Does free accounting software programs make sense for businesses in Singapore today?

Tracking your finances as a small to medium-sized business (SMB) owner in Singapore can be quite a challenge, especially if you have hired an accountant or invested in costly software. Singapore offers several free accounting tools designed to help small businesses manage their finances efficiently. Here’s what to look for when choosing a tool that aligns with local tax and reporting requirements.

Why use free accounting software?

Small businesses often operate and survive on small margins and lean supply chains. Add inflation, shifting geopolitical tides, uncertain markets, growing taxes, and the extremely rapid shift in tech to the mix and it already hints at a death by a million paper cuts kind of a scenario for any SMB out there.

Such expenses can chip away at the already small profits they make. So, it makes sense to save money wherever it is ethically possible without putting oneself at risk. One way to do that is to try out cloud-based accounting software solutions that offer a simple and straightforward free plan that comes with no strings attached while ensuring the security and privacy of your business data. There are several great options available.

How to select a suitable accounting software

There are a few things to think about when looking for free accounting software that best matches your company.

Your business requirements: What are your invoicing, GST payment, and inventory management needs?

• Software usability: Can a particular software be comprehended and utilised on a regular basis with ease, even if someone does not have a technical or accounting background?

• Legal requirements: Does it fulfil taxation obligations in Singapore, particularly in terms of GST and reporting?

• Possible development: Can the software accommodate additional transactions if you expand your business?

• Security and accessibility: 

  • Can the software facilitate collaboration between multiple team members working across different locations safely?

  • Will company data stay safe and always encrypted, so it cannot and will not be shared to anyone without your consent?

  • Can you set up user roles and permissions so people can only access, edit, and manage what they are allowed to do so?

• Other business integration: Is the software in question compatible or can be integrated with the other tools and services you need and use?

• Customer service: Can you reach and use tech support as a free plan user? This is important as help or support options for free tools can often be limited.

Additional tips for SMBs

• Ensure data is backed up: As with any other tool used on the cloud, you need to maintain backups for important financial documents, both by law and by design. Choose software that allows you to backup your data easily.

• Separate business finances: Keep personal financial accounts separate from business accounts. This way, you can manage them both with ease.

• Regularly review taxes: Laws change from time to time, stay updated on new GST and SFRS rules.

• Imagine future expenses: See what add-ons you may need alongside your accounting software. Plan and budget those expenses in advance so you are never surprised by them. Upgrade to a suitable plan only when you are ready, and if the platform has what you need for your growing business.

In summary

Using free accounting software:

• Saves costs: Your business will have no recurring expenses with expensive accounting software.

• Maintains GST compliance: Free software that helps with GST filing ensures compliance with Singapore’s tax laws.

• Saves time: Tasks like invoicing and expense tracking can be simplified and even automated, allowing your business to focus on more important tasks.

• Supports scalability: Some free tools offer upgrades as your business continues to grow.

• Ensures accuracy: Automating calculations greatly reduces human error.

• Grants proper access: Cloud-based tools grant access to important business data from anywhere while keeping it locked away from threats.

Wondering where to start?

Zoho Books works well with Singaporean rules and taxes, and starts with a generous free plan. You can find more information about it on our pricing page and even try its premium version for free for 14 days before moving to the free plan.