Frequently
Asked Questions

It is a completion of any 12-month accounting period which may differ from the calendar year, and may not close on 31 December due to the nature of a business’s needs. The usual dates chosen are 31 March, 30 June, 30 September or 31 December.

A balance sheet is a financial statement that provides a snapshot of all of your company’s assets (what the business owns) and liabilities (what the business owes) and shareholders’ equity (how much money you would have left over if you sell all your assets and paid off all your liabilities) at a specific point in time. This information is more valuable when the balance sheets for several consecutive periods are compared together, so that trends in the different line items can be viewed objectively.

An income statement is also known as the profit and loss statement. It primarily focuses on the company’s revenues and expenses during a particular period. An income statement provides valuable insights into a company’s operations, the efficiency of its management, under-performing sectors and its performance relative to industry peers.

Companies who meet the following conditions are exempted from getting financial statements audited:

• It is a private company; and 

Meeting at least 2 of 3 following criteria for the immediate past 2 financial years

• Less than $10 million of total annual revenue 
• Less than $10 million of total assets 
• Less than 50 employees

If the company is part of a group, the company must qualify as a small company and the entire group must be a “small group”. A small group must meet at least 2 of 3 quantitative criteria on the consolidated basis for the immediate past 2 financial years.

Let us help you evaluate whether you meet the above criteria.

XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business and financial data worldwide. We can help you prepare your financial statements and then use a tool (such as BizFinx, provided by ACRA) to convert your data into XBRL format that is suitable to file with ACRA together with your annual return filing.

We have to agree that there is no one-size-fits-all methodology in pricing our fees, however, this is by far the most reasonable method feedbacked by our clients because of its transparency, and it is easier for them to keep track of their expenses than by volume of transactions. You will notice that our fees will only be a fraction of the cost of a Finance & Admin headcount if your business is to employ one. It helps our clients with their budgeting too.

To put it simply, expenses are all the cost items that appear in the profit and loss statement. They are incurred by a business to generate revenue and operate its day-to-day activities. These expenses are subtracted from the total revenue to calculate the net income or net loss of the business for that period. These costs can be categorised into various expense types, and it’s important to properly define and classify them for accurate financial reporting.

1. Operating expenses: These are the costs associated with the day-to-day operations of the business. They include expenses like:

• Cost of goods sold (COGS) – the direct costs incurred to produce the goods or services that a company sells, such as raw materials, labour cost
• Salaries and wages of employees
• Rental and utilities (electricity, water, etc.) for office or business space
• Office supplies
• Insurance premiums
• Marketing and advertising expenses
• Travel expenses related to business activities
• Depreciation and amortisation (non-cash expenses that represent the wear and tear of assets over time)

2. Non-operating expenses: These are expenses that are not directly related to the core business operations but still impact the company’s overall financial performance. Examples include:

• Interest
• Tax
• Losses from sale of assets
• Impairment charges
• Other one-time or unusual expenses

Glad that you asked this question. Here are some of the advantages you will experience:

• Cost predictability: With a fixed fee based on annual expenses, you can predict and budget your accounting costs more accurately. This helps in avoiding unexpected and fluctuating expenses related to accounting services. It eliminates the need for complex hourly billing or itemized charges, making it easier for you to understand and manage your accounting costs.
• Focus on value-added services: We will be focused to provide value-added services that go beyond basic accounting and compliance work. To keep our fees affordable for you, we deploy technology and automation to reduce time spent on manual tasks which result in better efficiency for both of us. We will also proactively offer financial advice and strategic insights to help you grow your business and improve profitability.
• Transparency and trust: You will be more confident in our services when fees are straightforward and tied to your company’s performance. It enhances transparency and builds trust between us.
• Encourages long-term partnership: We have a vested interest in helping you to reduce unnecessary expenses and optimize financial performance. This alignment of interests can foster a long-term partnership and collaboration between us.
• Incentive for cost control: You will be motivated to manage your expenses more efficiently, as reducing annual expenses would lead to lower accounting fees. This can lead to a positive impact on your overall financial health.

Our objective is to always align closely with your evolving needs. Hope this will clarify your doubts.

Yes, we believe constructive feedback and suggestions will help us improve. It is also essential for us to establish clear expectations to ensure our fee structure remains fair and reflective of your business’s changing needs. Hence, please always feel free to let us know if you have any questions or concerns. You can contact us at Hi@BizSquare.sg. We will be happy to address them and agree on something that works for both of us.