Accounting and bookkeeping are essential for keeping any business on track. They have distinct roles even though they might look similar.

In Singapore, where staying compliant is crucial, knowing the difference helps businesses thrive.

Let’s break it down into what is accounting and what is bookkeeping. Discover how both can work together for success!

Key Takeaways

• Use accounting to analyse financial data and make informed decisions to guide your business toward growth.
• Use bookkeeping to organise your finances by accurately recording daily transactions and maintaining up-to-date records.
• Recognise that bookkeeping organises the data while accounting interprets it for strategic planning.
• Combine both roles for seamless financial management and better business decision-making.
• Accounting tasks include financial reporting, tax compliance, and strategic planning to drive long-term success.
• Bookkeeping tasks include tracking expenses, reconciling bank statements, and processing payroll for smooth day-to-day operations.
• Let bookkeepers handle the details while accountants use the data to provide big-picture insights.
• Leverage tools like cloud-based software to automate tasks, reduce errors, and improve collaboration.

What is Accounting?

Accounting is about making sense of your business’s financial data.

It goes beyond recording numbers—it’s about analysing them to create reports, plan budgets, and make smarter decisions.

Think of accounting as the big-picture guide to your business’s financial health.

View more on why outsourcing accounting firms is beneficial for businesses in Singapore.

What is Bookkeeping?

Bookkeeping is all about keeping your financial records neat and organised.

It focuses on record keeping by tracking daily transactions so you always know where your money goes.

It’s the foundation that keeps everything running smoothly.

8 Differences Between Accounting and Bookkeeping

Accounting and bookkeeping might seem like two sides of the same coin, but they serve different purposes in managing a business’s finances.

Here’s a quick comparison to help you see how they work together yet stand apart.

Accounting		Bookkeeping
.Analyses, interprets and reports financial data for decision-making and strategy.	Scope of Work	Focuses on recording daily transactions such as sales, expenses, and payments
Advanced financial knowledge, analysis skills, and certifications (e.g., CPA certification).	Skills Required	Attention to detail and familiarity with bookkeeping tools.
Provides insights into financial performance and supports business growth.	Purpose	Maintains accurate records for tracking cash flow, including accounts receivable and accounts payable.
Ensures compliance with financial reporting standards and tax laws (e.g., IRAS, SFRS).	Regulatory Focus	Ensures compliance with transaction recording standards (e.g., ACRA).
Utilises advanced software like SAP, Oracle, or ERP systems for reporting and analysis.	Tools and Technology	Uses bookkeeping software such as QuickBooks and Xero to record transactions.
Analytical focuses are on interpreting data and offering strategic advice.	Analytical vs Procedural Focus	Procedural focuses are on data entry and organisation.
Identifies growth opportunities and helps optimise financial resources.	Business Growth Impact	Lays the foundation with organised records.
Periodic, focuses on monthly, quarterly, or annual reports.	Timing	Continuous, performed daily or weekly.

Bookkeeping vs Accounting: Do You Need Both?

Managing your business’s finances can feel overwhelming, and it can be tricky to know whether to hire a bookkeeper, an accountant, or both.

Not sure which one you need? Let’s break it down to help you decide.

When You Need a Bookkeeper

A bookkeeper is ideal if your business needs help with day-to-day financial organisation. 

Bookkeepers are especially valuable for small businesses or startups needing consistent, accurate financial records to keep things running smoothly.

When You Need an Accountant

An accountant is the go-to professional when your business needs financial analysis, tax planning, or strategic advice. 

If you’re scaling up, managing budgets, or planning for long-term growth, an accountant is a must.

When You Need Both

For most businesses, combining both roles offers the best results.

Bookkeepers lay the groundwork by keeping financial records accurate and up-to-date, while accountants analyse that data to guide decisions and ensure compliance.

Together, they create a seamless financial system that supports day-to-day operations and long-term success.

This balance is critical in Singapore, where compliance with ACRA and IRAS is crucial. Having both professionals ensures nothing slips through the cracks.

Discover how Grof corporate service provider professional accounting and bookkeeping services can simplify your financial management and support your business growth.

 

5 Accounting Tasks Every Business Should Know About

An accountant is the financial strategist your business needs.

They take the data from your bookkeeper and turn it into valuable insights, providing a big-picture view to guide your success.

Tasks	Why It’s Important
Prepare financial reports such as income statements, balance sheets, and cash flow statements.	Provides a clear picture of financial performance, aiding in strategic decision-making.
Ensure compliance with Singapore’s financial reporting and tax regulations.	By meeting regulatory requirements, businesses can avoid penalties and legal issues.
Provide budgeting, forecasting, and financial planning.	Guides businesses in setting realistic goals and preparing for future growth.
Prepare and review financial documents for audits.	Ensures audit readiness, fostering transparency and confidence among stakeholders.
Offer strategic advice for cost management and scalability.	Identifies opportunities to optimise resources, reduce risks, and support sustainable growth.

Learn more about the accounting services provided to businesses in Singapore.

5 Bookkeeping Tasks Every Business Can’t Do Without

A bookkeeper is like the organiser of your financial world.

They keep everything in order and ensure you always know where your money is going. 

Tasks	Why It’s Important
Record daily transactions such as sales, expenses, and payments.	Ensures that all financial data is accurately documented for smooth operations and compliance.
Reconcile bank statements with company accounts.	Helps identify and correct discrepancies, ensuring accurate financial records.
Manage invoices, receipts, and expense categorisation.	Keeps financial data organised, making it easier to prepare for audits and tax filings.
Track and categorise business expenses.	Provides insight into spending patterns, helping businesses control costs and allocate resources.
Process payroll and track employee payment records.	Ensures employees are paid correctly and on time, maintaining trust and compliance with labour laws.

5 Ways Bookkeepers and Accountants Work Together

Bookkeepers and accountants are a dynamic duo when managing a business’s finances. They each play distinct roles but work hand-in-hand to ensure everything runs smoothly and efficiently.

1. Foundation to Strategy

   • The bookkeeper lays the groundwork by meticulously recording daily transactions and keeping the financial records accurate and up-to-date.
   • This organised data gives the accountants the foundation to analyse and interpret financial information.

2. Smooth Financial Workflow

   • Bookkeepers manage routine tasks like reconciling bank statements, tracking expenses, and processing payroll, while accountants focus on the bigger picture—creating reports, ensuring compliance, and planning for growth.
   • This division of tasks creates a seamless financial workflow.

3. Compliance and Accuracy

   • Together, they ensure the business remains compliant with regulations.
   • The bookkeeper’s detailed records are essential for audits and tax filings, while the accountant reviews and verifies the data to ensure it meets all legal standards.

4. Better Decision-Making

   • Bookkeepers handle the numbers, and accountants turn those numbers into actionable insights.
   • This collaboration ensures business owners have detailed records and strategic advice to make informed decisions.

5. Support at Every Stage

• • Whether it’s daily operations (handled by bookkeepers) or long-term financial planning (guided by accountants), the two roles complement each other, offering comprehensive support for a business’s financial health.
  • In short, bookkeepers and accountants are a team that keeps the financial side of your business functional and thriving.

How Technology Makes Bookkeeping and Accounting Easier

Technology has revolutionised bookkeeping and accounting, making financial management faster, more accurate, and highly efficient.

Here’s how technology plays a crucial role in both fields:

Bookkeeping		Accounting
QuickBooks, Xero, and MYOB automate transaction recording, bank reconciliation, and invoicing.	Automation of Routine Tasks	SAP and Oracle automates tax calculations, financial reporting, and compliance checks.
Cloud-based software updates records instantly, giving business owners up-to-date financial information.	Real-Time Data Access	Enables accountants to access real-time data for accurate analysis and timely decision-making.
Bookkeeping tools integrate with payment gateways, e-commerce platforms, and payroll systems for streamlined operations.	Integration with Other Systems	Accounting software integrates with ERP systems to provide comprehensive financial and operational insights.

Enhanced Accuracy

Technology reduces human errors by automating calculations and data entry.

This ensures the precision of financial records, which is essential for complying with regulations like ACRA and IRAS in Singapore.

Improved Collaboration

Cloud-based tools allow bookkeepers, accountants, and business owners to work together seamlessly.

Everyone can access the same updated financial data anytime, from anywhere.

Predictive Analysis and Insights

AI-powered tools analyse trends and spending patterns to provide actionable insights.

This helps businesses make smarter decisions and plan for future growth.

Cost-Effectiveness

Automated processes save time and reduce the need for manual work.

This lowers costs while improving the efficiency of financial management.

8 Types of Costs for Bookkeeping and Accounting

The cost of bookkeeping and accounting can vary widely depending on several factors, such as the size of your business, the complexity of transactions, and the type of services required. 

Service	Pricing Range (SGD)	Factors Affecting Cost
Monthly Bookkeeping	70 to 500 per month	– Number of transactions per month – Complexity of transactions – Type of software used – Experience of the provider
Annual Bookkeeping	250 to 6,000 per year	Total volume of transactions Additional services like expense tracking or invoice management Business size
Accounting Services	100 to 1,000 per month	Scope of work (e.g., financial reporting, tax planning) Frequency of reporting (monthly/quarterly/yearly) Business complexity
Payroll Services	15 to 100 per employee/month	Number of employees Additional services like CPF submissions and leave tracking Integration with bookkeeping services
Corporate Tax Services	200 to 1,000 per year	Business structure (e.g., sole proprietorship vs. private limited) Complexity of tax filings Need for tax planning and advice
Compilation of Financial Statements	500 to 2,000 per year	Complexity of financial data Compliance requirements Volume of transactions
Tax Filing Services	300 to 1,500 per year	Type of tax (e.g., personal, corporate, GST) Complexity of tax computations Deadlines for submission
Virtual CFO Services	2,000 to 8,000 per month	Level of strategic involvement (budgeting, forecasting) Size of the company Frequency of reporting and meetings

View Grof’s comprehensive pricing packages for bookkeeping and services for more details.

Manage Business Finances with Grof’s Accounting and Bookkeeping Services

Grof offers outsourced accounting services and bookkeeping solutions to simplify financial management for businesses of all sizes.

Here’s what you can expect from our services:

1. Bookkeeping Services

   • Accurate recording of daily financial transactions to keep your records organised.
   • Bank reconciliation to ensure your financial data matches bank statements.
   • Management of invoices, receipts, and expense tracking for smooth operations.
   • Payroll processing to handle timely and precise employee payments.

2. Accounting Services

   • Preparation of financial statements like income statements, balance sheets, and cash flow reports to provide insights into your business’s performance.
   • Tax compliance and planning to ensure your business meets all regulatory requirements and avoids penalties.
   • Strategic advice to identify opportunities, manage risks, and support long-term success.

3. Technology-Driven Solutions

   • Grof leverages the latest cloud-based tools, such as Xero and QuickBooks, to automate and streamline financial processes.
   • Their integrated solutions allow for real-time updates and seamless collaboration between bookkeepers, accountants, and business owners.

4. Tailored Packages

   • Whether you’re a startup, SME, or large corporation, Grof offers flexible packages to meet your specific needs.
   • You only pay for your business’s support, ensuring cost-effectiveness without compromising quality.

With Grof’s expertise in accounting and bookkeeping, your business can stay organised, compliant, and ready to grow.

We also provide ACRA incorporation of company services for local businesses & foreign entrepreneurs and corporate secretarial services in Singapore. 

Conclusion

Accounting and bookkeeping are the backbone of any successful business.

Bookkeeping ensures that your financial records are accurate and up-to-date, laying a solid foundation for effective financial management. Meanwhile, accounting uses this data to analyse performance, provide strategic insights, and plan for the future.

Together, these functions not only keep your operations running smoothly but also ensure compliance with regulations, helping you avoid penalties and maintain trust with stakeholders.

By combining the precision of bookkeeping with the strategic expertise of accounting, businesses can make informed decisions, optimise resources, and drive sustainable growth.

With Grof’s outsourced accounting services and expert bookkeeping solutions, you can simplify your financial processes and focus on growing your business.

Let Grof handle the numbers while you focus on what matters most—your business. Get started with Grof today!