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Accounting Services for SME Businesses

By November 12, 2021 No Comments

Outsourcing small business accounting services to an accounting service provider in Singapore is a well-known trend for successful entrepreneurs. Many SME business owners search for affordable accounting services from freelance providers over in-house accountants to reduce business costs.

External accounting and bookkeeping services reward small business partners, sole owners, or private limited companies for more productivity and efficiency.

One of the important roles of outsourcing accountants is to compile your yearly accounts for the submission of annual filing and corporate tax filing. Not only for compliance purposes, but a useful yearly account will also provide insight for a sound business decision and highlight the area that should be focused on.

Benefits of Singapore Accounting Services

We can assist small business owners with a better view and understanding of the financial position and analysis so that they can have a better judgement on how to make business decisions.

Our most competent accountants will handle your corporation account and bookkeeping. Based on your nature of business, we will tailor a chart of accounts depending on the nature of the business to ensure that the financial report can represent the most relevant information to you.

With the most relevant information made available to you, therefore you may rely on the financial information and determine which are the area you should focus on. i.e. selling price, save on cost area – salaries, material cost, etc.

  • Improved efficiency

Outsourcing accounting services allow you to focus and enable management to concentrate employee energy strategically. Your staff can be more productive when they are not stuck in everyday administration stuff.

  • Cost-benefit

With outsourcing accounting services, recruitment and operational costs can be greatly reduced. It minimizes costs such as staff benefits and also saves training costs time and effort.

  • Professionalism

Outsourcing accounting services will give you a professional accountant to handle your accounts. We will always make sure we maintain continuous professional development for all of our staff and keep up to date in financial reporting standards.

  • Flexible solutions

Since outsourcing accounting service is typically known to be a flexible solution, we usually do not lock the committing contract period. If necessary, you may always explore with us for more options available.

  • Software Support

We use various types of accounting software based on the different industries or needs of a business. We are here to advise you most suitable and cost-effective software for you to choose.

Best practices for accounting in SME businesses

Decide on accounting method

In accounting practices, there are two common methods:

Cash Basis – easiest form of accounting. You recognize and record revenue when cash is received. Expenses are recorded when bills are paid.

Accrual Method – Revenues are recognized and recorded when you complete the contract obligation. Expenses are recognized and recorded when the vendor had rendered the services or delivered the goods to you. When using this method, invoices don’t have to be paid in order for the recording into your books.

Once you decided to use one method, be consistent and stick to one method.

Set up chart of account

It is important to understand your business nature, determine what are items you would like to focus on, from there set up the chart of accounts that most suit your business need. This will ease you to understand the financial report easily and utilise the relevant information.

Once the chart of accounts is set up, you should consistently apply which type of transaction goes to which account.

Keep track of information

In your books, the below information should be recorded in your books:

  1. Date of invoice
  2. Name of Customer/Supplier
  3. Invoice reference number
  4. Descriptions of invoice
  5. Invoice amount
  6. Date of settlement
  7. Payment details – paying for which invoice

Bank reconciliation

A bank reconciliation should be prepared on monthly basis. A bank reconciliation statement is a working file that compares the cash balance on your book to the corresponding amount on its bank statement.

Reconciling the two accounts helps identify whether any unrecorded transactions, undeposited or non-presented transactions. Bank reconciliations are the basic things that need to be done for a proper account.

Separate private and business expenses

Private expenses should not be using the business account to make the payment to prevent misleading financial information in your books. Private and business expenses should be clearly separated.

Private expenses are also not tax-deductible in tax computation.

Outsourcing Accounting Services for Small Businesses

When you outsource accounting services, you should expect to receive:

  1. Financial Statements
  2. Profit or Loss
  3. Balance Sheets
  4. General Ledger
  5. Ageing of Receivables/payables
  6. Other relevant schedules – Fixed assets schedule, deposit schedule, etc.

With the above various financial reports, you will find out how is your business doing, the company financial health. On top of these, these reports will be used for annual filing to ACRA, to prepare tax computation and to obtain additional working capital loans from a bank or financial institution, etc.

Outsourced SME accounting services are our key service that makes outsourcing straightforward and hassle-free. We assign a dedicated and detail-oriented account manager at your service, so you do not have to face different staff from different departments. A manager will remind you of the deadline, direct you on what should do next and guide you on how to read your financial reports.

With many years of experience, we always improve our workflow and improve efficiency, streamlining the process in order to offer the most affordable fees with a comprehensive range of accounting services that cover all your needs.

You may save up the cost of recruitment if you outsource accounting services. All the staff benefit-cost can be saved up such as sick leave, annual leave, holiday, training costs. On top of these, you need not worry about the staff turnover and whether the staff is competent to complete the accounting tasks you assigned.

Accounting services for SMEs by DNA accounting

DNA Accounting gives your company the most cost-effective and comprehensive accounting services.

DNA Accounting understands the unique demands of our clients and develops a bespoke solution that best fit your diverse business needs. We address the needs of customers globally through the provision of a wide range of services.

Work scope includedFees Per YearFees Per QuarterFees Per Month
  • Profit or Loss
  • Balance Sheet
  • General Ledger
  • Ageing of Account Receivables
  • Ageing of Account Payables
  • Fixed Assets Register
  • Bank Reconciliation
  • Setting up Chart of Account
  • Journal Entries
  • Record Unpaid Sales and Purchase Invoices on Accrual Basis
  • Financial Statement
  • Corporate Tax Filing – Include ECI and Tax Computation
  • Cloud Accounting Software – XERO (Optional at $25 for first six months, subsequent $50 per month)
  • Email and phone support
Estimate fees at S$1,200 / Year (Up to 50 transactions per year)Estimate fees at S$1,000 / Quarter (Up to 50 transactions per quarter)Estimate fees at S$800 / Month (Up to 50 transactions per month)

Other Ad-hoc Services

  • Migration of accounting system
  • Setting up a new accounting system
  • Setting up new HR software
  • Payroll Services – Issuing payslip, CPF report, payroll report, leave and claim function
  • Assistance in issuing sales invoices
  • Set email reminders for unpaid sales invoices
  • Assistance in preparing payment to supplier or payroll
Accounting Software availableHR Softwarer
  • Xero
  • Quickbooks
  • Wave
  • Financio
  • Zoho Books
  • MYOB/ABSS
  • Talenox
  • HR Easily
  • Email and phone support

Productivity Solutions Grant (PSG)

As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022. Contact us now to learn more about the PSG grant.