This article focuses only on small and medium-sized enterprises in Singapore. It does not cover listed companies or businesses that require an audit.
Two basic types of SMEs
Just like in China, Singapore SMEs are generally divided into two groups: ordinary businesses and GST businesses.
Ordinary businesses
- Similar to China’s small-scale taxpayers;
- Annual taxable revenue is below SGD 1 million, or the company has not voluntarily registered for GST (Goods and Services Tax);
- Accounting is relatively simple, and GST filing is not required.
GST businesses
- Similar to China’s general taxpayers;
- The company has registered for GST voluntarily, or must do so once annual taxable revenue exceeds SGD 1 million;
- GST must be filed every quarter.
No matter which type of business it is, accounting and tax filing still have to be done. Even if the company has no business activity or transactions, it still needs to keep accounts and submit filings, including zero filings. Ordinary businesses file once a year, while GST businesses also need the quarterly GST returns.
What accounting services usually include
Accounts
This part covers organizing the company’s assets, transaction records, invoices and documents, payroll slips, and other materials, then classifying them into accounting entries and generating the general ledger.
In Singapore, many businesses only close their books once a year. If the company has many transactions or a large number of documents, monthly bookkeeping is often chosen instead so the accounts stay clearer.
Compilation of financial statements
Based on the general ledger, accountants prepare the core financial statements. The main three are:
- Balance Sheet
- Profit and Loss
- Cash Flow Statement
Tax computation and filing
After the financial statements are ready, the tax return forms are prepared and submitted. The main filings are:
- Corporate Income Tax (Form C or Form C-S)
- Goods and Services Tax (GST F5)
- Employee-related submissions (SDL and IR8A)
Typical market pricing
The following figures are in Singapore dollars.
Accounting software: about SGD 30–120 per month
Pricing depends on the features.
Advantages:
- There are many software choices, such as Xero and QuickBooks;
- The cost is low;
- The service is standardized;
- It gives a clear view of the company’s accounts and figures.
Disadvantages:
- It requires accounting knowledge;
- Users also need to be comfortable operating English-language software.
Tax filing process:
After the reports are generated in the software, the company submits the tax return on its own through the tax authority’s website.
Manual bookkeeping and tax filing: about SGD 300–800 per month
Pricing depends on transaction volume.
Advantages:
- It saves time and effort;
- The company only needs to hand over its documents, and the service provider handles the bookkeeping and filings;
- Many businesses use their own secretarial service provider, but if the price is too high, they may look for another accounting firm.
Disadvantages:
- It is expensive, and the more transactions a company has, the higher the fee;
- It is harder to keep track of the company’s financial situation in real time, because the provider usually delivers only the final summary reports;
- Service quality varies, so there is always some risk of getting poor service.
Tax filing process:
The provider handles everything directly, so the business does not need to submit anything itself.
Bookfo online finance software: about SGD 29–49 per month
This is designed specifically for users with no finance background, so it can be used without accounting knowledge. In addition to reports, it can also manage assets, employee information, payroll slips, and more.
Advantages:
- Low cost;
- Standardized service;
- No accounting background needed;
- Chinese interface and customer support;
- AI assistance;
- A fully managed option is also available, offering the full scope of manual bookkeeping and filing at roughly one-third the price of traditional manual service.
Disadvantages:
- None in the usual sense, because software, AI, and human support work together and make up for the weak points of the other two models.
Tax filing process:
After reports are generated in the software, the company can file on its own. Bookfo is connected to the tax authority interface, so filing can be done with one click. If needed, users can also pay an additional SGD 50–200 for an agent to submit the filing on their behalf.
Since Singapore income tax is filed once a year, while GST is filed quarterly, some businesses prefer annual service arrangements and only work with a provider once a year. In practice, market pricing does not change much for annual service, because the annual fee is usually just the monthly price added up.
A practical view of the market
Compared with China and many Western countries, accounting for Singapore SMEs is relatively straightforward. Tax requirements are lighter, and the financial statements are not overly complex. Businesses can choose the accounting solution that fits their own needs and budget.
For companies setting up or operating in Singapore, the main point is not to chase the most expensive service, but to match the level of support with the actual amount of transactions, filing frequency, and internal finance capability.