As an SME owner in Singapore, staying compliant with ACRA (Accounting and Corporate Regulatory Authority) is essential for the legal standing of your business. Non-compliance with ACRA’s requirements can lead to penalties, delayed filings, or even company strike-off.
However, many SMEs unknowingly make avoidable mistakes when it comes to their annual filings, keeping records, and maintaining up-to-date company information. This guide outlines the most common compliance mistakes SMEs make with ACRA — and practical tips on how to avoid them.
1. Missing the Annual Return (AR) Filing Deadline
The Annual Return (AR) is a critical filing for all Singapore-registered companies. It updates ACRA on your company’s status, directors, shareholders, and financial details.
Common Mistake:
- Not filing on time: Many SMEs miss the AR filing deadline, which is 7 months after your financial year-end (FYE). If your FYE ends on 31 December, the AR is due by 31 July the following year.
How to Avoid It:
- Set clear reminders based on your FYE.
- If your company holds an AGM, file your AR within 30 days after the AGM.
- Use tools like ccMonet to track key filing deadlines and keep everything organized.
- Proactively prepare for the AR by ensuring that all company information, financials, and other documents are up-to-date well in advance.
2. Failing to Update Company Information with ACRA
Companies are required to notify ACRA whenever there are changes to directors, shareholders, or the company’s registered address.
Common Mistake:
- Not updating information within the required 14-day period after changes occur (e.g., director resignation or a change of registered address).
How to Avoid It:
- Keep a compliance calendar to remind you of updates required after internal changes.
- Always file any amendments within the 14-day window using BizFile+.
- Review company records regularly to ensure they reflect the latest information.
- For businesses with multiple directors or offices, have a clear process for notifying ACRA immediately after any personnel or address change.
3. Ignoring Corporate Governance Practices
Corporate governance isn’t just a “nice-to-have” for SMEs; it’s a legal requirement. Keeping records of resolutions, AGM minutes, and company registers is vital.
Common Mistake:
- Lack of formal documentation: Many SMEs don’t properly document board resolutions, AGM proceedings, or shareholder meetings.
How to Avoid It:
- Maintain minutes of meetings, even if they’re informal.
- Document all board decisions (e.g., appointment of new directors, changes in shareholding).
- Store all resolutions and agreements securely — use digital record-keeping platforms like ccMonet for easy tracking and storage.
4. Incomplete or Incorrect Financial Statements
ACRA requires companies to file accurate financial statements — especially in XBRL format — as part of their Annual Return submission.
Common Mistake:
- Incorrect or incomplete financial statements can lead to rejection by ACRA and the risk of penalties.
How to Avoid It:
- Ensure financial statements are audited (or prepared in simplified formats for small companies) before filing them with ACRA.
- Use accurate XBRL reporting (required for larger entities) and ensure that all figures align with your accounting records.
- Leverage ccMonet’s automated XBRL export to ensure the accuracy and compliance of your financial reports.
5. Not Retaining Required Business Records
ACRA requires businesses to retain certain company documents for a minimum of 5 years. This includes financial statements, tax filings, and company registration details.
Common Mistake:
- Not keeping records long enough: Businesses fail to retain critical documents for the required period, especially after a company ceases operations.
How to Avoid It:
- Store financial and compliance documents securely for at least 5 years after filing (including tax returns, contracts, and payroll records).
- Use cloud-based accounting and compliance tools like ccMonet, which automatically organizes and stores records in compliance with ACRA's requirements.
6. Ignoring Tax Filing and CPF Obligations
In addition to ACRA’s requirements, businesses must also file corporate tax returns with IRAS and make timely CPF contributions for employees.
Common Mistake:
- Failure to file tax returns or make CPF contributions on time leads to penalties from IRAS or CPF Board.
How to Avoid It:
- Keep track of Estimated Chargeable Income (ECI) filings, which are due within 3 months after your FYE.
- File Form C or C-S with IRAS by 15 December (e-filing) for corporate tax returns.
- Pay CPF contributions by the 14th of each month to avoid late payment fees.
- Use an automated payroll and tax filing system like ccMonet to manage monthly and annual filings seamlessly.
7. Not Preparing for Audits
Even SMEs can be audited by ACRA, especially if there are discrepancies in filings or suspected non-compliance. While audits aren’t frequent for smaller companies, they still happen.
Common Mistake:
- Failing to be audit-ready: SMEs often overlook the need for organized financials and supporting documents, which can complicate audits.
How to Avoid It:
- Keep a systematic record-keeping process for all financial and compliance documents.
- Regularly reconcile accounts, update your registers, and retain audit-ready records.
- Use ccMonet’s automated reconciliation and document storage features to ensure your company’s financials are always up to date and audit-ready.
How ccMonet Helps SMEs Stay ACRA-Compliant
Keeping track of ACRA’s compliance requirements doesn’t have to be overwhelming. With the right tools, the process can be efficient, error-free, and stress-free.
ccMonet helps SMEs by:
- Automating financial reporting for ACRA’s XBRL and tax filings.
- Sending reminders for important deadlines, including AR filing and tax submissions.
- Storing compliant documents securely and providing easy access for audits or future filings.
- Generating compliance-ready reports and resolutions quickly.
With ccMonet, staying ACRA-compliant becomes a streamlined, ongoing process, allowing you to focus on growing your business.
Conclusion
ACRA compliance is essential for the continued health of your business, but common mistakes like missed deadlines, incomplete records, or incorrect filings can lead to penalties or reputational damage. By staying organized, using automated tools like ccMonet, and understanding key filing requirements, you can ensure your SME meets ACRA’s expectations with ease.
👉 Simplify your ACRA compliance with ccMonet — the AI-powered platform designed to keep your business compliant, organized, and efficient.
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