Financial Accounting Singapore
What do you mean by financial accounting?
Financial accounting is a specialized area of accounting or system that allows business entrepreneurs to monitor and in better control of cashflow by keeping track of all the financial transactions. The processes comprise of recording, summarizing financial data and presenting the transactions in reports or financial statement which follows standard rules known as accounting standards or as GAAP which is also known as generally accepted accounting principles.
What is the purpose of accounting and finance?
The purpose of management accounting is to let management to have a more accurate understanding of the business performance and financial position with the reports in order to make any economic decision making. The main purpose of financial accounting is to prepare and provide sufficient information on the firm’s performance such as balance sheet, income statement for external parties such as Singapore IRAS tax authorities, investors, suppliers, stakeholders, banks to be able to assess the value of the business themselves. Assets accounts, liability accounts, equity accounts are some of the useful information that can be obtained from financial statements for the purpose.
Singapore IRAS tax authorities
Required to know the financial accounting information of Singapore businesses in all sectors and industries in calculation of business taxable income and finding tax payable. Financial statements provide statistics, information to government such as how small businesses or SMEs are performing in Singapore, allocation of nation budget to help businesses growth, employment rate, national income.
Investors, stakeholders and Financial Analysts
Required to know the financial statements of organisation as part of their research in estimating the instrinsic value of the entity, earning expectations and price targets so as to decide if they should buy, hold or sell the shares for profits or losses at current time.
Banks, suppliers and other trade creditors
Required to know business financial accounting information so as to decide how much they can loan or whether the business is sustainable to pay the loans and interest when due or to involve work relationship for long-term period.
SingaporeAccounting.com Pte Ltd provides Singapore accounting services, payroll services and company incorporation for SMEs and MNCs. Please refer to Accounting Services Singapore Price List for further information on the services offered.