05 Apr Consolidation of Accounts – Singapore
One of the most common company structures in Singapore is the holding company. Due to the relatively small size of the Singapore market, the majority of startups based out of Singapore brand out in overseas presence as well. It is very company to set up a holding company in Singapore while having overseas subsidiaries in neighbouring countries or all the way to United States. The well-designed regulatory regime gives room for easy set-up and facilitation.
What makes it more challenging is the financial reporting on consolidated basis when you are brining together a number of different entities. Here are a few tips on how to make this year:
- Align the financial years between entities: in Singapore it is very easy to change your financial year, speak to your corporate secretary on how to file an application
- Ideally use the same chart of accounts: consolidation will be a lot easier if the chart of accounts are the same
- Use the same accounting system: whether it is Quickbooks, Xero or something else, it will be a lot easier to do consolidation if all your entities speak the same language
- Set rules for inter-company capital and asset transfers: it is important to define policies and rules under which entities will transact with each other.
Should you need any assistance with the consolidation of your company accounts, do not hesitate to get in touch with us. We guarantee response within 24 hours.