It is a given that every company in Singapore is required to have its accounting records and financial statements audited at least once a year. However, if your firm fits the exemption criteria introduced in the Company Act 2014, you may be free from this statutory requirement.

While this is fantastic news, it does not negate the importance of engaging the services of a competent accountant as well as an auditing and accounting firm in Singapore. In fact, one would say that these audit and accounting services are considered indispensable.

So, as a business owner, what should be known about these audit and accounting services in Singapore? Are there any distinctions, or can one role take the place of the other? Moreover, which auditing and accounting services provider in Singapore is reliable?

At OneStop Professional Services, we have compiled a list of differences between auditing and accounting services to assist you in learning more about the two that are vital to any business. Additionally, we will share the benefits of hiring professional accountants to help with your accounting needs, should you decide to outsource your accounting to a Singapore accounting firm.

Definition, focus and objective

Accounting is the continual process of recording, scrutinising, abridging, categorising, and presenting an organisation or entity’s financial records, transactions, financial position, and statements of profitability. Accounting is divided into several branches, including financial accounting, management accounting, and cost accounting, among others.

An accountant is responsible for accurately recording and presenting all financial statements and transactions. Ultimately, their or the services of an accounting firm in Singapore’s goal is to identify the company’s financial position, performance, and profitability.

On the other hand, auditing is the judicious inspection of an organisation’s or business’s financial records or statements. It comprises conducting an examination of the financial statements and rendering an impartial opinion on whether the financial records and statements are a reasonable and accurate representation of the company’s actual financial position. The purpose of an auditor, or the services of an audit firm in Singapore, is to verify the reliability and accuracy of the business’s financial records and statements. They aim to provide an independent opinion to business owners on the legitimacy of the company’s financial position and records.

Nature of operation

Auditing and accounting work vary in terms of coverage, type of checking, level of detail, and timing. While accounting is done on a continuous basis, auditing is done periodically. Furthermore, accounting is thorough, with the goal of capturing all details related to financial statements, records, and transactions. Auditing, on the other hand, keeps away from the specifics, relying on samples from records to determine accuracy.

Additionally, accountants are primarily concerned with the accuracy of present-day statements and transactions. However, the auditor’s focus is on analysing historical records to ascertain the work of the accountant.

Though you might need the services of an expert audit firm to guarantee that your financials are healthy, a competent accounting team will ultimately help you find ways to save and maximise your money accordingly.

Governance, compliance and performance

Accountants in Singapore adhere to accounting principles established and evaluated by the Accounting Standards Council. However, accountants have considerable leeway in applicability depending on the sector and business model. A mobile app development company, for instance, can determine when to establish an app development project’s technical feasibility. As a result, it has an impact on the capitalisation of the overall project cost.

While accounting discretion may differ depending on the leadership of a company, Singapore’s Standards on Auditing – issued by the Institute of Singapore Chartered Accountants (ISCA) – are not as flexible. Your organisation relies on dependable audit services in Singapore to make certain that accountants do not abuse or misuse their discretion.

You may have your team of internal auditors and accountants. However, as stated earlier, ACRA regulations mandate that every organisation undergo a yearly independent audit. As such, it would be best to reach out to reliable audit firms in Singapore with a good track record and that employ qualified auditors. That said, professional accountants provide the experience, expertise, skills, and know-how to help you file efficient tax returns, keep your books in order, and most importantly, assist you in avoiding a dreaded audit in the first place. Thus, it is essential that you engage in trusted and experienced accounting firms in Singapore to care for your finances.

Conclusion

Hiring an accountant to manage your finances is a wise method to make the most of your resources. An expert who has a thorough understanding of your entire financial accounts will be able to save you and your business a significant amount of money and time in the long run.

As a trusted audit and accounting services provider in Singapore, OneStop Professional Services is your comprehensive solution to corporate services such as company secretarial, audit, and accounting services in Singapore. Inquire with us about the corporate and administrative needs of your organisation today.

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