Over the years, Singapore has exhibited one of the strongest and most stable economies in the world. It has different businesses from various industries as its foundations and pillars for a solid economy. These businesses come from different industries such as finance, health care, foods and beverages, and many more.
These companies, big and small, are in Singapore as it offers one of the most business-friendly economic conditions. In fact, in 2020 it has been named as the most open-market economy in the world. That is why these businesses stay here and many more new investors are coming in.
Even if Singapore has relaxed laws and regulations when it comes to these businesses, strict implementation is still being observed. Singapore takes implementation seriously, so they impose many penalties and other fees when companies fail to abide by these regulations. This is why companies of all sizes impose strict systems and hire professionals to be able to follow these rules diligently.
One of the measures that these companies take to ensure that penalties are avoided is hiring accounting services Singapore professionals. This is because these penalties are costly and sometimes could lead to jail time. It can even be harder for small businesses as they have less capacity or power compared to bigger corporations. To know more, here are the common offenses made by small businesses and how to avoid them.
Common offenses
Late tax payment
Corporations or companies are given one month after the date of the Notice of Assessment to pay their tax. This ample time is given for businesses to settle their dues. However, some small businesses might miss this as a lot is going on. That’s why accounting services for small business Singapore firms are recommended. If the business fails to settle the tax, a 5% penalty for late payment will be imposed. An additional 1% per month if the tax remains unpaid after sixty days.
Payroll penalties
Singapore has an Employment Act which aims to protect the rights of all employees. This is strictly implemented especially due to the fact that the Singapore workforce is not only made up of locals but of foreigners as well. In an economy that is as diverse as Singapore, these kinds of laws are needed. To avoid this offense, accounting services for small business Singapore firms are usually hired.
Tips to avoid penalties
Create a system
Creating a system or a routine in how you do things may be one of the most helpful things to do to avoid these penalties. This routine can be learned by you and your employees to create harmony. It can also be imposed by the accounting services Singapore firm so that they know which structure works for you.
Calculate incoming taxes
Be prepared. Being prepared is the smartest way to make sure that you can settle fees and other expenses on time. Accounting services for small business Singapore firms can only do so much since the money will still be coming from you and your business. An accounting services Singapore firm can only prepare documents and be ready for payment, however, the finances should be ready as well.
Separate personal from business financial matters
Connected to the previous point, being financially ready is one way to make sure that these things will not be missed. One of the tips to better manage your finances to keep your personal and business matters separately. This way, you can see or predict your future profit. You can plan better ahead of time and be ready when deadlines come.
Hire an accounting services Singapore professional
At the end of the day, the most effective way to ensure that you are in compliance with these laws and regulations is to hire an accounting services for small business Singapore firm. This firm can oversee things and make sure that you are on time when it comes to law compliance.
Accounting services Singapore firms take over financial matters that is why hiring them can give so much time and convenience to a company. These accounting services for small business Singapore professionals are trained to know the ins and outs of the legal processes of the Singapore business laws.
Hire one today
Since there are a lot of things to do even for small businesses, it is better to hire a third-party firm to take care of things for you and your company. There are many accounting services Singapore entities that offer high-quality services for small businesses. WLP Group is an accounting service for small business Singapore company that offers the best quality accounting work at an affordable price. Visit us today to know more.