How to find an accountant for small business in Singapore? Before trying to answer that, perhaps you’re considering accounting tools and online software that can make it easy for business owners to do their accounts. However, not all business owners have the time or expertise to use the full suite of services and functions offered by accounting software. Furthermore, some types of business models, like e-commerce shops, require complex accounting and bookkeeping systems to record cash flow and inventory. 

In this case, finding an accountant that’s a good fit for your small business is important. It can save you money and time in the long run. I’ll be sharing how to identify your accounting needs and choose an accountant.

The Importance of Having a Business Accountant

The first step is to decide whether you need an accountant in the first place. There isn’t a one-size-fits-all answer. But if you’re new to accounting and have questions about how accounting would help your business, it might be time to hire a professional accountant.

An accountant can provide essential guidance if you’re new to accounting and find financial statements and terminology confusing. They’ll help establish a financial strategy and prevent costly errors for your business. They can help you with essential questions like:

• How to select a business structure
• How to file tax returns 
• How to plan for rapid business growth
• How to prepare for an IRAS audit
• How to apply for business loans
• How to claim tax relief
• How to buy a business or expand it

If these scenarios apply to you, it’s time to look for a suitable accountant. 

Identify Your Accounting Needs 

SMEs can choose in-house accountants or consider outsourcing accounting and bookkeeping functions. Outsourcing is a good idea if you run an SME with a lower yearly revenue turnout. 

According to Payscale, the average annual salary for an accountant in Singapore is around $52,000; in contrast, outsourcing to an accounting firm can offer a more economical option, with high-quality packages tailored for SMEs ranging from $500 to $900 per year. 

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How to Choose an Accountant

The Evaluation Process

• Don’t rush it: A quick online search can help you understand what’s out there, but it’s best to go through referrals from trusted sources like business advisors, bankers, or industry contacts rather than doing online searches. Attending local business networking events can also help.
• Choose a certified professional: Working with a chartered accountant offers assurance of qualifications and up-to-date knowledge. Ensure your accountant or accounting service is registered with the Institute of Singapore Chartered Accountants (ISCA).
• Assess prospective accountants: Ask key questions to analyse how the accountant can benefit your small business. We’ve provided a list of questions in the later part of this article.

There are several additional certifications that chartered accountants can obtain in Singapore, such as:

• Certificate in Payroll Administration (CPA)
• Certified Information Systems Auditor (CISA)
• Certified Internal Auditor (CIA)

Key Questions for a Small Business Accountant

Ask questions to understand their accounting experience and how they can improve the financial health of your small business:

1. Ensure they have small business experience and understand your unique challenges.
2. Beyond taxes and auditing, what additional accounting services do they offer, like bookkeeping, risk assessment, or financial reports? 
3. How can they help your business grow? Look for someone who can be a long-term advisor for key business financial decisions.
4. Understand which accountant or accounting team you will work with, your main point of contact, and how the communication will be handled.
5. If you are hiring an in-house accountant, consider how they will fit in with your company’s work culture. Ask them the relevant questions to determine their working style and preferences.
6. Discuss confidentiality, client testimonials and how they keep up with Singapore’s accounting system, tax regulations, audit requirements, and accounting best practices.
7. Know their fees upfront—whether hourly or on a retainer—and salary expectations.

Streamline Your Business with Professional Accountants

After you’ve selected a suitable candidate, negotiate terms and draft an engagement letter outlining services, fees, and expectations. Clear communication is vital for a successful business relationship, so keep in touch regularly.

Spend less time doing your accounts and more time growing your business. By delegating your accounting tasks to a professional, your finances will be managed more effectively, and you’ll also avoid costly errors. A professional chartered accountant can handle the detailed accounting software, freeing up time to focus on growing and enhancing your business.