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]]>Digitalisation was already altering traditional working models and is now further accelerated by the pandemic. Organisations need to apply lessons learned to make their workforce more resilient in preparation for the next crisis. The accelerated digitalisation experience could be a springboard to meet the increasing challenge of attracting and retaining a new generation of digital natives with different expectations and approaches to work, especially in finance and accounting functions or practices.
In Singapore, Accounting professionals will get more support in upskilling and redesigning their job roles to meet the challenges of a post-Covid-19 world – notably those posed by digitalisation and climate change. Minister Indranee Rajah on Wednesday (Jan 5) introduced The New job transformation maps for the industry by the Singapore Accountancy Commission (SAC) and the Economic Development Board (EDB) that is also supported by Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) following new trends include the accelerated rate of technology adoption, changing aspirations of job seekers who want more job satisfaction, and environmental, social and governance (ESG) concerns.
The new maps identify key technologies and their impact on individual job roles in finance and accounting functions and accounting practices. It also lays out the pathways for employers to transform jobs and workers to get the needed skills as new job roles emerge and existing roles evolve. Increased demand in tax, risk advisory, mergers and acquisitions, financial forensics, and business valuation. The in-house finance and accounting segment will also be critical in supporting firms as they expand overseas.
Technology skills that are increasingly in demand include the application of artificial intelligence, cloud computing, data analysis and interpretation, and robotics and automation. Soft skills required include adaptability, creative thinking, and customer orientation.
SAC, EDB, WSG, and SSG said that the job transformation maps are vital for the sector as the demand for new roles and services continues to grow, with a projected demand of 6,000 to 7,000 new accounting jobs by 2025.
ForBis see a growing need to plan the workforce and implement a talent strategy to keep up with constant changes in the workplace. We shape the business for sustained growth now and take a holistic view of the workforce from strategy and organisational design to cultural adaptation. It’s partly about rightsizing organisations, transformation, and technology, including in HR, but it’s also about transforming the people using this technology and upskilling them.
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]]>Apart from certain types of income sources, income earned in Singapore generally is taxable. Income from employment, business, property, investment, and annuity are some of the types of income sources you may have received. Before you learn how you can reduce your personal income tax, it is very important as an individual to understand, accurately declare and know the tax percentage of your taxable income.
Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
First $20,000 Next $10,000 |
0 2 |
0 200 |
First $30,000 Next $10,000 |
– 3.50 |
200 350 |
First $40,000 Next $40,000 |
– 7 |
550 2,800 |
First $80,000 Next $40,000 |
– 11.5 |
3,350 4,600 |
First $120,000 Next $40,000 |
– 15 |
7,950 6,000 |
First $160,000 Next $40,000 |
– 18 |
13,950 7,200 |
First $200,000 Next $40,000 |
– 19 |
21,150 7,600 |
First $240,000 Next $40,000 |
– 19.5 |
28,750 7,800 |
First $280,000 Next $40,000 |
– 20 |
36,550 8,000 |
First $320,000 In excess of $320,000 |
– 22 |
44,550 |
If your spouse and you belong to income earner of at least $80,000 per annual, then congratulations. This means you are earning above the national average household income. In year 2020, the average household income in Singapore apparently is $9,189. On the other hand, this also means your spouse and you will need to incur 11.5% tax rate for the amount you received above $80,000. Fortunately, the government provides different tax relief schemes that you could tap onto.
You can lower your chargeable income by a maximum of $14,000 when you cash top up amounting to $7000 to yours and your loved one’s CPF SA Account.
It depends on whether you are self-employed or employed person, your tax relief for your Medisave and voluntary CPF contributions for the year will be capped at the lower of:
As long as your parents or grandparents are not earning more than $4,000 per year, you can get a minimum of $5,500 and up to $20,000 for tax relief.
A tax relief up to $5,500 will be given to you if you went for a course that is relevant to your current employment. Alternatively, you can also claim for the course fee tax relief in the future should you take a course to prepare yourself for your new employment.
A contribution to a tax-deductible charity will give you 250% tax deduction. The donation is not only limited to cash but also other forms such as SGX-listed shares, units in unit trusts, land, building and even artefacts.
Apart from the above, there are definitely many more tax reliefs designed by the government to cater to a different group of individuals. These tax relief schemes are designed for different needs. For example, contribution to CPF Special Account helps you with your retirement and Medisave allows you to offset your medical insurance and bills. With the right knowledge, you can definitely benefit more while reducing your taxable income. Do email us at support@forbis.com.sg if you have more questions or go to our Forbis Accounting website and we will be glad to share more with you.
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]]>The post When do you need to engage a corporate service provider? appeared first on ForBis Accounting.
]]>Entrepreneurship is what we commonly understand as the process of creating a new enterprise and bearing any of its risks, with the view of making a profit. However, there are certain challenges an entrepreneur or a corporate need to deal with when they perform their businesses.
A corporate service provider (CSP) could definitely assist in most areas of company structures and mitigate many challenges faced by an entrepreneur or any type of business. These challenges are usually in the form of one or more of the following factors:
There will always be new rules and regulations, changes to policies, updates on procedures, etc. CSP focuses on research, study, and analyze all of this information daily. These daily routines train CSP to be very specialized in handling all the paperwork needed that complies with government regulations. Do you think it will be easy to remember, prepare all the documents and be as effective to implement as a corporate service provider?
Administrative, Human Resource, Accounting, and many different roles are essential to ensure a smooth company business operation. There are even other costs such as office & IT equipment, technology subscriptions and etc. All of these costs, unfortunately, do not generate any sales to the company. CSP covers most of the essential roles and activities in a company. Imagine if you need to hire one person for each role such as administrative, human resource, and accounting. Do you think these expenses will be as cost-effective as a corporate service provider?
No matter which industry a business is in, it is very important for any entrepreneur or company to focus its time to research, analyze and come up with a strategy to increase its revenue. Do you think you have sufficient time to develop your business and generate enough revenue?
A corporate service provider (CSP) is a professional business entity that has a professional license issued by the government to assist any company with its administrative, human resource, and financial activities. The corporate service provider needs to ensure that these company’s activities comply with the relevant government body and its latest rules and regulations.
A new business needs to understand the type of entity it wants to register itself into – Sole Proprietorship, Partnership, Limited Liability Company, etc.
A secretarial service ensures good governance, effective administration, and compliance with legislation, laws, and regulations that govern business and industry.
Financial support from the government through manpower upskilling, digital technology adoption, and business expansion support.
An HR system allows good tracking and accurate records in terms of recruitments, annual leaves, salary, CPF contributions, etc.
A company/business requires a specific business & other government licenses to operate – Business License, Occupational License & Business Activity License.
A professional requires government permits to work in the company – EP, S-Pass, WP.
Bridging helps businesses to assess and form meaningful business relationships through a wide network of professional firms and industry partners.
A tax filing is form filed to the authority to report corporate/individual income, expenses and other pertinent tax information.
A corporate/individual needs to have a good knowledge of accounting methodology to maintain accurate records and to keep financial and tax submissions in compliance with appropriate rules. The common types of accounting principles & standards includes Generally Accepted Accounting Principles (GAAP), and International Financial Reporting Standards (IFRS) and the Internal Revenue Code (IRC).
It is a professional service rendered to review of the accuracy and integrity of the corporate financial statements or services that complies with the government regulatory.
There can be many different areas a Corporate Service Provider (CSP) can provide a company with. The experiences and expertise CSP have will definitely help any company to ease its non-generating revenue work load. In return, the company can allocate more of its resources to its business development area for more growth. On that final note, take more time to understand and analyze in which area(s) your company’s operation needs help with and carefully weigh the opportunity costs before you engage CSP. Here is the link if you would like to know more.
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]]>Recently, the term “Ecosystem” has been a buzz word amongst business owners and in business forums, but what exactly does it mean? It has a similar meaning to the scientific definition of Ecosystem, but for businesses, the Ecosystem describes a network of organizations that cooperate together to deliver a specific product or service. A business Ecosystem can also be seen as a networked yet relatively free collaboration between several companies from one or more industries. Thereafter, the value chain of a company will expand into a value network with several partners.
Organisations within an Ecosystem are largely independent economic players that come together to create products/services. Some examples of organisations include suppliers, competitors, customers, government agencies and more. It is important to note that no two businesses will have the same Ecosystem, as each Ecosystem should be characterized by each business’ specific value proposition. In addition, it should be clearly defined to solve a problem, and also work with a group of organisations that specifically suit the business’ needs.
As knowledge management becomes increasingly essential to competitive success, the capabilities to build and manage an extensive Ecosystem with the right set of relationships between partners also remains critical.
There are mainly 2 types of Business Ecosystems: Solution Ecosystems and Transaction Ecosystems.
Solution Ecosystems create and/or deliver a product or service by coordinating various contributors. For such systems, there is often a core firm that helps to oversee the construction of these contributors. During the development of a new solution, suppliers of the core firm can be part of the Ecosystem because they are independent. Most importantly, it is to ensure that their innovation activities are coordinated with the other players. Once the basic innovation is accomplished, such suppliers may be restricted to a minor role in a hierarchical supply chain.
Transaction Ecosystems match or link participants in a two-sided market through a (digital) platform. In fact, there are many such platform businesses today. Think of Carousell, which links independent sellers and buyers; Grab which links drivers and riders; and Jobstreet that links individuals with companies.
Like any system, a business Ecosystem needs to be functional, has a good infrastructure, is adaptable and is easily connectable. However, a business Ecosystem also has other special characteristics that make it so unique and useful for businesses to utilise.
Firstly, a good business Ecosystem should have modularity, which is the ability to separate and recombine the system’s various components. While this term is mostly used in programming, it is applicable in a business Ecosystem context as the network of organisations consists of organisations that are designed independently yet function together as a whole. This feature will allow the organisations within the network to be able to work on their own and not be entirely dependent on the existence of the Ecosystem to continue operations.
Next, Ecosystem participants also need to ensure their contributions to the Ecosystem are custom tailored to suit the value proposition of the Ecosystem they are in. Another factor is that the Ecosystem-specific contributions must also be mutually compatible so that the network of organisations can cooperate with one another.
The organisations within the network must also be multilateral, meaning that the organisations should not work exclusively with one other organisation within the network. The failure of one relationship will lead to the downfall of the entire Ecosystem, despite there being successful relationships between certain organisations.
For example as shown in the diagrams above, there are organisations A,B,C,and D in the Ecosystem. Even if A successfully works well with B,C and D, if there is a contract failure between B and D, the entire business Ecosystem will not be able to function.
At ForBis Accounting, we pride ourselves in having a business Ecosystem structure. Our solution Ecosystem aims to provide professional services to our clients through our core firm: ForBis Accounting. ForBis Accounting provides Advisory, Bridging and Compliance services to companies.
In addition, we have two subsidiaries, namely ForBis Human Capital and ForBis Ventures. These two subsidiaries work hand in hand to streamline the processes to provide the most personalised services for our clients. ForBis Human Capital provides manpower services like payroll, visa applications, strategic branding, recruitment and selective job redesign, remuneration and compensation drafting and contract drafting etc. While ForBis Ventures buys small stakes in companies with high potential. In otherwards, ForBis Human Capital and ForBis Ventures are the complementors of ForBis Accounting.
A large part of Bridging means to repeatedly recommend services of our clients to other clients (provided they are good and reasonably priced). We have partnering firms such as other Accounting firms, Law firms, Professional engineers and Consultancy firms that deal with grants. We work with them and our associates to provide complete services to our clients.
For example, we work with law firms when start-ups want to do licensing of their contracts or when they want to seek legal advice. We also assist with the application of intellectual property and any other professional help needed.
Our relationship with our customers are in the form of business-to-business (B2B). Majority of our customers are in the Fintech, Retail, and Legal industries, Social Enterprises and Institutions of Public Character.
Establishing a business Ecosystem is one of the key drivers to success. Being able to work with many partners provides abundant opportunities for companies to attain achievement that is beyond the capabilities of its own. They will be able to collaborate with companies specializing in other sectors or industries, giving both companies economic advantages. It may also offer access to additional creativity in the creation of solutions.
Companies are able to gain insights from suitable partners on how to adapt suitable structures, develop and implement effective business models, and gradually transform their value chain. Furthermore, as the industry gets more competitive, many companies are seeking to focus on fewer core activities to focus on their positioning. Through partnerships, it allows them to reallocate their resources to deepen their core competencies.
Overall, it can be seen as a long-term strategic decision for the company’s development and focus. Companies are able to quickly launch innovation culture upwards and have huge potential for SMEs.
While there are many advantages of having a business Ecosystem, there are also a few disadvantages. One of them is the possibility of high transaction costs that results from having a multitude of relationships. Some of these relationships are less defined and regulated. If they are not monitored or controlled, they can unintentionally outweigh the extra customer value that the Ecosystem generates.
In addition, since it consists of largely independent economic players that agree to collaborate, it implies that each participant only has limited control of the overall system. The lack of control may worry some companies. The moment companies are made known to be associated with each other, any damage done by one company may greatly affect the other in terms of brand reputation.
Before establishing a business Ecosystem, it is important to decide whether the business is really in need of one. Since the word ‘Ecosystem’ has been such a hot topic these days, many managers of firms have the fear of missing out on something essential and feel it is necessary for their businesses to have an Ecosystem, without carrying out their analysis.
Despite all the benefits that an Ecosystem can bring to a business, as discussed above, there are also cons to having or being part of a business Ecosystem. This is especially so for organisations that are not clearly aware of their value proposition and goals.
Business Ecosystems are not the only model businesses can use for governance. There are other systems such as a hierarchical supply chain or a vertically integrated model, both of which do not lose out in terms of effectiveness to the business Ecosystem model. Businesses must realise their needs in order to choose the most suitable model that will work well for them, and not blindly follow industry trends as it may lead to unexpected repercussions.
Authors:
Celesdia SOH Jia Hui
Business Development Associate
Chrislyn WONG Shu En
Business Development Associate
Nur FADHILAH Bte Abd Fazil
Business Development Associate
Michelle CHEN
Business Development Associate
Editor:
Ryan Adnin GOH
MBa, Certified Employment Intermediary (KAH)
Director of Advisory
Bossen, K. (2020). Business ecosystems: how they benefit SMEs. DMEXCO.
https://dmexco.com/stories/business-ecosystems-how-they-benefit-smes
Pidun, U., Reeves, M., & Schüssler, M. (2019). Do You Need a Business Ecosystem?. BCG.
https://www.bcg.com/publications/2019/do-you-need-business-ecosystem
Williamson, P. & De Meyer, A. (2010). Ecosystem advantage: How to boost your success by harnessing the power of partners. CJBS.
https://www.jbs.cam.ac.uk/wp-content/uploads/2020/08/wp1006.pdf
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]]>According to Philip Kofter, who is known as the Father of Marketing, “Marketing thinking is shifting from trying to maximize the company’s profit from each transaction to maximizing the long-run profit from each relationship.” Relationships are becoming extremely valuable today. Not just the relationship with its customers, but with its other stakeholders such as the employees and suppliers. The article will examine the importance of maintaining good relationships with these stakeholders as well as how we can do so.
As the saying goes, “Customer is King”. After all, it is the customers that greatly affects the sales revenue of the company. This is especially true for companies in the service industry. Rather than just blindly selling products to customers, the focus should be on marketing the true brand message in order to maintain the relationship with them, even after the transaction has been made. This improves customer retention while building on their brand loyalty. It can also lead to positive word of mouth and thus increase your customer base and sales.
A simple visual here will introduce different ways on how you can actively engage your customers:
While customers are important to a company, your employees matter too. In fact, they are your most important customers. As they are customers that have the most insights to your product or services, they are highly valuable to your company. You can rely on them to give you the most constructive feedback on how to improve on your goods. When treated right, these “customers” can also become your greatest brand advocates and will take better care of your customers.
Furthermore, employees serve important roles in representing your organisational culture. How does your company manage employees? And how do they manage other parties? Even if your company has formed its core brand identity, it is the employees that help maintain it.
Regardless of the size of the firm, having a structured human resource management will help in managing the welfare of the employees. The human resource department can come up with a proper recruitment system to ensure that the firm selects the right employee that is able to fit well into its culture.
In order to meet your customers’ demand for your products, your supply chain needs to be effective and efficient. If your supply chain fails to deliver what your customers want and on time, it will disappoint your customers and adversely impact their satisfaction. How effective your supply chain would be is reliant on how well you manage your relationships with your key suppliers. Forging stronger ties with your suppliers is highly advantageous for your company as it may lead to special benefits such as concessionary rate and preferential services.
Just like any other relationship, it is crucial to display empathy towards the other party. As an entrepreneur yourself, you would understand the frustration of dealing with customers that do not pay on time despite invoices being given. Not only will you be short in cash but there may be some things that have to be put on hold due to the lack of funds. Similarly, you are a customer to your suppliers. As such, in order to prevent tension between you and your supplier, make the effort to pay on time. Easing their operational affairs, where you can, will also ease your affairs in getting your products.
Additionally, ensure that as buyers, you provide sufficient lead times for your suppliers to prepare your orders. By understanding your suppliers’ production methods, needs and workload, you would be able to estimate what is a suitable lead time for them to prepare your goods comfortably. It will also ensure that your products will always be of good quality and reduce the likelihood of product rejects.
Of course, there are many other types of business relationships with various stakeholders that are not mentioned in this article. But instead of trying to manage all those relationships at once, it is important for the company to do its own research on which stakeholders’ relationships you would want to prioritize. The relative importance may very well differ in different industries, as well as in different phases of your business growth. All in all, your business relationships play a major role in creating more value for the company and opportunities for growth.
Authors:
Celesdia SOH Jia Hui
Business Development Associate
Chrislyn WONG Shu En
Business Development Associate
Nur FADHILAH Bte Abd Fazil
Business Development Associate
Michelle CHEN
Business Development Associate
Editor:
Ryan Adnin GOH
MBa, Certified Employment Intermediary (KAH)
Director of Advisory
https://www.entrepreneur.com/article/206530
https://www.pay4.com/supplier-relationship-management-important/
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]]>The post #ForBisTips Different Career Pathways within the Accounting Industry appeared first on ForBis Accounting.
]]>A study done by SkillsFuture Singapore in 2017 estimated that there were 100,000 accountancy professionals in Singapore alone and in the past few years, the accountancy sector has been experiencing robust growth ranging from 5% to 9%. This is an indication of how well-performing the accountancy sector is!
Despite the large base of accountants in Singapore, a common misconception people have about the accounting sector is that the only job available is that of bookkeeping, which they believe will be automated away in a matter of years. However, they are absolutely wrong on this as the accounting sector has a variety of jobs that require a large range of skills, such as analytical, forecasting and investigative skills.
Here is the breakdown of the more popular jobs within the accounting sector.
Job Role | Auditor | Budget Analyst | Business Valuer | Financial Analyst | Tax Accountant |
Job Description | Provide objective, professional advice to management to help ensure the organisation meets its goals and objectives | Foster and maintain quality and continuous improvement in the valuation process | Apply the relevant valuation related standards and guidelines consistent with the subject matter and the purpose of the valuation | Review the completeness of the financial accounts and cost accounting | Provide country and cross-border tax advisory and strategies, review tax implications and highlight tax risks in draft business agreements |
Required Education | Bachelor’s Degree or other equivalent qualifications and at least 5 years of relevant internal audit experience | Bachelor’s Degree in any discipline with Chartered Valuer and Appraiser certification (and equivalent) or other relevant qualifications | Bachelor’s Degree in any discipline or equivalent | Advanced Diploma in Management Accounting or Bachelor’s Degree | Bachelor’s Degree |
Companies they can work in | Private companies, public companies, government agencies | Private companies, nonprofits, government agencies | Local, state companies | Private companies, public companies, government agencies | Local, state, and federal individuals and companies |
Careers in the accounting sector will also be given opportunities to take on managerial and directorial roles later on in their career. Attached is a career roadmap prepared by SkillsFuture SG for those working in the accounting industry. Do note that the salary shown is a general figure and should not be assumed to be the same across all companies.
Other than needing to keep up with any changes to the accounting and legal standards, accounting professionals often take on extra certifications and courses to upgrade themselves, especially in light of technological developments. They also take up professional qualifications such as the Chartered Accountant, ACCA or Accredited Tax Professional examinations to increase their professional credentials.
These professional qualifications will aid the accounting professionals in climbing up the corporate ladder, as they will be more recognised and trusted to take on supervisory and managerial roles to guide the newer associates.
Take a look at our previous article here to learn more about the different types of accreditations within the Accounting Industry in Singapore.
The article only covered the few main roles Singaporean accounting professionals take up, but the entire industry encompasses a larger variety of careers. There are endless opportunities out there as an accounting professional, so do not be afraid to take the leap forward and join the accounting sector!
Authors:
Celesdia SOH Jia Hui
Business Development Associate
Chrislyn WONG Shu En
Business Development Associate
Nur FADHILAH Bte Abd Fazil
Business Development Associate
Michelle CHEN
Business Development Associate
Editor:
Ryan Adnin GOH
MBa, Certified Employment Intermediary (KAH)
Director of Advisory
https://www.myskillsfuture.sg/content/portal/en/industry-insights/industry-detail.html
https://journal.isca.org.sg/2020/02/26/outlook-for-the-accountancy-sector-in-2020/pugpig_index.html
https://www.ecpi.edu/blog/what-are-different-types-of-accounting-jobs
https://www.myskillsfuture.sg/content/dam/portal/taxonomy/CareerMap/Accountancy.pdf
https://online.champlain.edu/blog/accounting-career-path
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