Differentiating Accounting and Audit Services in Singapore
Whatever industry you and your work fall under, key similarities are shared by every business. Finances are a vital part of every company’s work. Even nonprofit organisations and public institutions need to keep track of finances and their current liabilities and assets. Think of them as responsibilities that keep your business running; without them, your company will be much more unproductive and you will be vulnerable to unexplained losses. Learning the exact number of your profits and what your financial obligations are can help you manage your business much more wisely. That is why accounting and auditing services in Singapore matter to any company.
If you have taken business courses for managing your work, you probably know accounting services in some shape or form. You may already be aware of how time-consuming and draining accountancy and auditing are. Accounting as a discipline requires one to have a distinct eye for minute details and a precision in calculating both large and small amounts. When the tax period comes, you do not want to miscalculate your taxes, or you might end up paying more than you need, or worse, get accused of underpaying your taxes.
Many people do not know how to handle such a job. While there might be some employees who can attend to the accounting needs of a business, the time, effort, and skills needed to finish the job are not something that most people can provide. You will likely need to turn elsewhere to find the right services as a business manager or owner.
You might want to hire a professional from an accounting firm in Singapore.
What are accounting and auditing services?
Accounting and auditing are essential services that you can find at a corporate service firm. These two services both deal with the finances of a company. They ensure that their financial statements are accurate and comply with governmental business regulations.
Accounting and auditing professionals make sure financial statements are up to date and provide the services at regular intervals. The work they do involves documents such as income statements and balance sheets. However, there are a few differences that set the two apart. An accountant may perform auditing services and vice versa– but companies do not complete them together. Accounting services happen after bookkeeping, while accountants complete auditing services after the accounting period finishes.
Here are a few differences between an accounting and audit firm in Singapore.
Accounting is the act of providing complete, informative reports on financial records. They help support the finance department’s decision making and also review records. An accountant needs to have a professional title as a certified accountant before they can work as one. Because of the strenuous requirements to become a professional accountant, not everyone can become one. Once you hire a licensed accountant, you can be assured of the quality of their accounting services.
One misconception is that the services of an accountant are needed only at the beginning of tax seasons or during specific times of the year. A company continuously changes its financial records as the ebb and flow of profits and losses happen. Therefore, accounting for businesses is a day-to-day process. A competent business owner might want to look into the services of a qualified accounting firm to perform regular duties like bookkeeping and more.
Only a public accountant or accounting firm can act as a company auditor. Auditing services in Singapore come directly after an accountant’s work is finished. In simple terms, they are called in to verify the records that accountants have created. An auditor looks through records, especially ones created for release to the public, and ensures that the records comply with GAAP (or Generally Accepted Accounting Principles). Most notably, private companies or individuals hire accountants, but they can also be employed by the Singapore government.
A key difference between accounting and audit services in Singapore is how often business owners require the service. Auditing mostly happens when finance records are reviewed by regulatory boards or when they will be released to the public. Because of the increased scrutiny and need for readability, records may need further reviews before they are approved. Companies complete auditing services periodically, as opposed to accounting services that should be completed daily.
How to find the best accounting and auditing professionals in Singapore
Accounting services are an essential service that every business, regardless of industry, needs. You might want to consider hiring accounting or auditing professionals from third-party firms. Instead. Hiring an accountant in-house is more expensive than looking for a firm with established professionals. You need to train accountants for the work that they need to do. You might also be unable to gauge whether you hired the right person for the job.
You can hire from an accounting or audit firm if you want to be assured of the quality of their services. Most accounting firms are already employed with seasoned accountants who have many resources at their disposal. They are also more likely to be knowledgeable about certain accounting services and the needs of businesses due to their past work.
Hiring from an auditing or accounting firm might also be cheaper since they are more likely to charge by rate or by the hour. If you only need an accountant for a short period, then hiring a full-time, in-house accountant might not be in your best interest. Hire an accountant from a respectable accounting firm with trained professionals.
Nexia TS is a firm in Singapore providing many services that can help companies understand the state of their finances, assets, and obligations. For more information on how hiring professionals for tax services and more in Singapore can help you, check out their website.