Have You Recently Just Registered a New Company Or Set Up a Business?
As you reach the end of the financial and work year, have you taken a closer look at your accounts?
And if so, have your business met your target of your financial and sales volume for the year?
One of the key requirements of running a business is to ensure that all financial transactions in your daily business operations are constantly recorded and updated. A new business start-up may not have a lot of transactions of income and expenses yet.
What is most important however – the recording of all transactions needs to be done from day one your business commences.
Bookkeeping is undeniably a necessary expenditure to keep track of how well your business doing.
By generating regular accounting reports of quarterly performance and monthly cash-statements – then only the success of the business are accurately measured.
As your business grows and expands, do you think you require your accounts and financial statements to be scrutinized even more deeply and carefully?
The answer is YES. In a world of accountability, such activities are necessary to ensure compliance with the law and for the protection of shareholders. This is where auditing comes in.
We can liken the relationship between accounting and auditing like a relationship between an author and an editor.
Just like the author, an accountant creates the material which in this case refers to financial statements and reports.
And just like the editor, the auditor examines the material and suggests changes and corrections that must be made.
These corrections recommended by the auditor are usually necessary changes in order to meet the reliability and credibility requirements specified by the company and outside agencies, such as the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
For Singapore, reporting standards are based from the Accounting Standards Act passed in Parliament on 27 Aug 2007 which came into effect on 1 Nov 2007.
In Singapore, all companies must hold its Annual General Meeting (AGM) within eighteen months of its incorporation to present its audited accounts to its shareholders. These audited accounts should not be older than six months from the date of the AGM.
The company’s Annual Return together with the audited accounts must be filed with the Registrar not later than one month from the date of the AGM.
Only the following companies are exempted (as defined in FRS 18) from submission of audited accounts:
- For private companies that has less than 20 individual shareholders and less than $2.5 million turnover (for financial year starting on or after 15 May 2003)
- For private companies that has less than $5 million turnover (for financial year starting on or after 1 Jun 2004)
For all other Singapore-registered companies that fall outside of the categories above, the accounts of the company must be audited by approved audit firms in Singapore.
These auditors must be appointed within 3 months of incorporation. Approved company auditors are certified public accountants approved under the Companies Act.
Check out the company’s audit services in Singapore.