When businessman Peter Tan’s (not his real name) sole accountant went rogue and left together with the company records on the firm’s laptop, he was rendered helpless.

Mr Tan was unable to access the company’s latest financial data stored in that laptop. 

To make things worse, the accountant was discovered to have been reporting inaccurate numbers for months. 

This unfortunate event underscores a common problem in small and medium-sized enterprises (SMEs) – a reliance on manual accounting processes and a lack of awareness of more efficient digital tools such as cloud accounting. Because offline accounting processes do not allow for multiple points of access in real time, SMEs that rely heavily on them are particularly vulnerable to losing important financial information should the sole staff-in-charge leave without notice.

Says Mr Alan Chang, managing director of Singapore Corporate Services (SCS), a certified public accountant firm: “This would not have happened if the business owner knew his numbers in real time, and more importantly, was in control of the company’s financial records. This is why we encourage business owners to adopt the use of cloud accounting softwares which will enable them to know the financial pulse of his company at any time.”

Now, Mr Tan can check his company's financials on his phone or laptop, knowing the information is always correct and up-to-date. The dashboard also provides him with valuable insights into the company's performance, allowing him to make informed business decisions at any given time.

Real-time data is a real need

Since he took over SCS in 2016, Mr Chang, 45, has been on a relentless mission to educate small business owners on the benefits of cloud accounting and the value of having instant access to real-time financial information.

It has been especially challenging given the change-resistant nature of the accounting sector.

“Many SME owners view the work of accountancy firms as a commodity service,” he says. “They just want someone to help them close their books at the end of every month at the lowest price.” 

“However, they often run into issues because of poorly collected data and staff leaving the company without proper handover of its financial records. You cannot just work on the numbers at the end of each month, you have to collect data every single minute.” 

Mr Chang says that when business owners have real-time data at their fingertips, they are able to address any business issues or capture opportunities before it is too late.

In 2021, SCS was certified as a pre-approved vendor for the Infocomm Media Development Authority’s “SME Go Digital Programme”. The national programme aims to help SMEs adopt digital technologies to build capabilities and seize growth opportunities. 

Local SMEs can tap on solutions and government grants of up to 50 per cent to transform their business through digitalisation of their processes, especially in time-consuming areas like accounting.

Being a pre-approved vendor means that SCS is ready to help local SMEs get onboard with the programme smoothly, while providing consultation to address their specific needs. 

The power of the cloud

SCS has helped to empower many businesses with cloud accounting softwares like Xero that offer real-time data collection, monitoring and analysis on the go.

For example, where SMEs used to have to collect many receipts for claims manually, their staff now just need to take a photo of the receipt with their phone and upload it to the company’s Xero system.

The claims can then be quickly approved online by managers and the company’s financial records are updated automatically.

Likewise, SMEs can automate tedious tasks like invoicing, accepting payments, paying salaries, and managing multiple projects through the same Xero software. 

SMEs thus get to reduce cumbersome work while gaining a transparent view of the finances in real-time. With instant access to data, there should be no surprises with the numbers at the end of the month. 

Catering firm 3 Embers does not have an in-house accountant. Instead, a single staff member manages various accounting processes with the aid of Xero software and SCS staff. The co-founder and chef of 3 Embers, Mr Teo Yeow Siang, says that using cloud accounting has freed up time and increased profits.  

“The adoption of Xero has had a positive impact on our revenue and profit. By automating various accounting tasks, Xero has freed up valuable time for business owners to focus on core activities that directly contribute to revenue growth. With streamlined processes and reduced manual labour, we can now dedicate more attention to areas such as sales, customer service, and business expansion,” he shares.

Helping others to make positive changes

Change for SMEs can be difficult, as SCS found out for itself when it went fully digital in 2019 and encountered staff who were concerned about migrating to a new platform.   

Says Mr Chang, “Some staff left as they could not accept the change. But today, almost all our clients are using cloud accounting. We, as a user of cloud accounting, have now become enablers, transferring productivity gains to our clients.” 

With its digitalisation efforts, SCS has since achieved Xero Platinum Partner status. 

With the power of technology today, Mr Chang believes that accountancy today must go beyond the numbers. 

“When we help businesses understand what they really need in terms of tools, processes and people, they gain valuable insights that truly drive their profit growth,” says Mr Chang.

Everyone has their blind spots, he says. There was an SCS client in the medical field who had over a dozen offices but still insisted on manually checking staff’s expense claims multiple times. 

Over several weeks, the SCS team helped the client to discover such blind spots and other unproductive processes, then streamlined their accounting system to improve their profitability.

Transforming the profession

Mr Chang feels that accountants in the SME space are often overworked and underappreciated, and that SCS can help make a positive change in the profession. 

“At SCS, we recognise that accounting is no longer confined to bookkeeping and balancing numbers,” he says. 

“We now must play the role of strategic advisors, leveraging technology to forecast the future and guide businesses towards growth.”

As it helps clients to digitalise, Mr Chang and his team are already seeking new ground, exploring what emerging artificial intelligence technologies can do to further enhance the strategic impact of accountants.

He says, “We believe in always being different and willing to change. Change is a must.”

Learn more about how you can scale your business with Singapore Corporate Services.