Beyond meeting statutory requirements, financial closing offers valuable insight into a company’s financial position and supports strategic forecasting for future planning.

A company may prepare its own financial statements internally; however, if there is a limited understanding of Hong Kong accounting standards, external professional support is recommended. Once the statements are finalised, senior management should review and confirm them before submitting the audited financial statements—including the balance sheet, income statement, and trial balance—to the auditor.

Accurate recordkeeping is essential for regulatory compliance, facilitating audits, ensuring transparency to stakeholders, and supporting effective business decision-making.

In Singapore, a newly incorporated company has the flexibility to set its initial financial year-end for any period of up to 18 months from the date of incorporation. Subsequently, the financial year will recur on an annual basis. Companies can set their FYE to suit their operational needs when it incorporates.

Companies should provide comprehensive financial records, including all sales invoices, purchase receipts, bank statements, agreements etc.. All documentation should be organized to reflect the entire fiscal year in compliance with the Singapore Financial Reporting Standards (SFRS).

Once the financial statements are finalized, the financial package is reviewed and prepared for submission to the auditors. Upon completion of the audit, the financial statements and audit must be approved at the Annual General Meeting (AGM) within 6 months of the FYE. Subsequently, the company must proceed with the Annual Return(AR) filing with ACRA.