What are the Three Types of Accounting Services for a Small Business?

Rows upon rows of numbers are not easy to digest. However, you must understand them intimately to know your business’ financial status and taxes. You also need them to forecast financial needs, prepare policies, and budget allocations. Yes! You need someone reliable for these types of accounting services.

Many small businesses have to work within their budget. It is one of the reasons they outsource their accounting tasks. If you are a small business owner, choosing this option will enable you to enjoy the expertise of accounting services in Singapore at a fractional cost.

Doing so gives you access to 3 types of accounting services: bookkeeping, strategic finance, and tax accounting. These will take care of the majority of your business’ accounting needs.

Types of Accounting Services for Small Business

1 Bookkeeping

During bookkeeping, expert bookkeepers hired by services your provider will classify and reconcile your business’ financial transactions. They will also consider credit/debit card transactions, invoices, bills, and other accounts payables and receivables. They focus on updating your books of accounts regularly and accurately.

2 Strategic Finance

Strategic finance services include controller-ship and CFO services.

Through controller-ship services, your services provider supervises and manages the accounting process in a compliant manner.

If necessary, they discard or improve old processes and procedures, prepare forecasts, and prepare financial statements and management reports. They also participate in financial review meetings and provide advice.

Through CFO services, they provide feedback to you and enable you to make far-reaching decisions about hiring, recruiting a financial team, getting finance, product development, management of tech stack, and changes in or development of the financial model.

3 Tax Accounting

Under tax accounting services, they take care of business compliance and strategic advice. They ensure that your business complies with the laws covered under the Singaporean taxation system.

They also provide strategic advice to minimise your tax amounts. They help you do so by bringing the qualifying deductions to your notice. They help you save money.

3 Important Elements of Accounting

As an owner, you must focus on 3 main types of accounting: financial accounting, tax accounting, and cost accounting.

While delivering financial accounting services, your provider takes care of the bookkeeping and strategic finance of your business. They use records of business and financial transactions, analysis, and real-time metrics to provide you with deep financial insights. You can use these to make effective business decisions.

They also take charge of your business’ tax accounting. They go through your financial records painstakingly and calculate and file your taxes accurately within the due dates. They work within the legal parameters and judiciously employ tax breaks and laws to help your business save a few dollars.

These professionals also help you calculate the costs per product and the profit earned after selling it. Also called managerial accounting, cost accounting is highly useful for inventory or production-based companies.

Accounting Services You Need for Your Small Business

As a small business owner, you should focus on accounting services that help you regularly update your books and calculate tax liability. It means investing in tax accounting and bookkeeping services. These accounting services help you create a database of your business and financial records and stay compliant.

You should also hire strategic accounting services. Accurate financial reports, forecasts and financial advice give you a competitive edge. In short, a small business owner should do well by hiring 3 types of accounting services: bookkeeping, tax accounting, and strategic accounting.

Common Types of Accounting Services for Small Businesses

Your business’ accounting starts by recording its financial transactions. Experts advise you to invest in the accounting services provider and software and start recording your income and expenses from day one.

Your provider of accounting services employs expert bookkeepers who classify each of your financial transactions appropriately. They also file invoices, receipts, and other financial documents carefully to be produced during auditing. As you can see, this is the basic and essential accounting service for all businesses.

Today, it is easy to find an affordable accounting services provider you can outsource to. They use cloud-based accounting software to do your work.

Your provider’s time zones can also make things easier for you. Let us say they are ahead of you by 12 hours. So, before you close your business for the day, you send them your day’s transactions.

Their accountants work during their daytime and update your books. This way, when you arrive at your office the next day, you can access your latest numbers and financial insights to make effective business decisions.

Cost of Accounting Services

Affordability is one of the reasons why owners opt for these types of accounting services for their small businesses. In-house accounting is costly.

The money they have to invest in setting up an accounting department is huge. Paying for employee salary, benefits, infrastructure, limited office space, and hiring and firing of accountants is costly. In addition, it also adds to their HR department workload.

Compared to an in-house accounting department, hiring one of the experienced accounting services in Singapore is their best option. You get access to a team of expert accountants for an affordable fee. You pay for what you get. The cost of these types of accounting services depends on their scope.

Accounting Services by SBS Consulting

We assist small business owners in taking care of their business’ accounting needs. Here is a list of our accounting services:

• Account system set up
• Recording accounting transactions (including journal entries)
• Accounts payable
• Accounts receivables
• Bank reconciliation
• Monthly/quarterly/half-yearly/yearly accounting & reporting
  • Profit/loss account statement (comprehensive income & other comprehensive income)
  • Balance Sheet
  • Statement of Changes in Equity
  • Cash Flow Statement
  • Directors Report
  • Management reports
  • Accounts payable ageing
  • Accounts receivable ageing
  • Journal
  • General ledger
• Variance analysis for Monthly/Quarterly Clients
• GST accounting
• GST returns (monthly & quarterly)
• Multi-currency accounting
• Income tax computation and filing
• XBRL preparation and filing

We are experts in providing different types of accounting services for small businesses. Contact us at +65-6536 0036 or info@sbsgroup.com.sg to learn how we can provide customized accounting solutions for your business needs.

Also Read: 12 Proven Tips to Improve Your Business Cash Flow