Compilation of Financial Statements Singapore: Why It Matters and How Zeglobal Simplifies the Process

In Singapore, financial transparency isn’t just good practice—it’s a legal requirement. Every registered business, from small startups to multinational corporations, must maintain proper accounting records and prepare annual financial statements that reflect the company’s performance and financial position.

The compilation of financial statements in Singapore involves organizing financial data—such as revenue, expenses, assets, and liabilities—into formal statements in compliance with the Singapore Financial Reporting Standards (SFRS).

While not as extensive as an audit or review engagement, a compilation ensures that your company’s financial information is presented clearly and consistently for stakeholders, shareholders, and regulators.

What Does “Compilation of Financial Statements” Mean?

A financial statement compilation is a process where an external accounting professional helps prepare your company’s financial reports based on the information you provide. The accountant does not verify or audit the data but ensures it is properly formatted and compliant with Singapore’s accounting standards.

Typically, the compiled financial statements include:

• Statement of Financial Position (Balance Sheet)

• Statement of Comprehensive Income (Profit & Loss)

• Statement of Cash Flows

• Notes to the Financial Statements

• Director’s Statement and Compilation Report
  

In Singapore, such compilations are often prepared by public accountants or professional firms like Zeglobal, especially for small and medium enterprises (SMEs) that are exempt from statutory audits.

Who Needs Compilation of Financial Statements in Singapore?

Not all companies in Singapore are required to undergo a statutory audit. According to the Companies Act, small companies that meet specific criteria—known as audit exemption thresholds—can opt for compilation instead of a full audit.

A small company is exempted from audit requirements if it meets at least two of the following three criteria for the past two financial years:

1. Total revenue ≤ S$10 million

2. Total assets ≤ S$10 million

3. Number of employees ≤ 50
   

These companies still need to file unaudited financial statements with the Accounting and Corporate Regulatory Authority (ACRA), and that’s where Zeglobal provides valuable support.

Why Is the Compilation of Financial Statements Important?

Even though it’s unaudited, the compilation of financial statements plays a crucial role in ensuring transparency, accountability, and compliance. Here’s why it matters:

1. Legal Compliance

Every company registered in Singapore must file annual returns with ACRA. Compiled financial statements fulfill this statutory requirement for small companies exempted from audits.

2. Financial Clarity for Stakeholders

Clear financial statements allow owners, investors, and partners to understand a company’s profitability, financial health, and cash flow performance.

3. Support for Business Decisions

Well-organized statements serve as a foundation for decision-making—helping businesses plan budgets, evaluate risks, and measure performance.

4. Credibility for Financing and Investment

Banks, investors, and venture partners often request financial statements, even from small businesses. A professional compilation by a reputable firm like Zeglobal enhances credibility and trust.

Zeglobal’s Expertise in Compilation of Financial Statements Singapore

When it comes to compilation of financial statements in Singapore, Zeglobal stands out as a trusted accounting and corporate service provider. The firm combines deep local expertise with industry best practices to help businesses remain compliant and confident in their reporting.

Experienced Professionals You Can Trust

Zeglobal’s accounting team includes qualified professionals who understand Singapore’s tax and reporting frameworks thoroughly. With years of experience serving SMEs and multinational clients, they ensure each report is prepared accurately and in line with SFRS and ACRA guidelines.

Tailored Solutions for Every Business

Every business is different. Zeglobal tailors its compilation services to suit each client’s operational structure, industry, and reporting complexity. Whether it’s a newly incorporated company or a well-established firm, Zeglobal delivers customized, reliable results.

Accurate and Compliant Financial Presentation

Zeglobal ensures all financial statements are clear, organized, and consistent—ready for submission to ACRA or presentation to investors. Their meticulous approach eliminates errors and ensures compliance with statutory standards.

End-to-End Support

Beyond compilation, Zeglobal also assists with bookkeeping, tax filing, and corporate secretarial services—making it a one-stop solution for all financial compliance needs in Singapore.

Step-by-Step Process of Financial Statement Compilation with Zeglobal

1. Initial Consultation: Zeglobal begins with a consultation to understand your business structure, accounting systems, and reporting requirements.
   

2. Data Collection and Review: The team gathers financial data—such as trial balances, ledgers, and transaction summaries—and reviews them for accuracy.

3. Preparation of Financial Statements: Using the provided data, Zeglobal compiles formal financial statements that adhere to the Singapore Financial Reporting Standards (SFRS).

4. Final Review and Submission: After thorough checks and formatting, Zeglobal provides finalized reports for filing or submission to ACRA.

5. Ongoing Support and Advisory: Even after completion, Zeglobal offers continuous advisory to ensure smooth financial management throughout the fiscal year.
   

Key Benefits of Engaging Zeglobal for Financial Statement Compilation

• Compliance with ACRA and IRAS requirements

• Accurate and professionally formatted financial reports

• Time and resource savings for business owners

• Reduced risk of filing errors or penalties

• Comprehensive accounting and corporate service support under one roof
  

Zeglobal’s mission is to simplify compliance and empower businesses with reliable financial clarity—helping clients focus on operations, growth, and strategy.