Accounting and bookkeeping services is a very popular term in Singapore. Although both of these services are essential in supporting your business, they are different from each other and people are often confused between the two. They don’t know which service they might need.
So, if you are one of those and want to know more about accounting and bookkeeping services Singapore, here is a guide that will help you understand and differentiate the two services.
What are Accounting services?
Accounting services start where bookkeeping services end. Accounting is summarizing, analyzing, and representing the data collected by bookkeepers. Accountants use the data collected by bookkeepers to generate meaningful reports that are understandable to all stakeholders and can help you make important business or financial decisions.
Accountants are qualified people. They possess much more knowledge of tax and legislation and help you make decisions or develop strategies to make your business more profitable. Their inputs are highly valuable and their financial strategies can turn your non-profitable business into a highly profitable business.
Responsibilities of Accountant
- Generating financial reports that are understandable to all and help make financial decisions.
- Generating reports on the financial performance of your business.
- Analyzing financial data and generating reports to help develop future strategies.
- Analyzing day-to-day expenses and helping in budget allocation.
- Make sure your business is following all financial rules and regulations.
- Make sure your tax returns are filed accurately and timely.
- Supervising bookkeepers and assistant accountants.
- Correcting errors in the bookkeeping process.
- Helping business owners to understand the impact of financial decisions and helping them make financial decisions that are profitable.
What are Bookkeeping services?
Bookkeeping service is a vital service for a business to run successfully. The main responsibility of bookkeeping services is to keep financial records. From recording everyday expenses, maintaining payroll, keeping records of daily income, to filing tax records, a bookkeeper maintains all day-to-day transactions of a business.
A bookkeeper is responsible for accurately maintaining the book of accounts. The accurate books of accounts help accountants to develop an accurate accounting report to make decisions for the betterment of your business.
Responsibilities Of Bookkeeper
- Data Entry A bookkeeper will record all the transactions made to your books of record.
- Maintain a record of accounts receivable and accounts payable and make sure the amount is received and paid on time.
- Managing payroll system. This includes calculating salaries, deductions, and extra times.
- Preparing monthly financial reports that includes balance sheet, profit and loss statement, account receivable report, accounts payable report, and cash flow statement.
- Reconciliation of your business financial statement to your bank statements.
- Lastly, bookkeeping services in Singapore will also help you in preparing tax returns.
Things To Consider While Accounting And Bookkeeping Services In Singapore
Whether you need accounting services or bookkeeping services, there are certain things that you must look into before hiring an accounting and bookkeeping service provider in Singapore.
1. Know your requirements
The first thing you must figure out while hiring accounting and bookkeeping services Singapore, is what are your requirements? DO you need only a bookkeeping service or do you need accounting services as well?
It is always better to analyze your requirements first and then start your search.
2. Check past record
Once you know what you need, start looking for companies that provide those services. Compare your shortlisted companies and choose some that seem best to you. Now that you have only a few options, check their background and service. And the best way is to check their website and read their client reviews.
3. What tools and technology they are using?
Don’t forget to ask about the tools and strategies they use to keep records and generate reports. The better the technology, the accurate data would be the data stored. And accurate data storage will help develop accurate and helpful financial reports.
4. Set proper communication routine
By outsourcing the accounting and bookkeeping services you are not completely free of the responsibility. Set a proper communication routine to help you monitor your finances and help you in making important decisions. Also, don’t forget to ask about the turnaround time of an inquiry. You might need an urgent query answered regarding your finances to buy new equipment or clear current loans.
5. Prepare a detailed agreement
To avoid any disagreements and conflicts, it is better to prepare a detailed agreement that includes everything. You must mention what services you need, payment method and timing, how and when you will get the financial reports.
A Little About Aglow Corporate Services
Aglow Corporate Services PTE Ltd offers professional accounting and bookkeeping services, corporate tax accounting services, payroll services, and corporate secretarial services in Singapore. Our aim is to develop a strong and long-term partnership with our clients and grow with them. Feel free to contact us for corporate services. Our team of qualified and experienced accountants is here to take away your workload.