Maintaining accurate financial records is essential for businesses of all sizes in Singapore both for complying with government regulations and for making the right business decisions. It is usually not cost-effective for some businesses, especially smaller businesses to hire a full-time accountant to maintain their financial records. Hence they would like to hire the best accounting service provider in Singapore, so that they get updated accurate financial records while paying a reasonable charge. While there are many companies providing accounting services in Singapore, some of the criteria which should be considered while choosing the service provider are discussed below.
Experience and client list
In accounting, it is important to have extremely accurate financial records, so a business should hire a service provider with experienced staff who has provided services to a large number of businesses in Singapore. This will usually ensure that the service provider provides quality services and good customer support. Some it is advisable to check reviews of the service provider online and offline before making a decision. A well-established accounting firm will have a large number of reviews from customers who have used their services, and most of these reviews will be positive.
The time and effort required for maintaining accounting records depend to a large extent on the number of transactions or expenses of the business. Usually, for smaller businesses or startups there are few financial transactions, often less than twenty in a month since they have lower sales. The low revenues and limited growth prospects also force them to limit their expenses. While some accounting firms charge a fixed amount for their services, irrespective of their revenues, it is better to choose an accounting firm that varies its charges according to the revenues or size of the business. The accounting firm will usually charge a lower fee if their fees are paid annually instead of monthly. Typically for small businesses with revenues of less than $10000, some Singapore accounting firms are charging less than $100 per month.
Scope of services
It is also advisable to check the scope of services which are offered by the accounting firm for the fees which are charged. Typically the accounting firm will prepare the various financial statements like profit & loss, balance sheet, accounts receivable and payable, general ledger, fixed asset schedule. For smaller businesses, these statements may be provided only monthly or quarterly, while for larger companies some of the statements are often provided weekly so that the management can take decisions accordingly. Additionally, the accounting firm will also provide reports on estimated chargeable income, corporate tax filing, annual financial reports, tax returns, depending on the package selected. The business owner or management can also consult an experienced Chartered Accountant (CA) to get financial advice as part of the accounting service.
The technology used to deliver the accounting service should be also considered while evaluating the service provider. The better service providers are using accounting software and cloud-based accounting so that their client can access their financial records wherever they wish.