Compliance with ACRA (Accounting and Corporate Regulatory Authority) regulations is vital for all Singapore-based firms. Singapore ACRA national regulatory body for commercial companies, public accountants, and corporate service providers.
Furthermore, ACRA requires corporations to keep accurate accounting records and statutory registers. Outsourced accounting firms can help organize and manage these records in accordance with Singapore ACRA rules, ensuring that they are easily accessible for examination when needed.
In this article you will learn more about how outsource accounting simplifies ACRA compliance.
Understanding Outsource Accounting
Outsourced accounting refers to a wide range of financial services. At its core, it is the outsourcing of a company’s accounting work to outside experts.
This might range from basic bookkeeping to strategic CFO-level advising services. Outsourced accounting services are often provided by qualified experts with specific accounting and financial skills.
How Outsource Accounting Simplifies ACRA Compliance
Outsource accounting services can help Singapore businesses comply with the Accounting and Corporate Regulatory Authority (ACRA). Here’s how:
- Regulatory Procedures Expertise: Outsourced accounting companies focus on understanding and adhering to ACRA regulations and procedures. They have the necessary skills to ensure that financial statements and reports are prepared in conformity with Singapore Financial Reporting Standards (SFRS) and other relevant ACRA standards.
- Timely and Accurate Reporting: The ACRA mandates firms to submit annual reports and financial statements by particular timeframes. Outsourced accounting firms have specialized teams that ensure these filings are completed correctly and on time, avoiding late submission penalties.
- Comprehensive Record-Keeping: ACRA requires businesses to keep accurate accounting records and statutory registers. Outsourced accounting services help organize and preserve these records, ensuring they are correct, up-to-date, and in accordance with ACRA rules.
When Does a Business Require an Outsourced Accounting Firm?
Growth necessitates the need for extra, sometimes external, aid. During the early phases of business, this is when an outsourced accountant can become a valuable ally.
To help you understand when to use these services, here are some key factors that can prompt a corporation to outsource accounting:
A. During rapid growth: Keeping a close eye on financial health is vital. Outsourced accounting firms provide the financial skills required to properly manage finances, freeing up resources for organizations to focus on growth-oriented strategies.
B. Lack of In-House Expertise: Small and medium-sized businesses may lack the in-house financial skills required to efficiently manage money and remain compliant. An outsourced accounting service might assist fill up the gaps.
C. Cost Issues: If a company wants a more cost-effective solution than hiring an entire in-house financial team, a team of external financial experts, such as an outsourced accounting firm, can provide their services at a lower cost — a great option for startups and small to medium-sized enterprises (SMEs).
In Summary
Outsourcing accounting facilitates ACRA compliance by offering knowledge, timely reporting, complete record-keeping, scalability, risk management, cost-effectiveness, concentration on core business, and regulatory flexibility.
Stay on top of your financial reporting requirements without the fuss. Contact EBOS Cloud Accountants to ensure your reports are timely, precise, and in accordance with ACRA standards.
