Is Outsourcing CFO Services Right for Your Business?

Every business needs a solid financial plan, but keeping track of finances daily can be challenging. Bookkeepers and accountants handle your income, payments, and money owed to you, but you might not have time to review how well your business is doing financially or plan for its future because you're busy with other important tasks. That's why more businesses are choosing to outsource Chief Financial Officer (CFO) services. By outsourcing, business owners can access expert financial specialists with the best skills and industry practices. Is Outsourcing CFO Services Right for Your Business? Let's look at the pros and cons and how your business can benefit.

What Are the Responsibilities of a CFO?

A CFO manages a company's financial compliance, analysis, and performance. By looking at past, present, and future financial results, a CFO connects a company's strategy with its financial management. They handle cash flow, financial planning, and recommend strategies based on the company's financial strengths and weaknesses.

A virtual CFO can work remotely and as often as your business needs, offering flexible and cost-effective services suitable for many businesses. They help meet sales and earnings goals, ensure cash flow stability, and support department heads in increasing revenue and reducing expenses.

CFOs also help allocate funds for managing staff and assist in hiring qualified finance team members.

Key Responsibilities of a CFO

The primary duties of a CFO can be grouped into three main categories:

Controllers

Manage daily accounting and financial operations.
Produce reports on financial aspects such as accounts receivable, accounts payable, inventory, and payroll.

2. Treasurers

Oversee the company's cash, debts, and assets.
Handle all investments, including tangible assets like buildings and equipment, as well as financial investments like stocks and bonds.

3. Strategists

Provide advice on product development, market expansion, human capital management, mergers and acquisitions, and capital investments.
Conduct structured planning and forecasting using both internal and external data and reports.

Why you may need a CFO

As you probably know, CFOs oversee the finance and accounting team and have a comprehensive view of a company’s financial status. This helps the CEO and other executives like the CMO, COO, and VPs of HR and sales focus on their specific goals and operational challenges.

While a CEO or COO might have a background in finance or accounting, they often lack the technical expertise and experience that a CFO brings. A CFO typically has skills in accounting, financial analysis, budgeting, forecasting, strategic financial planning, and management reporting, among other areas.

So, whether you want to test new business ideas, establish a sustainable financial strategy, or simply work with someone who can help you understand and improve your performance, a CFO can provide valuable expertise and support.

Is a CFO necessary for every business?

Although not mandatory for every business, there are situations where hiring a CFO could be beneficial for:

Rapid Growth:
When your business grows quickly, it's a sign that a CFO is crucial. As your operations become more complex, CFOs play a vital role in managing this growth. They analyze investments, technology, and financing needed to sustain expansion. CFOs review your finances and market trends to create the best plan for increasing cash flow and profitability.

Product and Market Development:
The future is more uncertain with new technology, shifting market trends, and changing leadership styles. CFOs are key in finding new chances and changing the company’s products and markets for growth. They also get funding for these plans. As the world becomes more connected, CFOs look at important things to see if it's possible to expand into other countries.

Debt Management, Investors, and M&A
When a company thinks about merging with or buying another company, it usually hires a team to carefully check the finances and rules. The CFO looks at the reports from this team to change the terms as needed. They must explain these findings well to possible investors or lenders and be ready for their questions to make the process smoother.

Boosting Profitability
When your business struggles to make more profit, CFOs are vital. They cut costs, make operations better, and review how things are priced. Knowing more about profit helps everyone in the company make better choices. CFOs watch over money matters to give the CEO, board, and investors updates on how well things are going financially.

Why Outsource CFO Services?

Outsourcing your CFO services offers several benefits that can significantly enhance your business performance, all at a fraction of the cost of hiring in-house. Here’s why outsourcing CFO services makes sense:

Plan and analyze finances, including budgeting and forecasting for both short-term and long-term needs.
Evaluate financial strengths and weaknesses, providing suggestions for improvement.
Assess the financial viability of new product ideas, including estimating NPVs and conducting IRR calculations.
Enhance profit margins by analyzing pricing and cost structures.
Review and recommend changes to financial data collection and reporting systems.
Assist in raising capital and provide advice on the mix of debt and equity.
Prepare financial presentations for the Board of Directors or investors, such as pitch decks.
Support with quarterly financial reporting.
Negotiate with banks on behalf of the company.
Provide financial forecasts for business-as-usual operations and post-acquisition scenarios when analyzing M&A opportunities.

5 Essential Skills and Qualification to Seek in an Outsourced CFO

Reliability
A CFO's judgment and advice significantly influence business decisions. It's crucial for a CFO to be trustworthy, especially since they'll handle your accounts and taxes. Timeliness is also essential to avoid penalties for late filings.

Skills and Knowledge
Success requires knowing exactly what you're doing, not just in finance but in all areas of life. Your ideal CFO should have strong experience and deep knowledge of the business world, especially in finance. They should be able to identify problems and know how to solve them.

Patience
A good CFO needs to be patient. Sharing important information that can affect big decisions takes time. Developing a successful tax-saving strategy requires careful planning and patience.

Trust
The CFO should gain everyone's trust in the company. They need to provide honest answers to all your business tax questions and be a reliable source of judgment and information.

Leadership
A good CFO should be able to lead others, making it easier to manage and delegate financial tasks within the company. Key traits of a strong leader include empathy, social skills, self-regulation, self-awareness, and motivation.

Qualification
In Singapore, a qualified CFO usually a Chartered Accountant with ISCA.

Key Benefits of a Shared CFO

Significant Cost Savings
Take advantage of senior finance expert services at a lower cost than hiring full-time staff. You save on recruitment expenses and cut down on training and employee costs, leading to significant financial advantages. This approach also helps maintain consistent financial management by reducing employee turnover.
Agile and Flexible Operating Model
Benefit from the flexibility to hire and end services quickly, adjusting to your changing needs. A shared CFO offers a variety of services to meet all your business needs, making your financial operations more agile.
Experienced Professionals to Support Growth
Take advantage of the added credibility and valuable skills that a shared CFO brings to your management team. These professionals have global and industry-specific experience that enhances growth and efficiency. They provide a more efficient option compared to traditional outsourcing.
Minimum Management Bandwidth
A shared CFO joins your team smoothly, working closely to support your business directly. This lets your management team and investors concentrate fully on other business tasks. Because they're not an employee, they maintain high performance standards by consistently meeting service level agreements (SLAs).

How Clooud Consulting Are The Right Party to be Your Outsourced CFO?

Dr. Luk is our dedicated consultant for your company. With over 20 years of experience in business coaching, he holds a doctorate in corporate governance and is a chartered accountant. Throughout his career, he has assisted more than 1,000 business owners, SMEs, and MNCs in increasing revenue and reducing costs. Let's collaborate to achieve your business objectives. Let's hear from Dr. Luk for more information.

Let us help you streamline your financial processes, so you can focus on growing your business. Contact us today to learn more!

Who's the Boss Now? Take Back Control from Your Accounting Staff

Is Your Accounting Staff Running the Show?

Late accounting closes, delayed GST filings, fines from ACRA and IRAS—does this chaos sound familiar? Are you, the boss, feeling pushed around by your accounting staff? It's time to reclaim control of your business! Let's find out more on who's the boss now? Take back control from your accounting staff.

Here are 5 steps to take back control from your accounting staff:

Get A Good Accounting Software - Xero
Transform your business from a mess into a well-oiled machine with Xero. Plus, with the PSG Grant, you can get Xero at a reduced cost.
Generate GST Reports Automatically
Avoid fines and collect claims earlier with automated GST reporting.
Real-Time Cash Flow Reports
Know exactly how much cash you have at any moment.
Close Your Accounts Monthly
Simplify your process with fast and easy monthly account closures.
Generate Financial Reports Yourself
Understand your company's profitability and liquidity with data analytics.

Take Control with Xero

You might think accounting software is complicated and boring. However, technology has advanced significantly. Xero is developed specifically for SMEs, designed to be user-friendly even for those without accounting training. With automated GST reporting, bank reconciliations, and accounting close, Xero makes managing your finances a breeze.

Xero is recognized by IRAS and ACRA and had 3 million subscribers worldwide in 2022. With my proven training program, many non-accounting trained bosses have successfully learned to use Xero to close their accounts.

Benefits of Xero PSG

The PSG grant includes Xero as an approved solution, reducing your setup costs, first-year software costs, and training expenses.

Ready to Take Back Control?

Say no to late account closures and fines from IRAS and ACRA. Contact us for a free 45-minute consultation and coaching session.

Why Choose Clooud Consulting LLP?

Expertise:
Our team has extensive experience in accounting and corporate governance.

Compliance:
We ensure your business stays compliant with regulations.

Training:
We provide hands-on training for non-accounting trained bosses.

Support:
Ongoing support to keep your financial management seamless and efficient.

Dr. Luk is our dedicated consultant for your company. With over 20 years of experience in business coaching, he hold a doctorate in corporate governance and am a chartered accountant. Throughout his career, he have assisted more than 1,000 business owners, SMEs, and MNCs in increasing revenue and reducing costs. Let's collaborate to achieve your business objectives. Let's hear it from Dr. Luk on more information.

Who's the Boss Now? Take back control from your accounting staff. Let us help you streamline your financial processes so you can focus on growing your business. Contact us today to learn more!

The Ultimate Guide to Perfect Bookkeeping for Business Owners

Bookkeeping. Just hearing the word can make many small business owners anxious. Thinking about stacks of receipts and invoices, long columns of numbers, and endless accounting rules can be overwhelming!

Good bookkeeping practices are essential for every business to thrive and expand. If your records are disorganized, it can lead to confusion, errors, missed tax deadlines, cash flow issues, and other problems that waste your time, money, and effort.

The good news is that with this ultimate guide, you can take control of your business finances. We’ll cover everything you need to know to manage your books effectively.

Don’t let financial paperwork intimidate you. Use this guide as the ultimate guide to perfect bookkeeping for business owners to succeed and get your business on the path to growth and profitability.

Essential Steps for Bookkeeping

Starting your own business in Singapore is an exciting venture. While managing your company’s financial transactions might not be glamorous, it's crucial for your business's success. Fortunately, getting started with bookkeeping doesn’t have to be difficult. Here are the key steps every small business owner should take from day one.

Open a Separate Business Bank Account

Start by opening a separate business bank account. Keeping your personal and business finances separate is important for keeping accurate records and managing transactions smoothly. It also makes it easier to balance your books because all your business transactions are in one account.

Choose Your Method for Recording Financial Transactions

Decide how you want to manage your bookkeeping. Here are your options:

Manual Bookkeeping - Stick with traditional ledgers, journals, and spreadsheets. This method saves you from software costs but is time-consuming and prone to errors.
Accounting Software - Use user-friendly programs like Xero or QuickBooks. These automate most tasks, saving time and reducing errors, though they come with subscription fees.
Outsource to a Bookkeeping Professional - Hire professionals to handle your books and ensure everything meets accounting standards. While it costs more, the time savings and peace of mind can be worth it.

Understanding Tax and Legal Responsibilities

Running a business in Singapore means fulfilling important tax and legal duties. Here’s a straightforward guide to staying compliant while focusing on growing your company.

Know Your Corporate Tax Obligations

Singapore offers a competitive corporate tax rate of 17%. Explore incentives like the Startup Tax Exemption scheme, which reduces taxes for new companies in their first three years. Ensure you file your annual corporate tax returns by November 30th (paper) or December 15th (electronic) to avoid penalties.

Goods and Services Tax (GST) Compliance

If your business exceeds SGD 1 million in revenue, you must register for GST and charge 7% on applicable goods and services. File GST returns quarterly or semi-annually, accurately reporting sales and inventory.

Compliance with Employment Laws

Adhere to fair hiring practices and anti-discrimination policies. Make timely CPF contributions for your employees and understand their entitlements under Singapore’s Employment Act.

Appointing Local Leadership

Ensure your business has at least one local resident director and a company secretary to handle compliance duties. Vacancies in these roles exceeding six months may lead to business entity dissolution.

Seek Professional Guidance

Consult with accounting and tax advisors to navigate filings, leverage incentives, and stay updated on compliance requirements. Their expertise will help you maintain regulatory compliance while focusing on business growth.

When to Seek Professional Accounting Help

While managing your own bookkeeping and taxes initially saves money, several scenarios warrant hiring experts.

Complex Accounting and Financial Reporting
As your business grows, handling many transactions like inventory, payroll, and accounts receivable can be a lot. Outsourced accounting services from Singapore firms provide customized reports and financial advice. This lets you concentrate on running your business instead of doing bookkeeping.
Payroll, Auditing, and Assurance
Think about getting an independent financial audit to find ways to improve processes and save money. Outsourcing payroll services can make operations smoother as your team gets bigger, making sure everything follows the rules and is accurate.
New Systems Implementation
Switching to new accounting software or moving to cloud-based systems needs technical know-how. Hiring experts for implementation makes sure everything integrates smoothly and works well for your whole business.
Strategic Advisory Services
In addition to following rules, a qualified accountant or outsourced CFO offers strategic advice. They analyze financial data, create budgets focused on growth, and give guidance on getting funding or using grants. Their help is vital for reaching goals of growth and making more profit.

Seeking professional accounting services in these scenarios allows you to navigate complexities effectively and focus on scaling your business with confidence.

Clooud Consulting Services

When it comes to online accounting and bookkeeping, selecting a trustworthy provider such as Clooud Consulting is essential for businesses. Our team of experts understands accounting regulations and standards well. We ensure accurate financial record-keeping, reporting, and compliance. With our expertise, we reduce errors and discrepancies, and we make sure to follow tax laws and reporting rules.

Moreover, we prioritize the security of your data with robust measures, safeguarding sensitive financial information from unauthorized access to maintain confidentiality and accuracy.

Simplify your bookkeeping with Xero – Cloud Accounting Solution. It seamlessly integrates with your bank to import transactions daily into Xero. This feature allows you to quickly match and digitize bills and receipts by emailing them or scanning them. The Xero dashboard provides real-time financial data and insights into cash flow, helping you make informed business decisions faster.

Reach out today to discover how Clooud Consulting and let us provide the ultimate guide to perfect bookkeeping for business owners with our comprehensive online accounting and bookkeeping services.

Avoiding The Charity Scandal: Protecting IPCs and Charities

Are you struggling with late accounting closures, delayed filings on the Charity Portal, or facing issues like fundraising malpractices? Worried about potential audit failures or being in the news for charity fraud? It's time for a change! Let's reform and strengthen your charity's internal control and governance framework together. With my expertise, you can improve compliance, streamline operations, and rest easy knowing your organization is secure and well-managed. Let's ensure your charity runs smoothly, maintaining trust and credibility in the community by understanding more on avoiding the charity scandal: protecting IPCs and Charities.

What is Fund-Raisers?

Organizations and individuals, including charities and Institutions of a Public Character (IPCs), can raise funds in Singapore for charitable, benevolent, or philanthropic reasons. This includes supporting charity operations, programs, or providing aid for disasters abroad.

A "fund-raising appeal" refers to asking people to donate money or property, or receiving donations for these purposes. All fund-raising appeals in Singapore, whether online or offline, and whether for local or international charitable causes, are regulated under the Charities Act and related regulations such as Charities (Fund-Raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012 and Charities (Institutions of A Public Character) Regulations (for IPCs).

Responsibilities and Requirements for Fund-Raisers

This section outlines the key considerations when conducting fund-raising appeals in Singapore for charitable purposes. It covers the permits required for different types of fund-raising appeals by charities, IPCs, commercial fund-raisers, or individuals. For example, permits are needed if you plan to raise funds for international charitable causes.

Different rules apply when starting a fund-raising campaign, depending on whether you're a charity (including an Institution of a Public Character) or a member of the public. Charities can also hire commercial fund-raisers or participators to help with their fund-raising efforts.

A commercial fund-raiser is someone paid to raise funds for a charity, while a commercial participator is a business that raises funds for charity as part of its regular activities (e.g., retailers, banks, pharmaceutical companies).

Steps to Prevent Fraud in Your Charity

Here are five essential steps to prevent fraud in your charity:

Implement Reliable Accounting Software
Utilize a reputable cloud accounting software like Xero, approved by ACRA. This strengthens internal controls by ensuring accurate financial tracking and compliance. You may also qualify for government grants such as the Charities Capability Fund (CCF) to assist with implementing Xero.
Establish Strong Governance:
Avoid conflicts of interest and enhance accountability by instituting a robust governance system. This involves assigning different tasks to prevent people from overseeing processes they are directly involved in, making sure there are checks and balances in place.
Develop Comprehensive Internal Controls:
Enhance operational efficiency and transparency in financial reporting by implementing a structured internal control framework. This framework ensures that your charity effectively manages all aspects of its operations in accordance with regulations.
Implement Effective Risk Management:
Identify potential risks and fraud threats, and develop proactive measures to address them. By having a solid risk management strategy in place, you can mitigate risks before they escalate into crises or scandals.
Outsource Internal Audit:
Consider outsourcing your internal audit function to an independent party. This external review impartially and comprehensively evaluates your governance, internal controls, and risk management practices annually. Outsourcing can also save costs compared to maintaining an internal audit team.

By following these steps, your charity can proactively safeguard against fraud, maintain financial integrity, and uphold trust with stakeholders and the public.

Why Choose Xero?

ACRA supports Xero, providing a dependable foundation for robust internal controls in your charity. Its features help divide responsibilities with customizable roles such as preparer, reviewer, and approver in an approval hierarchy.

The system securely stores all related documents, accessible to auditors from anywhere with just login details.

You can use government grants like the Charities Capability Fund to pay for software, system setup, and maintenance fees. The grant also covers consultancy services for improving governance, internal controls, and risk management, including creating necessary policies and procedures. With Xero, you can prevent scandals and fraud by having strong governance practices, giving you confidence and security.

How Clooud Consulting Can Help You?

Dr. Luk, a seasoned chartered accountant and corporate governance expert with over two decades of experience as a business coach, has supported more than 1,000 business owners, NGOs, and SMEs in fortifying their governance frameworks to prevent fraud and mitigate risks of scandals.

If you're interested in understanding how the Charities Capability Fund can benefit your upcoming governance initiatives, reach out to us for a complimentary 45-minute consultation with Clooud Consulting.

Manage your Singapore small business accounting effortlessly with Xero.

What is Xero?

Xero is an accounting software that works online, making financial tasks easier. It allows for real-time collaboration, automated bookkeeping, and access to financial information from anywhere, making it easier to manage finances effectively. Let's find out more on how to manage your Singapore small business accounting effortlessly with Xero.

Can Xero work for businesses of all sizes?

Yes, Xero is suitable for businesses big and small. Whether you're just starting out or running a large company, Xero can be adjusted to fit your specific accounting needs.

The user-friendly accounting software is tailored for small businesses, making financial management a breeze. Here are the exciting features of Xero.

Simplify your GST filing process effortlessly.

Easily manage your GST F5 returns using Xero's IRAS-compliant software. File your returns directly from Xero to IRAS.

Submit your GST return to IRAS in just one click, streamlining the filing process.
Effortlessly prepare your GST online. Xero calculates GST on supplies and purchases, automatically filling in your GST F5 return.
Handle foreign currencies seamlessly. Xero converts transactions back to Singapore dollars.
Manage your GST with ease. View and adjust GST transactions, as well as manage GST from previous periods, all within Xero.

Ensure timely bill payments consistently.

Track and pay bills promptly while gaining a clear view of accounts payable and cash flow.

Stay organized with bill management.
Easily identify due bills and ensure timely payments.
Plan ahead with scheduled payments.
Efficiently manage batch payments and schedule them in advance.
Centralize bill storage.
Access all your bills conveniently online from any location.

Utilize Xero's expense manager wherever you are.

Capture costs by taking photos of receipts for quick and paperless expense claims submission.

Ensure timely reimbursement of expenses - approve expense claims promptly to facilitate quick reimbursement.
Track employee spending - view analytics to effectively manage expenses and monitor employee spending.
Manage expenses on the fly - claim and approve expenses instantly using the Xero Me app.

Save time by setting up bank feeds or importing bank data into Xero.

You can connect your bank to Xero to automatically bring in your bank transactions from over 21,000 financial institutions worldwide.

If your bank doesn't provide bank feeds yet, you can easily download and import transactions into Xero.
Stay on top of your finances by regularly reconciling new bank transactions, ensuring you have an accurate and up-to-date financial overview.
Rest assured knowing that your bank transactions feed securely into Xero through an encrypted connection, keeping your data safe and protected.

Make it easy for customers to pay online and increase your chances of getting paid on time.

Accept credit or debit card payments directly from your Xero invoice, giving customers flexibility in how they pay.

Set up payment services for free with a one-time setup. You can pass the transaction fee on to customers when they make payments.
Provide multiple payment options to customers to enhance your professionalism. Accept online invoice payments through leading payment services.
Streamline the payment process by adding a "pay now" button to online invoices. This reduces steps, minimizes errors, and decreases the need for follow-up.
Ensure payment security by safely accepting credit card payments and direct debits through trusted payment processing services.

Manage your projects efficiently

Track costs and record time effortlessly using the timer or mobile job tracker.

Set up project tracking easily and quickly within Xero.
Invoice project costs directly from Xero, with job tracking details seamlessly integrated into invoices.
Monitor project progress and view financial metrics on a dashboard tailored for project accounting.

Stay informed about your finances with the Xero dashboard.

Easily track your bank balances, invoices, bills, and more on a daily basis.

Keep an eye on your cash flow by gaining insights into your sales and spending.
Access all your bank and card information in one convenient location, including your account balances and reconciliations.
Effortlessly follow up on outstanding invoices to stay on top of what's owed to you.
Customize the dashboard to track specific areas of your business according to your preferences.

What help does Clooud Consulting offer with Xero setup?

Clooud Consulting provides full support for setting up Xero. We help customize the software, provide training, and ongoing assistance to ensure a smooth transition and efficient use of Xero.

Make the switch to Xero smooth with Clooud Consulting

In summary, at Clooud Consulting, we know how important it is to meet your business needs quickly. That's why we focus on giving you fast and effective solutions for moving to Xero from another accounting system. From the first chat to getting everything set up, our team works hard to move everything over smoothly, so your business can keep running smoothly. You can count on Clooud Consulting to move your business to Xero without any hassle. Get in touch with us today to begin.

How Xero's Job Tracking and Project Accounting Can Boost Your Business

Staying on top of project costs and deadlines can be challenging for any business. But what if there was a software solution that could simplify everything from initial quotes to final invoices? Look no further, let's find out on how Xero's job tracking and project accounting can boost your business!

At Clooud Consulting, we specialize in providing tailored financial solutions for charities, non-profits, and foundations operating in Singapore's small entities. With our expertise and the power of Xero Accounting Singapore, we're here to streamline your financial management processes, allowing you to focus more on your mission-driven work.

Xero Accounting Singapore offers a comprehensive project tracking and job costing accounting solution to streamline your workflow and maximize profitability. Here's how:

Real-time Project Visibility:
Ditch the hassle of manual timesheets and estimations. Xero's start-stop timer and location-based mobile tracking allow you to record time spent on projects as you work. This ensures accurate billing and eliminates the risk of missing billable hours.

Seamless Cost Allocation:
Effortlessly link expenses directly to specific projects or jobs as you incur them. This simplifies project management and provides a clear breakdown of where every dollar is spent.

Streamlined Project Setup for Faster Implementation:
Say goodbye to integration headaches. Forget complicated software integrations. Xero Projects is fully integrated within your existing Xero accounting platform. Simply create a project and start adding details like tasks, resources, and expenses.

Effortless Invoicing for Faster Payments:
Transform quotes into branded invoices. Generate professional invoices directly from your project tracking data in Xero. Choose the level of detail you want to display, ensuring your invoices are clear and on-brand.

Flexible Payment Options:
Create invoices based on fixed prices, time-and-materials, or a combination of both. Offer clients the convenience of online payments with a "pay now" button for faster settlements.

Gain Valuable Insights with Project Dashboards:
Data-driven decision making. Gain real-time insights into project performance with Xero's comprehensive dashboards. Monitor project financials, track progress against budgets, and identify areas for improvement to maximize profitability on current and future projects.

Xero provides a range of functionalities including:

Handling GST returns

Managing bill payments

Processing expense claims

Monitoring cash flow

Maintaining employee pay records

Tracking project profitability

Integrating with various business apps

Personalizing and dispatching invoices

Facilitating instant payment acceptance

HOW CLOOUD ACCOUNTING CAN HELP

When it comes to handling your business's finances online, picking a reliable service provider like Clooud Consulting is super important. Our team knows all about accounting rules and standards, so we make sure your financial records are accurate, your reports are spot-on, and you're following all the right tax rules.

We also take your data security seriously. We use strong measures to keep your financial info safe from anyone who shouldn't have access to it.

Using Xero – the Cloud Accounting Solution – makes keeping track of your money way easier. It links up with your bank, so all your transactions show up automatically. You can quickly sort out your transactions and turn your bills and receipts digital just by emailing or scanning them. Plus, with Xero's dashboard, you can see your finances in real-time, making it easier to make smart business decisions.

Get in touch with us today to find out more about how Clooud Consulting can help with your online accounting and bookkeeping needs. And with billing by the hour, keeping track of your expenses, profit, and loss is simpler than ever.

Company Secretarial Service Singapore

Let us handle your Company Secretarial needs in Singapore, so you can focus on your business. Our team of dedicated experts will track tax deadlines, file documents, and ensure your company stays compliant with regulations.

WHAT IS CORPORATE GOVERNANCE?

Corporate governance is all about how companies are managed and overseen. The company secretary is a key part of this, making sure the company follows rules, keeps good records, and helps communication between the board, management, and shareholders. But corporate governance goes beyond just these tasks – it's about having rules and practices that make sure companies are open, accountable, and behave ethically.

WHAT IS COMPANY SECRETARY?

A Company Secretary is someone appointed by a company to make sure it follows all the rules and laws in Singapore. They have a lot of experience and know a lot about how businesses should be run properly. Company Secretaries can also help with giving advice and solving problems between the company's bosses (directors) and the people who own shares in the company (shareholders).

In Singapore, it's a rule that every company must have a Company Secretary. This person helps with important tasks like keeping track of taxes and financial records, along with other duties like making sure meetings are held properly and paperwork is filed correctly.

WHY DO YOU NEED A COMPANY SECRETARY?

Well, it's actually a rule that every company in Singapore must have one within 6 months of being incorporated. This person can't be left vacant for more than 6 months. If you don't want to handle this yourself, you can hire us to do it for you.

The Company Secretary is an important person because they help make sure your company follows all the rules. They also help with things like answering questions from the Accounting and Corporate Regulatory Authority (ACRA). It's actually a law that every company must have a Company Secretary.

Having a professional Company Secretary, who is also a Registered Filing Agent with ACRA, can help you avoid getting into trouble. For example, they can make sure you don't miss deadlines for filing important documents with ACRA, which could save you from having to pay fines.

WHAT DOES A COMPANY SECRETARY DO?

A company secretary's duties typically involve:

Making sure the company follows all legal and regulatory rules from organizations like SGX, ACRA, IRAS, and CPF board.
Keeping track of important company records and documents.
Organizing board meetings and taking notes during them.
Giving advice to the board on how to run things properly.
Handling communication with shareholders and keeping them in the loop.
Making sure the company sticks to its rules and policies on how it's run.
Dealing with paperwork that needs to be filed with the government.
Offering advice on the best ways to run the company according to good business practices.

HOW CLOOUD CONSULTING CAN HELP YOU?

Clooud Consulting LLP is a Registered Filing Agent (FA20190164) with ACRA. We are qualified, experienced, and professional, ensuring your company stays compliant with our expert Company Secretarial services. Contact Clooud Consulting LLP now. Let us handle the corporate governance matters and paperwork so you can focus on growing your business hassle-free!

How to Establish a Non-Profit Organization in Singapore

A non-profit organization (NPO) in Singapore is a legally formed group that focuses on activities for public or private interest without making commercial profit. If NPOs make a profit, known as a surplus, they keep it for future activities instead of distributing it to members like profit making companies do. In Singapore, NPOs are often called Voluntary Welfare Organizations (VWOs) and can be registered as a public company limited by guarantee, a society, or a charitable trust. Let's learn further on how to establish a non-profit organization in Singapore.

Key Features of Non-Profit Organizations in Singapore:

Managed by a board of trustees or a governing council, usually serving in a trustworthy role.
Operate independently from the government.
Provide benefits to people outside of their own membership.
Do not make profits; they cannot share leftover money with members and can get full tax exemption only after gaining charity status.

Benefits of Registering Your Non-Profit Organization

While it's not required to register your NPO in Singapore, doing so makes it much easier to conduct meaningful and sustainable activities. Here’s why:

Legal Agreements:
Only registered entities can enter into contracts (like leases or purchase agreements). If your organization isn't registered, individuals may need to take on these obligations personally.
Fundraising:
Raising funds is almost impossible without being a registered entity.
Clarity and Formality:
Registering your NPO provides clear, legally binding rules that help both members and stakeholders understand the organization better.
Donor Trust:
Most donors prefer to fund registered entities because registration shows public accountability and establishes trust.

Types of Non-Profit Entities in Singapore

When registering your non-profit organization in Singapore, you can choose from three types of entities:

Public Company Limited by Guarantee
Society
Charitable Trust

The best type for your non-profit depends on factors like size, complexity, potential legal liabilities, and fundraising plans. To decide which one is right for you, review the details of each type below and choose the one that fits your needs the best.

Registering as a Public Company Limited by Guarantee

Forming a non-profit as a company limited by guarantee has several advantages. It creates a separate legal entity and limits the liability of its members. This type of structure is advanced and highly desirable for non-profits. These companies usually focus on charitable, religious, scientific, or artistic activities and do not engage in trading.

What is a Company Limited by Guarantee?

A public company limited by guarantee is one that conducts non-profit activities benefiting the public interest, such as promoting art or charity.
This type of company does not have shares.
Instead of shareholders, it has members who agree to contribute a fixed amount towards the company's liabilities if it is wound up. This contribution can be as low as SGD 1.
When incorporated in Singapore, a public company limited by guarantee must include "Limited" in its name. However, it can later request to remove "Limited" from its name, provided it does not distribute profits.
A company limited by guarantee is a separate legal entity, similar to a person in the eyes of the law. It can enter contracts, own property, and be sued or sue others in its own name.

Pros and Cons of Public Company Limited by Guarantee:

Has its own legal identity.
Limits liability for members.
However, it must meet ongoing public disclosure rules and follow statutory regulations.
Setting up and maintaining it requires professional help.
Complex annual reporting might be challenging for smaller groups.

Tax exemptions

Associations registered as company limited by guarantee in Singapore are exempt from income tax if surplus funds are from members’ contributions; or if over 50% of gross revenue receipts are from members and are not tax-deductible for members. For full tax exemption, the company must apply for Charity status after its registration.

Key Facts Simplified:

Requires at least 2 directors, 2 members, and a qualified Company Secretary. One director and secretary must be Singaporean residents.
Foreigners acting as local directors need an Employment Pass or Dependant Pass.
Need to draft a Memorandum & Articles of Association outlining the organization's objectives and rules.
Must audit accounts annually and hold Annual General Meetings.
Must file Annual Returns with ACRA.
Public companies limited by guarantee are registered with ACRA and follow the Singapore Companies Act. Professional assistance is recommended for registration.

Registering as a Society

A society is like a club, group, or association with at least 10 members. It's a good choice for smaller groups with strong community ties and not heavily reliant on donations or external funding.

Advantages and disadvantages:

Quick, easy, and cheap to set up.
Donors usually prefer more formal business structures like public companies limited by guarantee.
Doesn't have a separate legal identity, so members may face liability issues.

Statutory Requirements:

You need at least 10 people to start a society.
You must have 3 key office bearers: President, Secretary, and Treasurer, who must be Singapore Citizens or Singapore Permanent Residents.
Annual audits of accounts are mandatory.
Annual Returns must be filed with the Registrar of Societies.
You must create a Constitution that governs the society.
Societies are registered with the Registrar of Societies (ROS) and are regulated by the Singapore Societies Act. If you want to register a Society in Singapore, it's best to seek professional advice.

Registering as a Charitable Trust:

A trust is a written agreement, known as the trust deed, where the owner or founder transfers property or funds to a group of people called trustees. These trustees manage the assets for the benefit of others, known as beneficiaries, to achieve a specific goal. A charitable trust is a type of trust that serves a purpose and aims to benefit the community rather than specific individuals.

Who Should Register a Charitable Trust?

A charitable trust or foundation in Singapore can be established by anyone who wants to dedicate some of their assets or income to charitable purposes and prefers a structured approach to giving.
A common purpose of a charitable trust is to manage scholarships or bursaries.
However, it may not be suitable if there's a high risk of liability from its activities, like owning property or entering many contracts.
It's beneficial when trustees mainly hold and invest funds or other assets and distribute the income to support charitable causes.

Pros and Cons

Limited public disclosure – Auditors or audited financial statements aren't necessary unless stated in the trust deed.
Expensive and time-consuming to set up, often requiring professional help.
No separate legal identity.
Trustees have control, with no accountability to a broader membership base.

Statutory Requirements

Need a board of trustees.
Need a trust deed – a document outlining the framework for trustees' operations.

Trusts are licensed by the Monetary Authority of Singapore (MAS) and follow the Singapore Trust Companies Act. Consider seeking professional advice for registering a Charitable Trust in Singapore.

Obtaining Charity Status

Once your non-profit entity (society, company limited by guarantee, trust) is registered and legally recognized in Singapore, you can apply for charitable status. The Commissioner of Charities will assess whether your organization's objectives align with charitable purposes when reviewing the application.

Being recognized as a charity is about your status, not just your organizational setup. Charity status offers several advantages:

All registered charities in Singapore are automatically exempt from taxes.
It enhances the organization's reputation and credibility.
Charity status is helpful for fundraising. Many trusts and foundations that provide grants can only support officially recognized charities. The word "charity" has a strong emotional appeal and can motivate the public to donate.

Charitable purposes fall into four main categories:

Helping those who are poor.
Supporting education.
Promoting religion.
Benefiting the community in various ways.
Additionally, these purposes are also recognized as charitable:
- Improving health.
- Fostering citizenship or community development.
- Supporting arts, heritage, or science.
- Protecting or enhancing the environment.
- Aiding people in need due to factors like youth, age, illness, disability, financial hardship, or other disadvantages.
- Promoting animal welfare.

Every charity in Singapore follows the rules of the Singapore Charities Act and needs to register with the Commissioner of Charities within three months of starting. It usually takes around three months to complete the registration process, and there is no fee for registering under this Act.

Statutory compliance

Once a charity obtains charity status, it must follow these rules:

Submit financial statements and an annual report showing what activities were done and any plans for the future.
- Keep accounting and donation records in good order.
- Submit annual returns.
- Hold Annual General Meetings (AGMs).

Share fundraising details online.

Statutory compliance

Once a charity obtains charity status, it must follow these rules:

Submit financial statements and an annual report showing what activities were done and any plans for the future.
Keep accounting and donation records in good order.
Submit annual returns.
Hold Annual General Meetings (AGMs).
Share fundraising details online.

Tax exemptions

All registered charities in Singapore now automatically qualify for tax exemption, aiming to develop Singapore as a hub for philanthropy.

Applying for Institutions of a Public Character (IPC) status

An approved IPC is a non-profit organization (NPO) with charity status that benefits the entire community in Singapore. It's not limited to specific groups based on race, religion, or other beliefs. IPCs are authorized by the Commissioner of Charities to receive donations that qualify for tax deductions. Most IPCs are charities, while others are sports associations. The application process for IPC status typically takes around two months

Who can apply for IPC status?

Hospitals that aren't run for profit.
Public or benevolent institutions that aren't operated for profit.
Public authorities, societies, or organizations engaged in disease research or prevention, not operated for profit.
Universities or funds supporting them.
Educational institutions not run for profit or funds supporting them.
Funds providing scholarships, exhibitions, or prizes for universities or educational institutions.
Funds established to relieve public distress.
Charitable institutions, trusts, or bodies established solely for charitable purposes.
Organizations promoting culture, arts, or sports, not primarily for profit.

Meeting Statutory Requirements

After obtaining IPC status, all IPCs must follow these rules:

Provide Tax Deduction Receipts to donors for tax-deductible donations.
Keep records of donations.
Publish financial and non-financial information online.
Submit audited financial statements annually.
File an annual return of donations.
Present an annual report showing how donation money was used and future plans.
Have a board of independent trustees for administration, ensuring independent oversight.

Tax Deductible Donations

Only donations to charities approved as Institutions of a Public Character (IPC) are tax deductible. This means donors can claim a tax deduction for their donations to these organizations. Not all registered charities have IPC status, so donations to charities without IPC status are not tax deductible.

The following types of donations usually qualify for a tax deduction:

Cash donations
Donations of shares
Donations of computers
Donations of artifacts
Donations under the Public Art Tax Incentive Scheme
Donations of land and buildings

Donations for "foreign charitable purposes" are not tax deductible, even if made to an approved IPC.

Professional Help

Seeking professional assistance is advisable if you're interested in starting a non-profit organization in Singapore. A professional services firm can help you with the registration process and ongoing compliance requirements.

Clooud Consulting specializes in setting up non-profit organizations and foundations with various philanthropic objectives. Whether it's humanitarian work, conservation efforts, supporting underprivileged families, or addressing environmental issues, we have the expertise to assist you. Contact us for a quote.

Benefits of Online Accounting & Bookkeeping Services

Online accounting and bookkeeping services are really important for businesses today. They give lots of advantages like being easy to use, accurate, good for teamwork, and saving money. With these services, handling financial records is much simpler and faster. This article explores the benefits of online accounting & bookkeeping services for businesses in Singapore. Keep reading to learn more.

Advantages of bookkeeping and accounting services

1. Ease and flexibility

Online accounting and bookkeeping services in Singapore make managing finances easier for businesses. These services use cloud-based platforms and software, so you can check financial data anytime, anywhere, using devices like computers or phones. This helps you stay on top of your records and track how well your business is doing.

Plus, going digital means no more piles of paper! By storing everything online, you'll save space and keep your workspace neat. And because everything's stored digitally, you can find what you need quickly without rummaging through files. With online services, all your financial documents like invoices and bank statements are in one place, making them easy to access whenever you need them. It's like having your finances at your fingertips!

2. Quickly access and share information

Moving to digital formats makes it simple to get and share information. Instead of handling papers, businesses can quickly and securely exchange digital files with others. Whether working with accountants, giving data to auditors, or sharing documents with partners, the digital method makes things easier and faster.

Additionally, digital formats allow businesses to create strong backup and disaster recovery plans. Cloud-based accounting platforms often come with automatic data backup features, protecting financial information from loss. If there are hardware failures, natural disasters, or emergencies, businesses can easily restore their financial data, reducing disruptions and downtime.

3. Saving time and boosting efficiency

Online accounting and bookkeeping services in Singapore are great time-savers. They use digital tools to automate many tasks like entering data, making invoices, and tracking expenses. This means less manual work, fewer mistakes, and faster completion of tasks that would otherwise take a lot of time.

With online tools, businesses can cut down on administrative workloads. This gives owners and employees more time to focus on the main aspects of their business. Online accounting and bookkeeping services offer various features that help streamline tasks, making everything more efficient and productive.

One big plus is the automation of repetitive tasks. Online tools can handle things like data entry, invoice creation, expense tracking, and generating financial reports automatically. This cuts down on the need for manual work, saving time and effort.

4. Ensuring accuracy and compliance

Expert online accounting and bookkeeping helpers in Singapore are like super smart detectives. They know all the special rules about money in Singapore and make sure everything is just right. With their help, businesses don't need to worry about making mistakes with their money stuff!

Regular updates and checks are essential to keeping financial records accurate and meeting legal requirements. By doing these things, businesses can be sure their financial records are correct, timely, and follow all the rules.

Regular updates mean regularly reviewing and updating financial data and records. Online accounting services often offer tools that help businesses keep their financial information current. This includes keeping track of transactions, updating income and expenses, reconciling accounts, and making sure all records are accurate and up-to-date. With good financial statements, businesses can make smart decisions based on reliable information.

5. Affordability and Efficiency

Getting help with bookkeeping online is like finding a super smart helper for your business. It saves money and gives you access to experts without needing to hire them full-time.

Additionally, outsourcing bookkeeping allows businesses to focus on their core operations It enables them to access expert knowledge and technology without having to invest in training or equipment. Consequently, businesses can achieve greater efficiency and accuracy in their financial processes.

The flexible pricing of online services makes professional expertise affordable. Small businesses can benefit from qualified accountants and bookkeepers' expertise without high fees, ensuring accuracy and compliance with local regulations.

Contact Clooud Consulting Today!

When it comes to online accounting and bookkeeping services, choosing a reliable provider like Clooud Consulting is crucial for businesses. Our team of experts is well-versed in accounting regulations and standards, ensuring accurate financial record-keeping, reporting, and compliance. With our expertise, we minimize the risk of errors, inconsistencies, and non-compliance with tax laws and reporting obligations.

Additionally, we focus on keeping your data safe by using strong security measures. This protects important financial information from unauthorized access, ensuring it stays private and accurate.

Make bookkeeping easier with Xero – Cloud Accounting Solution. It connects to your bank, so transactions are fed into Xero every day. You can quickly reconcile transactions and digitize bills and receipts by emailing or scanning them. With real-time financial data and cash flow insights available on the Xero dashboard, you can make informed business decisions efficiently.

Contact us today to learn more about how Clooud Consulting can support your business with our online accounting and bookkeeping services.

Top Accounting Firm in Singapore

In Singapore's strong economy, accounting firms are crucial for keeping it as a leading global financial center. Audit firms play a vital role in ensuring transparency and accountability in business operations. They help maintain accurate financial records and build trust with stakeholders and potential investors.

Clooud Consulting LLP is honored to be recognized as a finalist for the Medium Singapore Accounting Partner of the Year award at the XERO Singapore Awards 2023. As a top accounting firm in Singapore, Clooud Consulting is committed to supporting local entrepreneurs at every stage of business journey. We specialize in helping businesses build core capabilities and navigate through the ever-evolving business landscape.

WHY CHOOSE CLOOUD CONSULTING SERVICES?

Compliance Advisory Services

Handling administrative filings and meeting compliance requirements can be challenging for SMEs, often causing stress and the risk of fines. At Clooud Consulting, we provide personalized advisory solutions to address our clients' compliance needs. Our team ensures timely completion of tasks and adherence to regulations, freeing up entrepreneurs to concentrate on their core business activities.

Company Incorporation Assistance

We specialize in assisting entrepreneurs with company incorporation in Singapore, handling accounting, tax compliance, and governance matters. Our experts help clients identify government grants and schemes to enhance business capabilities and foster growth.

Experience & Clientele

With a diverse clientele spanning non-profit organizations, corporate companies, and MNCs, we provide a range of services including Digital Design, Digital Marketing, and Cloud software solutions. Our goal is to empower clients to focus on business development while we handle regulatory and operational aspects efficiently.

IMDA Vendor & ACRA-certified Filing Agent

Being an approved IMDA vendor, Singapore SMEs can enjoy a 50% PSG subsidy for Xero, a cloud-based accounting software platform. Additionally, Clooud Consulting holds ACRA certification as a Filing Agent and is an approved Government Grant Consultant. This allows SMEs to access grants like the EDG, PSG, and MRA to enhance core capabilities and digitize business processes.

Best Business Accounting App

Xero is our top pick for tracking and paying bills because of its convenient features like scheduled payments, bill storage, and receipt uploads. It's suitable for businesses of all sizes, from freelancers to larger enterprises. With robust expense management capabilities, Xero helps monitor expenses, forecast budgets, and identify financial trends. This review is aimed at small business owners considering Xero, explaining why it's our preferred software for bill payment. Its versatility and superior tools make it an invaluable asset for accountants and bookkeepers alike, with three plan options catering to businesses of varying sizes.

For all your accounting needs, look no further than Clooud Consulting, one of the top accounting firms in Singapore. With our expertise and commitment to excellence, we provide comprehensive solutions tailored to your business requirements. Whether you're a startup or a well-established company, our team is dedicated to delivering exceptional service and driving your success. Contact us today and experience the difference with Clooud Consulting.