Financial Accounting Service
Financial Accounting Service basically collates financial data recorded by bookkeeper and compile the Financial Statements with notes to the accounts to highlight significant and material events (i.e. Financial Report). It aims to report an accurate financial status of the business and disclose necessary events which shareholders should know. Accountants who specialize in financial accounting is called Financial Accountants.
Financial Statements Reporting focuses on the following classification:
- Cost of Goods Sold
- Gross Profit
- Net Profit
In short, items 1 to 5 above represent the Profit and Loss of the Company (also known as Statement of Comprehensive Income) and items 6 to 8 above represent the Balance Sheet (also known as Statement of Financial Position). In addition to these 2 Statements, there is a Cash Flow Statement to show the cash movements and position.
Is Financial Accounting Service Necessary?
Financial Accounting Service is necessary if you do not have a qualified person to compile your financial statements which has to be tabled for your Annual General Meeting every year.
Financial Accounting determines the Net Profit, Assets, liabilities and Equity status. The Statement of Comprehensive Income reports the latest 2 years’ financial earnings of the company. The Statement of Financial Position reports the financial ownership and commitments of the Company. With the ownership and commitments, it indicates the future viability of the Company and its future economic benefits. In addition, there are notes to disclose the necessary information of the Company.
Financial Accountants compile Financial Statements for the following parties:
- Shareholders: They use the Financial Statements to assess the returns of their investment and decide if they should continue to hold the shares or liquidate them.
- Prospective Investors: They use the Financial Statements to assess the potential, profitability, risk and dividends of the company, and decide if they should invest in the Company.
Banks or Lenders: They use the Financial Statements to decide whether they should extend loans to the Company.
- Suppliers: They use the Financial Statements to assess the credit worthiness of the Company and decide the duration of credit or payment terms.
- Buyers or Clients: They use the Financial Statements to assess if the Company will continue in the business over the long run to support the existing products in terms of repairs and warranty as well as to provide steady stream of new products in the future.
- Competitors: They use the Financial Statements to gauge whether they are performing better or worse than other Companies in the same industry.
- Tax Authority – IRAS: They use the Financial Statements to verify if the tax return is properly filed.
- ACRA: They require some Companies to file the Financial Statements for their records. Financial Statements Compilation is necessary for active Singapore Company at the end of every financial year end. The Financial Statements have to be presented to the shareholders during Company’s Annual General Meeting.
- Other Government Agencies: They use the Financial Statements to compile their statistics to assess the country’s economic performance.
Accounting software simplifies the recording of transactions and creation of financial reports. It is time we embrace new technology to make us more efficient and effective for accounting purposes.
The 3 accounting software which we recommend for Small and Medium Enterprises (SME) are:
We aim to get your payroll sorted out and ensure the accuracy of your CPF contribution and remuneration payment. Payroll may be your largest expense and as such it may be important to get this fixed as soon as possible.
Tax service is another area which can give you much headache. With us, you know that your tax affair is under control. Our tax accountants are certified by SIATP and therefore you can be assured that your personal tax return, corporate tax return, GST return and withholding tax return are filed accurately.
We provide Corporate Secretarial Service (i.e. act as Company Secretary) like filing Annual Return with ACRA and Registering new Company. Appoint as as the Company Secretary to ensure that your ACRA's filing is in order.
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Contact Our Financial Accountants
We produce financial reports in a timely and accurate manner for all your stakeholders and any concerned parties. As Financial Accounting Service focuses mainly on external parties, you may wish to explore our Management Accounting Service which focuses on internal parties, planning and decision-making. We look forward to hearing from you and discussing with you on how we can meet your accounting needs. We can easily be contacted via phone at (+65) 6303 0625 or via email.