In Singapore, accounting laws and regulations frequently change, making accounting services advisories essential for business accounting. Accounting services advisory, often a part of an accounting outsourcing company’s service package, always has updated accounting laws that can help save time and money, reduce the risk of making costly mistakes, and increase the quality of reporting.
Let’s learn more about these accounting services in Singapore below and how they can help your company save much more time and resources in the process.
What Is Accounting Services Advisory?
An accounting advisory service is a firm that provides advice to a company on accounting issues their business regularly handles. For example, accounting services advisory can give technical advice on a case-by-case basis for cash flow and income statements, payrolls, and more.
Accounting advisory services are always updated with Singapore's new laws and regulations. For example, in 2019, the IFRS3 has changed its requirements on business combinations accounting and has new requirements. An accounting services advisory can keep your accounting practices promptly updated.
What Aspects Will The Service Tackle?
Here are six ways accounting advisory services can help your business keep up with consistent changes in Singapore business accounting.
Business Combinations
Accounting advisory services help business owners with the accounting process for an acquisition or merger. They might provide advice on accounting for goodwill, for example, and how to account for intangible assets. Advisory services can also offer advice on consolidating the finances of the two businesses.
Accounting for business combinations is challenging because the acquisition date is not the same date as the acquisition, and each party has different tax implications. Exploring this data requires expertise from experienced accounting professionals familiar with such operations and continue to practice in this field.
IFRS Financial Statement Preparations
IFRS financial statement preparations are important because they are the international standard for financial reporting.
These statements are challenging for accountants because the IFRS requires accountants to prepare financial statements following a more detailed set of rules and accounting principles. With accounting services advisory, your business automatically complies with all these rules and principles.
Deferred Tax Computations
Accounting advisories assist with deferred tax computations by gathering the company's cumulative tax balances data. The company's deferred tax balances come from events that contribute to the business’ future tax liabilities, such as a change in the value of an asset.
Computing deferred tax computations can be resource-consuming because of the many types of taxes involved. The company must also consider whether any deferred taxes are part of the current financial statements and if the company will provide the deferred taxes in the financial statements.
Accumulated income tax and deferred income tax are part of any accounting advisory’s deferred tax computation services.
Share-Based Payments
Share-based payments happen when a company sells or grants the right to use shares of its own stock, makes a non-cash expense, or has types of payments in the form of equity awards, which are either restricted stocks or stock options.
It’s complex to calculate share-based payments and its taxes because businesses need to account for the different types of equity. Plus, they must account for how long the employee will have access to these shares to fully calculate the entire amount of shares the companies will give.
Work With Singapore's Best Accountants Today
If you need the best accounting services advisory in Singapore, you can always count on Metropolitan Management Services. With our decades of experience, tried-and-proven services, and exceptional accounting dependability, we guarantee only the most accurate reporting and data management possible for your business. Contact us today to learn how we can help you.
