Ecommerce is becoming the main way of selling products and services for many companies, and it is a frequent sight in today’s society. It’s a field that requires a high level of skill in doing business via the internet. Successful internet trading also necessitates a constant search for new business possibilities. However, keeping track of them may be difficult. This post will go over some of these points in depth so you know what to anticipate if you own or are contemplating establishing accounting services Singapore price entity.
Table of Contents
There are basically three ways to manage your eCommerce business’ accounting, and the financial data has a direct effect on the different taxes that your company is obliged to pay in Singapore. For starters, you may employ your in-house accountants, particularly if you’re just getting started or in the early phases of your company. Second, you can minimize your workload by using accounting services Singapore software, but you’ll still have to enter the data and analyze the figures yourself.
Finally, you can do even better by delegating your accounting and tax responsibilities to professional accountants, such as cloud accounting services Singapore price, and free up your valuable time to focus on your business’s growth while still receiving accurate numbers and detailed reports from us.
A competent accounting firm may assist your company in the following areas:
#1 Handle a large number of transactions online
In comparison to conventional companies, most eCommerce enterprises handle a large number of transactions every day. Keeping track of transactions takes a lot of effort and maybe difficult at month’s end when it comes to accounting services Singapore price and fees. You may link your eCommerce platforms (Lazada, Shopee, Shopify, Qoo10, and so on) to your accounting software with the help of your preferred accounting services Singapore provider to better monitor online transactions.
#2 Examine your financial situation
The eCommerce business owners may have a clearer view of their company’s financial health on a timely basis with the appropriate accounting services Singapore firm, allowing them to expand their companies.
WLP can generate reports by sales platform, product group, and more, when combined with our accounting services Singapore price packages customized for your firm, so you have clear insight into product profitability and can make fast business choices on how to increase sales.
Which taxes do eCommerce businesses have to pay?
You must be aware of your tax obligations in addition to keeping up with your company’s bookkeeping. In Singapore, there are two kinds of taxes that apply to your firm as an eCommerce business:
Income tax on corporations
Corporate income tax is a required tax that must be filed and paid by all companies operating in Singapore. The corporation tax rate is now 17 percent, down from 20 percent between 2005 and 2007 and 18 percent between 2008 and 2009. The effective tax rate is typically considerably lower than 17 percent due to numerous tax credits and incentives provided by the Singapore government to promote companies that are considered helpful to the country’s economic growth.
Depending on the kind and structure of your company, your tax advising expert may advise you on a variety of tax refunds. The IRAS website also has more information on Corporate Income Tax.
What is the goods and services tax?
Another tax that may apply to your eCommerce company is GST. There are two types of GST registration: mandatory registration, which is required if your company’s taxable turnover (i.e. revenue) in a calendar year exceeds S$1 million, and voluntary registration, which is optional if your company’s taxable turnover (i.e. revenue) in a calendar year does not exceed S$1 million. Once your company has been registered for GST, you must submit quarterly GST returns to IRAS.
With the assistance of a certified tax expert, you’ll be able to determine whether your company is needed to register for GST and what to do if you’re late. In the case of voluntary registration, your tax adviser will do a cost-benefit analysis to assist you in deciding whether or not to register for GST. Check out how our tax services, which are readily accessible for companies in Singapore, can help you manage your tax-related issues so you can concentrate on what matters most.
The eCommerce sector is growing at an alarming rate. While internet shopping was originally seen to be a curiosity, it has now become a requirement for firms to stay in business. You may wish to establish your own digital marketing firm in Singapore for a multitude of reasons.
Maybe you’re searching for a side hustle to supplement your income, or maybe you’ve chosen to leave the corporate world and become your own boss. Whatever the reason, developing an eCommerce website from the ground up and watching it grow can be incredibly rewarding. Do you have a business concept but are unsure where to begin? Please allow us to assist you.
Creating an eCommerce website is now easier than ever. A decade ago, setting up an internet business required considerable technical know-how as well as a variety of connectors to guarantee that everything functioned smoothly. Modern channels, on the other hand, improve the efficiency of the process.
A well-known eCommerce website is much more than a store where you can purchase and sell items. Here, a firm may create an experience that reinforces its brand, attracts new consumers, and turns casual shoppers into brand advocates.
Get started now
The fast technological development has altered the way we conduct business today significantly. New trade methods and technology for processing electronic payments have also emerged as a result of the internet. As a result, it’s natural that eCommerce sales may be difficult to account for. As a result, using the advice and experience of accountants who are familiar with these transactions may be beneficial.
WLP Group helps entrepreneurs and multinational firms on the best decisions to make as they expand in Singapore. Read our tips on incorporation, employment permits, corporate compliance, and taxation to get a head start when establishing a company in Singapore. You can also contact us to arrange a meeting with one of our professionals.