Running a small business in Singapore is exciting, but it also comes with a fair share of responsibilities. Financial management is a crucial aspect, and choosing the right accounting firm is essential for ensuring your business stays on track. This blog post dives into the key differences between Big 4 accounting firms and local accounting firms in Singapore, specifically to help entrepreneurs and small business owners make informed decisions about their accounting and financial services.

What are the Big 4 Accounting Firms in Singapore?

The Big 4 accounting firms in Singapore are PricewaterhouseCoopers (PwC), Deloitte, Ernst & Young (EY), and KPMG. These firms are globally recognised for their auditing, advisory, tax, and consulting services, catering to a wide range of clients from various industries.

All 4 are industry leaders, renowned for their exceptional service quality, global reach, and expertise in various domains. Understanding each firm’s profile and the services they offer can aid in making an informed decision when it comes to selecting an accounting firm to meet your business needs.

KPMG Singapore

KPMG Singapore is a leading professional service firm in Singapore that offers top-notch financial advisory services and solutions to clients. With its global reach and reputation, KPMG Singapore caters to both public and private clients, providing them with expertise in risk management, quality assurance, regulatory environments, and exceptional service delivery. Their team members are highly skilled professionals, and the firm’s professional approach ensures clients receive tailored solutions to meet their unique business requirements. KPMG Singapore’s professional service and global reach make them a trusted partner for businesses in Singapore and beyond.

PWC Singapore

PWC Singapore is one of the leading professional service firms in Singapore, offering a broad range of financial services to clients. With a strong focus on corporate finance and accounting services, PWC Singapore is known for its expertise in helping businesses manage their financial operations and navigate the complex landscape of business advisory. Their wide range of advisory solutions, coupled with a deep understanding of business operations, makes them one of the top accounting firms in Singapore, as well as in other countries such as Hong Kong, China, and Taiwan. PWC Singapore serves clients across various industries, providing them with insightful and strategic guidance to help them achieve their financial goals.

EY Singapore

EY Singapore provides comprehensive accounting services to clients, encompassing various financial and advisory solutions. With expertise in financial advisory, tax returns, and regulatory requirements, EY Singapore offers professional services tailored to clients’ individual needs. Their strong emphasis on regulatory requirements ensures clients’ compliance with financial and tax laws, giving them confidence and peace of mind in their financial operations. Being a leader in the range of accounting services, EY Singapore is renowned for its commitment to excellence and client satisfaction, making it a trusted partner for businesses in Singapore.

Deloitte Singapore

Deloitte Singapore stands out for its professional approach and wide range of services, encompassing audit, legal services, and digital transformation solutions. They have over 150 years of experience in the business, making them one of the leading global financial services companies. With a strong presence in management consulting and digital transformation, Deloitte Singapore supports businesses in their digital journey and transformation initiatives. They serve multinational corporations with tailored solutions, leveraging their expertise in various industries. From audit and advisory services to accounting and legal services, Deloitte Singapore, with its team of qualified Chartered Accountants of Singapore, is known for its exceptional client experience and commitment to delivering quality services. Their comprehensive range of services caters to the diverse needs of clients across a broad range of industries in Singapore and globally.

Curious about the top reasons to outsource your accounting services in Singapore? Check out our blog for all the details!

Exploring Local Accounting Firms in Singapore

Now, let’s shine a spotlight on the underdogs – the local accounting firms. These boutique firms may not have the global reach of the Big 4, but what they lack in size, they make up for in agility and personalised service.

These firms offer specialised services tailored to the unique needs of local businesses and play a vital role in supporting the local entrepreneurship landscape. Local accounting firms, such as Grof, provide personalised support and attention to clients, understanding the local regulations and laws, and offering a more diverse range of work and exposure to various industries. Exploring the services provided by local firms can help businesses find the right accounting partner that aligns with their specific requirements and objectives.

Services Provided by the Big 4 Singapore

Singapore is a global financial hub, and the presence of the big 4 accounting firms – Deloitte, PwC, EY, and KPMG – reflects this status. These firms boast extensive experience, international networks, and a deep pool of talent specialising in various accounting and financial services.

They cater to a wide range of clients, including large corporations and multinational companies. Big 4 firms in Singapore offer a comprehensive suite of services, including:

• Auditing: Big 4 firms are renowned for their rigorous audit procedures, providing businesses with the highest level of assurance for their financial statements.
• Taxation: Their tax experts can help businesses navigate Singapore’s complex tax landscape, ensuring compliance and optimising tax strategies.
• Advisory services: These services encompass areas like business restructuring, risk management, and financial due diligence, crucial for businesses seeking strategic growth.

Array of Services by Local Accounting Firms

On the flip side, local accounting firms offer a more bespoke approach. They understand the nuances of the Singaporean market and can provide tailored solutions that address your specific challenges. Whether it’s navigating local regulations or optimising tax strategies, they’re there to guide you every step of the way.

Local accounting firms in Singapore typically provide a range of services, including:

• Payroll and Bookkeeping Services: Managing payroll, processing invoices, and maintaining accurate financial records are fundamental tasks for any business. Local firms often specialise in these areas, ensuring compliance and efficiency.
• Tax Preparation and Filing: Local accountants understand the nuances of Singapore’s tax system, helping businesses minimise tax liabilities and claim available deductions.
• Accounting Software Implementation: Local firms can assist with selecting and implementing accounting software suitable for your business needs, streamlining your financial management processes.

Learn about the critical role of accounting and bookkeeping services in driving business success by reading our comprehensive blog post. We cover everything you need to know to keep your financials in top shape!

Pros and cons of working with the Big 4 Singapore

Working with the Big 4 Singapore comes with its perks – access to top talent, global resources, and prestige. However, it also means dealing with higher fees, potential conflicts of interest, and, sometimes, a lack of personalised attention. It’s important to consider both the advantages and disadvantages of working with a Big 4 Singapore.

Pros:

• Reputation and Expertise: The Big 4 brand carries significant weight, offering peace of mind and access to a global network of industry experts.
• Standardised Processes: Their established procedures ensure consistent high-quality service delivery.
• Advanced Technology: Big 4 firms invest heavily in cutting-edge accounting software and technology, streamlining processes and delivering efficient solutions.

Cons:

• Cost: Big 4 firms typically have higher fees compared to local accounting firms. Their pricing structures might not be as flexible for smaller businesses with simpler accounting needs.
• Focus on Large Clients: Smaller businesses might find it challenging to receive the same level of personalised attention compared to larger clients.
• Limited Flexibility: Big 4 firms might be less adaptable to specific business needs due to their size and standardised processes.

Pros and cons of working with local accounting firms like Grof

Opting for a local firm like Grof means getting hands-on support from experienced professionals who truly understand your business. You’ll benefit from personalised service, competitive pricing, and a deeper understanding of the local market. However, you may miss out on the global reach and brand recognition associated with the Big 4 Singapore.

Let’s explore the advantages and disadvantages of partnering with a local accounting firm.

Pros:

• Cost-Effective: Local accounting firms generally have lower fees compared to Big 4 Singapore, making them a more budget-friendly option for small businesses.
• Personalised Service: Local firms often provide a more personalised touch, building relationships with their clients and offering greater flexibility to cater to specific business needs.
• Local Expertise: Their in-depth knowledge of the Singaporean market and tax regulations proves invaluable for navigating local business complexities.

Cons:

• Limited Resources: Compared to the Big 4 firms, local accounting firms might have a smaller pool of specialists or access to the same level of advanced technology.
• Brand Recognition: While some local firms have established reputations, they may lack the international brand recognition of the Big 4 firms.
• Experience with Complexities: For businesses with highly complex accounting needs or international operations, a local firm might not have the same level of experience as a Big 4 firm.

Factors to Consider When Choosing Between the Big 4 and Local Accounting Firms

So, how do you decide? Consider factors like the complexity of your financial needs, your budget, and the level of personalised service you require. While the Big 4 Singapore offers unparalleled expertise and global reach, local firms like Grof offer a more tailored approach and deeper understanding of the local market dynamics.

Here are some key factors to consider:

• Business Size and Complexity: For larger businesses or those with intricate accounting needs, a Big 4 firm might be a better fit. However, if you’re a small business with straightforward accounting requirements, a local firm could be the more cost-effective and flexible option.
• Growth Plans: If you have ambitions for international expansion, a Big 4 firm’s global network can be advantageous. Local firms, however, can still provide valuable support for navigating Singapore’s specific regulations during your growth journey.
• Budget: Accounting fees are a significant business expense. Consider your budget constraints and the value proposition offered by each firm. Local firms often provide more competitive rates for core accounting services.

Conclusion

Ultimately, the ideal accounting firm for your business in Singapore hinges on understanding your specific needs and priorities. Both Big 4 and local accounting firms offer valuable expertise. By carefully considering the factors mentioned above, you can make an informed decision that empowers your business for long-term success.

Want to discuss your accounting needs with a reliable local firm? Grof offers a comprehensive suite of accounting services tailored for Singaporean businesses, including payroll, bookkeeping, tax preparation, and more. Contact Grof today for a free consultation and discover how we can help your business thrive!