Accounting

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All businesses and companies need to keep proper accounting records for their own business needs as well as regulatory compliance. The landscape for accounting is changing rapidly. With remote working becoming the new norm, the use of technology in accounting such as cloud accounting services has become increasing prevalent and important.

As more companies embrace working from home and the de-centralisation of their operations, more efficient and productive ways are sought to keep their businesses running and profitable. Our company has also leveraged the use of technology to help our clients find the edge in an increasingly competitive business landscape.

Accounting & Bookkeeping Services

We provide accounting and bookkeeping services in Singapore, offering flexibility and efficiencies. We have a whole suite of professional services to meet your needs.

Outsourcing your accounting requirements in Singapore to us would allow you to optimise your manpower resources. We will help you prepare your company’s accounts in compliance with accounting standards.

With the volatile landscape and the competitive business environment, let us take your headache out of your accounting and bookkeeping needs as one of the most established locally grown accounting services in Singapore, so that you can focus on driving your businesses forward.

Cloud accounting enables you to perform your accounting operations over the internet. The biggest advantage of cloud accounting is that your accounting operations can be easily accessed from anywhere, at any time and from any device via web browsers. You no longer need to wait to get to a fixed computer to create an invoice or a purchase order. This can be done easily anywhere, any time.

Our cloud accounting services offer you real-time and up-to-date information on your accounting operations at the tip of your fingers. With cloud accounting services, you are also able to easily generate reports that are crucial to hitting your business goals.

In the case of on-site bookkeeping, the person hired to do the bookkeeping will be physically present at the place of business where they have been hired. This is a great way for the bookkeeper to interact with clients one-on-one and gain personal insights on the business they are accounting for. Businesses can hire a short-term, temporary onsite bookkeeper via the bookkeeping firm. A disadvantage is that your bookkeeper may not be present at all times and you may have to do some bookkeeping yourself in their absence.

Remote bookkeeping is much cheaper than on-site bookkeeping because the work is done virtually through technological platforms, which is also very efficient presuming the bookkeeper is using up-to-date software and databases. You send the invoices in from your business to the office of your bookkeeper, and you can feel more comfortable knowing that a professional is handling your finances and you need not worry about doing the work yourself.

Off-premise bookkeeping is much cheaper than on-premise bookkeeping because the work is done virtually through technological platforms, which is also very efficient presuming the bookkeeper is using up-to-date software and databases. You send the invoices in from your business to the office of your bookkeeper, and you can feel more comfortable knowing that a professional is handling your finances and you need not worry about doing the work yourself.
  • Smart accounting transaction posting using cloud software for real time information
  • Customised chart of accounts tailored to your needs
  • Sales reconciliation (Invoice processing and accounts receivables)
  • Payments to vendors, petty cash, staff claim expenses and other withdrawals
  • Maintain accounting ledgers for accounts receivables, accounts payables, cash accounts and bank reconciliations
  • Reporting of income statement & trial balance sheet

FAQ

All companies in Singapore must keep accounting records as well as any other document pertaining to the company’s business transactions and financial position for a period of not less than 5 years from the end of the financial year in which the transactions or operations to which those records relate are completed.
Companies are required to keep proper records and accounts of business transactions. These include the source documents, accounting records and schedules, bank statements and any other records of transactions (such as purchase orders) connected with your business.
Cloud accounting allows you and your team to access your accounts from anywhere. From an accountant’s perspective, we are able to monitor and access your files on a regular basis to advise areas of concern or opportunity. From a business owner’s perspective, it allows you to access your accounting operations from anywhere, saving your time and increase your productivity.

Fund Accounting & Fund Administration Services

As Singapore strengthens its position as a financial hub, many fund managers and fund companies are setting up their business here. We offer a range of services to fill the needs of this growing market.

As a leading global financial hub, Singapore serves as a gateway for many funds and asset managing companies around the world to get their foothold in Asia. To that end, the Singapore government has implemented the Variable Capital Company (“VCC”) – a new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on 14 Jan 2020. The VCC will complement the existing suite of investment fund structures available in Singapore.

A Variable Capital Company has a variable capital structure that provides flexibility in the issuance and redemption of its shares. It can also pay dividends out of capital, which gives fund managers flexibility to meet dividend payment obligations.

A VCC can be set up as a single standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities. For fund managers that structure their funds as umbrella VCCs, there may be cost efficiencies from using common service providers across the umbrella and its sub-funds.

Through a Variable Capital Company, a wide range of investment strategies could be deployed, including but not limited to the traditional equity, fixed income, real estate, private equity, fintech, and alternative investments. Furthermore, the Monetary Authority of Singapore has rolled out a generous VCC grant scheme until 15 January 2023.

With the expected increase in VCC’s being formed, and a corresponding increase demand for fund accounting Singapore is poised to meet this demand with more value-added services from its accounting firms.

  • Our fund accounting Singapore services include:
  • Net Asset Value (NAV) calculation
  • Fund accounting report (daily, weekly, monthly and NAV computation)
  • Preparation of quarterly / interim reporting to investor / regulator and FRS compliant annual financial statements
  • Coordination of annual audit
  • Reporting on portfolio performance
  • Calculation of management fees and incentive fee
  • Performance fee equalisation
  • Calculations for distribution waterfall
  • Reconciliation of significant transaction for drawdowns and distributions

FAQ

VCC is a new legal entity form / structure for all types of investment funds in Singapore. It can be formed as a single standalone fund, or as an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities.

The VCC has a very flexible structure suitable for a wide range of investment products. It can either be setup as a standalone entity or an umbrella entity with a number of sub-funds under it. To protect investors, the assets and liabilities of each sub-fund are segregated from one another. The VCC register of shareholders will also not be made available to the public, protecting the privacy of investors.

One of the most important features is that the VCC allows for redemption of shares and payment of dividends from its share capital without the need for shareholders’ approval, giving investors easier entry and exit from their investments.

An umbrella VCC has segregated sub-funds under it. In this structure, the VCC will be a single legal entity, with its sub-funds operating as separate cells.

A sub-fund will be constituted by registration with ACRA, which will provide the sub-fund with a unique sub-fund identification number. To mitigates investors’ risks from the different sub-funds, the assets of a sub-fund cannot be used to discharge the liabilities of or claims against the VCC or any other sub-fund of the VCC. Furthermore, any liability incurred on behalf of or attributable to any sub-fund of a VCC must be discharged solely out of the assets of that sub-fund.

Yes. The VCC allows an inward re-domiciliation of foreign funds with a similar structure to Singapore quite easily. The fund would have to deregister at their current domicile location and register with ACRA in Singapore. Instead of pursuing fund management in offshore jurisdictions (such as Cayman or British Virgin Islands), Singapore is offering an onshore alternative where fund managers can build economic substance and provide longevity.

A VCC will be taxed as a single entity as regular Singapore company. This gives the VCC access to tax treaties and Double Tax Agreements (DTAs) with over 70 jurisdictions internationally. In addition, there are also tax incentives available for the Singapore Resident Fund (SRF) and the Enhanced-tier Fund (ETF) under the 13R and 13X schemes respectively.

GST Compilation Services

Companies with an annual turnover exceeding S$1 million must register for Goods and Services Tax (GST). We offer registration, compilation and filing services related to GST.

Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT. The current GST rate is 8%.

GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated (0% GST).

Companies with an annual turnover exceeding S$1 million must register for GST (compulsory registration). Companies that do not exceed S$1 million in turnover, depending on their unique situations, may also choose to register for GST (voluntary registration).

Companies that register for GST are required to file their GST returns every quarter. Our GST Compilation Service is a part of our offering of accounting services in Singapore. Our GST compilation services include:

  • Assess GST registration liability
  • Apply for GST registration/exemption from GST registration or de-registration
  • Advice on GST treatment of day-to-day business transactions
  • Perform GST due diligence reviews
  • Support in tax audits/ tax investigation process with IRAS

The GST return and payment are due one month after the end of the accounting period covered by the return.

GST Accounting Period Filing and Payment Due Date
Jan – Mar 30 Apr
Apr – Jun 31 Jul
Jul – Sep 31 Oct
Oct – Dec 31 Jan

If you have been granted special GST accounting periods, the due date to submit your returns is one month from the last date of the special accounting period.

A GST-registered business must file a ‘Nil’ GST return even if there was no business activity during the accounting period. If your business has ceased, you need to apply for cancellation of GST registration.

FAQ

  • For non/late submission of GST F5/ F8 returns, IRAS may:
  • With effect from 1 April 2018 – impose a late submission penalty of S$200 immediately once the GST return is not filed by the due date. A penalty of S$200 will continue to be imposed for every completed month that the GST F5/F8 return is outstanding (subject to a maximum of S$10,000 for each outstanding F5/F8 return).
  • Issue an estimated assessment of the tax due and the amount is subject to late payment penalties. The estimated assessment and late payment penalties will only be revised upon receipt of the overdue GST return.

Tax due must be paid within one month from the end of each accounting period. For non/late payment, a 5% penalty will be levied on the amount of tax unpaid by the due date. An additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (subject to a maximum of 50% of the outstanding tax) may also be.

You may claim pre-registration GST but you have to satisfy both the general rules for input tax claims and the pre-registration GST rules.

General Rules for Input Tax Claims

  1. The goods or services must have been supplied to you. For imported goods, the goods must have been imported by you;
  2. The goods or services are used or to be used for the purpose of your business;
  3. Local purchases must be supported by valid tax invoices addressed to you, or simplified tax invoices at the time of claiming the input tax;
  4. Imports must be supported by import permits which show you as the importer of the goods;
  5. The goods or services must be used for the making of taxable supplies (i.e. standard-rated supplies and zero-rated supplies) or out-of-scope supplies (e.g. third country sale of goods), which would be taxable supplies if made in Singapore, in the course or furtherance of your business;
  6. The input tax claims are not disallowed under Regulations 26 and 27 of the GST (General) Regulations; and

You have taken reasonable steps to ascertain and concluded that the goods or services were not part of a Missing Trader Fraud arrangement.

You may apply to cancel your GST registration if you are not liable for registration. However, if you were previously registered on voluntary basis, you must remain registered for at least 2 years before you can cancel your registration.

You may also cancel your GST registration if you are certain that the taxable turnover for next 12 months will be S$1 million or less due to specific circumstances, (e.g. termination of a high value sale contract from a major customer or large-scale downsizing of business). You will have to substantiate your basis of projection with supporting documentation.

When you register for GST, you are allocated quarterly GST accounting periods according to your financial year-end. Your GST accounting periods are not automatically adjusted whenever there is a change to your financial year end.

Depending on your business needs, you may write in to IRAS to request for a change in filing frequency via myTax Mail in myTax Portal on IRAS’ website. Your request will be subjected to IRAS’ approval.

With effect from 1 Jan 2020, GST will be introduced on imported services:

  1. Reverse Charge (RC)
    The recipient of the services will account for GST on the services he imports, as if he were the supplier. He may claim GST as his input tax, subject to normal input tax recovery rules. This applies to Business-to-business transactions.
  2. Overseas Vendor Registration (OVR) regime
    From 1 Jan 2023, GST will be extended to Business-to-Consumer imported non-digital services, through the OVR regime. Digital services which are currently subject to GST will remain taxable under the extended overseas vendor registration regime. Consequently, from 1 Jan 2023, all Business-to-Consumer supplies of imported remote services, whether digital or non-digital, will be taxed by way of the extended OVR regime.

Generally, input tax incurred in the making of exempt supplies is not claimable unless the De Minimis Rule is satisfied. The De Minimis Rule allows GST-registered businesses to claim input tax on exempt supplies.

To satisfy the De Minimis Rule, the value of the exempt supplies has to be less than or equal to:

  1. Average of S$40,000 per month; and
  2. 5% of the total value of all taxable and exempt supplies made in that period.

Financial Statement Services

All companies big and small need to prepare their financial statements yearly. As an established provider of accounting services in Singapore, we serve all our clients with the same level of care and professionalism.

All Singapore incorporated companies are required to file financial statements with ACRA, except for those which are exempted. As an established provider of accounting services in Singapore, we serve all our clients with the same level of care and professionalism.

According to the Singapore Financial Reporting Standards, a complete compilation of financial statements should comprise the following documents. Note that the information required is of the financial year that is ending or has just passed:

  • Statement by Directors;
  • Statement of financial position;
  • Statement of comprehensive income;
  • Statement of changes in equity;
  • Statement of cash flows;
  • Notes on significant accounting policies and other explanatory information; and
  • Comparative information of the above statements and notes on the preceding period.

To ensure that the company complies with all rules and regulations, our professional accountants can help your company compile the financial statements in line with these standards. We can help adapt from appropriate accounting standards for the relevant financial period and also advise on areas with critical judgements and significant estimates.

Some companies may be exempted from filing audited financial statements if they fall within the definition of a “small company” during the financial year, if it meets any 2 of the 3 criteria below:

  • Total Annual Revenue not more than S$10 million
  • Total Assets not more than S$10 million
  • Number of employees not more than 50

For a company which is a part of a group:

(a) the company must qualify as a small company; and

(b) entire group must be a “small group” to qualify to the audit exemption.

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria for the group’s consolidated financial statements for the immediate past two consecutive financial years.

We understand that the information may be confusing for the untrained person. Contact us today to find out how we can help you. Rest assured that you will be engaging one of the most established locally grown companies for accounting services in Singapore.

Most private limited companies in Singapore are no longer required to have their accounts audited if they satisfy the criteria for a small company or belongs to a group which qualifies as a small group.

Exempt private companies — which have no corporate shareholders and no more than 20 individual shareholders — with turnover of less than S$5 million for the accounting year can file unaudited reports. Dormant exempt companies are also exempt from submitting audited reports.

FAQ

All Singapore (SG) incorporated companies are required to file financial statements (FS) with ACRA, except for dormant unlisted companies. A dormant company is exempted from the statutory audit requirements but is still required to prepare financial statements. Sole proprietorships, partnerships, limited liability partnerships, or limited partnerships are not required to file FS with ACRA.

Yes, if the dormant company is unlisted, is not a subsidiary or a listed company, and the company’s total assets is not more than S$500,000, the company is exempted even if insolvent.

The exemption would be available for financial year ending on or after 3 Jan 2016.

The company must still hold an AGM. However, if the company is a private company, the company can dispense with the holding of its AGM if there are no other resolutions which need to be tabled.

The test for dormancy is provided for in the Companies Act, i.e. that there is no accounting transaction during that financial year. The Companies Act also states the transactions which will are to be disregarded when determining dormancy:

  1. the taking of shares in the company by a subscriber to the memorandum in pursuance of an undertaking of his in the memorandum;
  2. the appointment of a secretary of the company;
  3. the appointment of an auditor;
  4. the maintenance of a registered office;
  5. the keeping of registers and books;
  6. the payment of any fee and charges payable under written law;
  7. the payment of any composition amount payable under written law;
  8. the payment or receipt by the company of a nominal sum not exceeding S$5,000.

XBRL Compilation Services

XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business and financial data worldwide. Since 1 November 2007, companies required to file financial statements with ACRA are required to file financial statements in XBRL format.

Companies are required to apply the revised XBRL filing requirements and data elements from 1 May 2021.

In order to generate the XBRL financial statements, preparers will need to map information within the AGM financial statements to the most relevant concept within the ACRA Taxonomy. As this requires XBRL-specific knowledge, it would be advisable to outsource this aspect of your accounting service to a professional firm.

All Singapore (SG) incorporated companies are required to file financial statements (FS) with ACRA, except for those which are exempted. Some companies will file a full set of FS in XBRL format, while some others will file key financial data in XBRL format and a full set of signed copy of the FS tabled at annual general meeting and/or circulated to members (AGM FS) in PDF.

If you own a sole proprietorship, partnership, limited liability partnership, or limited partnership, you are not required to file FS with ACRA. If your company is dormant and fulfill the requirements under the Singapore Companies’ Act Section 201A, you are also exempted from preparing and filing the XBRL documents.

For more information, you can contact us today for a no-obligations consultation.

The table below summarises the revisions to the filing requirements and data elements:

Group Companies that file FS that are made public Before 1 May 2021 Revised (mandatory from 1 May 2021)
1 SG-incorporated companies that are not covered in Groups 2 to 5 below. To file FS in Full XBRL template. To file FS in XBRL format, and the extent of XBRL filing varies based on the company’s nature and size of operations:

Smaller and non-publicly accountable companies (both terms are defined below) – to file FS in Simplified XBRL template, together with PDF copy of FS authorised by directors; and

All other companies – To file FS in Full XBRL template.
2 SG-incorporated exempt private companies (EPCs) that are insolvent To file FS in either:

XBRL FSH (General) template, together with PDF copy of FS authorised by directors; or

Full XBRL template. 		To file FS in XBRL format, and the extent of XBRL filing varies based on the company’s nature and size of operations:

Smaller and non-publicly accountable companies (both terms are defined below) – to file FS in Simplified XBRL template, together with PDF copy of FS authorised by directors; and

All other companies – To file FS in Full XBRL template.
3 SG-incorporated EPCs that are solvent Not required to file FS. If the company opts to voluntarily file, to file FS in any of the following formats:

PDF copy of the FS authorised by directors;

XBRL FSH (General) template; or

FS in Full XBRL template. 		Not required to file FS. If the company opts to voluntarily file, to file FS in either:

PDF copy of the FS authorised by directors; or

FS in XBRL format.

If the company opts to file FS in XBRL format, its extent of XBRL filing will vary based on the same criteria as Groups 1 and 2.
4 SG-incorporated companies in the business of banking, finance and insurance regulated by MAS To file FS in:

XBRL FSH (Banks) template; or

XBRL FSH (Insurance) template;

together with PDF copy of the FS authorised by directors. 		To file FS in:

XBRL FSH (Banks) template; or

XBRL FSH (Insurance) template;

together with PDF copy of the FS authorised by directors.
5 SG-incorporated companies preparing FS using accounting standards other than prescribed accounting standards in Singapore or IFRS To file FS in XBRL FSH (General) template, together with PDF copy of the FS authorised by directors. To file only PDF copy of the FS authorised by directors.
6 SG-incorporated companies limited by guarantee To file only PDF copy of the FS authorised by directors. To file only PDF copy of the FS authorised by directors.
7 Foreign companies with SG branches To file only PDF copy of the FS authorised by directors. To file only PDF copy of the FS authorised by directors.

FAQ

Companies are required to apply the revised filing requirements and data elements on or after 1 May 2021, but they can opt to voluntarily apply the revised filing requirements and data elements from 1 May 2020 to 30 Apr 2021 (both dates inclusive).

There are four templates to be used by companies to meet the revised filing requirements and data elements:

  1. Full XBRL template — The number of data elements for this template has been reduced by 50% to about 210 data elements. It will capture the information in primary statements and selected notes to financial statements (FS);
  2. Simplified XBRL template — This template, which replaces XBRL FSH (General), has about 120 data elements. It will capture the complete information in the statements of financial performance and position;
  3. XBRL FSH (Banks) template — There is minimal change to this template. This template has about 80 data elements; and
  4. XBRL FSH (Insurance) template — There is minimal change to this template. This template has about 80 data elements.

The XBRL filing requirements will only affect companies which are required by the Companies Act to file their financial statements with ACRA. A solvent EPC is generally not required to file their financial statements with ACRA. As such, they will not be required to file their financial statements in XBRL format.

However, ACRA is encouraging solvent EPCs to file their financial statements voluntarily with ACRA. Such companies can file either a copy of their financial statements in PDF format or file financial statements in XBRL format. If a solvent EPC opts to file FS in XBRL format, its extent of XBRL filing (i.e. Full XBRL or Simplified XBRL) will vary based on the nature and size of its operations.

ACRA does not prescribe who should file / prepare the XBRL financial statements. However, it is important to note that it is the responsibility of the companies and the preparers to practice due diligence in ensuring high quality of their filings with the Registrar, to prevent non-compliance with the Companies Act.

In general, an EPC is solvent if it is able to meet its liabilities as and when they fall due. As a general guide, accumulated deficits and/or net current liabilities is/are not conclusive in determining whether a company is insolvent.

To assist with the evaluation, one should look into the company’s note on basis for preparation, the auditors’ report (if any) and the directors’ statement of its FS.

An EPC is required to file Annual Return via BizFile+. If the EPC is solvent, it has to complete an online declaration of solvency (filing of financial statements is voluntary). If the EPC is insolvent (i.e. unable to meet its debts when they fall due), it has to lodge the financial statements in XBRL format with the Registrar.