Hire Accounting Firms in Singapore for Your Financial Statement
Accounting is often termed as a language of business because it is a means of communicating information related to fiscal aspects of a business. Likewise, the financial statements are the backbone of accounting as it is the way to get an idea about the financial condition of a company. The importance of financial statement in accounting services for small businesses is immeasurable. And its usefulness cannot be defined in just a few words. Precisely, it is an assessment of the viability, stability, and profitability of a business entity.
What is Financial Statement?
A financial statement is a record of the financial functions of a business and it includes aspects such as balance sheet and income statement. This record is maintained by every business in order to make the investors, lenders and business owners aware of the financial health of the business. It is exhibited in a structured manner so that anyone can easily understand and comprehend the issues. A financial statement or report provides key information pertaining to liquidity, profitability, and solvency of a business. You can also find reliable information on business obligations and economic resources through this report.
Importance and Usefulness of Financial Statement
The importance of financial statement is immense as it provides relevant information about the business and fulfill the needs of the interested parties such as management, creditors, investors, government, etc.
Usefulness of financial statement are stated hereunder:
Management: In the competitive business environment of Singapore, a business fails to sustain without having any advanced business plan, strategy or prediction. A financial statement is a great help to management in understanding the current position of the business while knowing the latest trend of progress and prospect of it. Considering these aspects, they can make an important long-term business decision.
Investors: Both present and prospective investors, use financial statements to evaluate the current state of the financial position of the business. It is a key element in making critical decisions on investment.
Creditors: Creditors such as a bank, examine and assess the financial statement to know the financial condition of the business. And they consider this aspect to decide whether or not to lend money to the borrower (business organization).
Government: Surprisingly, a financial statement can be helpful to the government and local authorities. These authorities assess this report through various taxes and use this parameter to manage the capital issue and public utility regulation.
Filing Financial Statement in Singapore
In Singapore, ACRA (Accounting & Corporate Regulatory Authority) requires that all Singapore companies unless exempted (solvent and dormant companies) are are required to file their full set of the financial statement in XBRL (eXtensible Business Reporting Language) format.
The process of converting your compiled financial statement into XBRL may require a high level of concentration, effort and skill. You can hire the services of accounting firms in Singapore to get the knowledge-driven solutions of XBRL report. Aside XBRL reporting, these accounting services Singapore are also open to serve you with the services such as compilation of financial statement and other allied services.