In recent years, there is a trend that more business owners and entrepreneurs are switching to cloud accounting services Singapore. Tetra Consultants has been providing such accounting solutions for our international clients who have companies in Singapore. If you are planning to register a company in Singapore and looking to find out more about cloud accounting, this article will be the right fit for you.
What is Cloud Accounting?
Cloud accounting is the act of using an accounting system that is accessible via the internet. Instead of your accounting systems being saved in a single computer or hard drive, cloud accounting allows your financial statements and accounting data to be more accessible as long as you have access to the internet.
Tetra Consultants recommends our international clients consider cloud accounting because most Singapore banks are capable of syncing bank feeds with the business accounting software.
By choosing cloud accounting as your company’s accounting solution, you are still able to enjoy all the functions that your existing traditional accounting software provides. The only difference is the method by which your data is stored.
Essentially, this means that the service provider for your cloud accounting services will engage a third-party service provider such as Amazon Web Services with servers located in the United States to host your company’s data.
As such, you are able to have access to the financials of your Singapore company despite being located in another country.
While most Cloud Accounting Services Singapore providers guarantee that their accounting software is designed specifically for small businesses and entrepreneurs, this does not mean that it is entirely 100% safe.
One of the largest accounting and tax software providers known as Wolters Kluwer was hit by a massive cyberattack in 2019. This resulted in quite a number of the clients losing their infrastructure and private and confidential data. Various reports indicate that the growing number of cyber-attacks is targeted at Small businesses and entrepreneurs who are relying on cloud accounting services.
Key benefits of Cloud Accounting Services in Singapore
#1 Time Efficiency
If you are a business owner of a Small Medium Enterprise (SME) in Singapore, engaging cloud accounting as a solution will help you to save a lot of time. Instead of spending time on trying to do your own accounting or monthly bookkeeping, why not choose to automate everything?
By issuing invoices or updating excel sheets manually, precious time of yours will be wasted. This usually ends up in the company having a backlog when it is finally time to file annual financial statements and tax returns.
Cloud accounting services will also expedite your reporting process, as most cloud accounting software would provide you with unlimited users, you will be able to collaborate with your auditors and external accountants. This would enable them to work online by remotely accessing your accounting software. With cloud accounting services, your whole organisation will able to access the same set of data anytime in any location even if the employee requires extensive traveling.
As cloud accounting is accessible online, you will have access to your Singapore Company Reporting dashboard anytime anywhere. This will be particularly helpful if you are a Singapore small business or entrepreneur who has to manage multiple tasks. Most cloud accounting services dashboard will allow you to customize the dashboard as per your preference. For example, you may wish to see your receivables from customer balance upon logging in.
With a dashboard, you are able to make better business decisions by relying on reliable financial data of your own company.
#2 Cost Efficiency
Cloud accounting services will also assist you with automating your Singapore company’s many transactions. Some cloud accounting services are so easy to access that you will be able to train nonaccounting background personnel to update your invoicing and some other functions. By doing this, it will also allow your accountant to create more time on another aspect of the business which will add more to your Singapore Company.
Another key benefit would be also reduced maintenance cost and upgrading cost associated with local servers. Your Singapore company no longer requires periodically upgrading/enhancing to new servers which cost almost ten times more than the cloud accounting software.
From the feedback of Tetra Consultants’ international clients, cloud accounting has enabled their Singapore companies to improve profitability and reduce overhead costs.
#3 Increased Profitability
Unlike traditional accounting companies, cloud accounting does not only provide typical services such as management accounts, financial statements and bookkeeping services. It optimizes your whole business model by automating other business functions.
One example will be real-time processing in creating invoices and chasing customers for payment. Some third-party integration allows for automated reminders and sales invoices sent to customers for the request of payment. With such a function, you will not only reduce the manpower and man-hours required but also you will spend less on filing and storing hardcopy papers.
#4 Privacy and Security
Unlike traditional accounting companies, you can be assured that the financial data of your Singapore company is safe and secure. This is because the data is automatically stored in the cloud which is protected by data encryption.
This means that nobody will be able to know your management accounts except people who have access to your account. Simply put, this is safer than engaging a traditional accounting firm where there may be data leaks or violations of privacy and data protection.
#5 Additional features
One of the more recent advances in cloud accounting services is the multiple add-on applications that you could integrate with the accounting software. As an example, XERO one of the leading cloud accounting services in the World now allows you to integrate your cloud accounting services to third-party applications such as Fathom, Tsheets, Expensify, Hubdoc, etc. These add-on third-party applications allow you to even further increase your organisation efficiency. For example, Hubdoc, allows you to automate your data entry by automatically capturing and importing all your data on the bills etc.
In recent months there is an increase in subscription of XERO accounting software, as the third-party partner app such as A2X is able to automate eCommerce accounting for Shopify, Amazon, Walmart and eBay sellers worldwide.
Engage Tetra Consultants for Cloud Accounting Services Singapore
If you are a Singapore SME, cloud accounting is definitely something that you should consider. While there are many options in the market, not all cloud accounting services will match your organisation’s needs.
Tetra Consultants’ team of Chartered Accountants has years of experience providing accounting services for small businesses, SMEs and MNCs in Singapore. Our accounting solutions in Singapore include bookkeeping services, cloud accounting, outsourced IT support, GST registration as well as audit.
Tetra Consultants recommends you speak to a professional third-party accounting service provider to accurately determine your requirements for monthly accounting and bookkeeping services. Prior to engagement, Tetra Consultants will also advise on whether your existing corporate bank accounts for your Singapore company is compatible with the various business accounting software.
In addition, Tetra Consultants is a registered Xero Certified Partner in Singapore. Our partnership with Xero, coupled with our highly qualified team of Chartered Accountants, has enabled us to provide seamless accounting and bookkeeping services to our international clients. In addition, our team is able to extend our services in multiple areas, not limiting to cloud accounting.
Tetra Consultants will ensure that the process of switching from the traditional accounting software is seamless and hassle-free. Our team of experts will oversee the whole process to prevent your existing data from not being migrated properly to the new business accounting software.
Contact us to find out more about our cloud accounting services. Our team of experts will revert within the next 24 hours.