News & Updates
November 17, 2022
Singapore is a business-friendly territory that motivates many investors to venture into the country. Along with that are the laws implemented by the government to regulate the business hub. Tax is the most common subject when the Singaporean business landscape is brought as a subject in a conversation.
Discussing Singapore’s tax scheme is only fair because business owners have many things to learn. The Goods and Services Tax (GST) is one of the most common taxes imposed on supplies of goods and services in Singapore. But what is it, and can it benefit all businesses?
Continue reading below and learn more about GST and GST registration services in this article.
All About the Goods and Services Tax (GST) in Singapore
All Singapore-based businesses know about the Goods and Services Tax (GST). In other countries, it is almost equivalent to Value-Added Tax, but with a few differences in features. GST’s nature can be defined as a wide-ranging consumption tax imposed on imported goods collected by Singapore Customs. More than that, there is GST levied on all other goods and services in the country.
On the other hand, according to the Inland Revenue Authority of Singapore (IRAS), some exemptions apply to the following: most financial services, supply of digital payment tokens, sale, and lease of residential properties, and importation and local supply of investment precious metal.
A GST-registered company in Singapore is mandated to collect GST from customers of goods and services rendered. This collection will be paid to the tax authorities to support public spending that benefits Singaporean. The expenditure includes healthcare, education, and security. Currently, GST is expressed as a 7% per cent tax charged on the consumers’ end.
What’s In It for You: Registering for GST in Singapore
Boost Brand Name
The Singaporean business hub is a saturated and competitive market where everyone goes above and beyond to acquire the positions of market leaders. A GST-registered company in Singapore has the impression of an established company. It entitles the right to rally alongside other market giants.
Enable Tailor-Made Business Policies
Registering to GST means making a pool of financial information accessible. With this information, the government can develop new policies to improve the existing ones. It will be beneficial to the growth of many businesses in Singapore.
Lessen Income Tax Rates
The favourable corporate and personal income tax scheme makes Singapore so appealing to most people, especially investors. When the government can keep track of the collected corporate income taxes, it can moderately maintain the personal income tax rates.
Encourage Savings and Investment
People are only taxed when they avail of consumer goods and services in Singapore. Because of this, individual tax rates are kept in check, encouraging citizens to save and invest. Since people are taxed every time, they purchase goods and services, it only makes sense to exempt their savings and investments from taxation.
Reduce Business Costs
Singapore’s tax regime not only benefits overseas investors like it has been lauded in the world, but the government’s cost of administration and collection also benefits from it. GST registration reduces business costs by handing down a portion of the responsibility to the consumer.
GST Registration of Singaporean Businesses
Some considerations need to be looked at more closely regarding GST registration in Singapore. While there is compulsory registration, there is also voluntary registration and exemption. Understanding the conditions governing GST registration in Singapore is crucial to be guided on your next moves.
There are two bases when a company is compulsory to register for GST. First is a retrospective basis, in which the business turnover in the past 12 months is more than S$1 million. The second is prospective basis, in which the business is currently making sales and expecting to exceed S$1 million for the next 12 months. It includes various signed agreements or contracts and expected revenue.
Businesses with revenue exceeding S$1 million should apply GST to IRAS within a 30-day notice. Otherwise, penalties will be charged to non-compliant enterprises. To ensure proper declaration of turnover, anti-avoidance provisions are in place.
Some businesses are not liable to compulsorily register. In this case, they may voluntarily register for GST, depending on their business operations. Qualified businesses are those with plans to make sales or have started making sales of taxable supplies in Singapore.
For additional conditions to voluntarily register for GST, do your research. Or turn to a reliable provider of GST registration services to be guided accordingly.
Exemption for Registration
Businesses that only make zero-rated supplies can apply for exemption even if they exceed the taxable turnover limit of the registration. It excludes a business from GST registration’s administrative requirement and subsequent quarterly filing. IRAS will assess and approve the exemption with the condition that 90% of the total taxable supplies are zero-rated. Input tax and output tax are also considered.
Call us Today!
For more corporate business solutions, like GST registration services, reach out to ContactOne. You may call us on +65 6333 0633 or +65 8666 3633. Our website is also full of exciting things to explore. Visit now!
May 16, 2022
Although many aspects contribute to business success, uninterrupted cash flow is unarguably the driving force of all companies. If a business mismanages its monetary assets, covering liabilities and paying debts and expenses will be challenging. Because of this, proper financial management and monitoring are crucial for thriving businesses, whether small or large. This reason is primarily the catalyst for considering efficient business support solutions like bookkeeping services in Singapore.
In Singapore, there are many corporate service providers to choose from. All of them vie for new clients and claim to be the best at what they do. Their claims might be true, but outsourcing professional accounting and bookkeeping services should not be solely influenced by persuasive sales talks and compelling marketing strategies. The truth is that getting bookkeeping services in Singapore is a process that consists of various considerations.
Singapore-registered businesses have two options—hire in-house accountants or outsource to another company to manage their accounts. However, employing in-house accountants and bookkeepers isn’t the best option, especially for a startup, because it can be an arduous process and costs more than you imagine. That is why outsourcing providers to manage your business’s finances is the best way to care of your financial health.
Knowing these things and keeping them in mind will make selecting the right provider an easy task. Here are some things every business owner should consider before outsourcing bookkeeping services in Singapore.
6 Considerations Before Getting Bookkeeping Services in Singapore
Singapore is a renowned world-class destination for tourists because of its impressive developments and entertainment destinations. But the country can offer more than that. In fact, it is considered one of the most business-friendly places globally.
That said, starting a business in the Singaporean business hub is easier than in other places. Yet, the challenge of entrepreneurship does not end at business registration. For an enterprise to grow, it needs support from different entities. Below are the things that you should not miss.
Long-Term Professional Relationship
Company Selection Process
Accounting and bookkeeping requirements come in various forms. As a result, no business needs are identical. Make sure you spend a reasonable amount of time determining particular business needs. Otherwise, finding the right provider will be difficult.
Accounting and bookkeeping requirements can be easy to identify for a small business. But a large enterprise may find this task daunting because of various operations. The best way around this is consulting a corporate service provider on your radar. It is also best if you commit to working with this provider to help you with your financial resources. That will lead us to the next point.
Be ready for a long-term professional relationship when you have successfully identified your business needs and realised you have to outsource to another company to manage some of your business functions. This opportunity is the best one that you could get when it comes to engaging with another enterprise and forging a good relationship.
Having a connection with experts and professionals who are competent and the best people in their respective fields is an advantage in a competitive and saturated market like Singapore. You can exchange ideas and learn from them. And if you are lucky, they might be there to stick with you through every phase of your business.
While everyone is looking into more ways to establish connections, it can be easy to fall victim to false promises. This risk is very tricky to avoid, given that a lot of businesses are on the hunt for paths that lead to business growth.
Whether you partner with a business or hire employees to work for your company, make it a habit to assess track records. You’ll know an excellent track record when it obtains positive reviews, good feedback, and commendations from people or organisations where your prospect partner has worked before.
Moreover, only collaborate with an entity with diverse experience and expertise in a wide range of accounting and bookkeeping practices. Mastering various disciplines of financial management and monitoring are essential for business development. Additionally, do not look past a service provider’s regard to strict data security and financial confidentiality. This is a critical point that should be taken seriously to protect your financial information.
To better understand what you need, walk your service providers through your business’s products, services, structure, daily operations, short- and long-term plans, and overall future projections. After this, both of you can sit and discuss your expectations and requirements. The best time to do this is at an early stage of your collaborative effort to prevent misunderstanding, conflicts, and disputes from the get-go.
You can establish a communication system and regular check-in based on the scope of accounting and bookkeeping services you outsource from a provider. Nonetheless, the best way around this is to create specific task parameters or key performance indicators (KPIs). It will serve as guidelines for meeting accounting tasks with accuracy, efficiency, and integrity.
The last consideration in our list may be the most essential one. The business industry is ever-changing, and keeping up with changes can be difficult. A reliable provider of accounting and bookkeeping services will be there for you in every stage of your business development. With them at the forefront of your enterprise, it ensures that everything related to your finances is well taken care of.
Now that you have dependable people managing your business monetary resources, you can focus on key elements of business growth. More than that, with fewer things on your plate, you can venture into new income-generating activities. Corporate business providers offer various business solutions that will cater to business needs outside accounting and bookkeeping, including company registration, corporate secretarial, and more.
ContactOne Is Fully-Equipped with Expertise and the Right Knowledge to Help Your Business Become Its Best Version
Business Become Its Best Version
When your business starts to grow, you will realise that haphazardly handling business functions does not get things done as you want them to. ContactOne is ready to take on some of your business requirements, particularly accounting and bookkeeping. Talk to our professional team today to learn more about your options. Call us on +65 6333 0633 or +65 8666 3633.
May 16, 2022
Many people, especially those who have no actual experience with accounting and bookkeeping services, think that these services are the same. Some even use accounting and bookkeeping interchangeably, as they believe it is okay to replace either term with the other. Who could blame them when, in fact, many of us have fallen victim to the same circumstance before? Fret not because, in this article, we will meticulously break down the differences between accounting and bookkeeping services Singapore.
Simple Analogy of the Difference Between Accounting and Bookkeeping Services
Bookkeeping and accounting may look similar to an outsider’s point of view since they only see the surface of what bookkeepers and accountants do on a daily basis. However, if they go deeper than the surface, they can quickly point out the difference between these business support solutions.
Although accountants and bookkeepers may have varying functions and areas of responsibility, both of them will be working towards the same goals. The most straightforward analogy of bookkeeping and accounting services can be compared to a nurse and a doctor’s roles. Even if their tasks overlap, they only have the same objective—to provide quality health care to patients in need.
The interconnected relation of bookkeeping and accounting services in Singapore might be the reason many see them as one thing. Both services commonly cover financial data, require basic accounting knowledge, and deal with periodical reporting. Albeit these processes may be different at their cores, each one of them has its unique set of benefits.
For a business owner, understanding the difference between accounting and bookkeeping services is undoubtedly helpful in growing a company. There is no time like the present to begin learning how business support services, like accounting and bookkeeping, differ from each other. Other than that, understanding the similar areas these services cover will also be beneficial in managing an enterprise.
Know More About Accounting and Bookkeeping Services Below
Without a doubt, accounting and bookkeeping services are both crucial in managing your finances, specifically business assets, income, profit, and loss. Despite the similarities of these two services, you will spot some main differences if you take a good look at them. The best way to fully understand the distinction between accounting and bookkeeping services is by learning their real nature. We will get to know more about each of them below.
What Is Bookkeeping?
At its simplest form, besides focusing more on recording and organising financial data, bookkeeping also covers the process in which financial transactions are identified, measured, and ordered strategically in a consistent manner. Moreover, bookkeeping is considered the first step of accounting, as it involves the preparation of payroll and invoices. Posting debits and credits and reconciling company credit cards are part of the bookkeeping process as well.
Even if bookkeeping services provide data that is not significant in making important business decisions, bookkeepers are still required to be accurate in their tasks. Aside from that, a qualified corporate bookkeeper should be knowledgeable about subjects related to finances and their roles and responsibilities in your company.
If you hire a bookkeeper to work in your enterprise, ensure they are well-educated in accounting fundamentals. With that qualification at the forefront of your company, balancing ledgers, subsidiaries, and historical accounts of sales and expenses records will be much easier.
What Is Accounting?
Because bookkeeping is the first step of the accounting process, it cannot proceed without efficient bookkeeping services. That being said, one could not thrive without the other in an ever-changing business environment. By managing and monitoring your business’s financial situation as well as extensively communicating information related to your financial health, accounting services are the best tools for summarising, analysing, and interpreting financial transactions in the ledger account.
But a corporate accountant’s duties do not end there. Indeed, being a certified public accountant (CPA) in Singapore is both challenging and fulfilling. The challenge may come from the tasks a CPA must take on with expertise and knowledge, such as ensuring the accuracy of financial documents, preparing and maintaining financial reports, complying with tax obligations, assessing financial operations, and partaking to reduce costs and forecasting financial trends.
Many corporate service providers of accounting and bookkeeping services Singapore claim that they offer the best services. Despite all their claims, it is necessary to critically assess whether to hire an in-house accountant or outsource services from another company. Whichever option you choose, it has its own set of benefits.
Functions in line with accounting require special skills because of the complexity and analytical nature of the job. The lack of those things could lead to underperformance. Also, an accountant will not be able to create charts of business accounts, outline your company’s budget, or write a winning loan proposal if they don’t acquire the particular skill set required to do their jobs right.
The Ever-Changing Business Landscape in Singapore
Singapore is known as one of the most business-friendly places globally. All this is due to the country’s tax policies and smooth business incorporation process. It is also the reason why many foreign investors are enticed to start a business in Singapore. Because of the growing number of businesses being registered in the country every year, it is not surprising that the existing policies, laws, and regulations every business used to comply with are constantly changing.
Bookkeeping and accounting have witnessed drastic changes the Singaporean business hub underwent over the years. With the advent of new technology and innovation, like accounting software, the line that separates both practices is fading. The modern way of bookkeeping is slowly absorbing some accounting functions. For example, generating financial statements, which was previously part of the accounting process, is now easily undertaken using bookkeeping software.
Turn to ContactOne to Focus on Growing Your Business More Than Ever
Bookkeeping software easily takes on various bookkeeping tasks. With that, the task inclined with keeping the business accounts books in Singapore seems obsolete. But only time will tell when it will happen. Let ContactOne provide you with accounting and bookkeeping services in Singapore so that you can focus on growing your enterprise. We will get things done in the best interest of your business. Call us now on +65 6333 0633 or +65 8666 3633.