fbpx

Call Us Today

(+65) 6677 4258
(+65) 8262 1713

Office Hours

Monday to Friday: 9.30 am to 6.00 pm
Weekend and Public Holiday: Off

Eight Ways Technological Innovations Changed Small And Medium Business Accounting

Eight Ways Technological Innovations Changed Small And Medium Business Accounting

by | 2 Sep 2019 | Bookkeeping, Business Tips

The forward-thinking accounting firms in Singapore advocate cloud computing and the use of an accounting software. The benefits of using a software ideal for the needs of the company far exceed the costs and temporary disruption it might cause. The migration of files, adaption of the new system, recruitment of the right people and installation of the applications could be a hassle. But you also have the option not to go through all these! They can be delegated to the experts in the accounting firms in Singapore.

Here are eight of the top changes and benefits brought about by technological advancements to small and medium business organizations:

1. The Paperless Office

Modern business technologies shrunk the office spaces. We no longer need the bulky filing drawers, the stacks of office documents, and most of the quintessential office equipment like fax machines and photocopiers. The use of paper has gone down to the minimum. The modern and more environmental-friendly office setup only needs computers, internet connection, desks and chairs. Thus, offices are more space-efficient, clutter-free, and productive.

2. Cloud Processing

Instead of the extensive office filing and storage system that includes filing cabinets, drawers, paper files, and complex access and safekeeping management, we now have cloud computing. This is the digitized equivalent of the paper-based filing system. All office files, documents, and reports are digitized and uploaded to a central server where access is efficiently managed and security is optimized through an off-site storage facility.

3. Real-Time Postings

Cloud computing and the use of accounting software can provide real-time updates and reports. As most accounting software can now be integrated with bank accounts, payroll and productivity software, billing, and collection, users can generate financial reports that are updated and accurate. Updated reports and financial statements can be generated whenever required, any day of the year. This leads to better decision-making, forecasting and auditing processes.

Related: Why Companies Outsource Their Payroll?

4. Work Anywhere

The most significant change in business technology has impacted how we work today is the freedom to choose how, when, and where we work. Connectivity and accessibility enable us to work anywhere and anytime we prefer. Through cloud computing, work files can be accessed and shared from anywhere around the world. Thus, you can still check on your company numbers while on vacation, during your commute, or from home.

5. Simplified Work

Most accounting software, used by outsourcing firms in Singapore, already features integration with other business accounts like bank accounts, payroll features, billing and collection functions, and even inventory. Any updates are automatically posted, and the system is updated real-time. Thus, reporting is streamlined, accuracy and correctness are guaranteed, and staffing need is reduced.

6. Enhanced Securities

One key element of cloud computing is its off-site, third-party storage facility. This removes the physical files from your office and care. Everything is stored in the clouds, where access can be restricted, and file management is easily regulated by passwords and permissions. With the sophisticated security protocols in place, file loss due to thief, fire, and unauthorized access are prevented.

7. Cost Efficiency

Accounting services in Singapore are at the most affordable today. Business innovations and technological advancements allow small and medium enterprises to enjoy the best and expert services from accredited corporate service providers in Singapore. Whereas before where you need to buy the entire software, build your technical infrastructure and hire professionals, the company only needs a stable internet connection, subscribes to an accounting app service, and assign an external accounting firm to do the work.

8. Effective Delegation

The latest state-of-the-art business apps and platforms enable businesses to efficiently delegate tasks, reduce the worry. This allows the busy startup entrepreneur to focus on growing his or her company, or the team to concentrate on innovations and creative endeavors. Why go through accounting books when you can hire the best corporate service provider in Singapore? Learn more about cloud computing – its benefits, challenges, risks and your options. Choosing the right software for your business is key to a successful migration to the clouds.

Today, let’s fix a date with us to have an initial meeting. We are very glad to help you in identifying a suitable cloud computing system that will best fit your business needs.

Sole Proprietorship And Private Limited Company

Sole Proprietorship And Private Limited Company

by | 20 Nov 2018 | Business Tips, Corporate Secretarial

Sole Proprietorship is the simplest business structure that can be formed easily with minimal cost and legal formalities.  A single person operates this form of business and the owner is responsible for all the business obligations and losses.  Owner has the entire hold on the business and can run it according to the desired plans without being answerable to anyone.  Owner, being the sole decision maker, is responsible for every decision that may affect the business in both positive and negative manner.  There is no boundary between personal assets and business liabilities.  If owner fails to pay the business debts, the creditor may recover it by consuming the personal assets of the owner, hence leading to unlimited liability.  Owner may face difficulties in raising the capital in such form of business.  There is no difference between the owner and the business because Sole Proprietorship is not a separate legal entity.  Therefore, the business gains are added together with the owner’s income from other sources and taxed at progressive individual income tax rates, with the current highest personal income tax rate at 22%.

Private Limited Company is another business structure that a single entrepreneur can also opt for. The form of business that can be established with minimum 1 shareholder. Unlike Sole Proprietorship, it follows the concept of limited liability that restricts the contribution of shareholders, in paying the business debts, to the investment of the shareholder. Contrary to the Sole Proprietorship, this form of business offers ease of raising capital by adding a new shareholder or issuing shares to the existing shareholders that allows the inflow of capital for business expansion.  Corporate tax is levied at a fixed rate (currently, 17%) on the profits earned, resulting in reduced personal income tax rates.  Dividends distributed, to the shareholders, from the profits (net of taxes) are not taxable in their individual income tax returns.  Certain government incentives or claims, available for Private Limited Company, are not applicable in Sole Proprietorship.  Private Limited Company has statutory responsibilities, including but not limited to maintain registers of company officers, conduct annual meetings with minutes and financial statements prepared for submission to statutory bodies.  Unlike Sole Proprietorship, there is no single authority to make final decisions for the business.  Every shareholder has the right to vote in the decision making during the general meetings.

Might Glory Corporate Solutions is one of the leading Corporate Service Provider companies in Singapore. We specialise in company incorporation, corporate secretarial, nominee directorship, accounting and bookkeeping, corporate and individual tax services, financial reporting, and administrative support services. Contact us today for any clarification between Sole Proprietroship and Private Limited Company matters or any related to your business needs.

PayNow Corporate – Its Pros And Cons

PayNow Corporate – Its Pros And Cons

by | 8 Oct 2018 | Business Tips

PayNow Corporate, a new paradigm in the world of cashless transaction. The fund transfer service uses an innovative technology that links a bank account with an entity’s Unique Entity Number (UEN). This enables corporate businesses and Singapore Government agencies to make instant fund transfers without prompting the sender for the recipient’s bank name or account number.

The advantages in using PayNow Corporate include:

1. This feature reduces the transaction time, cost, and hassle in processing the transaction.
2. The method does not only allow greater convenience, but also uses the established security standards to ensure secure fund transfers.
3. Unlike in mobile wallets, the sender does not have to recharge the wallet for transferring the money, making it more user-friendly.
4. Users also have the option to process transactions using the mobile app or through internet banking.
5. Transfers are processed instantly.

Challenges to using PayNow Corporate include:

1. The availability of an active internet connection and the use of appropriate devices are required for users to enjoy the benefits of PayNow Corporate.
2. The app could appear too complex and confusing for tech-challenged people.
3. While bank account details are shrouded in the transaction processing, pre-registration of bank accounts is a pre-requisite to using the service. This requirement could scare off traditionalists from taking the initial step in joining the cashless society.

Why Companies Should Outsource Their Payroll?

Why Companies Should Outsource Their Payroll?

by | 19 Sep 2018 | Business Tips, Payroll Related

Back-office activities, such as managing accounts, payroll and other financial responsibilities, are non-core functions within a company.  A non-core business function is neither being the central of a business nor a profit centre (meaning, the function costs are not charged to customers and the company recognized them as overheads).  Several long-term benefits from outsourcing non-core functions have been acknowledged by many professionals and business owners.

Time consuming

A company has to comply with a wide range of rules and regulations so as to meet the responsibilities as an employer for statutory purpose.  This recurring activity would consume the working hours and remove the focus away from the core activities.  Although it may not help to improve the business performance, payroll is one of the critical business functions.  If the function is not carried out properly, it could adversely affect the business in many areas, such as the company’s reputation and the employee morale.

Team of experts

Payroll processing requires sound knowledge on the complex rules and formulas, such as different CPF contributing rates for different age groups, pro-ration of an incomplete work month, encashment of annual leaves and work flow required for a leaving foreign employee.  The board has to ensure that the skills and knowledge of the human resources (HR) departmental staff are updated with the regular changes in the statutory requirements.  Otherwise, the management might also be involved to assist during audits.  The payroll agent will be accountable to reply auditors or statutory boards during audits and attend to employees if they are doubtful on the amounts received or taxed.

Cost savings

The regular payroll service fee is mostly lower than a full headcount cost (comprising basic wage, bonus, provident funds, costs of training and staff benefits).  In addition, software subscription fee or maintenance cost for desktop software could be excluded in your budget planning.  Payroll service packages, flexible to cater clients’ needs, are available from basic to complex payroll duties.  Typically, the professional payslips and computational reports, available in the basic package, are sufficient for internal purpose.  The payroll agent would also send out timely reminders to clients when there are upcoming events which need responses from the principal.  For instance, the request for additional information (outside payroll reports) to prepare the annual income statements (i.e. Form IR8A) is one of the such events.

Conclusion

The advantages of outsourcing payroll function to a professional third-party agency are inter-related.  From the reduction in the administrative inconvenience, risks of errors and involvement to the savings in time and money, the decision to outsource allows more time to focus on the business core.

Mighty Glory Corporate Solutions offers professional payroll and other affordable corporate-related services. Please feel free to contact us to get a better quote.

Cloud Accounting Or Traditional Off-The-Shelf Accounting Software Is More Suitable For Your Business?

Cloud Accounting Or Traditional Off-The-Shelf Accounting Software Is More Suitable For Your Business?

by | 23 Aug 2016 | Accounting, Business Tips

What is cloud accounting? Cloud accounting or traditional off-the-shelf (or desktop) accounting software is more suitable for your business?  

Having the right-chosen accounting resources greatly assist a corporation to fulfill its accounting purposes and objectives in a timely manner. With the constant improvements in technology, businesses have options to select, namely Cloud accounting or Off-the-Shelf computerized software. Today, let’s discuss about the benefits of Cloud Accounting compared to Off-the-Shelf software accounting.

Cloud Accounting Software

Cloud accounting software is largely similar to the traditional accounting software. But cloud accounting software is hosted on remote servers instead. Users access software applications through a cloud application service provider over their network in order to access real-time information and make changes instantly.  Beside other overheads, cloud accounting services are changed on a monthly basis, rather than one-off costs.  The monthly service fees are PIC claimable.

Cloud accounting services are getting more popular due to its many benefits, which include automatic version updates and initial installation, maintenance or backup are not required.  Businesses can switch to from the existing traditional system to cloud accounting without costly additions to the existing infrastructure.

With cloud accounting, users are able to access the same versions of software and data, even when they are located in different departments or branches. Achieving real-time reporting and visibility as well as greater collaboration capabilities even in remote areas through other means like tablets are also made easier.

Off-The-Shelf (or Desktop) Software

Off-the-Shelf softwares, on the other hand, are affordable to most SMEs and start-ups as they can be acquired and fully implemented at a low one-off cost. These softwares also come with a full range of features that every accountant requires to handle a simple or complicated set of accounts. Peace of mind and security can also be attained because support and maintenance contracts are provided.  Users can locate the closest service provider to resolve errors or problems, without the need of an internal IT team. However, the maintenance costs are not claimable under PIC scheme.  Additionally, off-the-shelf softwares are slow to adapt to industry needs cannot be discounted.  Extra fees are chargeable for a newer version or slight customization to better suit your needs.

Conclusion

Both cloud accounting software and off-the-shelf software have their respective benefits as well as detriments. The surge of companies switching to cloud accounting in recent dates however, reveals a trend to users still deciding between the two. When it comes to easy access, there is no deny that cloud accounting takes the lead.

.

Five Reasons To Keep Proper Accounting Records

Five Reasons To Keep Proper Accounting Records

by | 25 Jul 2016 | Accounting, Business Tips

Summary: Maintaining proper accounting records is tedious and time-consuming.  But accounting function is one of the most important tasks in business making. Accounts must be handled with care and diligence.  Why it is important to do so?

Purpose

The main reason of keeping accounting records in the first place is to monitor your business progress, pertaining to financial, operational aspects and more! The ability to know if you are on the right track or overly-invested, identify potential errors and mistakes will ensure your business growth in a smoother journey. If bookkeeping is not done well, information will be hard to extract from the existing records. This may affect your company’s efficiency.

Compliance

Every so often, you are required to submit different types of accounts-related reports to your local government authorities according to the regulations they have stated. The entity would face legal consequences if there is failure in doing timely submission or provision of inaccurate reports.  As a result, the corporation may suffer losses by arranging manpower to resolve the troubled issue and pay the penalties imposed.  This could have been avoided if compliance procedures and payments were done in a timely manner.

Tracking

Keeping proper accounting records also assists in protecting the directors’ own interests. If the business transactions, which implicate directors, have disputes, the accountant can investigate with accurate information and useful evidence with minimal fuss. Common business risk like unusual wastage or misusing of resources would be minimised or detected just in time to save the situations!

Funding

If additional funds are required for business expansion or investment on research and development, the company image in front of the potential investors would be increased if your company has an accurate and updated accounting system.  This would build up their trust in your corporation’s internal running procedures that the business practices are transparent. Keen investors are interested to know how their contributed funds will be invested and when they can witness the harvest. The same concept goes to bankers as well: Accurate and updated accounting information would facilitate the banks to analyse the company’s key performance indicators and likeliness of business risk.

Management

Advanced business planning needs the latest corporate performance results.  It is very risky to make critical decisions without the relevant information to back it up. With a better understanding on the entity’s current market position, appropriate decisions could be made in the current or near-future term.