Startups often operate with tight budgets and lean teams, which makes it tempting to postpone hiring professional accounting support. However, accountants in Singapore are crucial to keeping new businesses compliant, financially sound, and prepared for growth. Engaging the right accounting firm early can prevent costly mistakes and ensure accurate financial reporting. This guide explains when and why startups should bring in professional accountants during their business journey.
During Incorporation and Business Structuring
Startups should consider engaging an accountant even before official registration. Early financial advice helps founders select the right business structure, such as a private limited company or sole proprietorship, and understand the tax and compliance obligations tied to each. Accountants in Singapore can assist with preparing incorporation documents, setting up proper financial controls, and guiding the initial capital structure.
An accounting firm also helps identify regulatory requirements, including whether the business needs to register for Goods and Services Tax (GST) and the timelines for annual filing. Skipping this step or misunderstanding these requirements can lead to delays, penalties, or future restructuring.
When Setting Up Bookkeeping and Financial Systems
Once the business is operational, accurate bookkeeping becomes essential. Startups that wait too long to implement accounting systems often face data gaps or inconsistent records. Professional accountants in Singapore can help choose and implement accounting software suited to the startup’s size and industry.
They also establish a chart of accounts, organise expense categories, and ensure the proper treatment of capital, loans, and equity. Without a clear financial system, founders risk incorrect tax filings and difficulty tracking cash flow. An accounting firm ensures financial clarity from the start, reducing the time and effort spent correcting avoidable errors later.
Before the First Tax Filing
All Singapore-registered companies must file Estimated Chargeable Income (ECI) within three months from the end of their financial year, even if they haven’t started generating revenue. This filing can be complex without a strong grasp of tax treatments, deductible expenses, and exemptions.
Engaging accounting services before your first tax cycle ensures compliance with IRAS requirements and optimises the startup’s tax position. Accountants in Singapore will also help determine whether the business qualifies for tax schemes such as the StartUp Tax Exemption or the Partial Tax Exemption. A reliable accounting firm provides timely reminders and assistance with submission, preventing any missed deadlines or reporting errors.
When Seeking Funding or External Investment
Startups planning to raise capital, whether through venture capital, angel investors, or government grants, must present clean, accurate financial statements. Investors will expect transparency and clarity around profitability, burn rate, and projected cash flows.
A trusted accounting firm can prepare audited or reviewed financial reports, validate figures, and assist with investor due diligence. Founders who try to handle this alone may face credibility issues or delays in closing funding rounds. Accountants in Singapore ensure the startup’s finances are presented professionally and align with regulatory expectations, improving investor confidence.
As the Team and Operations Grow
Scaling a startup often involves hiring staff, expanding to new markets, or managing multiple revenue streams. These milestones complicate financial reporting and introduce payroll compliance, CPF contributions, and multi-currency accounting requirements.
At this stage, it’s no longer efficient to manage finances manually or rely solely on basic software. Accountants in Singapore can help automate reporting, manage payroll, and track profitability across departments or product lines. An experienced accounting firm becomes a long-term financial partner, supporting budgeting, forecasting, and strategic planning.
Conclusion
Startups should engage accountants in Singapore as early as possible, ideally during incorporation and certainly before their first tax filing. A professional accounting firm helps ensure regulatory compliance, financial accuracy, and readiness for funding and growth. Delaying accounting support often results in unnecessary errors and missed opportunities.
Set your startup up for success. Consult Credo Assurance to partner with accountants who understand Singapore’s financial landscape and startup needs.
