If you have a business in Singapore, then you must be aware that every registered company will be required to file their financial statements. Besides this, they must also get their financial statements, as well as accounting records, audited every year.
There are a few companies, however, that may be exempted from audit, but other than that all other companies who must comply with certain auditing standards have to take the help of any registered public accountant with ACRA so that their audit report will be approved.
For most business companies usually, this auditing is quite important irrespective of their type or size. Therefore, most business owners will offer a lot of priority to get their financial reports properly audited through a competent person.
While conducting such an audit, all business owners must use certain acceptable approaches so that they can comply with all the rules and regulations made by the Singapore government.
As such, auditing will also be quite beneficial to all kinds of businesses as this will help a business owner to see the much bigger picture about their company and also be aware of their financial standing on the market. This will also help the business owner to take a certain realistic decision about the future plan.
Morrison is a well-known company in Singapore that can offer its support to various companies by providing competent accounting services that will make sure that the company meets all the necessary compliance of the regulatory body so that the tax audit can pass smoothly without any incompliance.
A tax audit will basically be meant for examining all your tax returns and ensuring that your company’s all income and deductibles as per records are accurate. However, as a business owner, you need not be scared of such tax auditing. The following are a few reasons why it should not be a matter of concern for you.
- Chances that your company will be audited are extremely rare
Actually, such tax audits are performed randomly. The auditing authorities will use a certain tool and analytics and select a few companies where they perceive any compliance risk. So if your company is quite meticulous in maintaining your records then there is nothing to be concerned about.
- Even if you have been audited for tax does not mean that you are in trouble
The authorities may not audit your entire record but they may demand certain documentation about any item randomly. You must be able to produce your document immediately so that you may not create any doubt in their mind.
- By hiring any professional you can resolve your tax issues
You can also represent your case through any tax advisor who may collect the necessary information from your company’s account records and resolve your tax issues if at all it is present.
Therefore, nowadays many companies are preferring to hire any professional auditor so that he can conduct thorough audits in advance. By engaging such audit services the company can obtain its financial reports accurately with an unbiased analysis.
When you have hired an external audit agency then it will offer you an independent and neutral view. Then you will have better confidence and even if the authority decides to do any tax audit to your company there is nothing for you to get scared of.
There are many professional companies available in Singapore that can offer such independent audit services.
Audit Exemption For Smaller Companies
Over the years, Singapore is trying to push the growth of small and medium scale industries in their vibrant business landscape. These companies are exempted from such tax auditing based on certain criteria.
If any company can meet any two of the three criteria as mentioned below for the last two consecutive years then they will be eligible for such exemption.
- The total yearly revenue should not be more than ten million SGD.
- The total assets of the company in the current financial year should not exceed ten million SGD
- The total employee numbers working in the company in the current financial year should not be more than 50.
In case, any company will meet the above criteria as a small-sized company, but happens to be a part of a certain group, then the entire group will be considered as a ‘small group’ and qualify for such audit exemption.
For any group to fulfil the criteria of such a ‘small group’, the group must meet a minimum of 2 of the above 3 criteria for the last two consecutive years.
So as long as any business can meet the criteria, then the small company can take exemption from the audits.
If a company has any difficulty in determining whether they qualify for such audit exemption or not due to certain complicated issues, then such a company can consult an accounting professional for seeking help it determines whether they are eligible or not.