs right.

Hiring Tax Professionals to Handle Your Business’s Finances

It can’t be stressed enough—every enterprise in Singapore is unique, meaning they have different needs. The same goes for tax and accounting requirements, each firm has a hodgepodge to comply with. That said, settling with a one-size-fits-all approach will not work and only leaves things undone, leading to repetitive work and a waste of resources. Avoid all this by hiring a qualified tax professional.

If you are hesitant to carry out the work yourself, worry no more because many service providers in Singapore offer business support solutions, including tax accounting services. The final thing you need to comply with is to find the right service provider. Take note that it is not easy, so here are some factors to consider when hiring a new tax accountant to be at the helm of your firm. Continue reading below.

Understanding Company Culture

But before going through the entire process of recruiting personnel in charge of business finances, understanding your company culture should be the first step to finding a new accountant. Do this by sparing some time learning your company’s culture, including daily operations, work environment, and types of team members.

When you are familiar with what goes around at the workplace, try categorising your firm, whether ultra-corporate or not. Is it an open and collaborative space? More than that, assess your needs because this will allow you to establish efficient solutions. You and your team are the people who can determine your business’s actual needs, so it is better to take this matter into your own hands.

Consideration and Work Style

Besides understanding company culture, consideration and work style are two things that you should look for in a tax expert. You can identify this by assisting your company’s multiple needs. You will add a new company member by hiring an accountant, which means you should be meticulous in what you are looking for in the newcomer. Do they need to fit perfectly into the existing standards or bring new efficiency into it?

Taxation Skills and Knowledge

The third consideration in this list is identifying the job requirements. Since no company is an exact company of another, job requirements are qualifications unique to your firm. Creating a job description is more manageable as soon as you identify all this. The job requirements should include what a professional tax accountant needs to do and has to work with.

Communication Skills

A part of a tax accountant’s job is to collaborate with other personnel inside and outside the firm. Hiring someone with the right skill set to communicate is only fitting. Although a high level of accounting skill is a major plus, it is not all it takes to handle business finances successfully. Accountants need to work closely with authorities come tax season, and they will have a hard time without good communication skills. After all, employees must reach out to address concerns, especially in an ever-changing industry like Singapore.

Only Reliable Tax Accounting Services at ContactOne

Reach out to ContactOne for reliable accounting tax services and more business support solutions. Our team would like to hear from you. Talk to us about your corporate needs, and we will find a way to address them efficiently and cost-effectively. We can walk you through more options if you turn to us today. Call us on +65 6333 0633 or +65 8666 3633 or visit our website.

September 28, 2022

Corporate Tax and Accounting Services Every Enterprise in Singapore Should Take Advantage Of

Singapore is an attractive business hub to investors because of its policies. Unsurprisingly, many companies are incorporated in one of the world’s most eligible business landscapes. But progress means saturation of other businesses, making the economy dense and competitive. This makes considering professional business support solutions crucial to every business’s success, including affordable accounting and tax services.

This article will discuss the different tax and accounting services every corporation in Singapore must take advantage of. So, stick around and learn how business owners can focus on growing their companies through reliable business support services. Continue reading below!

Things You Must Learn About Corporate Tax in Singapore

Through tax, every business in Singapore can contribute to the country’s revenue. The government will manage all the collected taxes to pay for expenses and maintain common resources. That is why companies must pay tax on 17% of their income. Computing taxable income is an accountant’s job. As a result, it is essential to hire tax and accounting services for dependable management of business finances.

Here are some benefits of corporate tax services that a business owner and stakeholders should take into consideration when it comes to growing their enterprise:

Correct Calculation of Taxable Income

The business industry is ever-changing, along with laws and regulations. Of course, taxes are not exempted from the changes. It is vital to work with a qualified accountant in terms of handling your business’s taxation activities. A professional at the forefront of your enterprise ensures the correct calculation of taxable income. It also means that your company will comply with the guidelines ACRA set. There is no room for mistakes, especially when your resources are at stake.

Assistance on Advance Ruling in Taxation

A qualified tax professional, as well as service providers, can assist in the advance ruling in taxation. According to IRAS, the advance ruling is defined as a written interpretation of the Income Tax Act of 1947, wherein issues that arise from a proposed arrangement are to be treated for tax purposes. Moreover, a ruling request must require interpretation of the law, not seeking to understand what the law provides.

Smooth Filing of All Tax Forms

Filing tax forms is an accountant’s most commonly known task, despite other processes requiring their expertise. But that is quite true, though. If you ask someone in the corporate world about what they think an accountant does, it would probably be liaising with ACRA and complying with the rules and regulations of authorised offices. That said, a reliable accountant working for your company is an asset that can benefit your business more than you can think.

Reliable Foreign Exchange Transactions

Singapore allows foreign ownership to businesses, resulting in many foreign exchange transactions. With this, funds can freely go in and out of the country. However, the government implement a few restrictions on loaning Singapore dollars (SGD) to non-resident financial entities. On the other hand, lending SGD to individual and non-financial organisations is a different story. All this will be easier with a reliable tax agent that will put your business’s interest first.

Get to Know More About the Singapore Business Hub’s Accounting Services

Besides corporate tax, accounting is another thing that should be taken care of by business owners in Singapore. Dependable accounting significantly contributes to a company’s success, and that is not a made-up truth. So, here are some advantages of hiring accounting services that will change your mind about doing your accounting activities on your own.

Observing good accounting practices is crucial to business growth. Thus, engaging in excellent accounting services can help your company with:

  • Creating and managing budgets
  • Maintaining receipts and tracking expenses
  • Strategizing the best time to make major purchases
  • Keeping credible and accurate records for bankers, investors, and tax
  • Forecasting future revenue and growth opportunities
  • Guiding manpower and operation adjustment
  • Tracking and reporting the financial health of the business
  • Monitoring the growth rate of business

With proper management of business finances, small and seasoned businesses will have plenty of growth opportunities. A qualified accountant will oversee your corporate accounts and bookkeeping to keep the company’s cash flow undisrupted. As soon as you determine your tax and accounting requirements, don’t think twice about getting the most suitable professional to work for your company. Taking some responsibilities off your shoulder allows you to focus more on growing your business.

Trust the Experts: Reach Out to ContactOne for Your Corporate Tax and Accounting Requirements

Do not compromise when it comes to corporate tax and atax and accounting services. Only trust the experts that can provide your business with high-quality business solutions. Turn to ContactOne today and discover an array of professional supports your business can take advantage of. What are you waiting for? Call us on +65 6333 0633 or +65 8666 3633. You may also visit our website to learn more about us and the services we can offer your enterprise in Singapore.