Accounting & Bookkeeping

Common questions about accounting & bookkeeping in Singapore, answered by the team at E&H Corporate Services.

What is accounting and why is it important?Accounting is extremely important and plays a critical role in ensuring that the business is able to track its income and expenditures, ensure statutory compliance and to provide various stakeholders such as investors, the management, creditors and the government with quantitative financial information to evaluate the financial performance and for decision making.Are bookkeepers and accountants the same?Yes, but with a slight difference. The book-keeper handled does day to day data entry work. An accountant is responsible for the over-all financial health of the company.Does my small business need accounting services?Yes — even small businesses must keep proper accounting records under the Companies Act and file tax returns. Professional accounting services ensure accurate books, timely ECI and tax filings, and clean annual financial statements, saving money compared with fixing errors later.Why do businesses need accurate bookkeeping?So that at all times, the company management is well aware of the financial health of the company. How much money is in bank? How much is to be collected? How much is to be paid to the supplier? How will salary for comparing months be funded? Will the company be able to meet the cash flow needs for how many months? To ensure that the company management is able to answer such & similar questions, accurate booking is important.What are the accounting and bookkeeping compliance requirements in Singapore?Companies must keep accounting records that explain transactions and financial position, retain records for at least 5 years, prepare financial statements in accordance with SFRS (audited if not exempt), file ECI and corporate tax returns with IRAS, and file annual returns with ACRA.Why outsource accounting services?Outsourcing gives you access to qualified accountants at a fraction of full-time staff cost, ensures filings are never missed, provides software (Xero/QuickBooks) and expertise, and lets you focus on business growth. It also reduces fraud risk through segregation of duties.When should I outsource accounting management?From day one of operations. The later you do may result in fines being attracted due to delayed filing with the authorities.Is it safe to let an outside service handle my accounting books?You will have to choose a trustworthy Singapore accounting service like, SBS Consulting. This helps you in saving money on selecting and training accounts professionals for your company. Professionals at SBS Consulting submit accurate and timely reports for your consumption. They use latest accounting software to process your data securely. They also handle compliance issues for you easily, as they are far more experienced in these matters.How do I submit my data for bookkeeping?We accept data in two forms:- For Traditional companies, we accept data in a physical manner, such as paper receipts/invoices and bank statements. Over a period of time we will assist them to become more digital. For newer firms that are more tech-savvy, we have a compatible digital platform that makes it easy for companies to submit the data to us at regular intervals.What accounting software do you use?We use both Xero, Quickbooks Online and Quickbooks Desktop. At client’s request, we can perform the accounting using the client’s current accounting software with additional charges.Can you work with my existing accounting data?Yes. Most accounting firms can take over existing data from your current accountant or software (Xero, QuickBooks, Excel). The handover includes verifying the opening balances, reconciling bank statements, and completing the previous period's filings.Do I have to use your accounting service, or can I continue using Xero?You can keep using Xero — most Singapore accounting firms work in Xero or QuickBooks Online. The firm accesses your Xero file (with permission), does bookkeeping, and prepares tax and statutory reports from the same data.How do I switch accounting firms in Singapore?The transition typically takes 4–8 weeks with proper planning. You can switch mid-year, but the cleanest break is at the end of your financial year or after a GST filing period closes.Who owns my company's financial records?Your financial records belong to your company — not your accountant. Under Section 199 of the Companies Act and the Income Tax Act, all financial records remain your company's property.What if my accountant refuses to hand over my records?Outgoing accountants must cooperate under ISCA professional standards. If they are uncooperative, escalate in writing referencing Section 199 of the Companies Act.What documents do I need when switching accounting firms?Financial Ledgers: Full Trial Balance, General Ledger, Chart of Accounts in Excel/CSV. Statutory Reports: Financial statements for last 5 years. IRAS Tax History: Submitted Corporate Tax Computations, Form C-S/C filings, ECI acknowledgments. GST Records: GST filing history and all IRAS correspondence. Schedules: Fixed Asset Registers, Depreciation Schedules, Bank Reconciliations. ACRA Filings: Annual returns and AGM documentation.How do I transfer my Xero account to a new accounting firm?Log in to Xero as the account owner, go to Settings > Users, invite your new firm as an advisor, and remove your old firm's access. No data migration is needed — just a change of access.What are the hidden costs of sticking with the wrong accountant?Late GST Return: Penalties and interest — hundreds in fines. Late ACRA Annual Return: S$300 (under 3 months) / S$600 (over 3 months). Missed ECI Filing: Estimated assessment (usually higher) + potential penalties. Founder Time Wasted: Hours spent chasing updates — worth S$16,000-36,000 per year. Director Liability (Section 199): S$10,000 fine + 12 months imprisonment.How do I choose a Singapore accounting company for my business?Two simple thumb rules: 1) Does the accounting firms have chartered accountants working on their payroll? 2) Is the accounting team in-house?How much do you charge for bookkeeping or accounting services?We don’t believe that one price fits all. As all companies are unique and their accounting needs also differ vastly depending on their sales volume. So the cost for our book-keeping services range from SGD 100 per month to even SGD 3000 + per month for a full suite of services.What's included in an accounting package?A typical package includes monthly/quarterly bookkeeping, bank and credit card reconciliation, accounts payable/receivable, payroll processing, GST preparation and filing, ECI and corporate tax return filing, and preparation of unaudited financial statements (compilation).What is a fractional CFO and do I need one?Yes, every Singapore company must have a constitution. ACRA provides a model constitution, which most companies adopt as-is or with modifications.What is the difference between a fractional, outsourced, and virtual CFO?There is no real difference. Fractional CFO, outsourced CFO, virtual CFO, and CFO as a service all describe senior finance leadership provided part-time for a monthly fee rather than through a full-time hire. The labels mainly reflect how often the CFO works with you and whether the work is remote or on-site. For the full market breakdown, see our guide to how much a CFO costs in Singapore .How much does a fractional CFO cost in Singapore?Our fractional CFO service starts from S$500 per month. Because the work is modular, your actual fee depends on which services you take and how often you want them, so we scope and quote each engagement rather than charge a fixed package. By comparison, a full-time CFO costs S$180,000 to S$300,000 or more a year, so a fractional CFO is far more economical for a smaller company. For the full market breakdown, see our guide to how much a CFO costs in Singapore .Can you provide a fractional CFO on top of our existing accountant?Yes. We can work alongside your existing accounting, or provide the accounting and the fractional CFO together. When we do both, your CFO works from the same live data we maintain, which makes the forecasting and reporting faster and more reliable. For the full market breakdown, see our guide to how much a CFO costs in Singapore .

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