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Outsourcing Payroll Services Singapore: Advantages & Disadvantages

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Payroll Services Singapore

 

The businesses often find the task of payroll processing to be cumbersome and draining as it requires a high level of concentration and time. It is wrong to assume that payroll is simply calculating salaries and writing pay slips of the employees. But the truth is that payroll services Singapore encompass a host of functions such as calculating benefits of employees, preparing reimbursements, leave management, calculating increments, processing statutory deductions, working on full and final payment settlement for terminations and resignations and so on.

Advantages

Save Time & Cost

Many companies prefer the outsourced payroll services Singapore as working on the host of payroll functions on their own may incur a hefty of cost. Managed by highly qualified and experienced accountants, payroll consultants and HR professionals, such payroll firms help your company save a substantial amount of time and money. By handing over the non-core tasks like payroll processing to a third-party, you save your precious resources whom you can redeploy on profit-generating tasks of the business.

High-Quality Service

In addition to cost/time savings and the improving efficiency, the quality of your Singapore payroll will also be enhanced as the aspect is now handled by the specialists. Being highly knowledgeable in the areas of payroll and allied fields, these professionals can identify the potential errors and weaker areas of your payroll. They ensure to improve these areas to prevent any undesired results.

Compliance Matter Solved

The Ministry of Manpower (MOM) of Singapore decreed all companies to generate itemized pay slips for their employees under the Employment Act. Not all novice employers have the sound knowledge on this payroll aspect, and any ignorance may result in non-compliance.

However, the professional accounting services Singapore can help in this regard through outsourcing. They stay abreast of the latest payroll related regulations of the authorities. They know how to meet the statutory obligations in the best way. Failing to comply with any obligation can result in serious penalties of the authority.

Gain Access to Technology

The small and medium-sized businesses could hardly think of shelling out a whopping amount money in investing a high-tech payroll software. They will rather invest the money on other core activities of the business than installing the software which has an alternative option (manual process). However, the manual process is prone to errors, and it is not as efficient as the software.

Thanks to outsourcing, it allows the small and medium business to get access to the world of technology. They use the software to handle your Singapore payroll services tasks as the tool ensures high accuracy and reliability in the output.

Disadvantages

Losing Control over Payroll Task

Handing over the payroll task to a third-party firm means you are likely to have less control over the financial information and confidential data of the payroll. The data could be less accessible to you as it will be stored on their secure server. Negligence towards guarding the system may pose a threat to the data. It may also leave the data vulnerable to theft, mismanagement and employee lawsuits.

However, a good accounting firm in Singapore ensures to protect and respect all your confidential data by implementing secured access to the authorized users only. The data will be stored and protected by taking encrypted measures.

Whether to outsource the payroll service Singapore or not, this critical decision must be made by undergoing a critical research and well-thought plan. The above analysis suggests that the benefits of outsourcing outweigh the pitfalls. Once you decide to outsource the task to the third-party, make sure to set guidelines on which tasks to be outsourced and also prepare the checklist to be followed by the services provider.

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Accounting Services Singapore for SME

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accounting firms in Singapore
Benefits of Hiring Accounting Services Singapore

 

Singapore companies, unless exempted, are required to fulfill the legal obligation of preparing their financial accounts annually as per the provisions of the Singapore Financial Reporting Standards (“SFRS”). Most of them hire accounting services Singapore for the task.

They have to be accurate and prompt with the task as these financial statements are sampled and verified for the accuracy by the Accounting and Corporate Regulatory Authority (ACRA) under its Financial Reporting Surveillance Programme (FRSP). The agency thinks that these statements must reveal a true and fair view of the company’s state of affairs and profit & loss for the benefit of the investors. The need for the expert advice to the startups and small companies is fulfilled by the accounting services Singapore.

What can Accounting Services Do for You?

The startup and small business, for one or the other reason, cannot afford to invest in an in-house accountant and accounting setup. The reputed accounting services provide them with one-stop accounting solutions. These firms offer services like,

  • Singapore Accounting Software Assistance

  • Singapore Professional Accounting Service

  • Recording Full Set of Account Transactions

  • Preparation of Cash Flow Statements

  • Singapore Group Consolidation

  • Singapore Bank and Other Accounts Reconciliation

  • Accounts Payable (AP)

  • Financial Statements Preparation

  • Director’s Report /Compilation Report Preparation

  • Compilation of Accounts

The qualified experts working for the accounting firms provide flexible services. They render monthly or quarterly bookkeeping services and accounting services as per their clients’ requirements and schedules. They even adjust their services according to the volume of the financial transactions of their clients. Employing accounting firms Singapore enables businesses in,

  • Reducing cost of operation

  • Streamlining accounting activity

  • Increasing efficiency of business

  • Tackling manpower shortage (in the case of in-house operation)

  • Handling increased workload due to Merger and Acquisition

  • Boosting ROI (Returns on Investment)

  • Getting specialized accounting services

GST Registration and XBRL Filing Services in Singapore

The accounting services Singapore specializes in rendering GST and XBRL related services that are very specific to the Singapore. They offer to assess the need for the compulsory GST registration for their clients. They also help in exploring the benefits that their clients will get because of the voluntary GST registration.

GST Singapore

Registering for the GST enables the Singapore businesses in claiming the Input Tax (GST) they have paid on their purchases. The accountants employed by the accounting firms take care of their client’s quarterly GST filing Singapore strictly following the due dates and IRAS (Inland Revenue Authority of Singapore) guidelines.

XBRL Filing

As per the Company Law of Singapore, most of the businesses needs to file their financial statements in full XBRL format. The mandate came into force, since, 3 March 2014. However, startups and small businesses struggle to comply with it. Some of them are so entangled with the responsibilities of providing quality services and products to their customers that they have no time to do it on their own.

On the other hand, others lack the accounting and technical knowledge to do so. Outsourcing the task to the reputed accounting services Singapore is beneficial. These firms use latest software tools for their client’s XBRL filing and help them in complying with the statutory requirements. Depending on the client’s needs, the accounting companies Singapore also take care of the following tasks,

  • AGM Filing

  • Annual Return Filing

  • GST Registration and GST Filing

  • Payroll Services

  • Corporate taxation services (Form C / C-S, ECI)

  • Company secretary services

  • Registered office address services

  • XBRL Services

Benefits of Hiring Accounting Services Singapore

CPA Accounting Services for Non-Core Activities

It is hard to put a value to the benefit gained out of outsourcing to CPA accounting services Singapore. Because accounting is a non-core activity for the business. It does not produce any profit for it, however, good you are at it. On the other hand, it takes up a considerable amount of a business’ resources. It makes the directors of the company worried over its successful completion. It has all the potential of causing a distraction in the workflow of the company.

For a company active in a competitive market, it could lead to problems. By paying affordable accounting fees for hiring certified accountants, the business owners can ensure faultless execution of the task. It leaves them to work on achieving core goals of their business. It is what they should be able to do without having to contend with any distraction as it is directly related to the survival and growth of their business.

Management of Funds

It is of at most importance for a business to keep its books in updated state notwithstanding the statutory requirements. Because it forms the basis of its financial interaction with its suppliers, vendors, employees, and financial institutions. The updated books of accounts enable the management in keeping track of business’ invoices, receipts, etc. It enables it in knowing about the cash flow of the business and in collecting its dues and in paying its creditors. It lends to building a credibility and acquiring the goodwill for the business.

It must be noted that some business owners tend to carry business’ financial information in their head. To a certain limit, it works for them. On the other hand, mature owners try to be diligent and record each of their business’ transactions. Some even hire accounting firms in Singapore as they know it is going to help them in keeping track of the financial health of their business.

Why Singapore Companies should Hire Accounting Services Singapore

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accounting services Singapore
Hire Accounting Services Singapore

Without proper bookkeeping and accounting, a business cannot cope with the statutory compliance mandated by the authorities. The activity is also essential for gaining precise information on the business’ financial position. Such information is extremely vital for every business for its survival in a competitive market like Singapore. That is why startups, SMEs and big businesses, irrespective of their size, must hire accounting services Singapore.

Appoint Singapore Accounting Services

Updating of its accounting book is a must for business. The task can only be done effectively by putting an accounting system in place. They have the option of investing in an in-house accountant which involves upfront expenditure and the pains of searching and hiring a competent accountant. Alternatively, they can choose to outsource accounting services.

However, a few small business owners try to do their business’ accounting on their own. It is a challenging task. And as long as the volume of business transactions is low it can be done successfully by an owner well conversant with the accounting principles. It helps them in saving a few bucks that would otherwise go to the accounting services Singapore. But the saving comes at a cost.

Pay Attention to Your Core Tasks

The task needs a fair amount of time which the business owners could use to market the business’ services and products and generate more revenue. Every small business owner should try to avoid such a situation and focus on their core goals. It is especially true when the volume of their business’ transaction grows. Hiring of accounting services Singapore brings a number of benefits to them. Following is a list of few common services offered by the accounting companies in Singapore:

  • Singapore Accounting Software Assistance

  • Singapore Professional Accounting Service

  • Recording Full Set of Account Transactions

  • Preparation of Cash Flow Statements

  • Singapore Group Consolidation

  • Singapore Bank and Other Accounts Reconciliation

  • Accounts Payable (AP)

  • Financial Statements Preparation

  • Director’s Report/ Compilation Report Preparation

  • Compilation of Accounts

  • XBRL Statement Preparation

Due-date Bound Annual Filing

The directors of companies are responsible for the company’s annual filing. It needs to be accurate and on-time. The accounting services Singapore make sure that. They have expertise in legislation and changes in them. Servicing their clients’ needs earns them their bread and butter which makes them keep their machinery well oiled.

Once they get their hands on the client’s financial data, they require minimal time in preparing the cash flow statement, profit and loss statement, etc. following recommended Singapore Financial Reporting Standards (SFRS). They are fully capable of providing full-scale accounting & bookkeeping services, preparation of Directors’ Report/ Compilation Report, AGM filing, annual return filing, etc.

Reduce Cost of Compliance

The outsource accounting services enable the small companies in reducing their cost of compliance. These services employ Certified Public Accountants who have industry-wide experience. They also have access to latest accounting software which enables them to accommodate the most recent changes in the rules and regulations.

By paying the affordable accounting costs charged by these firms, the businesses get to enjoy expert assistance for the update of books of accounts and preparation of its financial statements. It minimizes the chances of filing inaccurate statements. On the other hand, installing an in-house accounting department is not an affordable solution to many of the small companies.

Trust Accounting Services with Financial Data

In the age when MNCs are outsourcing their non-core tasks the third parties, some Singapore business owners hesitate to hire outsource accounting services. They are worried about the confidentiality of their business’ financial data. However, these services groom their employees to strictly maintain the sanctity of clients’ sensitive data.

The accounting services Singapore, in addition, assists businesses in GST registration and GST filing Singapore, payroll services, XBRL filing, company secretary and registered office address services.