What Should Singapore SME Directors Personally Review Before Filing?

For many Singapore SMEs, directors rely heavily on accountants or service providers to prepare statutory filings. That’s practical — and common.

But under the Companies Act, directors remain legally responsible for the accuracy and completeness of what is submitted to ACRA.

So before signing off, what should directors personally review?

Here’s a clear, practical checklist.

1️⃣ The Financial Statements — Not Just the Summary

Directors should review the full set of financial statements, including:

• Statement of Financial Position (Balance Sheet)
• Statement of Comprehensive Income (Profit & Loss)
• Statement of Changes in Equity
• Cash Flow Statement (if applicable)
• Notes to the Financial Statements

Key questions to ask:

• Do the numbers make commercial sense?
• Are there large fluctuations compared to last year?
• Are liabilities properly disclosed?
• Are related-party transactions clearly stated?

If something looks surprising, it deserves clarification before filing.

2️⃣ Solvency Declaration (For EPCs)

If the company is an Exempt Private Company (EPC) claiming solvency:

• Directors must ensure the declaration is accurate.
• The company must genuinely be able to pay its debts as they fall due.

This is not a procedural checkbox — it’s a legal statement.

3️⃣ Audit Exemption Eligibility

If the company is filing as audit-exempt, directors should confirm:

• The company qualifies as a “small company” under statutory thresholds.
• Revenue, total assets, and employee numbers are correctly assessed.

Incorrect audit exemption claims can create compliance exposure.

4️⃣ XBRL Mapping Accuracy (If Applicable)

Directors don’t need to understand taxonomy coding — but they should confirm:

• Figures in XBRL match the approved financial statements.
• There are no discrepancies between disclosures and totals.
• Validation errors have been resolved.

XBRL is a structured version of your financial statements — it must reflect them accurately.

5️⃣ Consistency With Corporate Records

Directors should also verify that filings align with:

• Share capital records
• Director and shareholder changes
• Dividend declarations
• Loans to/from directors
• Significant post-year-end events

Financial statements should not contradict corporate filings.

6️⃣ Filing Deadlines

Directors must confirm:

• AGM deadlines (if applicable) are met.
• Annual Return filing timeline is respected.
• There are no outstanding statutory submissions.

Repeated late filings can increase enforcement risk.

7️⃣ Commercial Reality Check

Before filing, directors should ask one final question:

“If a banker, investor, or regulator reviewed this, would it accurately represent our business?”

Statutory compliance isn’t just about submission — it’s about credibility.

8️⃣ Why Continuous Financial Discipline Matters

Most last-minute issues arise because financial data was not consistently maintained during the year.

Directors reduce review stress when:

• Monthly bank reconciliation is completed
• Expense categorization is standardized
• Financial reports are reviewed quarterly
• Documentation is organized

AI-powered platforms like ccMonet support directors by:

• Automating bookkeeping
• Performing AI-driven reconciliation
• Providing real-time financial dashboards
• Combining automation with expert review

When financial data is continuously structured and updated, director review becomes confirmation — not investigation.

Final Takeaway

Before filing with ACRA, directors should personally review:

✔ The full financial statements
✔ Solvency declarations (if applicable)
✔ Audit exemption eligibility
✔ XBRL consistency
✔ Corporate record alignment
✔ Deadline compliance

Delegation is practical. Accountability is not transferable.

A careful review protects not only compliance — but the director’s own governance responsibility.

👉 Learn how to strengthen financial oversight year-round at https://www.ccmonet.ai/

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