The accounting landscape in Singapore is undergoing rapid digitisation. Driven by globalisation, changing expectations, and technological disruptions, businesses must adapt to remain competitive. Even if Singapore already leads Asia in ease of doing business, further modernising its accounting practices is critical for future-proofing its position.
The government and industry bodies recognise this imperative. Initiatives like the national Accountancy Industry Digital Plan aim to accelerate the adoption of technologies like cloud, automation, and analytics. The vision is a tech-enabled accounting ecosystem that unlocks efficiency, insights, and value.
Significant progress has been made, but gaps remain. Large firms have embraced digital, but small and mid-sized players still rely heavily on manual processes, according to a recent progress report. Complete transformation requires a coordinated push across regulators, enterprises, and accounting partners.
The payoffs for digitalising accounting are manifold. Streamlined workflows, real-time visibility into finances, data-driven decision making and improved controls are but some of the benefits. Yet, legacy mindsets and change management challenges need addressing.
This article explores the digitisation of accounting in Singapore. It examines key technologies, implementation strategies, and the vital role of human experience. Companies that successfully blend skills and tools will gain an edge. The time to start is now, before the disruptive storm is at your doorstep.
Singapore’s Push for Digital Accounting
Singapore has been proactive in modernising its accounting regulations and standards. Globalisation has increased the need for transparent, consistent, and high-quality financial reporting across borders. Singapore ranks favourably in adopting international standards like the International Financial Reporting Standards (IFRS), which promotes harmonisation.
The government has introduced several initiatives to accelerate digitisation. The Accountancy Industry Digital Plan (IDP) launched in 2019 is a key program led by the Singapore Accountancy Commission (SAC), the Institute of Singapore Chartered Accountants (ISCA), and the Infocomm Media Development Authority (IMDA).
The IDP’s goals include equipping accountants with digital skill sets, facilitating adoption of new technologies by SMPs, and developing improved data standards. It provides a digital roadmap to guide accounting entities through progressive levels of transformation tailored to their maturity.
The IDP has helped many large accounting firms in Singapore digitise processes, including audit, tax filing, analytics, and client onboarding. However, a number of SMPs still rely on manual invoicing and have room for the adoption of more technology.
Even if Singapore has adapted well on the regulatory front, there is potential for further digitisation to maintain leadership. Technologies like artificial intelligence, cloud computing, and blockchain help unlock more accurate and timely reporting.
The core benefits include enhanced efficiency, insights, controls, and service quality. But still, change management remains critical, as noted by industry experts. A balanced approach combining people and technology is the key to successful transformation.
Guide to Digital Accounting for Businesses
SMEs are the backbone of Singapore, employing two-thirds of the workforce and driving nearly half of the GDP. As digital transformation impacts every sector, SMEs must also embrace technology to boost efficiency, productivity and growth.
The government provides comprehensive programs to accelerate SME digitalisation. The SMEs Go Digital initiative offers a structured roadmap matched to each business’ maturity level.
For starters, solutions under Start Digital allow SMEs to begin with foundational tools for e-commerce, customer engagement, digitised workflows and security. This includes subsidised packages with partners like Shopify, Rakuten and Synagie to help SMEs quickly establish online storefronts.
Grow Digital helps SMEs seamlessly integrate with major e-commerce platforms worldwide as they expand overseas. Key partners include Amazon, Shopee, Qoo10 and Lazada. Grow Digital also facilitates cross-border payments and logistics through partners like Stripe and vCargo Cloud.
The Advanced Digital Solutions track enables end-to-end process transformation across inventory management, data analytics, retail operations and sustainability monitoring for deeper technology integration. For instance, solutions like SAP Business One and Trax Ignite streamline supply chain workflows. Data analytics tools like Tableau and Power BI unlock actionable insights hidden in financial data.
SMEs can offset implementation costs by tapping on government subsidies. The Productivity Solutions Grant covers up to 80% of costs for endorsed solutions. Additional funding for overseas expansion is available through the Market Readiness Assistance grant.
But digital tools are only part of the picture. Accounting firms provide critical guidance to steer SMEs’ digitalisation journey across process redesign, software implementation, data migration, staff training and change management. A progressive approach focused on user adoption alongside new systems is key.
Digital accounting unlocks tremendous potential, having persistence through transitional humps. Cloud platforms enhance efficiency via real-time visibility, task automation, and seamless payments. Online retail exemplifies the power of digital transformation. Despite a smaller population, Singapore’s e-commerce sector outpaces regional peers in customer experience and spending.
Reasons to Digitise Accounting Functions
Transitioning from manual processes to digital accounting offers many benefits for Singapore companies.
- Enhanced visibility
Cloud-based accounting software gives real-time visibility into key financial metrics like cash flows, payables/receivables, profits/losses, and liquidity. Rather than waiting for monthly reports, management is able to access insights anytime, anywhere, to guide decisions. - Increased efficiency
Automating repetitive, manual tasks like data entry, reconciliation, and reporting boosts productivity. Software robots handle the grunt work, freeing up human staff for value-adds like advisory services. - Faster processing
Digital tools expedite previously manual processes like client onboarding, invoicing, payments, and filing. Invoice automation and digital banking shorten payment cycles. Compliance processes are faster with seamless data access. - Improved security
No system is completely hackproof, but cloud accounting platforms provide robust security, including encryption, access controls, and active monitoring. Digital audit trails also enhance transparency and traceability. - Data-driven insights
Advanced analytics help uncover trends, outliers, and opportunities hidden within financial data. Business intelligence, on the other hand, improves planning, forecasting, and performance management.
Government Grants and Funding For Businesses To Go Digital
The Singapore government offers various assistance programs to support business digitalisation.
Productivity Solutions Grant (PSG)
Companies can receive up to 80% funding to adopt endorsed productivity solutions, including accounting, payroll, and other business software. The grant lowers cost barriers to digital transformation.
Operation & Technology Roadmap (OTR)
SMEs can receive up to 70% funding support to develop technology roadmaps aligned with their business strategies and growth plans. It helps chart their digitalisation journey.
Start Digital
Businesses new to digital tools can adopt solutions like accounting, cybersecurity, and digital marketing through this program at no cost for at least six (6) months. This allows them to kickstart their digitalisation safely.
Technology for Enterprise Capability Upgrading (T-Up)
Companies can leverage talent and R&D capabilities from A*STAR research institutes to build in-house technological capabilities and work towards technology mastery.
Some other implementation guides
In addition to subsidies, SMEs can also tap on step-by-step implementation guides like the SMEs Go Digital Industry Digital Plans tailored to their sectors. Government assistance lowers cost barriers so Singapore accounting services and SMEs can digitalise confidently.
The Role of Accounting Firms
Accounting partners provide expertise to guide companies’ digital journey.
- Process redesign consulting aligned with accounting software capabilities
- Smooth data migration from legacy systems
- Training programs and change management
- Ongoing technical and business advisory services
Overcoming Challenges
You must be proactive in planning to address potential pitfalls effectively and efficiently.
Cybersecurity
Minimise risks by examining vendors’ security features, protocols, and track records. Adopt best practices like multi-factor authentication and regular patching.
Change resistance
New systems inevitably involve a learning curve. Phased roll-outs, extensive training, and coaching help staff acclimate to new processes.
Loss of personal touch
Balance automation with human interactions to provide quality advisory services. Technology should augment human accountants, not totally replace them.
The Case for Outsourcing Accounting Functions
Many companies find it prudent to outsource accounting functions rather than handling them internally. One major factor here is Singapore’s push towards digital accounting, which was previously discussed. It allows them to leverage external expertise and technology capabilities.
Additional benefits of outsourcing accounting, aside from the previously mentioned, include the following:
- Access to the latest software and infrastructure without large upfront investments
- Reduced labour costs by leveraging outsourcer’s economies of scale
- Round-the-clock coverage by accessing shared services centres across time zones
- Improved compliance through regular audits and strict protocols
- Enhanced data security measures and cybersecurity systems
- Specialist expertise in areas like tax, compliance, and advisory
What Corporate Services Singapore Can Do
Our accounting services in Singapore help clients realise these benefits by right-sizing their needs with customisable solutions. Options range from basic bookkeeping to full-scope accounting, covering payables, receivables, financial reporting, payroll, tax preparation, and more. Cloud-based tools provide real-time visibility to clients.
For Singapore’s accounting industry to realise its full digital potential, partnerships between providers and clients should come first. This symbiotic relationship allows businesses to stay lean and, at the same time, leverage world-class capabilities. Outsourced accounting integrates the human touch with software scalability, eventually transforming organisations with confidence.
As Singapore charges ahead in its digital transformation journey, businesses must keep pace or risk getting left behind. Partner with a professional accounting services provider now to seamlessly outsource your accounting functions. We enable businesses and organisations to confidently go digital.
