In Singapore’s fast-paced business environment, “keeping the books” isn’t a one-size-fits-all task. If you’re a business professional in 2026, you’ve likely encountered two distinct sets of financial reports: Management Accounts and Statutory Accounts.
While they use the same raw financial data, their purposes, audiences, and legal requirements are worlds apart. At Hallmark Corporate Services, we believe that understanding this distinction is the key to both regulatory peace of mind and competitive business growth.
1. Statutory Accounts: The Compliance “Must-Have”
Statutory accounts (also known as financial statements) are the formal record of a company’s financial performance over a 12-month period. Under the Singapore Companies Act, every “live” company is legally required to prepare these.
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- Purpose: To report the company’s financial health to external regulators like ACRA and IRAS, as well as to shareholders and creditors.
- Format: Must strictly follow the Singapore Financial Reporting Standards (SFRS). For many, these must also be filed in XBRL format via BizFile+.
- Frequency: Prepared once a year, aligned with your Financial Year End (FYE).
- Public Record: Once filed with ACRA, these accounts become a matter of public record, accessible by anyone looking to verify your company’s legitimacy.
2. Management Accounts: The Strategic “Should-Have”
Unlike statutory accounts, management accounts are strictly internal. There is no law in Singapore requiring you to produce them, but in 2026, running a business without them is like flying a plane without a dashboard.
- Purpose: To provide the board and management with “real-time” data to make informed strategic decisions, manage cash flow, and track KPIs.
- Format: Completely flexible. These can include whatever metrics matter most to you—departmental performance, gross margins by product line, or actual vs. budget comparisons.
+1 - Frequency: Usually prepared monthly or quarterly.
- Internal Use: These are private. They are never filed with government agencies and stay within the company’s leadership team.
Key Differences at a Glance
| Feature | Statutory Accounts | Management Accounts |
| Legal Requirement | Mandatory for all companies. | Optional (but highly recommended). |
| Standardization | Must follow SFRS/SFRS(I). | Bespoke and flexible format. |
| Audience | External (ACRA, IRAS, Shareholders). | Internal (Directors, Management). |
| Timeline | Backward-looking (Past 12 months). | Forward-looking (Current & Future). |
| Deadline | Fixed (6–7 months after FYE). | None (Set by management). |
3. Why You Need Both in 2026
In a tech-driven economy where AI and digital taxation (Tax Administration 3.0) are becoming the norm, relying solely on annual statutory accounts is a risk.
- Faster Tax Preparation: If you maintain monthly management accounts, filing your Estimated Chargeable Income (ECI) within 3 months of year-end becomes a simple “push-of-a-button” task rather than a year-end scramble.
- Agility: In 2026, market conditions change weekly. Management accounts allow you to spot a dip in revenue or a spike in utilities now, rather than discovering it in a statutory report six months too late.
- Audit Readiness: If your company exceeds the S$10M revenue threshold and requires a statutory audit, having clean, reconciled monthly management accounts will significantly lower your audit fees and duration.
Conclusion: Data for Governance, Data for Growth
Statutory accounts satisfy the law, but management accounts empower the leader. In Singapore, successful companies use statutory accounts to maintain their “Green Tick” status with regulators while using management accounts to navigate the complexities of the global market.
At Hallmark Corporate Services, we provide comprehensive accounting and bookkeeping services tailored to both needs. From SFRS-compliant financial statements to customized monthly management reports, we ensure your numbers work as hard as you do.
Is your 2026 reporting schedule ready? Would you like a customized management account template to help track your company’s growth this quarter?