Accounting information system (AIS) is the most crucial department in any company. Data related to accounting is the important part in terms of data-intensive, knowledge-based economy. Accounting is a very important part of any company and it needs to be carefully considered. Every company must hire a professional accountant for its accounting services otherwise a company can go in a potential loss.

A company to reach a certain level where the company's owner can't finance it alone, at this point the company needs funds to progress their business. This is where accounting becomes an important part. The funds to the company are provided by the investors and before getting all the knowledge of company's previous performance, they will not be ready to invest. They have to make the surety of the profit gained by the running business and is it worth to be invested or not in the company. So this is the point where accounting is necessary to provide company's data and stats.

It is understandable now why accounting plays as a major department for any company or business. Before hiring any accountant to work in your team, it's better to have the know-how of how the accounting works. Accounting summarizes all the loss and gains, total cash flow and performance the company has made through the years. It is a source of meaningful piece of information for the stakeholders and investors. To provide the government with the right amount of tax, accounting helps in summarizing all the transactions the company had trough the passing years. It plays an important role in cost planning for new projects and growing company's economic achievement.

How the accounting system works?

The procedure of accounting is to first record all the data, summarize it, analyze it and then report all of financial transactions done within a company. In smaller businesses, a bookkeeper or an accountant is responsible for the accounting tasks while in larger companies there is a whole separate department to do the finances. Financial statements are the important part of accounting as they give a summary of working quality of the company and its financial performance. These statements are taken from the hundreds of individual financial transactions, and they play a role of short reports to give an overall look of organization's financial wellbeing.

Key factors of accounting services in Singapore:

Singapore has a low tax rate. The country has a free economy and it emphasizes on the policies that are investor friendly. In the last few years, Singapore has increased in businesses. By the increase in businesses, the country requires more bookkeeping and accounting services. It has also raised a demand of outsourcing accounting services.

Accounting companies are working hard in Singapore and over 500,000 companies have been working in accounts section. Accounting and bookkeeping services helps to grow businesses over there. These services not only fill the position of bookkeeping or accounting but it also provides the services for GST filing, running an internal audit, running corporate finance, management of finances and more.

With the change of businesses, the needs for managing the financial matters also change simultaneously. For the startup or initial stages of business, bookkeeping is enough to handle financial records. But as the business starts to grow and tries to reach the required stage, then they need advance management of finances.

The accounting services in Singapore differentiate greatly, hence the firms providing accounting services there categorize the services as follows:

• Cloud-based accounting
• Bookkeeping and statutory compliances
• Internal audit
• Financial accounts
• Part time and full time accounting
• Corporate Accounting Services
• Cost accounting

Accounting services in Singapore change with time. This is because the accounting policies change with the changing businesses and so the needs of clients change. The services play a huge role in optimization of human capital costs and planning. It consists of processing the payroll, processing the leave application, managing the employer database and employer claims.

Financial statements:

They are made under financial management. Financial statements include balance sheets, income statements and cash flow statements. A professional and certified public accountant in Singapore provides you with the following:

• Supply and procurement of materials
• Receivables and payables
• Order management for customer and supplier
• Processing the bills and invoices
• Overall billing

 How the customer service is managed?

Accounting department in Singapore provides valuable services that include:

• Internal audit run for unaudited financial results
• Sales management that includes the management of customer relationship
• Management of inventory and assistance with reducing the cost for inventory carrying
• Management of assets and their optimization

Tax filling and management:

If the business or company is registered with ACRA, it has to follow IRAS tax requirements. It is a regulatory body based in Singapore. Due to the changing laws at ACRA, the company also has to change its policies according to it. They offer services like:

• Annual tax return filing
• Assistance and advice for filling for estimated chargeable income. Preparing and submitting corporate tax calculations.
• Applications for waiving and clearing taxes
• Attending the queries of IRAS

Management of GST:

If a company has a turnover of $1 million or more, then they have to GST their company in Singapore.

Choosing a specific company:

It's hard to find a good company in Singapore for the accounting related service. Hence there is a list of factors to keep in mind while choosing the right company related to accounting services. The firm should consist of:

• The cost incurred on the outsourcing
• Must be reliable and trustworthy
• Reputation and company's integrity
• The level of digital transformation in their firm
• Experiences, qualification and their certificates
• Firm's referrals
• Clients they have worked with so far
• Their market presence and existence

The benefits of accounting services in Singapore:

When a company expands its accounting services, they pull together the following benefits:

1. Reduced expenditure:

Price of expanding accounting services in Singapore saves a huge amount of money. When a company enrolls without-charge accountant, the employee cost generally goes up for the company. The cost is fixed and is not reversible.

1. Time optimization:

It’s both a huge responsibility and tiring to run any kind of business. A lot of time is involved for the accounting services of small businesses in Singapore. The reason is the small staff and everyone shares the responsibility. So if you expand Singapore's accounting services you can focus on your main business.

1. Experienced professionals:

If a without-charge accountant is hired, they may or may not have all the information about the government's rules and regulations. They may not know about the regulatory compliances. But by expanding Singapore's accounting services may help you with experienced people who can handle all kinds of accounts on daily basis. They work on it daily and maintain them

1. Reduced stress:

When you hire a non-professional it will cost you your precious time and increase the cost of company. By outsourcing the accounting services in Singapore you can avoid this problem.

1. Access to updates policies:

A certified professional who works on contract or as a freelancer is better than an in house accountant. As a business person you can also keep an update on policies, rules and regulations. This helps you avoiding mistakes in the long run.

1. Regular assistance:

When you expand accounting services in Singapore, you can also get the choice of having other services which include: audits, financial analysis at regular intervals, GST plans and tax planning. You can either discover collections of such services or get a custom plan.

When you assemble the functions of an organization, the business tends to flourish. This is equally applicable for the accounting services in Singapore.