Whether you are an existing or startup business, it is mandatory to have accounting for all businesses in Singapore. If you plan of starting a business, or you just had a new business incorporated, you will have to perform accounting works. What is a startup? Startup is an organization newly formed for the purpose of business. Startups in Singapore may be service or product centric. Mostly, these startups have the innovation characterized. In 2012, 3 of 4 startup businesses usually fail in their 1st five years of operation? There are some factors that attribute to it, which include the following:
- The market does not accept the products they created. People who know about the product would not accept it in general, whereas people who accepted it do not want it.
- Poor resources management like labor, time, and even business funding.
- Failure to maintain and prepare their accounts, thereby, would not have an idea on the performance of the business from time to time.
From all the reasons, failing to keep the accounting records come the highest in the list. Most of the accounting firms have an opinion that bookkeeping and accounting matters for startups are not essential. Most argued that they are having little transactions and the activities are only limited, thus, it is not necessary for them in maintaining a set of accounting records. However, they got it all wrong.
According to the regulations of Singapore for businesses, whether you are an existing firm or a startup, all firms need to prepare a set of accounts and financial statements mandatorily. At the Annual General Meeting, this set of accounts should be presented, from which the directors will present the accounts of the company into their shareholders. Then, you will have to file annual returns, even though you can just be a local company getting started.
On top of that, as a startup, you will also have to file the tax return of your organization to the Singapore Inland Revenue Authority. It does not necessarily mean that startup business are having exemptions to the standard procedures, be it having to file the tax returns, or having to file annual returns. It is significant for a startup in Singapore to get your set of financial statements and accounts done up and prepared correctly. If you will be doing it wrong, this will lead you into trouble with the related authorities in Singapore. Thus, you need to seek for professional help, requesting for accounting services if necessary. You should be in compliant with the Singapore Financial Reporting Standards and Singapore Regulations today.
Accountants are providing the startups with accounting services that are significant in their business such as financial planning, expenses tracking, system implementations, incorporate filings, business licenses, and procedures and policies. As your business has successfully up and running, you will be needing the help of accounting services such as the fixed assets tracking, financial reports, payroll, revenue accounting, month-end accounting, tax preparation, even secretarial and many more. The budget creation, financial forecasting, audit preparation and support, cash flow analysis and pricing are necessary in growing your business. Therefore, not only in the startups, but while your business grow and continue growing, you will need accounting services for best results of your business.
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