It is mandatory to keep records of all business transactions (actual and accrued) primarily for IRAS and XBRL reporting. For proper records of all trades, business owners must consider to set aside a budget in acquisition of an accounting software or a subscription-based system.
Regardless you are working as an accountant in a multinational corporation or an owner of an early start-up company with minimal transactions, the need for accounting software is indispensable unless the entire accounting function is outsourced to a third party. Based on our research, there are three main types of accounting software that most Singaporean companies use.
- A cloud-based or web-based system (there are three types of systems under this category, please read below)
- Accounting system as part of an ERP (Enterprise Resource Planning). Usually software-based
- Standalone system
It is essential to base your decision on as many factors as possible when choosing the most suitable accounting system. Alternatively, try to consult a professional to gather the most amount of information in this department.