Financial Reporting Requirements in Singapore

In Singapore, companies must adhere to stringent financial reporting requirements. The fiscal year or accounting year-end for companies is a fixed 12-month period. For newly established companies, the first accounting period must be between 6 to 18 months. It is crucial that this timeline is strictly followed, with no allowances for delays.

• Preparation of Financial Statements: Financial statements must be prepared in English and in compliance with the Singapore Financial Reporting Standards (FRS). If a company does not meet the mandatory audit requirements, it must still issue a director’s report to ensure transparency and accountability.

• Bookkeeping Frequency: The frequency of bookkeeping is dictated by the volume of business transactions. However, regardless of transaction volume, companies are required to prepare annual financial statements or audit reports prior to their Annual General Meeting (AGM). These documents are necessary for the annual inspection declaration to the government.

• Documents Needed for Bookkeeping: To maintain accurate financial records, companies need to keep monthly bank statements, sales transaction documents, and expense invoices. Additionally, employee salary records, Central Provident Fund (CPF) details, rental expense records, and goods inventory records must be meticulously documented. Other essential documents include business invoices, agreements, and contracts.

Importance and Implications

Proper accounting services are crucial for businesses in Singapore for several reasons:

• Regulatory Compliance: Singapore’s strict regulatory environment requires accurate and timely financial reporting to comply with the Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS) standards.

• Tax Efficiency: Effective accounting ensures accurate tax filings, helping businesses take advantage of available tax incentives and avoid penalties.

• Financial Health: Regular financial statements and analyses provide insights into the company’s performance, aiding in strategic decision-making and long-term planning.

• Investor Confidence: Transparent and accurate financial reporting builds trust and credibility with investors and stakeholders, essential for attracting investment and fostering business growth.

Choosing Move2SG

Move2SG provides comprehensive support throughout the Singapore Company Accounting Services process. Our services include:

• Assisting in the preparation and submission of financial statements.

• Ensuring compliance with all legal and regulatory requirements.

• Offering expert guidance to ensure accurate bookkeeping, tax filing, and financial management.

For personalized support and expert advice, please contact us.