How to Choose an Accounting Firm for a Fintech Startup in Singapore

When our fintech startup reached its third year, we had already changed our accounting arrangements three times. None of the decisions were necessarily wrong at the time. Each setup worked for a while, but as the business grew, our accounting needs changed too.

Looking back, one of the biggest lessons was that we kept choosing based on what the business needed at that moment, without thinking enough about what we'd need six months or a year later.

Here's how each arrangement worked out, where we ran into problems, and what I'd do differently if I were starting again.

Setup one: freelance bookkeeper (year one)

During our first year, our team was small, just four people in total, with one product and a few customers. We didn't have much accounting work, so hiring a full-service firm seemed unnecessary. A friend recommended a freelance bookkeeper who charged a reasonable monthly fee, and we decided to hire her.

She was responsive, easy to work with, and kept our records organised. For a while, that was all we really needed. But things started to get a little more complicated when we began speaking to investors. One of them asked how we accounted for transaction fees compared with subscription revenue. We struggled to give a clear answer because our bookkeeping was mainly focused on tracking money coming in and going out.

That approach had been fine when the business was small, but it wasn't enough once we needed a clearer picture of how different parts of the business were performing.

What I learned: A freelance bookkeeper or small bookkeeping service can be perfectly fine when you're just starting out. But don't look only at whether they can keep your books organised. Ask how they would handle different revenue streams as your business grows. It's something that's easy to overlook in the beginning but can become a problem later.

Setup two: mid-sized firm (year two)

Once we were preparing a licence application with the Monetary Authority of Singapore (MAS) and a funding round, we moved to a mid-sized accounting firm. The difference was obvious. They asked about our business model on the first call, produced monthly management accounts, and explained things in plain words.

Still, it wasn’t all smooth sailing. A few things were still an issue:

• Slow response time. Our file was handled by a junior accountant, and questions sometimes took days.
• Some services cost extra. We assumed GST filing and payroll were part of the package, only to find out they were quoted separately.
• Audit confusion. We initially thought the firm would handle our audit as well. It turned out they worked with a separate audit firm, which is fairly common, but this wasn't explained to us upfront.

What I took from it: the quality of the firm matters less than the clarity of the arrangement. Ask who handles your account day to day, what’s not included in the fee, and who does the audit. Get it in writing.

Setup three: fewer vendors, clearer roles (year three)

By our third year, the business had grown quite a bit. We had more employees, were looking at expanding into a second market, and were working with several different service providers. One handled bookkeeping, another took care of payroll, another managed our corporate secretary work, and we had a separate provider for visa applications.

It sounds manageable on paper, but keeping everyone on the same page became a new issue for us. We were spending too much time following up, sharing documents, and figuring out who was responsible for what.

We decided it was time to simplify things and started looking for a provider that could handle several of these services together. We considered two options:

• Working with separate specialists. You get dedicated expertise in each area, but someone internally still needs to coordinate everything and keep track of different providers.
• Using one provider for multiple services. Communication is generally easier, and there's less administrative work, although you need to make sure each service is covered properly.

After comparing a few options, we decided to go with Duellix. What appealed to us was that Duellix offered several services we were already paying different providers for, including corporate secretary services, accounting and bookkeeping, payroll and CPF administration, and Employment Pass applications. It made more sense to bring these under one roof rather than continue coordinating with multiple companies.

The switch also made our daily administration easier. Instead of figuring out which provider to contact whenever something came up, we had one main point of contact for most of our corporate and accounting needs.

What I learned: Having fewer service providers can make running a business much easier, especially when your team is still relatively small. But don't choose a bundled package just because it looks convenient. Check exactly what's included, whether the provider has experience handling your type of business, and whether you'll still need outside specialists for certain requirements. In our case, Duellix was a good fit for the level of support we needed at that stage.

Final thoughts

Choosing an accounting firm really comes down to what your business needs at its current stage. When you're just starting out, a freelance bookkeeper might be all you need. As you bring in investors or deal with licensing requirements, you'll probably need a firm with more experience and a wider range of services. And once managing multiple providers becomes a headache, having more services under one roof might make life a lot easier.

The important thing is not to wait until something goes wrong before reviewing your accounting setup. Think about where your business is heading, ask the right questions before signing a contract, and make sure the firm you choose can grow with you.

One last thing: accounting fees, audit thresholds, and regulatory requirements can change, so it's always worth checking the latest information with MAS, ACRA, and IRAS before making any decisions. Your accountant should also be able to guide you through any requirements that apply to your business.