How to Choose the Right Accounting Firm in Singapore

If you're reading this article, you are in desperate need of an accounting firm for your company. Every time you put your nose in the books, you feel lost, and you don't know where to start. You don't even know what you're looking for. The bottom line is you're unsure about how your finances are looking like in the books. 

Don't worry. It's normal to seek outsourced accounting services to help you with the mundane tasks of bookkeeping and taxation. But how do you know which accounting firm will provide you with the services that you need? 

This article will guide you through the process of finding an accounting firm and how to make the most out of their services. 

The Big Question: Do You Need an Accountant in Singapore?

Every business needs an accountant. Period. Even if it's not a public accountant, you need someone competent enough to go over the business' books. You see, just because money is coming into the business does not mean that your business is guaranteed to be financially sound.

An accountant will determine how much money is coming in and how much is going out of the business. 

But here's the problem. Small businesses can't afford to hire their own CPA. The business owners take it upon themselves to manage the books. Meanwhile, medium and large corporations are hiring accountants left and right. They have an entire department dedicated to accounting.

Don't worry, though. As a small business owner, you can still get professional accounting help without paying a fortune. All you need to do is hire an outsourced chartered accountant to help you with your bookkeeping. 

When Do You Know That You Need an Accountant in Singapore?

There's no correct answer to this question, but knowing the answer is half of the process of finding the right accountant for your business. 

Why is there no correct answer? There is no specific time frame in your business that will let you know that it's time to hire one. You feel the need to hire a bookkeeper when it does arise or specific warnings and signs that will let you know it's time. 

If you ever find yourself in these situations, then it might be time to get in touch with a professional accounting firm:

The Business Is Starting, and You Don't Know Accounting.

Your business is starting up, but you feel way over your head when it comes to finances. You're establishing the supply chain of the business, managing the payroll, and making sure that cash flow is going where it's supposed to go.

But guess what? You're just scratching the surface of accounting here. Sooner or later, you're going to be hit with terms like financial statement, profit and loss, and other accounting jargon. 

Unless you already have a solid background in accounting or know a thing or two about the industry, business owners get a crash course introduction into the world of managing business finances properly. Just because you're earning money on paper doesn't mean you are making money. Your income needs to reflect on the books. 

If you are unfamiliar with accounting basics, then hiring someone to do accounting for you might be your best option for the first few months of your business. Having someone professional look over your finances without telling you how to spend your money in the business can save you a lot of pain and suffering down the road. 

You Don't Know How Taxes Work in a Business Setting

Tax filing is difficult from a business owner's standpoint. One wrong move could cost the business hundreds, if not thousands, of dollars. And believe us when we say that not all business owners are not familiar with the best tax filing practices. And we also know that some business owners will probably not have time to do it correctly. 

By hiring a professional accountant, you get the most value out of your taxes when filing properly during the tax season. Accountants can help you navigate your way through taxes to maximize both savings and deductions. 

Your Business Is Growing Exponentially Fast

Suppose your business is in this situation, congratulations! You're now at the stage where you want to expand the company. Hire more people, take on more suppliers, or better yet, secure capital from a financial institution to augment the growth of the business. 

But slow down for a bit. Some time in your business’ lifetime, you’ll encounter one or two deals that could rapidly grow your business. We’re talking about a sudden surge of cash flow, and keeping track of them will become a challenge. 

When the business is in this stage, there's a chance that you might lose control over your finances. 

Hiring a professional accountant will help you manage the growth of the business, especially when it comes to finances. By managing your books, you'll be able to make smarter decisions based on real-time financial data. 

Thanks to cloud-based accounting software such as Xero and Quickbooks, accountants make it easy for their clients to access their books. The interface of these software is built in such a way that you can easily understand how your business is doing thanks to real-time data.  

You Need To Obtain Capital 

If your business needs to apply for a loan or a business grant, you might want to ask for help from an accountant. Financial institutions such as banks will need detailed financial statements that let them know how the business is doing. Even if you have no plans of obtaining a loan for the company, being on top of your financials is in your business's best interest. 

You Are Deciding the Company's Legal Structure

In a separate article, we talked about the different ways to structure the business. Whether you want to operate as a sole proprietorship, partnership, or private limited company, your choice will affect your finances. 

The business structure has legal implications, and the decision to choose which structure should not be taken lightly. For example, if your business is a sole proprietorship, you should know that you're working on a self-employed basis and that invoicing is done under your name, not the business. If you work with a professional accountant, you'll be able to save money on your taxes when you make your deductions properly. 

The IRAS is Auditing You

It may be unlikely that you will be audited by the IRAS, mainly because of so many small businesses but so few government auditors. But if you do, working with a professional accountant can help you save time and money while reducing your stress. 

A professional accountant can explain to you the auditing process and how to proceed with your business after the audit. 

How Do You Choose An Accountant For Your Small Business in Singapore?

Remember, not all outsourced accounting services are made equal. These tips will help you find the right accountant for the company. These tips will help you avoid spending money on the wrong firm or getting ripped off by an unregistered bookkeeper.  

Look For Small Business Experience

Big Singapore accounting firms are expensive, and their services could run you to the ground financially. It would help if you had an accountant who understands how small businesses operate in any given industry. An accountant with small business accounting experience will be more familiar with how things work within various agencies that govern small businesses in Singapore.

You'll also need someone who can relate to the financial challenges of owning a small business, so the accountant you choose will be able to help you make better financial decisions.

Get Recommendations From Other Business Owners 

If you're a new business owner, you may find it easy to find a professional accountant if you ask around with other business owners. These business owners will probably have worked with an accountant at some point in time. You can talk to these business owners about their experience in working with an outsourced accounting service. Talking to them will allow you to understand how the services work and how much you should be budgeting for their services.

Compare Fees

Not all accountants charge the same amount for the same services. Accountants may charge monthly fees, depending on how much work you have for them and if you have something continuous to work on. If you're having them do specific services for you, you get charged a flat rate. 

In line with the point above, talking to other business owners will help you know what to expect from hiring chartered accountants. 

Ask About What Accounting Software Will Be Used

Accountants are particular about the type of software they use to manage their clients' books. If you're already familiar with these types of software, it would be helpful if they used the same software as you are. If not, do not worry. Accountants will be more than happy to point you to the software that's perfect for you. In this case, we here at Piloto Asia onboard our clients with Xero, one of the most recognized accounting software in the industry. 

You want an accountant who will help you set up this software and help you set up your chart of accounts. It's also worth mentioning that there might not be any free accounting software that will be of use to you because any CPA firm will probably use Xero, Quickbooks, and other commercial software. 

Ask About How Often They Report

One of the most important things you need to consider is frequent communication between you and your accountant. Think of your accountant as a business advisor and not just someone you talk to during tax season. Set expectations on how often you want to receive financial reports and how often communication is carried out between you and the firm. You can also ask your potential accountants how often you'll receive financial statements and other reports from them.

Bottom Line

Hiring a professional accountant will not be an easy task, but it's necessary if you want complete financial control over your business. 

Yes, hiring a certified public accountant will be costly in the long run compared to you just learning about accounting and taxation, but do you want to spend hours reading books about either of them? 

Managing the books, going through bank statements, and doing taxes are part and parcel of running the business. Still, it doesn't mean you should devote your time to do them yourself unless you already have had prior knowledge or experience in doing either of those things. 

Don't be ashamed to seek professional accounting help. 

Frequently Asked Questions

• Why is professional accounting crucial for small businesses in Singapore?

  Professional accounting is vital for maintaining accurate financial records, which is fundamental for making informed business decisions, strategically planning, and ensuring the business's financial health.

• How do accounting services assist in compliance with Singapore’s regulations?

  Accounting firms are well-versed with Singapore's financial regulations and tax laws. They ensure that your business adheres to these laws, avoiding penalties and legal issues associated with non-compliance.

• What role do auditing services play for small businesses?

  Auditing services provide an objective examination of financial statements, which enhances the credibility and reliability of financial information provided to investors, creditors, and other stakeholders.

• How can professional accounting services benefit the financial health of a small business?

  By providing expert financial advice, budget planning, and cash flow management, accounting services help small businesses maintain a healthy financial position, facilitating sustainability and growth.

• Can accounting and auditing services help in identifying and mitigating financial risks?

  Yes, these services help identify financial risks and irregularities early, advising on appropriate measures to mitigate risks and safeguard the business's financial assets.

• Do accounting firms offer tailored services for different industries?

  Professional accounting firms offer services customized to the specific needs and challenges of different industries, providing relevant and specialized financial expertise.

• How do accounting services support tax planning and optimization for small businesses?

  Accounting firms assist in effective tax planning and optimization strategies, ensuring businesses take advantage of tax incentives and deductions while complying with tax obligations.

• Is it cost-effective for small businesses to engage professional accounting and auditing services?

  While there is a cost involved, the investment in professional services ultimately saves money by ensuring accurate financial management, compliance, and strategic financial planning, which supports the business's long-term success.

• In my quest to find the right accounting firm, how relevant are the Singapore financial reporting standards (SFRS) to the accounting practices in Singapore?

  The Singapore Financial Reporting Standards (SFRS) are crucial for all accounting practices in Singapore, ensuring transparency, quality and accountability.

  As a leading accounting firm, Piloto Asia specializes in SFRS, ensuring your financial reporting meets Singapore’s strict standards.

  Trusting us with your accounting needs means your financial reports will be accurate, credible and fully compliant, allowing you to focus on growing your business.

• What factors should I consider when searching for reliable Singapore accounting services?

  When seeking outstanding Singapore accounting services, it's essential to consider factors such as the firm's reputation, the range of services offered, the level of expertise, and the firm's responsiveness to client inquiries.

  At Piloto Asia, we have an expert team with extensive experience in managing the complex financial needs of a wide range of businesses.

  As Singapore's #1 corporate service provider, we're thoroughly committed to providing excellent accounting services, tailored to support each client's unique financial requirements. We pride ourselves on transparency and open communication, keeping you well-informed about your financial standing.

• How can I ensure my corporate tax filing in Singapore is done correctly?

  At Piloto Asia, we specialize in simplifying corporate tax filings for businesses in Singapore. Our team of experts is well-versed in the latest tax regulations, ensuring your filings are accurate, compliant, and optimized for tax benefits. We handle the complexities of tax preparation and filing, allowing you to focus on growing your business. Discover comprehensive insights and strategies for navigating corporate tax in Singapore by exploring our corporate tax filing Singapore guide, and learn how Piloto Asia's expertise can benefit your business.

• How can an accounting firm assist with Goods and Services Tax (GST) in Singapore?

  At Piloto Asia, we are experts in handling Goods and Services Tax Singapore, offering a full range of GST services tailored to meet your business needs. Our services include the preparation and filing of GST returns, ensuring full compliance with the latest GST regulations, and helping you maximize tax recoveries to improve your financial performance. We provide dedicated support and personalized advice to navigate your GST obligations effectively, ensuring your business avoids any penalties and optimizes tax liabilities.