The global pandemic has spurred the growth of startups globally. In Singapore, almost 103,600 new businesses were formed between 2020-2021, outnumbering the 73,000 companies that folded. Even with government grants, around 30% of new businesses are projected go bust within the first three years. According to Joseph Khong, assistant director and head of engagement and communications at Action Community for Entrepreneurship (ACE), the three common issues for startup failure comes either from lack of funding, talent or market access.
Say you have a lot of investor funding to burn through, setting up proper accounting practices is still crucial in improving your startup’s chance of success. Why? Because it helps you to make business decisions that are more in line with your business’s financial health. Read on to learn more about the basics of financial accounting and how they can help you.
- Topic:
- Finance
Organisations are well aware that efficient payroll management is crucial to the smooth running of the business. Every HR department is expected to maintain accurate records of all employees, and to ensure that they are paid on time, every time and in full. However, with a plethora of solutions available such as out-of-the-box payroll software and payroll outsourcing services, they may not know which works better for their business.
- Topic:
- Payroll
Accounting software is indispensable for the efficient running of businesses. In a nutshell, it helps businesses track their accounts receivables and payables in order to manage cash flow and plan taxes.
There are many accounting software available in the market at different price points with various pros and cons. So how do you pick a great accounting software that becomes your business ally today and in the long haul?
- Topic:
- Finance
Getting payroll right is one of the most important HR priorities for any company. Doing so ensures that employees are paid correctly and on time, which is critical to maintaining their satisfaction. However, payroll is often complex, presenting many challenges for HR professionals.
In this article, we’ll look at five of the most significant payroll challenges and provide practical advice to overcome them.
- Topic:
- Payroll
With limited budgets, cash flow issues are usually one of the more pressing challenges small and medium-sized businesses (SMBs) face. A healthy cash flow means that businesses can pay their employees and suppliers on time, while meeting overhead costs.
For many businesses, ensuring that there’s more money coming in (accounts receivable) versus money going out (accounts payable) is a tricky balancing act. Cash flow problems have been further exacerbated by the ongoing COVID-19 pandemic, with nearly two-thirds of businesses seeing their revenue plunge by 31% on average in Singapore.
- Topic:
- Finance
According to myskillsfuture, close to 18,000 accountants in Singapore work in 689 accounting firms. Many of us have a rough idea of what being an accountant entails – bookkeeping, data crunching and perhaps constantly balancing income and expenditure sheets. However, sometimes we fail to realise the important role an accountant plays in a business.
Accountants must use a myriad skills to analyse, collect, compile and evaluate financial data. They prepare reports and financial statements, track daily cash flow statements and prepare annual reports.
Accountants must ensure all transactions and financial records are compliant with local regulations, which requires careful attention to detail. Having a good accountant is critical to ensure that a business functions optimally and their cash flow projections are up to scratch.
Today, we speak with Ms Kok Swan Ann, a Senior Accountant with 14 years’ experience. She provides many interesting insights on her daily tasks and shares some common challenges faced by accountants.
- Topic:
- Finance
Payroll processing is an important aspect of business management. Processes which are too arduous, complex and prone to error place unnecessary burden on HR personnel. They run the risk of failing compliance checks and harming the relationship between employer and employee.
Human error in data entry or even issues in IT systems involved can be costly for any organisation and can affect present and/or past employees if they are underpaid or overpaid. This can be a time-consuming mistake to rectify. As was the case in 2020 which affected some 3,000 civil servants in Singapore.
An in-house payroll system which is carried out manually is not only time consuming, but also increases the risk of human error due to the large amount of paperwork. It poses an administrative burden on HR employees, who could better utilise their time with such initiatives as staff re-training and development.
On top of all this, HR personnel are also required to keep abreast of the latest government legislation pertaining to HR management. They must ensure their business doesn’t run into issues during compliance audits and treat their employees fairly. So how can HR personnel enhance their current workflow more productively?
- Topic:
- Human Resources
Cash flow is one of the biggest challenges facing small businesses. According to a 2022 article by hrmasia, with high inflation and rising interest rates, 58% of SMEs in Singapore have a financial runway of less than six months.
So how can your business help improve its cash flow? Here are ten highly effective, practical tips.
- Topic:
- Finance
Payroll management is a challenging process. Not only must payroll professionals ensure their employees are paid on time and accurately, they must also keep up with ever-changing government legislation to ensure payroll compliance.
These challenges are made even harder when using outdated, on-premise payroll software that’s slow, overly complex, and difficult to access remotely. It can lead to payment errors that place a strain on employee-employer relationships, and burden payroll professionals with extra duties.
Let’s look at some of the common problems payroll professionals and their businesses encounter with on-premise software, and the key benefits of moving to a cloud-hosted solution.
- Topic:
- Human Resources
