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News & Updates
xero accounting Singapore
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.
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.
April 22, 2022
How Accounting and Tax Services Help Avoid the Consequences of Late Payment and Non-Payment of Corporate Tax
Business-friendly, flourishing economy, and impressive developments, all this come to mind when somebody mentions Singapore. These things are also the reasons the country is considered one of the most picked places by tourists and expatriates, especially entrepreneurs. But beyond Singapore’s booming business landscape, there is one thing every business owner should take a closer look at. And that is tax.
Consider Accounting and Tax Services to Avoid Tax Penalties in Singapore
The Inland Revenue Authority of Singapore (IRAS) will impose penalties if a business fails to file its taxes on time, including issuing a Travel Restriction Order (TRO) and other legal actions. This is the last thing many business owners want to happen. That is why a professional must take care of taxation and other functions related to a company’s compulsory contribution to the state revenue.
Whether a startup or an established enterprise needs a corporate solutions’ provider to help them form, manage, and grow, an expert by their side makes sure their business would not suffer from the consequences of late payment or non-payment of corporate tax in Singapore. Business owners can spend more time on income-generating activities that contribute to business growth if they entrust an expert to manage accounting and tax services.
In a saturated business hub like Singapore, a business losing its footing is bad news. That is why establishing a rigid business foundation from the start is essential, especially amidst tight competition. What better way to cement a successful future and multiple breakthroughs than having a long-term partner who can manage tax and accounting services single-handedly? So, choose a reliable business solutions’ provider now and witness better changes in your business.
What Are the Different Taxes in Singapore?
The fact that Singapore is a small island nation with world-class infrastructures and luxury destinations and entertainment already speak of success. But if you look past the expansive business skyline, the country in itself is a self-made business and finance giant. Without a doubt, foreign investors are lured into doing business here because it is on top of the list for the most business-friendly and tax-friendly business hubs.
If you are looking into business opportunities in Singapore, tax is something you should learn and understand heartily. Tax is a contribution mandated by the laws, and the government levies it either from workers’ income, business profit, or costs of some goods, services, and transactions.
Below are the different taxes in Singapore:
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Corporate Tax
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Goods and Services Tax (GST)
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Income Tax for Limited Liability Partnership (LLP)
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Income Tax for Sole Proprietors and Partnerships
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With Holding Tax and Property Tax
Corporate tax in Singapore is only applicable to companies with incomes sourced from the country. Both resident and non-resident companies are responsible for contributing to the state’s revenue. The government requires these companies to file for income tax, whether received or derived within Singapore’s territory.
On the other hand, it is essential to note that no tax is required on any person or company’s income from other territories. However, a 17% flat tax rate is chargeable to a company’s taxable income, such as capital gains, sale of fixed assets, and gains on foreign exchange on capital transactions, among others.
Both goods and services that are made and imported to Singapore are subject to a 7% tax. GST is exclusive to goods and services, and it does not cover other services related to finance, sales, and lease. GST is comparable to the Value Added Tax or VAT in other countries, like Hungary, the Philippines, Puerto Rico, and Russia, to name a few.
The most enticing part of starting a business in Singapore is its income tax rate between 0% and 22%, depending on an individual’s earnings made in the country exclusive of capital gain and inheritance tax, according to the World Economic Forum.
In Singapore, LLP is a business structure with two or more partners, who must be at least 18 years old and living in the country. Partners can also be a body corporate of another business or LLP. Although a company is an LLP, it is not taxed as an entity. Rather, incomes from LLP’s profits are categorised as a partner’s personal income, in which the personal income tax rate is applied. Therefore, it is not the partnership liable to tax, but the partners.
A sole proprietorship or a partnership’s business income is part of an owner’s personal income. The personal income tax rate is applicable in this situation, too. This happens when customers pay for goods produced in Singapore, or you make money through overseas sales and receive it in Singapore. Remember that a business or an individual that makes income in Singapore is under the country income tax policies. Taxable incomes include salary, interests from deposits, and other chargeable income sources.
Other than that, sole proprietors and business partners can avail of tax incentives or exemptions to reduce their taxes. It helps keep their business running in Singapore. Tax deductions, rebates, and tax relief are also available to keep their business afloat in the country.
A business incorporated in Singapore, but its employed staff, agents, and partners are non-residents, is subject to withholding tax. The IRAS will collect the withholding tax from these companies. Tax withheld from them comes from overseas commissions and fees and offshore non-resident partners and employees.
Meanwhile, property tax covers all properties in Singapore, like Housing and Development Board (HDB) flats, offices, factories, warehouses, and even vacant lots. Property owners may pay a 10% taxation rate before the 31st day of January every year. There is a deduction to this rate depending on certain conditions set up by the appropriate regulating bodies.
ContactOne Is Your Partner in Handling Corporate Accounting and Tax Services
If your business’s taxes and accounting tasks left you scratching your head, then you need a provider who can deliver productivity like Xero Accounting Singapore or better. ContactOne is ready to take on financial jobs. Call us now on +65 6333 0633 or +65 8666 3633, and we will walk you through options and ideas to make your business its best version.