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The Future of Business Banking in Singapore

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Online business banking in Singapore allows SMEs to make use of software that automates simplify every day operations as they know it.

A cashless payment that comes in will automatically be reflected in their accounting system and this real-time record tremendously help business to be on top of their finances.

Automated bank integration and reconciliation also save a lot of time as opposed to the traditional way of manually reconciling records.

Now, SMEs in Singapore can opt for mobile, accessible and real-time financial records – no more physical receipts, mounting ledger book required.

Key benefits of a separate business bank account

There are numerous reasons why having a separate bank account is beneficial for business growth, but the most common reasons are:

  • Protection against identity theft

Personal bank accounts are laden with personal financial transactions and when you add business transactions into it, you run the risk of getting caught up in a fraudulent activity or identity theft.

This not only puts you in a difficult position, but your business might also take a negative hit.

So, separating your transactions into two separate accounts helps you to avoid any negative circumstances to happen.

  • Organized accounting records

When you set up a separate bank account, you can easily track all transactions so that your accounting is accurate, and this also ensures that you do not waste a lot of time sifting through your accounts during tax season.

Nowadays, you can also use cloud accounting software to easily track any incoming transactions so you can save more time focusing on the things that matter most.

  • Transparent audit trail

Businesses must be audited every year. Even though you are a solopreneur, it is best to lay a good accounting foundation so that you are set when the time comes to scale your business.

Having a separate bank account does not mean that you will have fewer audits.

Separating the company transactions and having a straightforward audit trail, on the other hand, would make the process easier.

Do businesses benefit from receiving electronic payments?

The face of business banking in Singapore has shifted over the decades. While having a separate account for your entity is definitely important for organisational purposes down the road – it’s a move in the right digital direction.

Here’s a brief breakdown as to how SMEs in Singapore can most benefit from electronic payments.

  • Get paid faster

Electronic payments are much quicker than conventional payment methods such as cash or checks.

You are not restricted by time or place when making online payments.

You can conveniently make payments from anywhere in the world at any time.

  • Robust payment security

Despite their numerous advantages, electronic payment systems have not gained widespread acceptance among merchants.

Some businesses still prefer taking payments with the same old processes.

As a result, they are losing out on the chance to serve more clients. Tokenization, encryption, SSL, and other security features are used in electronic payment systems.

Your customers no longer need to enter their card information every time because they can save it or complete transactions using a QR code through PayNow or DuitNow.

  • Contactless payment

During the COVID-19 pandemic, people started to look for ways to avoid direct contact in order to avoid being infected with the coronavirus.

As a result, the need for contactless payments has emerged. Contactless POS terminals or Qr code payments can be used in your company to eliminate the need for human interaction.

  • Time and resource advantage

Your company saves time for its employees, clients, and executives by using electronic payment systems.

You will save up to 20 hours a month by automating the accounts payable, freeing up more time.

Many of the tedious and manual processes that haunt accounting departments can be automated with a new electronic payment solution, allowing you more time to spend on critical value-add areas of operations.

Will there be disadvantages for businesses that operate through hardcopy (physical checks, sending printed invoices, etc.) documents?

One of the main disadvantages of using the traditional method of accounting is the greater risk of data error.

While a traditional accounting system uses multiple entry systems to reduce data entry errors, a manual system is also much more likely to have data entry errors.

Users are expected to enter data twice using a traditional method, which is labor-intensive and time-consuming.

Users do not have to waste too much time inserting details into cloud accounting software though.

Another disadvantage would be that businesses run the risk of losing hard copy data.

All businesses understand the importance of keeping a hard copy of all relevant data if a system malfunction happens, and all data is lost.

Businesses that use the traditional accounting method must retain a hard copy of the records, which are easily lost or damaged in the event of a fire or storm.

To combat this disaster from happening, businesses should opt for cloud accounting software that stores the receipts in the cloud and keep them safe from unwanted circumstances.

Not sure how to pick the right solution for your growing SME?

Here’s a full breakdown of what you should be considering before making the switch to cloud business banking and accounting. 

Leverage grants for better business banking in Singapore

Enterpryze believes that every SME can transform into a competitive force with the right support.

That’s why we’re a pre-approved solution registered under the Start Digital and Digital Resilience Bonus (DRB) programmes – all initiatives by the Singapore government that allows SMEs to enjoy business banking, accounting, and inventory solutions for their company.

Together with Enterpryze, we make online business banking in Singapore an affordable reality for businesses.

All this by allowing SMEs the flexibility to try our solutions whilst enjoying bonuses and claimable payouts.

Introducing the: –

  • Digital Resilience Bonus (DRB) schemeDeveloped to enhance the digital capabilities of organisations in the Food Services and Retail sectors – as they are more impacted by current social distancing and lockdown measures.
  • Start Digital programmeSupported by Enterprise Singapore (ESG) and Infocomm Media Development Authority (IMDA) to encourage SMEs to improve adoption of digital solutions including e-payment and e-invoicing methods.

Alternatively – you can click here for a complete overview of all our updated programmes. 

5 reasons to merge accounting and real-time bank feeds

  • 24/7 account access

Online banking solution provides 24-hour access for businesses – they don’t have to wait for official working hours to make important transactions.

  • Online payments are easily processed

With online payment becoming an essential payment method nowadays, businesses no longer face the hassle of collecting cash and cheques.

Online payments can be done within a few minutes and transactions are automatically recorded.

  • Convenient Transactions

Related to the previous point, no more work trips to the bank or traveling to a vendor warehouse just to collect payment.

  • Real-time Monitoring

It’s possible to transaction errors in your account due to the vast number of transactions you’re likely to make.

With immediate access to your accounts, businesses can easily check each day’s transactions in real-time.

  • Quick transfers

Online banking allows payments to be made overnight and is also useful for direct deposits and wire transfers, which are among the easiest methods of transferring money.

Businesses can no longer afford to be left behind if they do not hop on the digital wagon.

Online banking and cloud accounting are already being adopted by many businesses every day. This allows SMEs to simplify and automate their finances so that they could save more time and money.

They can choose to put the extra resource towards business operations and management to ensure their business keeps growing.

The convenience and multi-features of business banking in Singapore would allow SMEs to grow at a faster pace while contributing to the nation’s economy.

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