2025 Accounting Trends Every Singapore Business Should Know

05 January 2025

Editor: ET

As we approach 2025, the accounting landscape in Singapore is evolving rapidly. Businesses must stay informed about emerging trends to maintain competitiveness and ensure compliance.

Further Reading: Lodging Complaints: Understanding ACRA’s Scope and Limitations

Here are the key accounting trends to watch:

1. Cloud-Based Accounting Solutions

The shift to cloud technology is accelerating, with Singaporean businesses increasingly adopting cloud-based platforms. These solutions offer remote access to financial data, real-time collaboration, and enhanced scalability, leading to cost efficiency and secure data storage. Cloud accounting also facilitates seamless integration with other business systems, streamlining operations.

2. Integration of Artificial Intelligence (AI) and Automation

AI and automation are transforming accounting processes. By integrating Robotic Process Automation (RPA) with AI, firms can automate complex tasks such as financial forecasting, account reconciliation, and anomaly detection. This integration enhances efficiency and accuracy, allowing businesses to focus on strategic decision-making.

3. Emphasis on Sustainability Reporting

With increasing focus on Environmental, Social, and Governance (ESG) factors, businesses are prioritizing sustainability reporting. Accountants are developing expertise in creating ESG reports that align with globally recognized frameworks, such as the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB) standards. This trend reflects a broader commitment to corporate transparency and responsibility.

4. Demand for Skilled Professionals

The accounting and finance sector is experiencing a demand for professionals skilled in data analytics, cybersecurity, and sustainability consulting. Companies are seeking individuals who can navigate complex financial landscapes and provide strategic insights. This trend underscores the need for continuous professional development and upskilling.

5. Regulatory Compliance and Taxation Changes

Businesses must stay abreast of regulatory changes, including tax reforms and compliance requirements. For instance, Singapore is introducing a global minimum corporate tax rate, which will impact multinational companies operating in the region. Understanding these changes is crucial for effective financial planning and risk management.

Staying informed about these accounting trends is essential for Singaporean businesses to navigate the evolving financial landscape successfully. Embracing technological advancements, focusing on sustainability, and ensuring compliance will position companies for growth and resilience in 2025 and beyond.