Online accounting and bookkeeping services are prevalent today. They are becoming extremely popular in the small business accounting segment, especially for Singaporean small enterprises, because of their numerous benefits and advantages. Online accounting or e-accounting has profound functionalities for micro and small businesses. This encompasses a wide range of web-based accounting practices and functions. It similarly considers traditional methods of accounting, wherein the terms alternative or online are contrasted with offline or regular accounting. It finds huge acceptance, especially among small businesses, where the use of technology is considered to be beneficial, as they are cost-effective and fast. Bookkeeping services are cost-effective and are generally related to software or using spreadsheets.
The introduction of online accounting systems has demanded that accounting firms continue to embrace technology as a method to change the value of services. Several small enterprises are utilizing online accounting and bookkeeping services to enhance their organizational efficiency. Financial data management using cloud-based accounting packages, as opposed to using spreadsheets or traditional accounting software packages, is showing a new trend. Technology is revolutionizing the financial services sector, and businesses are paying attention. Most small business owners recognize the value of adopting technology as a way to operate and manage an efficient business. Sixty-five percent of business owners reported that they were likely to use online accounting software to keep their books to save time and money. Transform your financial processes with Watershore’s efficient online accounting and bookkeeping services, designed to save you time and ensure accuracy.
Online accounting refers to a variety of related activities that are done through an accounting system based on the web, also known as the cloud. The accounting system assists SMBs in increasing their productivity by allowing them to better manage their financial records electronically. The tasks that can be managed through cloud-based accounting and bookkeeping services are all the tasks involved in managing a set of financial records. According to the law in Singapore, a business firm is required to have financial records in respect of its business transactions. Also, a business firm required to provide an income tax return is mandated to prepare those records accurately. Accounting and bookkeeping firms focus on the Singapore context in preparing financial statements that comply with the requirements of the Singapore Financial Reporting Standards. The term “online accounting” refers specifically to tools designed to cater to small businesses. These internet-based solutions, often in the form of SaaS, take the chores of financial record-keeping and cash flow management out of rotting leather journals and into digital storage and cutting-edge financial capabilities. The vast majority of these online accounting applications and software are feature-heavy and user-friendly. The potential for lay users to log into their systems from practically anywhere at any time is all fine and dandy, but the best companies know that location-independent data is only part of the juicy accounting cloud-based pie. In Singapore, some companies specialize in creating accounting solutions that work primarily for a specific region of the world, often taking into account the tax laws or standard financial reporting practices of particular countries. Other companies deliver the product as a universal accounting tool, built to be flexible and compatible with the myriad international financial standards and tax codes. Due to the relevance of the former category, we focus on products catering to Singapore companies. A cloud-based accounting solution means the software resides on the vendor’s servers and is accessed through a standard web browser. Watershore provides dedicated accounting services for small businesses in Singapore, empowering you to focus on what you do best while we handle the numbers.
Evolution and Trends
Technological advancements have impacted accounting and bookkeeping services in different forms. Things began to change in the period from 1999 to 2009 when companies started to reach out to provide a platform and assist in creating user-friendly software for users to upload data. This signified the initial shift towards data uploads in digital form rather than physical documents. In addition, from 2009 onwards, companies began to push towards the cloud. This now provided a platform that companies could use to offer remote bookkeeping services to locally-based entities. The cloud had the technological support to handle large quantities of data and allowed bookkeeping firms to be diverse and flexible with service offerings.
The market was also demanding more efficient and transparent accounting and bookkeeping services. As businesses became more global, often the business owner was either traveling or located internationally. They wanted data that could be accessed at the touch of a button. Data security during these eras was also tightening as fraud and open sharing of financial information placed companies at risk. Working in home-based situations also saw a rise in mobile technology. Accounting software began to develop KPI setting measures and dashboards, basically replacing the need for monthly timesheets. During these periods, companies were fully embracing such evolutions – prior to 2015, having at least 70% of the total client base served on a financial package. We also found that bookkeeping quickly became a challenging division given the foot traffic of clients from year-end financial services. This led to the decision to separate the divisions again so that product sales could be more easily sensed and managed. Let Watershore’s professional accounting services take the stress out of your finances, providing you with clear insights and support for informed decision-making.
The changes to the environment of financial statements and technology have led directly to how the workplace operates and the cost structures needed to process entities’ data. With the cost structures changing rapidly, our motivation was to see if there was a demand for a small entity accounting and bookkeeping practice provider as a separate unit, able to use technology as a mode of operation, and if provided genuine up-to-date information, what would give the entity the edge in a competitive market. With current forces in technology making data handling more efficient, cheaper, and faster, it is expected that now is a great time to consider this business venture. The shift in providing bookkeeping and accounting functions in the cloud is currently being termed bookkeeping and accounting ‘as a service,’ specifically due to software marketing. The whole essence of the focus is on a series of strategies designed to promote cloud solutions based on operational or labor cost efficiencies. For simple bookkeeping, bookkeeping as a service or monthly services are cloud facilities where a bookkeeping firm processes its books of account with cloud-based software, usually through a subcontractor offshore. A series of tools for organizations allow secure document sharing. Industries have also emerged, such as the technology and benefits industry supporting customer needs in growing, managing, and realizing the value of technology, as well as venture capital or private equity firms interested in investments that enable technologies driving efficiencies. Reducing the cost of back-office functions is a priority aim for the clients of these investments. Accounting services for small business Singapore can benefit businesses of any size.
Benefits of Online Accounting Services for Small Businesses
Online accounting services offer an array of key benefits that can be particularly important for small businesses. Most notably, these systems are designed to enhance the level of accuracy in various accounting tasks. Featuring automation for various calculations, they can help streamline the day-to-day management of a business’s finances via real-time data update options. These enhanced accuracy features are also vital in preventing financial mistakes and errors, which can be particularly damaging to the cash flow of small businesses. Indeed, many small firms are unable to recover from such errors, making advanced accuracy and compliance protection features essential. It is also very important for businesses to be highly organized. In preventing errors, advanced online accounting services will help improve the level of financial organization in small businesses. Efficiency is another key advantage of these services. Online accounting systems will save a lot of time on otherwise manual tasks and are typically designed to be simple and user-friendly. Small business owners are always busy, and having a centralized processing system for all accounting needs will save both time and money. Login requirements are typically used to ensure the best level of financial data security. Online accounting services are also cost-effective, offering tailored packages designed to help reduce overheads in small firms. The cash flow management system also ensures that businesses are able to manage their income, expenses, and debts more effectively. This will give businesses an overview of how operations are running in real time and not have to wait for month-end targets in 30 days and beyond. Lastly, it’s very important for the business owner to be able to control and manage business finance at the tip of their fingers. Most accounting software nowadays is able to be used in mobile applications. This means businesses can manage their accounts even on the go.
Accounting Services for Small Businesses in Singapore
As Singapore continues to maintain its status as the Southeast Asian financial and business hub, the number of small and medium-sized enterprises (SMEs) continues to rise. It is crucial for small businesses looking to validate their legitimacy at the local level. With the rise of online accounting services customizing their offerings for small businesses in Singapore, local regulatory compliance becomes an even more important consideration. This paper aims to look at the effects and advantages of online accounting systems made specifically for small businesses in other countries, for insight into the local Singaporean market.
A range of service providers cater specifically to small business owners and freelancers, providing bookkeeping or more comprehensive accounting services. Under the requirement that businesses and/or companies must prepare annual financial reports that are audited or signed by professional accountants, who must also meet regulatory requirements. Among them, a provider takes things a step further, providing companies with secretarial services in addition to accounting and tax advisory. All accounting service providers mentioned also provide cloud-based accounting systems, which are perfect for small businesses to collaborate and manage their money on the go. They are also all proven to be capable of integrating with major local banks, as well as e-commerce platforms. Singapore has a Start Digital Pack that provides grants for local SMEs to begin using online accounting and other back-office management interfaces.
