Overview
Accounting entities play a key role in the country’s general economic growth and development
The accounting industry comprises firms based on Accounting Entity size, such as the ‘Big Four’ accounting entities (making up 69% of industry revenue in 2020), large firms (12% of sector revenue), small firms (9% of sector revenue), medium firms (5% of sector revenue) and micro firms (5% of sector revenue). Some of the leading accounting firms in Singapore include KPMG, Ernst & Young, PwC Singapore, Deloitte Singapore, RSM Singapore, BDO Singapore and Foo Kon Tan.
Accountancy is a key sub-segment of the professional services sector. In 2020, the GDP contribution of the entire professional services sector was 5.9% (2021 was 4.4%), while the national value added by the accounting sector was 6.9%, which was a drop of 2.2% in real growth. The country’s accounting industry accommodates both domestic and international demand. The industry provides professional accountancy services and talent to the diverse sectors of the economy. On a global scale, the industry has experienced a rise in demand in recent years, for the export of its expertise.
The Professional Services Industry Transformation Map (PITM) was launched in January 2018, to promote Singapore as a cutting-edge professional services provider. Further, in 2018, an accountancy roadmap was launched by the Ministry of Finance (MOF) to establish Singapore as a dominant global accountancy hub over the next 5 to 10 years.
The goals consisted of achieving an annual growth of 5.6% (i.e. SGD 2.03 billion in nominal value-add), and to generate 2,000 new Professionals, Managers, Executives and Technicians (PMETs) jobs by 2020. However, the pandemic came as an unforeseen disruption towards this goal. The Deputy Prime Minister of Singapore has promised to have the ITMs updated by the end of 2022.
Regulatory bodies facilitate and govern the accounting sector of Singapore
The Singapore Accountancy Commission (SAC) is a statutory body under the Ministry of Finance that was launched in 1996 to develop the country’s accounting sector and make it a leading global accountancy center. Further, the Accounting and Corporate Regulatory Authority (ACRA) acts as a regulator for obtaining business registration, financial reporting, public accountants and corporate service providers.
Both ACRA and the Institute of Singapore Chartered Accountants (ISCA) oversee the establishment of ethical requirements for professional accountants. By the second half of 2022, the MOF will integrate the accountancy-related units in the ACRA, SAC and the Accounting Standards Council (ASC) secretariat into a fortified accountancy function under one body.
Key Trends
Accounting industry faces the brunt of the pandemic
The Singaporean economy and the professional services sector recorded contractions of 5.4% and 9.7% respectively in the year 2020. Revenue from the accounting industry, too, diminished in 2020 by 3.7%, to SGD 2.49 billion. The key source of revenue was derived from the audit and assurance services segment, which accounted for 49% of the Accounting Entity (AE) firms’ operating receipts and contributed to over SGD 1.2 billion in revenue.
The steepest decline, on the other hand, was observed in the risk management and governance services segment, which recorded a decline in revenue of 19.3% in 2020. This was due to most advisory projects being put on hold, as a result of the uncertainty in the economic and operating landscape amid the pandemic.
Technology adoption levels have improved for the better
Technological solutions for accounting firms include Know Your Customer (KYC) tools, Audit Software,On-premise Accounting Software, Cloud Accounting Software, HR/Payroll Software, Data Analytics for Advisory, Practice Management System,Document Management System, Data Analytics for Audit, Marketing/CRM Software and RPA Solutions. A census conducted by SAC in 2020 on the industry recorded that at least 66% of Accounting Entities have adopted two or more technological solutions.
Technology adoption rates were enhanced in 2020 as 8 out of 12 types of technology were adopted. Various programs, promoted by the Singapore Accountancy Commission, Enterprise Singapore and the Institute of Singapore Chartered Accountants, assisted in creating awareness, and supported AEs with funding to maintain such solutions. On-site accounting software adoption has shown a decrease, from an adoption rate of 41% in 2019 to 38% in 2020. It is presumed that the increase in the adoption of cloud accounting software, from 22% in 2019 to 30% in 2020, could be the driving factor behind this decline.
The accelerated rate of technology adoption may require accounting professionals to redesign and upskill their job roles, in order to meet the challenges of a post-pandemic accounting landscape and adapt to the changes in digitalisation. A recent survey in 2019, conducted by Ernst & Young, reported that 79% of finance and accountancy professionals in Singapore are not confident that they are sufficiently equipped to meet the demands of their roles in ten years’ time.
The government has also launched a grant, through the Ministry of Finance, known as the Productivity Solutions Grant for Job Redesign. The grant is limited to a maximum of SGD 30,000 per business, which will harbor up to 80% of a business’ job redesign consultancy.
Industry shows signs of optimistic growth despite the pandemic
As the nation strives to emerge stronger after the pandemic, the accounting industry portrays optimism regarding future growth. This has brewed through the distinct resilience that the industry has shown, in spite of the pandemic. The accounting industry displayed strong resilience in the face of the COVID-19 challenge, as the bulk of accounting entities recorded growth in their annual revenue and headcount for 2022, especially in the areas of business advisory and tax.
The Ministry of Trade and Industry (MTI) reports that the growth rate of Singapore’s economy can be anything between 3% and 5% in 2022. Likewise, the accounting industry’s revenue growth is anticipated to be 6.1% in 2022, while the headcount growth rate is expected to be 3.6%. Further, according to the SAC and Economic Development Board, Workforce Singapore and SkillsFuture agencies, the accounting industry is anticipated to add 6,000 to 7,000 jobs by 2025, to the current workforce of approximately 100,000.
Key Statistics
- Total Operating Receipts for 2020 were SGD 2,488 million, of which 49% was attributable to audit and assurance, 25% was business advisory, 19% was tax advisory and compliance, and 7% was audit and support.
-The total wage expense, as a percentage of total operating expense, is 74% (2020).
- The total wage expense, as a percentage of total operating revenue, is 59% (2020).
- Approximately SGD 237.1 million was generated from work performed outside of Singapore. This consisted of 9.5% of the accounting industry’s total.
-The size of the accounting workforce composition by service category, in 2020, was 49% in audit and assurance, 22% in business advisory, 13% in tax advisory and compliance, 9% in admin or support and 7% in corporate support.
- The local workforce(consisting of Singaporeans and permanent residents) rate in Accounting Entities stood at 79% in 2020.
Top Singapore MNCs and LLEs in Accounting & Tax Sector
PRICEWATER HOUSECOOPERS LLP
PricewaterhouseCoopers (PwC) LLP was incorporated in 1998 by the merging of two accounting firms, Coopers & Lybrand and Price Waterhouse. PwC is a professional accounting firm which provides corporate consulting services such as audits, accounting, taxation, strategy management, and human resource consulting. The firm provides global services to the aerospace, defence, automotive, energy, hospitality, insurance, banking, healthcare, and transportation industries, as well as to the government and consumer market sectors. PwC received a Top Rating for Financial Consulting from Gartner in 2010, a Malcolm Baldrige National Quality Award in 2014, and it was named the Most Inclusive Employer of the Year at the European Diversity Awards in 2015.
DELOITTE & TOUCHE LLP
Deloitte amalgamated with Haskins & Sells in 1972, to form Deloitte Haskins & Sells, and with Touche Ross in 1989 to form Deloitte & Touche. The international firm was renamed Deloitte Touche in 1993, and was abbreviated to Deloitte. Audit, consultancy, financial advising, risk management, and tax services are consulting services offered by the company. For the eighth year in a row, Deloitte was named the top accounting firm in 2018. Its offices are located in over 150 countries and territories. The company has supported a variety of activities and events, including the 2012 Summer Olympics.
RSM CHIO LIM LLP
Established in 1985, RSM Chio Lim LLP is a professional services firm, which offers audit, tax, consulting, and business support services. It also helps multinational companies with their Asian operations in areas such as corporate compliance and governance, payroll, accounting, staffing, and IT infrastructure and solutions. The company is an EDB Connections Concierge Service Provider. The EDB Connections Concierge is an online tool that assists new enterprises and technology companies to establish themselves in Singapore by utilizing EDB's handpicked network of service providers. In 2021, RSM Chio Lim won the Training Employer Award, and the Recognised Employer Partner Award.
ERNST & YOUNG LLP
Ernst & Young LLP is a professional services firm. It provides assurance, audit, tax, financial, and business consultancy services to companies in the automotive, financial, entertainment, mining, real estate, technology, and telecommunications industries, as well as the government sector. Ernst & Young serves clients worldwide by providing assurance (including financial audit), tax, consulting, and advisory services. The company has expanded into areas other than accounting, such as strategy, operations, human resources, technology, and financial services consulting. The company's offices are divided into the following geographical regions: Europe, the Middle East, India, and Africa; the Americas; and Asia-Pacific.
KPMG SERVICES PTE. LTD.
Established in Singapore in 1987, KPMG Services Pte. Ltd. is a member of a global network of professional services organizations that offer audit, tax, and advisory services. The KPMG Services office in Singapore is associated with KPMG Limited, which is a global organization. Each KPMG firm operates as a legally separate and distinct business. KPMG offers a worldwide uniform service based on professional capabilities, industry expertise, and local understanding. It has offices in 153 countries and territories across the globe.
MOORE STEPHENS LLP
Moore Stephens LLP has been in operation in Singapore for over 30 years. It is a subsidiary of Moore Global Network Limited, which is a premier accounting and consulting association, with around 502 offices in 114 countries worldwide. The company serves a wide spectrum of clients, from huge organizations and publicly traded enterprises to private businesses, entrepreneurs, and individuals in a variety of industry areas. Moore looks beyond numbers and regulatory issues to provide its clients with practical assistance.
BDO LLP
BDO LLP was established in 1972 and has been a member firm of BDO International since 1979. It offers a variety of services, including audit, business restructuring, corporate advisory, cybersecurity, tax advisory, secretarial, outsourced accounting, management consultation, and risk counselling. BDO’s clients come from diverse sectors in Singapore, including subsidiaries of multinational corporations, public and private companies, and businesses engaged in retail and distribution, financial services, natural resources, legal, marine, manufacturing, transportation, publishing, hospitality, and real estate. BDO is able to support its clients across the world and gather numerous subject matter experts as it has offices in 123 countries.
MAZARS LLP
Mazars LLP is an internationally integrated firm based in Singapore, which delivers audit and advisory services to some of the world's premier companies and fastest-growing businesses. The independent, fast-growing, Singapore-based firm serves clients throughout the Asia-Pacific region. Mazars has been operating since 1979, and became Mazars LLP in 2009. It operates in 89 countries throughout the world, specializing in audit, tax, consulting, financial planning, accounting and outsourcing, and Advisory Services. Mazars serves clients in diverse sectors, including consumer; energy; infrastructure and environment; financial services; healthcare and life sciences; industrial; public and social sector; real estate; technology; media and telecommunications; and transport and logistics.
CROWE HORWATH FIRST TRUST LLP
Founded in 2008, Crowe Horwath First Trust LLP is one of Singapore's leading mid-tier accounting and advisory organizations. It offers clients audit, tax, advisory, and outsourcing services. The company serves mid-to-large public-listed, multinational, and private organizations in a variety of industries. Crowe Horwath specializes in Corporate Compliance Services, Digital Advisory, Inbound Investment Advisory, Global Mobility Solutions, Variable Capital Solutions, and Private Wealth Services. Crowe Horwath First Trust won the Best Practice Award (Large Practice category) at the Singapore Accountancy Awards 2016, and the Growth Award (Open category) at the Singapore Accountancy Awards 2018.
BAKER TILLY TFW LLP
Established in 2010, Baker Tilly TFW LLP is an accounting and business advisory firm based in Singapore. Baker Tilly TFW, operating as Baker Tilly, is a member of Baker Tilly International's global network, the members of which are independent and separate legal firms. It offers organizations a wide range of services, including assurance, tax, deal advising, governance and risk, restructuring and recovery, outsourcing, and company secretarial services. Baker Tilly's varied client base includes family-owned businesses, publicly traded organizations, and international corporations operating in a number of industries.
Top Singapore SMEs in Accounting & Tax Sector
NEXIA TS PUBLIC ACCOUNTING CORPORATION
Nexia TS Public Accounting Corporation, which was established in 1993, is recognised as a mid-tier local accounting business firm. Nexia TS Public Accounting is a subsidiary of Nexia International. The company offers full-service assurance, taxation, accounting, and consultation. Nexia TS is a local accounting firm accredited by the Institute of Chartered Accountants in Australia, and the Institute of Chartered Accountants in England & Wales. It is also recognised by the Singapore Accountancy Commission as an accredited training organization to train professionals to achieve the Chartered Accountant of Singapore qualification. Nexia TS won the APAC Singapore Business Award, and the Worldwide Finance Award in 2020, as well as the Corporate INTL Global Awards 2019-20.
HENG LEE SENG LLP
Incorporated in 1974, Heng Lee Seng LLP is a medium-sized firm of Chartered Accountants (CA). The company provides a full variety of auditing, accounting, tax, corporate secretarial, and business consultancy services in a professional, personalized, friendly, and cost-effective manner. Heng Lee Seng serves multinational organizations, high-growth small and medium-sized businesses, and individual taxpayers. The firm is a member of the MSI Global Alliance, a leading multinational accounting and legal alliance. In 2013, Heng Lee Seng won the International Accounting Bulletin Awards and the IAB Awards.
CYPRESS SINGAPORE PAC
Cypress Singapore Public Accounting Corporation (Cypress Singapore PAC) was incorporated in 2005 and is headquartered in Singapore. The company is registered under the Accountant's Act and is permitted to offer statutory audits and other assurance services by the Singapore Accounting & Corporate Regulatory Authority. Cypress Singapore works with a diverse range of clients in a variety of industries, including manufacturing, commerce, hotels, and property development, and has a solid client base both locally and abroad. It also serves charities, religious institutions, and other non-profit organizations. Cypress Singapore is an authorized training employer for prospective chartered accountants studying for the prestigious ICAEW professional qualification.
RT LLP
RT LLP is an accounting firm headquartered in Singapore, which was established in 2017. RT is a one-stop financial solutions expert, offering organizations top-tier audit, corporate services, and business tax consultancy services. It is one of the public accounting firms in the country, which is qualified to conduct audits on publicly traded corporations that are subject to direct examination by the Accounting and Corporate Regulatory Authority (ACRA). RT’s clients range from small businesses to multinational corporations. It provides seamless services to clients across various industries and sectors, driven by its strategy of internationalization, innovation, and integration, from listed organizations on the SGX to non-listed corporates, financial institutions, charities, societies, and partnerships.
AUDIT ALLIANCE LLP
Incorporated in 2012, Audit Alliance LLP is an accounting and advisory firm. It assists clients with the application and compliance of specific statutory reporting requirements for Singapore and other markets such as the United States, United Kingdom, Germany, Austria, Japan, and China. Audit Alliance provides services such as accounting, IFRS reporting, and other types of assurance and attestation reporting. The Ministry of Finance has granted the firm Approval of Government Supplier accreditation (Singapore). Audit Alliance is certified by the Institute of Singapore Chartered Accountants, the Chartered Association of Certified Accountants, and the American Public Company Accounting Oversight Board to conduct audits.
PRECURSOR GROUP PTE. LTD.
Established in 2006, Precursor Group Pte. Ltd., formerly known as KG Tan & Co. PAC, is a professional services firm that offers a full range of corporate and consultancy solutions and services. Precursor, the youngest business to be ranked amongst the top 25 accounting firms in Singapore, continues to service many rapidly expanding companies. Precursor's services and solutions include: audit and assurance, tax filing services, business process outsourcing, corporate solutions and advisory, corporate secretarial services, technology solutions and advisory, and fund management compliance. Precursor Group won the Singapore Accountancy Award in 2016, and the Best Practice Award in 2018.
LO HOCK LING & CO.
Lo Hock Ling & Co., which was established in 1983, is an accounting firm headquartered in Singapore. It provides a broad range of business and professional services. The company offers a comprehensive range of professional services to clients from a variety of industries, including accounting and assurance, income tax and GST, company registration and secretarial services, IT outsourcing, payroll, and business advisory services. Lo Hock Ling helps to identify organizational needs, apply value-added business solutions, and assists in implementing strategies, whether it is an owner-managed business, an established business with overseas operations, a non-profit organization or a public sector organization.
BSL PUBLIC ACCOUNTING CORPORATION
Incorporated in 1981, BSL Public Accounting Corporation offers a wide range of business services and solutions - including taxation, business advisory, and auditing - to both domestic and international clients. BSL Public Accounting is committed to meeting the needs of small to publicly traded companies and individual taxpayers, providing professional guidance while remaining approachable. Its team of specialists has worked with multinationals, financial institutions and publicly traded corporations from the United States, Europe, Australia, Japan, and Asia. BSL Public Accounting’s clients include high-net-worth individuals, non-profit organizations, and public and private firms dealing in investment holdings, property development, and medical care.
UHY LEE SENG CHAN & CO.
UHY Lee Seng Chan & Co., which was established in 1967, is a multi-disciplinary accounting firm that serves local and multinational clients. UHY Lee Seng Chan has international links with a plethora of legally independent professional services firms, which contribute a synergy of knowledge, expertise, and resources. The company helps clients to achieve global excellence through the UHY network of over 300 business centres in more than 90 countries. UHY Lee Seng Chan provides a full range of audit and assurance, tax, corporate secretarial, management advisory, business consulting, and business outsourcing services to help its local and multinational clients manage their business challenges.
KRESTON ACA PAC
Incorporated in 2020, Kreston ACA PAC was formed by the merger of two well-established and award-winning firms, Ardent Associates and CA Trust PAC. Kreston ACA is part of the Kreston Global network of independent accounting firms. It offers audit and assurance, tax, business consultancy, outsourcing, risk and governance, corporate recovery, company incorporation, corporate secretarial services, and IT infrastructure and solutions. To meet clients' global demands, it collaborates closely with other member firms. Kreston ACA was named Practice of the Year for Excellence in People Development at the Singapore Accountancy Awards in 2014 and 2016.
Top Singapore Fastest-Growing Companies in Accounting & Tax Sector
BOOK&ENTRIES
SERVICES PTE. LTD.
Book&Entries Services Pte. Ltd. was established in 2015. The company has evolved from a traditional accounting firm to one that employs technology to conduct its business activity. It continues to serve and provide clients with a variety of advisory, financial reporting, and compliance services. Book & Entries works with companies in a variety of industries, including lodging and hospitality; arts and recreation; construction and trades; education; finance and insurance; manufacturing; marketing, advertising, and consultancy; and retail and wholesale. It provides businesses with a process assessment to move from traditional record keeping to digital record keeping.
ELMWOOD GROUP
PRIVATE LIMITED
Incorporated in 2014, Elmwood Group Pte. Ltd. is a group of accounting specialists with experience in a variety of sectors. It has served clients from multinational corporations to small and medium-sized businesses in diverse industries. The team includes Chartered Accountants (Singapore) and members of the Singapore Institute of Directors. Elmwood offers services such as accounting (both public and commercial), accounting staff outsourcing, finance staff outsourcing (CFO/FM Level), services for corporate secretaries, services for business compliance, and finance taxation for new businesses. Aside from accounting services, it also offers other professional services to help with day-to-day business operations.
PRICEWATERHOUSECOOPERS BUSINESS ADVISORY SERVICES PTE. LTD.
Incorporated in 2010, PricewaterhouseCoopers Business Advisory Services Pte. Ltd. is a member business firm of PricewaterhouseCoopers International Limited, which provides professional services. The company provides advisory services to lenders, creditors, businesses, and individuals in financial distress, in an effort to help by identifying problems, gaining cooperation, developing solutions, and implementing them. PricewaterhouseCoopers Business Advisory Services assists businesses with their accounting, financial reporting, and valuation needs through a global network of trusted experts. It serves numerous private-sector organizations and government agencies, by offering services on assurance, finance, and tax advisory responsibilities, as well as technology advisory.
AOYAMA SOGO ACCOUNTING OFFICE SINGAPORE PTE. LTD.
Incorporated in 1999, Aoyama Sogo Accounting Office Singapore Pte. Ltd. is an accounting firm that offers clients accounting, taxation, corporate secretarial, and other counselling services. It also provides business expansion support, international tax advisory, and maritime services. The company is headquartered in Japan. Financial institutions, funds, asset management firms, property management firms, construction firms, real estate developers, communication and entertainment services, software developers, retail, and restaurants are among the primary clientele of Aoyama Sogo Accounting.
BORRELLI WALSH PTE. LIMITED
Borrelli Walsh Pte. Limited was established in 2006. It is a leading professional firm engaged in restructuring, business recovery, insolvency, and forensic accounting. The firm specializes in a variety of services, including corporate recovery and insolvency; financial investigations; expert testimony; financial and operational restructuring; and matrimonial, corporate, and strategic consulting. Borrelli Walsh has offices in China, Hong Kong, Indonesia, India, the United Kingdom, the British Virgin Islands, and the Cayman Islands.The company was acquired by Duff & Phelps in 2020.
PHOENIX ACCOUNTING SINGAPORE PTE. LTD.
Phoenix Accounting Singapore Pte. Ltd., founded in 2012, is a network of accounting specialists in Japan and Asia who provide consultancy, tax, auditing, and advisory services. Each base serves enterprises from both Japan and the nation in which it is located. It offers a comprehensive range of professional services in accounting, finance, and tax. In addition to the specialist services, Phoenix Accounting also provides consultation for business expansion as well as business launches. Phoenix Accounting provides full support as a corporate back office, including M&A, visa support, and the installation of local internal controls.
MATSON, DRISCOLL & DAMICO PTE. LTD.
Matson, Driscoll & Damico Pte. Ltd. is a renowned international forensic accounting firm that delivers economic damage quantification estimates to its clients. It was founded in 1933. Matson, Driscoll & Damico collaborates with law firms, government agencies, multinational organizations, small businesses, insurance companies, and independent adjusting firms. It provides outcomes in this highly specialized area of accounting, with over 40 offices in Australia, Brazil, Canada, Hong Kong, Japan, New Zealand, Singapore, Thailand, Korea, the UAE, the UK, and the USA. Matson, Driscoll & Damico won legal awards in 2015, claims awards in Asia in 2015, and expert witness awards in 2017.
CST TAX ADVISORS PTE. LTD.
CST Tax Advisors Pte. Ltd. is an international accounting and tax agency that specializes in income tax, professional accounting, and advisory services. CST Tax Advisors were established in 1992, and its Singapore office was incorporated in 2004. The company initially provided services to Australian expats moving to, or establishing a business in Singapore. CST Tax Advisors has expanded its digital asset business tax and accounting capabilities, and assembled a team of professionals who are well-versed in the digital asset area. Its overseas offices are located in Sydney, Los Angeles, and London, enabling it to provide an integrated tax and accounting solution to clients in Australia, the United States, and the United Kingdom.
GPC AVIC PTE. LTD.
GPC Avic Pte. Ltd., founded in 2010, is a Japanese M&A advisory, accounting firm, and business advisory for firms and individual owners in Singapore and South-East Asia who wish to expand or sell their businesses in the M&A, business expansion, and accounting sectors.GPC Avic helps companies to commence operations by registering the company, opening a bank account, and aiding them with the day-to-day operations of the business. It presently provides assistance in the domains of education, food and beverage, human resources, fintech, and many more. GPC Avic’s clients are all local companies based in Singapore, Indonesia, and Vietnam, among others.
RSM TAX PTE. LTD.
RSM Tax Pte. Ltd. was established in 2009. It is a subsidiary of RSM Chio Lim LLP. RSM in Singapore provides specialized tax services and taxation guidance regardless of a company’s size, industry, or stage of development. Its taxation services include corporate, personal, and international taxation, and it helps to maximize profit and efficiency through tax planning and risk management. Its knowledgeable local tax consultants can also assist in staying current on Singapore's Goods and Services Tax and transfer pricing.
