IRAS stands for Inland Revenue Authority for Singapore. It helps consumers and businesses to fulfil their tax obligations seamlessly. The authority understands the importance of the use of accounting software for business and its related tax obligations. For this purpose, it has extended its services and listed the accounting softwares that are certified by the competent authority.
What is IRAS certified accounting software? Accounting software that follows the principles set by IRAS and the technical requirements of the e-Tax Guide is eligible to be registered by IRAS. It is given a certificate and added to the list of IRAS-certified accounting software, available on the website.
IRAS considers the changing needs of the taxpayers. To simplify the processes required to be followed by the taxpayers, it has extended its partnership to the software-developing community.
What is IRAS certified Accounting Software?
Accounting software helps a business or individual to record and process their financial transactions. It includes features like General Ledger, Cashbook, Accounts Payable and Accounts Receivable. These features must be as per the standards set by IRAS. A thorough check must be in place before implementing them with the company’s ERP system.
An ERP software system has several modules depending on its functions, for example, CRM (Customer Relationship Management) or WMS (Warehouse Management System). The accounting software you opt for must comply with your ERP also for the smooth functioning of the business operations. As stated earlier, it must be in ASR+ (Accounting Software Register Plus) issued by IRAS.
Why Do You Need Accounting Software for Your Business?
Depending on your business needs, the ERP software you use can vary from small to medium and large. The difference comes from the size of the business you are operating. Your accounting software must comply with your ERP and business capabilities. How well you manage your transactions for sales and purchases and how well you manage your profits and losses – all depend on managing the accounts of your business. Since it is the backbone of your business, the right decision is crucial for your business’s stability.
How to Choose Accounting Software for Your Business?
Your business processes and needs say a lot about the accounting software required for your business. To gauge the impact of financial reporting, the following points need consideration:
- Will your business cater to multiple entities in the case of subsidiaries?
- Will your business cater to multi-currencies in the case of overseas dealings?
- Will your business cater to multi-languages in the case of overseas operations or clients?
- Have you evaluated your current business process? Does it need renewal?
- Have you identified your business modules?
- Who will administer the data?
- How many departments will be on board? What will be the different levels of data access for each department and its hierarchy?
- What kind of business reports do you require? Do you have any existing reports or not?
- Do you need any customization in the available IRAS certified accounting software?
What are the Types of Accounting Software Available?
Based on the level of their functionalities, the accounting softwares are divided into three categories: basic, intermediate and advanced.
Basic Accounting Software
The accounting software that caters to the standard modules for accounting operations is catered to as basic or entry-level. It is suitable for businesses that have simple business processes. Sole proprietors, start-ups or small businesses can use such accounting software.
Intermediate Accounting Software
Businesses using an ERP have intermediate-level accounting software. They have the standard modules with the ability to add more modules to make the system robust per the business requirements.
Advanced Accounting Software
Businesses involving complex processes such as SAP usually use advanced accounting software. They can add customized modules to their accounting system to cater to the ever-evolving needs of business processes.
Why is it Important to Choose IRAS certified Accounting Software?
It is necessary to use IRAS-certified accounting software because only then the competent authority will be capable of auditing your GST submission. Also, approved software will make your tax declaration easy, time-saving and accurate.
What are the Benefits of Using IRAS certified Accounting Software?
Benefits of Using an IRAS Certified Accounting Software
As stated earlier, IRAS-certified accounting software is approved by the concerned authority hence the processes are smooth that are related to taxation. In addition, it has the following benefits:
The business financial processes are transparent. Live data is available to all authorized users as per the rights of access they are assigned. So, the financial situation and business performance are visible to the owner(s), managers and other related stakeholders.
Since many business processes are done by the automated tool, it saves manpower. Also, the data is centralized so there is no need to work on the same data at multiple locations, removing redundancy and saving time. This improves the overall performance of the employees and makes the processes efficient.
The business goals and objectives are set in the beginning making them easier to follow. Thus, it assures accuracy with increased cash flow management.
As compared to manual spreadsheets, invoices are generated by the system. Related data is updated automatically. The sales and inventory levels have a real-time check and balance. Hence, saving human resources from additional tasks and increasing their productivity in return.
The use of accounting software increases the efficiency and accuracy of your financial reports and overall business performance in general. It increases productivity and reduces labor costs and efforts. It also allows you to integrate the other necessary modules of your business.
You can enjoy additional benefits if the accounting software you chose is certified by IRAS – the taxation processes are pre-defined, and all regulations related to managing your finances are pre-checked. Hence, IRAS certified accounting software is the best choice for your business, regardless of the size.
If you want to know more about this or have any queries, contact K&K IT.