Accounting Services vs Accountant Cost in Singapore

Did you know that hiring a full-time accountant in Singapore can cost your small business over SGD 60,000 a year?

For many SMEs, that’s an unsustainable cost—yet poor accounting leads to compliance fines, cash flow issues, and limited growth. So, how do you strike a balance between affordability and accuracy?

This guide breaks down the true cost of accounting services in Singapore and compares your three main options: DIY accounting, hiring in-house, or outsourcing to a professional firm. We’ll also show you how to choose the best-fit service for your business stage—without overspending.

TL;DR: Accounting Services Cost in Singapore

• DIY accounting may seem cheap, but it consumes valuable time and increases risk of costly errors.

• In-house accountants cost SGD 3,500–5,000+ monthly, not including CPF and overheads.

• Outsourced accounting services for SMEs in Singapore range from SGD 200 to 1,200+ per month depending on transaction volume and service complexity.

• Outsourcing offers affordable, scalable, and compliant solutions tailored for small businesses.

• Choose a provider with transparent pricing, SME experience, and modern tech tools.

• Grof offers accounting services in Singapore that help SMEs grow with confidence.

Why Accounting Matters for SMEs in Singapore

Accounting is more than just filing taxes. It helps you:

• Track your business performance
• Stay IRAS-compliant
• Make smarter budgeting decisions
• Prepare for audits or investor meetings

Without solid accounting practices, even the most promising SMEs can fall apart. And yet, many business owners don’t know the true cost of managing their books—or how to save money doing it right.

Comparing Your Accounting Options in Singapore

Let’s look at the three most common methods of handling accounting for SMEs, and how much each typically costs.

Option 1: DIY Accounting – Is it Really “Free”?

At first glance, DIY accounting looks “free.” But once you factor in tools, time, and risk, the costs pile up.

Costs involved:

• Cloud accounting software like Xero: SGD 20–60/month
• Hours spent on bookkeeping and reporting
• High risk of errors or missed compliance deadlines

Hidden costs:

• Late filing penalties from IRAS
• Lost tax deductions due to incorrect categorisation
• Time taken away from running your business

Verdict:
DIY may work for freelancers or side hustles—but for growing SMEs, it often creates more problems than it solves.

✅ Tip: If you’re unsure how accounting differs from day-to-day recordkeeping, check out the differences between accounting and bookkeeping to understand which tasks you can handle in-house and which to outsource for better compliance.

Option 2: The Cost of an In-House Accountant in Singapore

Many SMEs assume hiring someone full-time guarantees accuracy and control. But is it worth the cost?

Estimated costs in Singapore (per year):

Role	Average Monthly Salary	Annual Cost (Excl. CPF)
Junior Accountant	SGD 3,000	SGD 36,000
Experienced Accountant	SGD 5,000	SGD 60,000+

Additional overheads:

• CPF contributions (~17%)
• Office space, training, software licensing
• Limited scalability (you pay the same even during low transaction months)

Verdict:
Great for large businesses or corporations—but for most SMEs, it’s a financial strain.

Option 3: Pricing for Outsourced Accounting Services in Singapore

Outsourcing has become the most popular option among Singaporean SMEs—and for good reason. It offers professional support without the overhead.

Typical pricing in Singapore:

• Micro business (low transactions): SGD 600–1,200/year
• SME with staff and GST: SGD 1,200–2,500/year
• Add-ons (GST filing, payroll, tax advisory): SGD 500–1,000/year

What’s included:

• Monthly or quarterly bookkeeping
• IRAS-compliant tax filings
• Financial reports (P&L, balance sheet, cash flow)
• Optional payroll & CPF submissions

Verdict:
Flexible, scalable, and cost-effective—perfect for startups and growing SMEs.

Benefits of Outsourced Accounting Services for SMEs in Singapore

Outsourcing isn’t just about saving money — it’s a strategic decision that supports your business growth.

1. Cost Efficiency

• No recruitment or overhead costs.
• Fixed monthly pricing for predictable budgeting.
• Pay only for the services you use.

2. Scalability

As your business grows, so do your accounting needs. Outsourced firms scale their services effortlessly — from handling payroll to preparing financial statements for investors.

3. Compliance and Accuracy

• Stay IRAS-compliant with timely tax filings.
• Access to licensed Chartered Accountants and tax professionals.
• Reduce the risk of penalties or audit flags.

4. Expert Insights

• Receive management reports and financial analysis to make informed decisions.
• Get tailored advice based on your industry.

💡New to the SME world? Before you scale or hire, it helps to understand the full picture. This starting guide for Singapore SMEs breaks down what you need to set up and operate efficiently from day one.

Tips for Choosing the Right Accounting Services

With so many providers out there, how do you choose the right one?

1. Evaluate Your Business Needs

• Are you looking for basic bookkeeping or complete financial reporting?
• Do you need payroll, tax filing, or audit prep?

2. Check for Industry Experience

Choose a provider who understands Singapore’s tax regulations, IRAS requirements, and local business practices. Bonus points if they specialise in SMEs.

3. Ensure Transparent Pricing

• Avoid hidden charges.
• Ask about service tiers and upgrade options.
• Ensure you’re only paying for what you need.

4. Look at Technology Stack

Modern firms use cloud-based platforms like Xero or QuickBooks. This allows you to access real-time data and reports anytime, anywhere.

💡Grof’s team of professionals delivers reliable and affordable corporate services in Singapore — making them a trusted partner for startups and established SMEs alike.

Conclusion: Invest Smart, Grow Smarter

Outsourcing your accounting services doesn’t just save money — it frees up your time, reduces stress, and sets your SME up for long-term growth.

Instead of struggling with DIY systems or overcommitting to in-house hires, take the smarter route. Let a trusted corporate services company like Grof handle your numbers while you focus on growth.

Looking for expert, scalable, and affordable accounting support? Discover how Grof’s accounting services in Singapore can simplify your financials and drive your success.