As a business owner, you are required to shoulder numerous responsibilities as you look to expand and grow your company. With multiple agendas to oversee and limited time, preparing your business’s accounts is probably not at the top of your priority list.
However, there is a multitude of benefits to having your accounts prepared early. Let us share what these benefits are and why you should reconsider getting your business’s accounts done promptly.
1. Gives you a better view of your business
Early preparation of your company’s accounts will undoubtedly give you a better view of where your business is standing at the moment. With the latest financial numbers at your fingertips, you are better equipped to analyse your company’s performance and make well-informed decisions to improve your overall profitability.
You will also be more aware of your tax costs, which allows you to implement a clear tax strategy to account for any changes in your taxes without impacting your company’s cash flow.
When running a business, possessing accurate and reliable information ensures you are better prepared to deal with any future challenges. In addition, these elements will stand you in good stead when you decide to expand your business venture.
2. Helps you make accurate budgets and forecasts
It is crucial for every business to make accurate forecasts and budgets. Forecasting your company’s performance gives you a better idea of your organisation’s future, which can impact your business decisions. For example, if the outlook is positive, you may be encouraged to be bolder in your future strategies. In contrast, a poorer outlook may indicate you need to be more conservative. All these decisions can impact your company’s budget for the next financial year.
However, to ensure accurate forecasting, you will require the most up-to-date financial accounts. If you leave it late to complete your company’s financial report, you may be forced to rely on old data, which may be unreliable. This will often lead to you revising your budgets and forecasts when preparing your business’s year-end account. Revisions to either forecast or budget are typically costly and can lead to ill-informed decisions that negatively impact the organisation.
3. Essential for tax planning
Given Singapore stringent corporate tax laws, it is crucial for every business to ensure their taxes are filed promptly and accurately. However, to determine the corporate tax your business needs to file this year, you must ensure your organisation’s taxable income is up-to-date.
Getting your company’s accounts done early allows you to better grasp your current tax situation. Understanding your organisation’s tax position also enables you to mitigate your business’s tax liabilities.
At Ackenting Group, we can help you analyse and structure your financial situation in the most beneficial way, so you can maximise your profit and mitigate your tax liabilities. We provide a suite of tax and accounting services in Singapore to help you plan your business’s tax so that you can rest easy when reporting season arrives. In addition, we also provide an extensive range of corporate services, including hassle-free incorporation services for those looking to start a new business venture in Singapore.
Conclusion
Prompt preparation and completion of your company’s accounts should always be a part of your main agenda if you want your business to grow and prosper. Business accounting is an integral part of every organisation. By completing your accounts early, you can ensure you make better financial decisions and achieve whatever goals you set for your business.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
