For many small companies, preparing a compilation of accounts is a mandatory part of annual compliance in Singapore. If your business earns less than S$10 million, you usually do not need a statutory audit. This exemption saves you significant time and money.

However, many owners misunderstand this rule. An audit exemption is not a reporting exemption. Even if you do not need an auditor, you must still prepare professional financial records every year.

Why You Need a Compilation of Accounts for ACRA

Even without an audit, Singapore law mandates that you prepare a full set of financial statements. Specifically, these records are a legal requirement for your annual filings.

A professional compilation of accounts is required for:

  • ACRA Filings: You need these for your mandatory Annual Return.

  • IRAS Filings: You use them to compute and file your corporate tax.

Internal spreadsheets are not enough for the authorities. Consequently, you must submit formal statements that follow the Singapore Financial Reporting Standards (SFRS). Using a professional service ensures that your data fits the required legal format.

What Is a Compilation of Accounts in Singapore?

A compilation of accounts refers to a complete set of unaudited financial statements. Specifically, these documents must follow SFRS rules. Furthermore, this is not a simplified report. It is a detailed document that ensures statutory compliance.

Specifically, a proper compilation of accounts includes:

  • Profit and Loss Statement: This shows your income and costs.

  • Balance Sheet: This lists your assets and debts.

  • Notes to the Accounts: These explain your specific accounting policies.

Why Notes to the Accounts are Mandatory

Under SFRS, you must include Notes to the Accounts. They are a vital part of your compilation of accounts. Specifically, they provide details on accounting policies and key business judgments.

Furthermore, these notes list future debts, such as leases or legal risks. Without these notes, your financial statements are incomplete. Consequently, your filing would be non-compliant under Singapore law.

How a Compilation of Accounts Helps Your Strategy

A well-prepared compilation of accounts is more than just a filing task. Specifically, it is a tool for growth.

  • Internal Strategy: Management uses these statements for budgeting and investing.

  • Access to Capital: Banks and government agencies look for professional financial records.

  • Credibility: A clear report shows financial stability and good governance.

Therefore, having a professional report improves your chances of getting loans or EnterpriseSG grants.

Get a Professional Compilation of Accounts with Acrafile

Acrafile helps audit-exempt companies in Singapore stay compliant. Specifically, we ensure your reporting meets all SFRS standards. This helps you avoid ACRA fines while you maintain clear financial visibility.

Our compilation of accounts services include:

  • SFRS Compliance: We prepare your statements correctly for ACRA.

  • Annual Reports: We create full reports for both ACRA and IRAS.

  • Defensible Data: We provide clear records for stakeholders and banks.

Stay Compliant and Growth-Ready

You do not need an audit to understand your business. However, you do need a proper compilation of accounts to stay legal and access funding. Acrafile helps you gain financial clarity without the high cost of an audit.

Contact Acrafile today to prepare your unaudited financial statements correctly and keep your company compliant, credible, and ready for growth.