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Why Your Company Should Consider Engaging Corporate Service Provider to Level Up Your Business?

Why Your Company Should Consider Engaging Corporate Service Provider to Level Up Your Business?

A corporate service provider (CSP) is a business entity that provides compliance services such as bookkeeping, unaudited financial statements and tax services. CSP also assists with the formation of new business entities, generating payroll calculation and payslips for the client’s employees, and even handling the administrative functions of the client’s business.

The value of a corporate service provider lies in the professional assistance they provide to the companies that hire them, be it MNC (Multinational Corporation) or SME (Small-Medium Enterprise), towards the overall functioning and running of the client’s business. Singapore is a modern nest of entrepreneurial activities. New businesses and concepts may be coming to life in the country every day, but not every entrepreneur is familiar with the ins and outs of running a corporate enterprise. This is where a Corporate Service Provider can step in and help their clients, by providing preventive measures to avoid being penalised for non-compliance acts.

Should I Consider Hiring A Corporate Service Provider in Singapore?

SHOULD I CONSIDER HIRING A CORPORATE SERVICE PROVIDER IN SINGAPORE?

Singapore is a country that welcomes and encourages the growth of new ideas and enterprises, especially when they can benefit the country and its people. It is also one of the countries where more people engage in business and entrepreneurial activities than in many other places in the world. In keeping with the growth of the businesses and startups, there has also been a rise in Corporate Service Providers being engaged as well.

The primary benefit of outsourcing various company tasks to a CSP lies in obtaining professional and personalized approaches to managing administrative tasks and overall functioning of the company. Instead of having to manage the various administrative tasks internally (such as handling expense claims, paying the employees, or even maintaining the accounting registers), the CSP whom you hire will manage those tasks for you.

If your company is not equipped to proficiently handle the administrative tasks associated with running a company, especially if the entity is a start-up or a brand new venture, a Corporate Service Provider can give you the space to focus on your core concepts and ideas while they manage the internal functioning of your company. A CSP will ensure that all the internal processes of your company are proceeding smoothly, and managed by individuals who have experience in what it takes to maintain the internal functions in a professional and overall cost-effective manner.

What is a Corporate Service Provider?

WHAT IS A CORPORATE SERVICE PROVIDER?

A Corporate Service Provider is a professional firm that provides business solutions to any company, with the intention of providing quality and value-added services in the sector of company management, business advisory, statutory submissions within the stipulated deadlines, clearance of accounting backlogs, other compliance requirements, as well as various internal processes within the company.

Singapore is an ideal business hub for new enterprises. If you are thinking to start your own business, you might be aware that there are many more thoughts which go into the success of a business venture than a concept or idea. While the core concept is ultimately that draws consumers to the company, it is the overall management of the company which determines the success or failure of the venture.

If you are a new entrepreneur and want to start your business journey in Singapore, then outsourcing your company’s compliance duties to a Corporate Service Provider should be high in your agenda. Many new companies fail to keep up with the business rules and regulations, as well as the various internal processes such as proper bookkeeping and payroll management, which are important in managing a company.

What does a Corporate Service Provider Do?

WHAT DOES A CORPORATE SERVICE PROVIDER DO?

A Corporate Service Provider will help you in running your business, by providing you with assistance when it comes to the internal management of your company. The services include:

 

  • Company Incorporation: Business registration is one of the first hurdles faced by business makers. At Mighty Glory Corporate Solutions, our experienced professionals can easily tackle this hurdle for you by managing the entire process of incorporation and preparing the necessary post-incorporation kit for your company. Upon hiring our services, you can focus on the establishment or growth of your company, while we, as the appointed Corporate Service Provider, will handle the other compliance requirements.
  • Corporate Secretarial Service: A good company secretary has to be equipped with the right skills as their roles and responsibilities in a company are vast. One has to ensure that all relevant statutory obligations are met, business interest of the company is always protected and good corporate governance is practiced. Also, to serve as an advisor to the directors and to provide any practical support, whenever required.
  • Payroll and Taxes: Managing employees is another important part of maintaining and running a company. To that extent, payroll management becomes very important. Any mistakes in managing your company’s taxes can also cost you dearly. A CSP will handle all these for you, so you neither have to spend time away from your core idea on it, nor do you have to worry about any mistakes regarding it.
  • Maintaining Proper Accounts: CSP professionals also ensure that all the company’s fiscal expenditures, revenue, other income, and other related aspects of your revenue are carefully monitored, tracked, and recorded within the company’s accounts. This helps to maintain an air of transparency and provides you with all the information that you need to understand the financial performance and position of your company.
Advantages of Having A Corporate Service Provider

ADVANTAGES OF HAVING A CORPORATE SERVICE PROVIDER

Running a business is a challenging task. It is a speculative process and there is never any guarantee that your business will take off and take you to the heights you envision for yourself. A key reason why many companies fail to even take off is due to the bad internal management within the company.

The internal structure and foundation of your enterprise are crucial to building an overall sustainable superstructure in your business. A Corporate Service Provider takes care of the internal processes and allows you to focus on your company’s growth and market success. You will find it easier to recruit new employees through a CSP, find people that can help to build your business, as well as engage services that help in the maintenance and administration of your company.

Especially in the earlier stages of your business endeavour, it is most important to focus on the business itself and expand it. This is where a good internal management team is required to ensure that the company’s processes flow smoothly and without any hiccups.

A lack of transparency within the company management or an overall mismanagement can even lead to incur business losses. A CSP steps in by acting as a professional guide that is experienced in navigating through these hurdles and can enable you to take your company to a foundation where you can focus on developing yourself not just as an entrepreneur, but as an established figure in the world of business and marketing.

Considerations in Having a Corporate Service Provider

CONSIDERATIONS IN HAVING A CORPORATE SERVICE PROVIDER

A CSP is crucial to the success of new businesses, and a useful friend to those who have already been in the world of business for long periods of time. However, not every Corporate Service Provider will suit you. Not only do you need to consider which CSP you are approaching, but also who they have previously worked with, and to what extent they can help you in successfully setting up and managing your business.

Aside from other successes in working with different companies, the fields that your corporate service provider specializes in will also help you in moving up the corporate ladder. Before you hire a Corporate Service Provider to help you manage and run your company, here are a few things to keep in mind:

  • Support Services: The kinds of support services you require will decide the Corporate Service Provider whom your company shall approach. Look for a CSP that specializes in what your company requires, whether that be internal financial management or administrative responsibilities.
  • Transparency: If your CSP is unwilling to be open about all the processes that they will undertake to help you run your company, these names should be removed from your short list. As you are approaching your CSP with the intention of growing your business, they should ideally be open with you about what they intend to do and why they intend to adopt. A lack of transparency indicates a lack of trust going forward and this should be avoided.
  • Cost-effectiveness: The point of hiring a Corporate Service Provider is not just to outsource the tasks or responsibilities of your company to professionals, but also to reduce the internal costs that you might need to undertake, should you have to hire employees for internal management. A good CSP will help you to manage your company in a way which fits your budget, and would promote cost-effectiveness by reducing your overall business expenditure.

CONCLUSION

Singapore is experiencing a growth in businesses and an expansion in startups. In this corporate atmosphere, a Corporate Service Provider can give you a competitive advantage in ensuring that your business stays on path and follows all the stipulations, which every company needs to maintain to enhance corporate success and sustainability.

COVID-19: What Can A Company Do To Ensure Sustainability?

COVID-19: What Can A Company Do To Ensure Sustainability?

covid-19

Introduction

From late January 2020 onwards, the world has been plagued with news on the coronavirus disease (COVID-19, previously known as 2019 novel coronavirus). A pneumonia of unknown cause was originated from Wuhan City in Hubei Province of China. Singapore’s strategic location makes it vulnerable to contracting the virus. As of March 16, 2020 (1200 SGT), the accumulated number of cases in Singapore is 243. 109 patients were discharged while the other 134 remain in the hospitals. On March 11, WHO (the World Health Organization) has officially announced COVID-19 outbreak as a global pandemic. The number of cases globally increases daily and different governments impose different strategies and restrictions.

Source: https://experience.arcgis.com

Despite the measures implemented by Singapore Government regarding the containment and prevention of the virus spread, Singapore businesses also play a large part in keeping the community safe, especially those within the company. The Singapore Standard for Business Continuity Management Systems outlined measures to guide Singapore businesses to ensure the safety of their employees and other stakeholders, minimize the disruption in business operations, and help the country in preventing the spread of the virus.

What is COVID-19 (aka Coronavirus Disease 2019)?

The novel coronavirus is a strain of the coronavirus family that also includes Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS). The symptoms of COVID-19 are similar to those of the common flu – fever, runny nose, shortness of breath, cough and respiratory symptoms. The virus is spread between people vis close person-to-person contact and respiratory droplets from coughing.

The prevention and containment of the virus are relatively easy but need the diligence, vigilance and socially responsible behavior of everyone in the community. At the community level, measures to follow include personal hygiene, awareness, appropriate social distancing and proactive seclusion when you are unwell. People are encouraged to avoid crowded places like malls, hawker centers, religious venues, theaters and other large public indoor sites. As much as possible, minimize the social contact even if there is no fever or respiratory symptoms and seek early medical consultation once any symptom approaches. On a personal level, wearing protective masks is advised when you are feeling unwell, frequently hand-wash with soap and having healthy diets to fortify one’s immune system are encouraged.

Wear a mask if you are unwell or having a poor immune system.

How to protect your business from COVID-19?

According to a recent guide published by Enterprise Singapore, companies are encouraged to prepare business continuity plans (BCP) to counter the effects of threats and uncertainties. Here are the four areas to be considered in BCP so as to handle the challenges from the virus outbreak:

Human Resource Management

  1. Assign a crisis contact person (Business Continuity Manager). Set up a group chat or open line for employees seeking advice and information, reporting incidents, or seeking help.
  2. Plan for the continuity of leadership in case of any absences of key executives and decision-makers.
  3. Consider alternative working arrangements such as work-from-home and rotating work schedules to reduce the human traffic in the office premise.
  4. Review relevant employee management policies like sick leave, stay-home notices, company-imposed leave of absence and relevant staff insurance plans. Serious communication and monitoring to ensure that the employees comply with the evolving regulations imposed by Ministry of Manpower (MOM) to reduce the spread or importation of COVID-19.
  5. Defer business travels and events. Make use of the convenient technologies, like video-conferencing or teleconferencing instead of overseas travels.
  6. Observe travel bans and other related news. Obtain the required health and travel declarations from employees who have recently traveled to China and other restricted countries (e.g. South Korea, Northern Italy and Iran), as specified by Singapore Government.
  7. Monitor the health conditions of the employees. Temperature checks, 14-day quarantine with annual leaves and seeking medical check-ups are required for those who insist on proceeding with non-essential and personal travels outside Singapore. Allow alternative working arrangements like work-from-home, video-conferencing and teleconferencing for the period of absence.

Process and Business Functions

  1. Identify essential business activities and employees. Cross-train workers to cover other positions in case of absences. Set up alternate teams and physically segregate the teams to reduce the risk of virus spread.
  2. Educate employees on the preventive measures, infection control and good personal hygiene.
  3. Develop plans and procedures to manage and track the human traffic movement within the office area.
  4. Be updated with the latest news, trends and government’s immediate implementations related to the COVID-19 and disseminate the information to the employees.
  5. Closely monitor the health of the working employees.
  6. Maintain an adequate supply of medical and Personal Protection Equipment (PPE) like thermometers, surgical masks, disposable gloves and disinfectants.
  7. Clean and disinfect the frequently-accessed or commonly-exposed company premises and areas, where suspected or confirmed cases have been reported.

Supplier and Customer Management

  1. Communicate with your critical suppliers and service providers on the business continuity plans of both parties and make necessary adjustments to allow seamless transactions without compromising the welfare of employees on both sides.
  2. Announce the measures to your regular customers which your company is implementing to protect them and your employees from the disease, without affecting the customer company’s requirements and operation.
  3. Develop a policy for alternative suppliers and service providers. Also determine a specific situation or timing to opt for the alternative delivery options to your customers.

Communications

  1. Appoint a communication coordinator to broadcast on behalf of your company about your company status and business continuity plans (BCP).
  2. Educate your employees to ensure that they clearly know their respective roles and responsibilities in the BCP. Discussion can be done in small groups to test on their understanding about their portion of the plan. A communication channel could be established for them to report their environment, seek for additional information and be well-informed on the impact of the BCP procedures, policies and progress that the company is taking to ensure their safety and non-disrupted business operations during the virus outbreak.
  3. Inform all the relevant stakeholders of the company – suppliers, customers and service providers about the contingency measures that your company has in place for the virus outbreak.

Please follow us at Facebook and LinkedIn for the constant updates in relation to the business management and operation during the current virus battle.

How To Choose The Right Accountant For Your Business?

How To Choose The Right Accountant For Your Business?

Introduction

The accountant is a vital team member of your business. Accountants are the people to call for your financial reporting, analysis and taxation as part of your company’s compliance requirements in Singapore. The ideal accountant should have the expertise and knowledge of diversified business industries, law and regulations which are important, invaluable and inevitable in business.

Partnering with the right accountant is in the best interest of your business. An experienced, skilled, and capable person to handle your company’s financial reporting, business analysis, and taxation will bring in immeasurable advantage to your organization. While engaging someone who doesn’t have a full grasp of the position and its importance can be disastrous to your company. Thus, the importance of engaging the right person to handle the job is high.

Here are five major considerations when choosing the right accountant for your business:

The Accountant’s Location

Are you looking to hire an internal accountant or looking to outsource your accounting needs? If you need an internal accountant, your candidate pool is limited to those near you. With cloud accounting, connectivity, and availability of safe and reliable accounting software, outsourcing your accounting needs is a viable option. If a virtual office is compatible with your needs, your accountant can be anywhere in the world, then the location wouldn’t matter. For best work arrangements, we recommend engaging an accountant who is cognizant of your local business taxation, regulations, and accounting laws. This is why accounting firms in Singapore are the best option for Singapore businesses.

The Accountant’s Expertise, Credentials and Specialization

Knowing the accountant’s level of expertise, skills, credentials, and prior experiences are vital to find a good fit. Do you need an experienced accountant who can bring in expertise, lead a team, and make decisions? Or are you looking for someone you can train to handle the bookkeeping? Are you looking to hire a team of accountants or just one person? Do you need an expert in taxation or one who is adept in cost accounting?

Workload Allocation

Which areas of the accounting process are you going to delegate and which are you going to keep in-house? As external accountants can be expensive and charge by hours, it is customary for small businesses to outsource the more complex tasks of reviewing the results produced by the bookkeeper, generating financial reports or working on bank reconciliation and taxation while keeping the laborious bookkeeping in. You can resolve this issue and work seamlessly with your accountant by using a user-friendly cloud accounting software, which is compliant with IRAS’s technical requirements, like Xero, QuickBooks, and Financio.

Accounting Software

Most, if not all, accounting firms in Singapore use one or more accounting software to facilitate work, sharing and collaboration with their clients. They would have several names for you to choose an accounting software that will fit your business needs, budget and usage. Some software can be integrated with most of your business processes and financial aspects like banks, invoicing, inventory and collections. The most popular online accounting platforms include Xero, QuickBooks and Financio. Each has its benefits and drawbacks. To choose the best software, it is best to discuss with your accountant.

Check out this article Five Advantages of Million Accounting System

Costs

The cost of hiring an accountant should not exceed the savings you get from the services rendered. If the cost of outsourcing your accounting department to an accounting firm is less than what you are spending to maintain the said department, or if it frees you time to work on other tasks, then outsourcing is a good option for your business. The cheapest accountants are not always the best deal. Expertise, experience and industry knowledge come with a premium. Shop around outsourcing firms in Singapore for comparable rates, consider the inputs that come with the price, and compare the fees and the service scope.

Steps in Hiring an Accountant for your Business

The process of finding, choosing, and hiring an accountant for your business should not be rushed. Careful considerations of the five basic aspects of engaging an accountant mentioned above have to be observed. Sharing your company’s most sensitive data with the wrong person might have serious repercussions. Extra precaution must always be exercised in hiring the right person for any accounting position, regardless junior or senior. Here are the steps in finding and choosing the right accountant for your business and its considerations;

1. Evaluate your company’s needs

Assess the accounting and bookkeeping tasks you need to delegate > volume, complexity and types of data. Can you afford to outsource, or would you rather keep it internal? For small business needs, we recommend engaging an external accountant to provide all your accounting needs. An external accountant can perform all your accounting needs without the need to hire, train and provide workspace.

2. Profile the right accountant

Based on your company’s needs, create a profile of your accountant. This should include his / her experience, prior industry exposure, certifications, location, preferred software used, skills, and expertise.

3. Shortlist the best candidates

Start looking for your accountant. You can do this by posting a job ad, asking for referrals, or going online to search for accounting firms in Singapore. Compile a list of no more than ten possible candidates. Reach out and schedule a face-to-face interview or meeting.

4. Conduct interviews

The goal of the interview or initial meeting with the accountant candidate is to verify the initial information you have gathered about the accountant and his / her firm. Ask the more important details such as the software they are using, price ranges, service coverage and their work processes. Let them share with you as much as they would like.

5. Do background checks

After meeting them for the first time, you will have fewer candidates on your shortlist. Filter further by conducting background checks. Call company partners and affiliations to check out if their claims match. Check for their online profiles and social media presence. Cross out any candidate with any misrepresentations and false claims.

6. Conduct final interviews

You should have no more than three candidates now. Before you make the final selection, ask for a final interview. This time discuss with the candidates as many details of the job as you can and ask how they are going to go about it.

Conclusion

After the final interview, you should have a very good idea of who to pick. If all final interviewees are qualified and ideal for the position, go for the one whom you think can contribute the most to the company in terms of expertise, savings and teamwork.

We offer quality accounting services in Singapore. Connect with us to discuss more of your staffing needs and company compliance requirements in Singapore. We look forward to helping you identify your business needs and providing you with efficient and holistic solutions.

Let’s discuss your business needs today.

What Kind of Services Do Accounting Firms Provide?

What Kind of Services Do Accounting Firms Provide?

Businesses in Singapore are required to adhere to accounting regulations set by ASC or the Accounting Standards Council. Compliance with accounting standards is important to ensure transparency and reliability of a business’ financial information. Transparency and reliability of financial information enable comparability of global financial data and smooth functioning of international capital markets. The increasing number of businesses in Singapore is another compelling reason for entities to adhere to a uniform financial standard.

As a business, it can be time-consuming, exhausting and even downright intimidating, to maintain your seemingly infinite financial records. Hiring an accounting firm is one of the best ways to manage your business’ financial data. With a reputed accounting service provider, you will have an expert to take care of the financial aspects of your business. You can focus more on your core business knowing that your financial matters will be taken care of duly in compliance with the law. An accounting firm will also ensure a robust accounting system, which will give you a reliable and actionable financial base to make business decisions.

Expertise of an accounting firm is the key to your business success. With Mighty Glory Corporate Solutions, you get a wide range of accounting services delivered by a team with substantial industry experience. We offer a deposit-free accounting service with complete client confidentiality and a transparent fee structure.

If you are in search of a professional accounting firm, then you may want to explore the services such firms offer. Here are some types of services that an accounting firm usually offers business:

Accounting and GST Return

ACCOUNTING AND GST RETURN

Businesses are required to maintain a record of all their transactions to comply with Singapore’s statutory regulations. Details of transactions, sources of business funds, bank statements, employee payroll, and other financial aspects connected with the business need to be recorded. Maintaining clear source documents detailing all transactions is vital.

According to IRAS (Inland Revenue Authority of Singapore), a business’ accounting system must retain financial reports and related documents (collectively, financial records) pertaining to a Year of Assessment (YA) for a period of 5 years from the relevant YA. For example, businesses with the tax basis period from
1 January 2018 to 31 December 2018 (YA 2019) need to retain their financial records until 31 December 2023. The same applies to businesses with non-December financial year-end. If the tax basis period is from 1 October 2018 to 30 September 2019, the business has to retain its records till 31 December 2024. Failure to adhere to this IRAS directive can result in companies facing penalties and / or legal suits.

A professional accounting service provider can help to maintain an efficient accounting system depending on the type of your business. For example, if your business is a sole proprietorship, then the firm handles general ledger and basic account-keeping. Accounting principles for maintaining partnership accounts are similar to that of sole proprietorship. The only difference is that a partner’s income sourced by the partnership is declared in the personal income tax account of the partner, on the basis of his profit sharing ratio.

If your business is a sole proprietorship or partnership, it would be advisable to go for an accounting firm that offers personal income tax filing services as part of its accounting service. At Mighty Glory Corporate Solutions, we do offer personal income tax filing services for sole-traders and partners. We will however need information on other sources of income, such as their investments, rental inflows, etc.

In case of GST-registered businesses, the account preparing and tax-filing processes can be elaborate. An in-depth theoretical and practical knowledge of GST and the associated legal processes are crucial to maintaining a solid accounting system.

GST (Goods and Services Tax) is a consumption tax that is levied on almost all goods and services supplied within Singapore, with certain exemptions.

If you are a business with taxable turnover of more than $1 million, then you must register your business for GST. The tax is calculated according to the value of products and services which your business offers and fall under the category of taxable supplies in the GST Act.

Your business may sometimes be exempted from GST even though your turnover exceeds $1 million. This is when your business’ “prospective view” does not exceed $1 million, that is, you do not expect your business to make more than $1 million turnover in the next 12 months. You need to provide valid documents to support your statement. Late payment or non-payment of GST attracts heavy penalties in addition to business disrepute.

Computing your business’ taxable turnover is a key component of GST calculation. The process varies depending on whether your business is a sole proprietorship, partnership or a private limited company. An accounting firm can help you remove the stress off GST filing with its domain expertise.

As a business maintaining its professional standards, it becomes your responsibility to maintain your accounting system to the required standards. An accounting service provider enables you to maintain a failsafe and reliable accounting system.

Mighty Glory Corporate Solutions, we help GST-registered businesses maintain accurate records and make GST submissions in a timely manner. Even if your financial accounts are managed by an in-house team, our experts can help you derive relevant information for GST submission. Our non-obligation to charge GST on the service fees benefits non-GST-registered companies and individuals.

Financial Reporting

FINANCIAL REPORTING

A company has to report its financial performance to its shareholders, which is done by financial reporting. Financial reporting standards that companies are required to comply with, depending on their types and policies, include the Singapore Financial Reporting Standards (SFRS) or International Financial Reporting Standards (IFRS).

A typical financial statements includes the following:

· A statement by the business head declaring the veracity of the financial information presented;

· An independent auditor’s report giving its expert opinion of the financial statements presented by the business. The auditing firm must explain its audit process and the basis on which a particular conclusion was reached regarding the company’s financial statements;

· A detailed statement of profit and loss for the financial year;

· Statement of financial position;

· Statement of cash flows; and

· A supporting document referred to as the “Notes to the Financial Statements” explaining business’ nature, accounting policies, financial instruments including foreign currencies, revenue channels, subsidiary information, related parties’ transactions, inventories and infrastructure, intangible assets, financial and non-financial assets, financial liabilities, government grants, employee benefits, cash flow details and any other information which would affect users in their strategic decision making.

(Source: ISCA, Institute of Singapore Chartered Accountants)

The objective of financial reporting is to present true and reliable financial information. Misrepresentation can negatively affect the credibility and profitability of market investments. Manipulated information such as fake news can hurt a business’ image and its stock price, sometimes irreparably. Business decisions such as acquisitions and mergers are based on a business’ financial statements. Inaccurate reporting can affect such crucial business decisions, which in turn impacts market investments of the companies involved, and the general financial flow of the market.  

With business models becoming more complex, the standards governing financial reporting are constantly reviewed by the relevant councils. The risk of manipulation of financial information and the increasing concerns regarding corporate social responsibility of businesses have increased the onus on these entities. Businesses have been made more accountable now for the financial information they present.

The Companies Act requires directors of a company to present financial information that complies with the accounting standards set by the ASC and in such a way that it reflects the true financial health of the company.

The ACRA (Accounting and Corporate Regulatory Authority) has a Financial Reporting Surveillance Programme to monitor poor financial reporting which involves unreliable financial information and non-compliance with the required standards.

Given the onus on directors in the presentation of a solid and transparent financial reporting, the services of a professional accounting firm become invaluable. Accounting expertise and an in-depth knowledge of compliance laws of accounting firms can help companies present financial statements that are unbiased and objective.

Cloud Based Accounting System

CLOUD-BASED ACCOUNTING SYSTEM

Cloud-based accounting systems work through accounting software hosted on remote servers. Compared to traditional software deployment on a business’ local server, a cloud-based system is deployed online – on the internet. As a result, the software and its features are available 24/7 from any location, which saves time, cost and resources for businesses.

Financial information is available on demand, which facilitates timely business decisions based on reliable data. Cloud accounting system is very secure, given the strict security policies accompanying the solutions. Once a subscription plan is signed, you will have an efficient system that integrates seamlessly with your business’ accounting process. You will not experience the hassle of manually updating the software. The version upgrades itself automatically with every new release from the vendor. 

Mighty Glory Corporate Solutions partners with Xero, a leading accounting software in the cloud segment. Xero has a footprint in over 180 countries and has a growing customer base, which is currently more than 1.5 million. Xero offers features to track financial aspects of every segment of your business, including sales invoices, inventories, expenses, bank cash flow, purchase bills, expenses claims, projects, fixed assets and GST. We are also a Xero Certified Advisor who offer complete Xero integration and migration support, from setting up the solution to helping you migrate to Xero from your existing solution and preparing financial statements.

As a comprehensive accounting solution, Xero provides access to 700+ apps that can transform the way you do your business. Some key benefits of using these apps on a Xero platform include:

·       Faster and transparent inventory solution that enables you to easily monitor inventory, manage stock and replenish as required.

·       Extract and consolidate information required to process staff claims at your ease.

·       Valuable project tracking app gives you insights into key project factors, including time and money spent on the project. This helps to identify profitable jobs.

·       Make your payment reception faster through integrations with popular services such as PayPal and Stripe.

·       Ability to access sales-related information, either from POS (Point Of Sales) app or Xero.

·       Know easily how your business is performing at any given time with all key parameters projected, in a customized reporting format.

·       Make insightful decisions and allow maintaining business connections easier with a smart contact list through a CRM (Customer Relationship Management) app.

XBRL Reports

XBRL REPORTS

XBRL (eXtensible Business Reporting Language) Reporting is the process of digital business reporting using XBRL language framework. XBRL is an international standard adopted by many countries including Singapore to communicate on business and financial information. Use of XBRL ensures fast, accurate and digital transmission of financial and business information between entities. XBRL is part of XML languages.

XBRL standard is developed by a not-for-profit global consortium XBRL International Inc., or XII. The Consortium consists of executives from different backgrounds including small and large corporations, academics, accounting firms, governments, software companies, and experts in business reporting.

XBRL provides “information about information” (Source: ACRA). It assigns identifying tags to financial information, say “net profit”, so that the receiving end gets to identify what the tag is about. The identifying tags serve more than the purpose of being labels. They offer in-depth information about the entity they are representing such as whether it is a group item of relevance to an organization, or if the entity is a monetary item or a number representing a fraction or percentage.

XBRL is compatible with computer software, which makes it possible to use any electronic function, including searching, exchanging, selection and analysis, on the data being transmitted. The basic function served by XBRL is to enable communication between computers without human involvement.

According to ACRA’s regulations, all companies incorporated in Singapore have to file financial statements in XBRL format except for those that are exempted by ACRA from such submission. Non-exempt companies have to file in XBRL format, in addition to their standard filing.

Companies that are exempt from filing in XBRL format include merchant banks, commercial banks, and financial companies governed by MAS (Monetary Authority of Singapore). Companies that have legal approval to file financial statements in adherence to standards other than IFRS, SFRS and SFRS for Small Entities, are also exempted from such filing.

Mighty Glory Corporation Solutions can help your business to prepare and file the XBRL reports with ACRA in the correct format. Depending on the type of your company, we will prepare only key financial details or complete financial information in XBRL format.

Hiring a professional accounting firm for creating and maintaining your business’ accounting system helps your business cut down substantial costs on resources including infrastructure such as computers and accounting software, data-entry operators, and corresponding staff training on a regular basis. With an accounting firm, you will be acquiring expertise for a much lower cost than that is spent on maintaining a dedicated in-house accounting department. In addition, a professional accounting service provider can provide timely advice on the financial trends that can help you make sound business decisions.Mighty Glory Corporate Solutions specializes in a wide range of accounting services including business accounting, financial reporting and individual and corporate taxation. We are up-to-date with leading accounting technologies including Xero and majority of its connected apps, MYOB, QuickBooks Online or Desktop, ABSS Financio, Million Accounting, AutoEntry, Hubdoc, HReasily, JustLogin, Talenox and more. We offer customized packages tailored to specific business needs. For more information on XBRL reports, you may check us on our accounting and tax services.

Should I Hire Overseas Returnees?

Should I Hire Overseas Returnees?

According to Hays, about 85% of employers in Singapore say that they are willing to hire overseas returnees in the coming years. Also, 90% of employers recommend to their peers that they should employ overseas returnees. Why such a high number, and what can you expect when you hire one for your company?

WHAT IS AN OVERSEAS RETURNEE?

If a Singaporean who lived and studied abroad, then decides to return to Singapore and stay for good, that person can be considered as an overseas returnee. Some overseas returnees are children whose parents in Singapore sent them overseas to study abroad. As international students, they are exposed to different levels of education and cultural awareness compared to their Singaporean counterparts. Someone is also considered as an overseas returnee if he or she has worked outside of Singapore for several years. The person may have been assigned by their company to work in an international division. However, some were lucky and bold enough to look for a job overseas and successfully gain employment.

According to Hays, about 86% of Singaporeans show interest in extending their job search overseas. Due to the economic decline of superpowers such as the US, UK, and Australia, Singaporeans realize that better opportunities now await them at home. As a result, there are more overseas returnees compared to the past years. This influx is seen as an opportunity by companies to improve their capabilities and business functions.

BENEFITS OF HIRING OVERSEAS RETURNEES

Many employers find great success in hiring overseas returnees, and many of them have got a good experience in working with their returnee. There are many reasons behind the benefits of getting a skilled worker who has worked or studied aboard and will be a company’s advantage. Both returnees and employers have the same views on the benefits that local experience of the former can bring to the table.

REALISTIC SALARY EXPECTATIONS

Unlike overseas returnees in China, Singaporean returnees have realistic salary expectations. Although they do have excellent skillsets, Singaporean overseas returnees are least expectant, followed closely by mainland China.

Although about 45% of returnees are open to having the same salary as they have while they are employed overseas, only about 34% are expecting an equivalent pay. This is much higher compared to those who are returnees from Hong Kong, with about 61% are looking for a higher salary. As for Singaporean returnees, only 32% are looking for higher pay.

The remuneration package is competitive. There are employers who are willing to pay returnees with premium salaries that will match the returnee skillset. Based on the report, about 44% of employers are willing to pay overseas returnees higher salary packages, as compared to their local peers. 28%, on the other hand, are more than willing to give “up to 10% more.”

OVERSEAS COMMERCIAL EXPERIENCE

What returnees have over their local counterparts is their overseas commercial experience. About 62% of employers hire returnees because of the knowledge which they have acquired that one cannot expect to find in Singapore.

Commercial experience increases a person’s ability to view situations based on a business perspective. Increased commercial awareness arms a candidate with the tools needed to understand what drives a business to success. Such experience becomes valuable as the career progresses.

HIGH SKILL-SET

Most overseas returnees, as close as 63% hold bachelor degrees, while a good 24% hold master degrees. This high skill-set makes overseas returnees highly attractive for those who are looking to hire someone who can bring more value to the table.

CROSS-CULTURAL AWARENESS

Because of the difference in cultural exposure, 64% of the companies surveyed voted to hire overseas returnees because of their “different perspectives on business.” Their knowledge can potentially improve existing business processes, providing better overall business value. With the advent of globalization, many first have high regard over the solid mix of international experience and local cultural understanding that overseas returnees have.

According to Lundbeck, who hired overseas returnees, having experience working abroad, these employees usually prove to be strong in their cultural awareness, adaptability, and willingness to learn and are generally go-getters.

LANGUAGE AND COMMUNICATION SKILLS

Overseas returnees have better language and communication skills. Working for a foreign-owned enterprise allows returnees to exercise their English language fluency daily. It is easier for companies to have communication with foreign business partners and such credit goes to returnees’ grasp. Their exposure in different cultures also gives them the confidence to communicate better without the cultural barrier. They will help you penetrate the global market.

ISSUES WITH OVERSEAS RETURNEE WORK POOL

Still, although an overseas returnee is highly sought-after by most employers, there are some hurdles that you will find when you hire one.

LACK OF LOCAL WORK EXPERIENCE

Their understanding of foreign business practices comes with a price. Because of your overseas returnee’s years of isolation from Singapore, he or she will have a hard time understanding the local work practices. About 36% of employers are facing such an issue of their talent difficulty in adapting to local cultural nuances and corporate processes.

Overseas returnees should research their home countries’ corporate culture and identify any distinct or essential customs that are observed in a day-to-day business setting. This would enable their transition to their jobs back home an easier one. They should also understand the company and industry for which they will be working and relate how their past working experience or education could value-add to the business.

A MISMATCH IN EXPECTATIONS OF OFFER PACKAGES

Although previously stated that there are overseas returnees who have the least expectations when it comes to salary packages, there are about 32% of them who will expect an increased salary compared to what they are earning abroad. Overseas returnees believe that there are a lot of things they can offer to the companies in their home country because of their global experiences. While there are some companies that are willing to offer higher salary packages, the packages still depend on the skill-set of the returnee and the employer’s budget.

WHY DO THE RETURNEES RETURN

There are many reasons why there is an increasing rate of overseas returnees in Singapore

  • Being closer to their families – this is most especially true for children, who are sent abroad to study. A good majority of returnees, about 45%, feel the need to return home to take care of their family. Most returnees think that taking care of their parents is one of the duties that they must fulfill as a part of the Confucian’s filial piety teachings. Children are expected to take care of their aging parents as well. Failure to go back to one’s home country for them means that they have neglected their duty to their own family.
  • Opportunity to develop their careers – This is particularly especially true in popular destinations for Singaporean migration, such as Australia, UK, and the US where work visas and immigration rules are tightened, and the economy of superpower decline. Due to the increasing strictness and shortage of career opportunities abroad, many are now realizing that better jobs are waiting for them at home. When the recession hit the economy, most of the returnees were forced to either receive lower salaries or take jobs that are not paying that well. Change in the government also helped them realize that there are better opportunities back home.
  • Culture or lifestyle ties in Singapore–this is true for most who grow up in Singapore and find a longing to be part of their home once again. Most of the returnees would like to continue enjoying their lifestyle in their home country. Most returnees would like to experience once again the familiar vibes that their own country has to offer. Although it is easier to live in other parts of the world now because you can have access to whatever you would need in another country, nothing would still beat the sense of comfort their home country could offer. Singapore talents living abroad are drawn to what it can offer, such as low crime rates, relative cleanliness, proximity to loved ones and a keen sense of familiarity in lifestyle and culture.

GETTING THE RIGHT MATCH

Most companies often rely on recruiters to find the ideal and suitable overseas returnee to hire. The mismatch in platforms where employers and overseas returnees go to present a problem in getting the right candidate for the right job. About 37% of the candidates use a recruiter to seek employment, with about approximately 32% using search engines like Google or Yahoo to look for opportunities.

ARE YOU AN OVERSEAS RETURNEE?

Mighty Glory Corporate Solutions is very glad to assist on your financial planning and individual income tax reporting. Our goal is to assist you with professional, efficient, and affordable services that will aid you on your return.

ARE YOU TRYING TO HIRE AN OVERSEAS RETURNEE?

We offer a wide variety of accounting services such as setting up and implementation, accounting and GST Return. Contact us now to know more about how Mighty Glory can help with your business.

Foreign Domestic Worker (FDW) Levy Concession

Foreign Domestic Worker (FDW) Levy Concession

Businesses in Singapore are required to adhere to accounting regulations set by ASC or the Accounting Standards Council. Compliance with accounting standards is important to ensure transparency and reliability of a business’ financial information. Transparency and reliability of financial information enable comparability of global financial data and smooth functioning of international capital markets. The increasing number of businesses in Singapore is another compelling reason for entities to adhere to a uniform financial standard.

As a business, it can be time-consuming, exhausting and even downright intimidating, to maintain your seemingly infinite financial records. Hiring an accounting firm is one of the best ways to manage your business’ financial data. With a reputed accounting service provider, you will have an expert to take care of the financial aspects of your business. You can focus more on your core business knowing that your financial matters will be taken care of duly in compliance with the law. An accounting firm will also ensure a robust accounting system, which will give you a reliable and actionable financial base to make business decisions.

Expertise of an accounting firm is the key to your business success.

With Mighty Glory Corporate Solutions, you get a wide range of accounting services delivered by a team with substantial industry experience. We offer a deposit-free accounting service with complete client confidentiality and a transparent fee structure.

If you are in search of a professional accounting firm, then you may want to explore the services such firms offer. Here are some types of services that an accounting firm usually offers business:

Singapore citizens, needing domestic care, can get support from Singapore government through the foreign domestic worker (FDW) levy concession. FDW employers who meet the criteria can qualify for a S$60 monthly concessionary rate.

The following are the employer qualifications for the FDW levy concession:

  • One has to be a Singapore citizen.
  • Living with a child under 16 years old.
  • Living with an elderly person 67 years old and above.
  • Living with a person with disability (PWD) who needs help with at least one daily living activity such as showering, dressing, feeding, or toileting.

Applications for the FDW levy concession must be submitted by qualified individuals. If you have a minor or elderly relative or family member and is qualified for the levy concession, you can follow this link to apply online. The application for FDW levy concession for a PWD is coursed through the Agency for Integrated Care (AIC). Please follow this link for your PWD application.

Please collect the information of the employer, foreign domestic worker and the eligible person (i.e. the person who needs care) to complete the form and application.

No application is necessary if you need the foreign domestic worker for your care or your child’s. If you or your spouse is a Singapore citizen, the levy concession will automatically start on your 67th birthday or upon your child’s birth and will continue until his or her 16th birthday provided that he or she is a Singapore citizen, or on the date your child is granted the Singapore citizenship.

The FDW levy concession is granted for one FDW per eligible person, with a maximum of two FDW per household.

The monthly concessionary rate can be as much as S$120 for FDWs hired to care for an eligible person who needs permanent assistant on at least three daily living activities.

Effective 1 September 2019, the FDW levy concession coverage will include employers needing domestic care for an extended family member or a friend living with them, provided the eligible person is a Singapore citizen, as opposed to the previous limitations of the levy to immediate family members. All existing qualifications applied to immediate family members will also apply to the expanded FDW levy concessions.

Connect with us today to discuss more on the other personal tax reliefs and how we can incorporate them to your personal individual income tax. We look forward to helping you identify your business and personal needs and provide you with efficient and holistic solutions.

If you are in search of a professional accounting firm, then you may want to explore the services such firms offer. Here are some types of services that an accounting firm usually offers business: