Financial statements are crucial for any business, providing insights into its financial health and helping stakeholders make informed decisions. For many small and medium-sized enterprises (SMEs), unaudited financial statements play a significant role in meeting regulatory requirements and assessing business performance. At Singapore Accounting Service, we specialize in preparing accurate and compliant financial statements to support business growth.
What Are Unaudited Financial Statements?
Unaudited financial statements are financial reports that have not been formally reviewed or certified by an external auditor. These statements typically include:
Profit and Loss Statement (Income Statement): Shows the company’s revenue, expenses, and net profit or loss over a specific period.
Balance Sheet: Summarizes the company's assets, liabilities, and equity.
Cash Flow Statement: Details the cash inflows and outflows, providing insights into liquidity.
Statement of Changes in Equity: Reports changes in shareholders’ equity over time.
While unaudited financial statements are not formally verified by an auditor, they still need to adhere to Singapore Financial Reporting Standards (SFRS) to ensure accuracy and compliance.
Why Are Unaudited Financial Statements Important?
Many businesses, especially private limited companies and SMEs, prepare unaudited financial statements for various reasons:
Regulatory Compliance: In Singapore, small companies that meet the criteria for audit exemption (less than SGD 10 million in revenue, total assets below SGD 10 million, or fewer than 50 employees) are not required to conduct statutory audits. However, they must still prepare financial statements for regulatory filing and tax purposes.
Corporate Governance: Unaudited financial statements provide transparency in financial dealings, ensuring accountability within the company.
Banking & Loan Applications: Financial institutions often require up-to-date financial statements when assessing loan applications.
Investor & Stakeholder Communication: Investors, shareholders, and potential partners rely on financial statements to evaluate business performance and profitability.
Tax Filing with IRAS: The Inland Revenue Authority of Singapore (IRAS) requires companies to submit financial statements along with their tax filings.
Who Needs Unaudited Financial Statements?
Startups and SMEs: Businesses that do not meet the audit threshold but still need to maintain proper financial records.
Dormant Companies: Even if a company is not actively generating revenue, it must still file financial statements.
Holding Companies: Companies that manage investments or subsidiaries but do not require an audit.
Sole Proprietors & Partnerships: While these businesses may not be legally required to prepare financial statements, they benefit from maintaining structured financial records for better decision-making.
Key Benefits of Engaging Singapore Accounting Service
At Singapore Accounting Service, we offer professional financial statement preparation tailored to your business needs. Our services ensure:
Accuracy & Compliance: We follow SFRS guidelines, ensuring that your financial statements meet Singapore’s regulatory requirements.
Time & Cost Efficiency: Avoid the hassle of preparing financial reports in-house by outsourcing to experts.
Tax Optimization: Our financial experts help identify tax-saving opportunities while ensuring proper tax compliance.
Data Security & Confidentiality: We maintain strict confidentiality to safeguard your financial information.
How We Prepare Your Unaudited Financial Statements
Data Collection & Review: Gathering necessary financial records, including invoices, receipts, and bank statements.
Statement Preparation: Compiling accurate reports based on SFRS guidelines.
Final Review & Adjustments: Ensuring all figures are accurate and properly classified.
Submission & Advisory: Providing guidance on regulatory filing and financial strategies.
Conclusion
While unaudited financial statements may not require external audits, they remain an essential tool for business management, compliance, and financial planning. At Singapore Accounting Service, we take the complexity out of financial reporting, allowing you to focus on growing your business. Contact us today for professional assistance with your financial statement preparation.
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