Best Accounting Software for Singaporean SMEs: How to Choose What’s Right for You

Running a business in Singapore isn’t easy, and financial management is an essential part you can’t overlook. Between GST compliance, tracking payments and invoices, and managing cross‑border trade, it can feel like a lot. The right accounting software changes that, it can save time, cut hassle, and help you grow with confidence.

Choosing a software that automates core workflows and keeps you compliant with Singapore’s rules can seem daunting, especially when the market is crowded. So focus on fit: what simplifies your day‑to‑day and scales with your needs. Here’s what to consider when selecting accounting software for your singapore‑based business.

In this guide, we will cover:

• How to identify the needs of your business.

• What features of potential accounting apps may be relevant to you.

• Choosing between cloud or desktop accounting solutions.

• Some buying options and costs for accounting software.

• What to look for with respect to customer support and user experience.

Identify the needs of your business

Determine what your business needs based on the industry, scale, and growth rate. For instance, a small startup may only need basic invoicing and GST tracking services, whereas bigger organizations might also require advanced services like payroll, inventory control, auditing, and financial forecasting.

Evaluate all options thoroughly to see if the software in question meets the statutory requirements under Singapore's indirect taxes like the Goods and Services Tax (GST) and the Singapore Financial Reporting Standards (SFRS).

Make a list of other software you may be using, for example inventory or CRM tools, and choose an accounting software that integrates with these platforms. This will save you the need to enter or import information manually into your tools more than once as the software does the information exchange for you.

Pick an accounting software that is simple to set up, easy to use, and flexible enough to meet your business needs, so even those on your team who don't have an accounting or technical background can use it on a daily basis.

Consider the features of potential accounting apps

Every business has its own unique requirements. Here are a few things that yours might need.

Tax compliance & GST tracking

Businesses in Singapore must comply with GST provisions when their turnover reaches 1 million SGD or above. Ensure the software:

• Calculates GST automatically against sales and purchases.

• Prepares GST reports and tax invoices.

• Supports GST filing through IRAS.

• Offers reminders for compliance as well as deadlines.

Expense management and invoicing

Pick software that offers:

• Invoice creation with custom templates

• Recurring invoice capabilities

• Expense tracking

• Payment handling capabilities

Financial reporting and bank reconciliation

Correct financial reporting assists in making decisions and conducting audits. Think of a program that:

• Connects to domestic banks for automatic reconciliation.

• Provides automated profit and loss statements, balance sheets, and cash flow reports.

• Enables consistent observation of the state of finances.

Support for multi-currency transactions

If your business involves international clients or suppliers, make sure the software will facilitate:

• Sales and purchases in different currencies

• Automatic updates to the exchange rate

• International taxation compliance

Employee management and payroll

If your business has employees, look for software that can:

• Calculate payroll.

• Generate CPF reports.

• Record employee reimbursement requests and process them in accordance with company policy.

• Automate payslip generation and salary disbursement.

Scalability and add-ons

Your accounting requirements will certainly change as your business grows. Always remember, the software should:

• Accommodate additional users and transactions.

• Include payroll, inventory, or budgeting add-ons.

• Integrate with existing CRM and project management tools.

Weigh online and offline accounting software options

Cloud accounting software allows one to access and manage company data anywhere, anytime as long as they have a suitable device and an internet connection, making collaboration a breeze. These apps tend to be version-free and often receive real-time updates with little to no down time. They're better suited for handling newer cyber security threats as software companies study and build counter measures for them relentlessly and push updates and fixes ASAP. Many cloud-based accounting software come with prebuilt integrations to other apps like sales channels, payment gateways, warehouse management systems, and more. This makes the necessary information readily available across all the different teams and apps involved, and removes the need for manual data entry.

On the flip side, they normally call for a monthly subscription and rely heavily on the health of your internet connection for speed. Since the data is outside of the user's premises, one must analyse and understand where their data is stored and who can access it before adopting such software.

Desktop accounting software, on the other hand, can be used offline, and since the data is stored in the user's personal computer or servers, they have more control over who can access this data. These can be purchased by paying a one-time fee. That said, every new, major software update or version could cost you money, and these need to be installed on the system. The user is also entirely responsible for the safety and security of their data. Plus, they'll have to plan for backups and contingencies.

Consider cost of ownership and budget limitations

Every accounting software has its own set of features, and is priced accordingly. Remember the following factors:

• Free software - Ideal for new businesses or small companies with basic accounting requirements.

• Subscription-based software - Pay monthly or yearly for cloud-based features, add-ons, and services. These tend to be flexible and scalable.

• One-time purchase software - Good for businesses that have only one location and are more comfortable with fixed costs.

• Hidden fees - Some software has additional fees for extra users, integrations, and customer support. Read the fine print before you sign up for anything.

Look into available customer support options

Pick a software that is simple to set up, easy to use, and has enough resources to guide you when you need help. Make sure the software in question is user-friendly enough for those who may have neither an accounting nor technical background.

For Singapore, pay attention to options like:

• Support for local languages like Chinese, Bahas Melayu, and Tamil on top of English.

• The presence of local support staff that you can reach out to when you run into a problem.

• Call and live chat support to all their paid users on top of email support.

• Training aids like live webinars, onboarding assistance programs, and courses for beginners.

Thoroughly examine security and data protection online

The privacy and security of your business data is of the utmost importance. If business data falls into the wrong hands, it can bring immeasurable harm to you. So, pick a software that:

• Supports multi-factor authorisation for logging in users.

• Encrypts all data stored and managed inside it.

• Allows the admin to set up user roles and permissions so employees can only access and manage what they are meant to.

• Provides multiple options for data backup and recovery in case of an incident.

Test. Compare. Decide.

Finding accounting software that fits your business in Singapore may be easier than it sounds. Just have an in-depth understanding of your requirements, budget, and how compliant you need to be. There is always something on the market that caters to your needs whether it's basic invoicing forms or a more sophisticated finance management tool that is GST compliant.

Take advantage of free trial offers or demo versions before making a firm decision. The accounting software you choose should be able to not only make financial tasks easy, but also help manage funds intelligently, leading to business growth.

If you still need a recommendation from us to get started on your journey, then try Zoho Books for free. It is a cloud-based accounting platform built for small and medium businesses like yours. We are building some really exciting things specifically for businesses and accountants in Singapore.