Three Bookkeeping Tips for Companies Incorporated in Singapore

Companies in Singapore must continue to update their accounting books to ease the tax filing process. Otherwise, they will find it difficult to calculate their taxes. While they can take advantage of accounting systems that will automate different bookkeeping processes, it is best to outsource the services of a bookkeeper from a reputable accounting and bookkeeping firm who will monitor the accounting systems while the focus on other important aspects of their business. If your company is newly incorporated in Singapore, the bookkeeping tips below should help you:

Keep Track of your Expenses

Apart from helping during the tax filing process, expense monitoring helps when making important business decisions. It ensures your business does not end up with unexpected debts and massive tax bills which could put its financial stability at risk. It is important to continuously monitor your account payables and account receivables to establish a strong financial plan. Monitoring lets you determine expenditure trends and areas which can be changed to improve your business’ financial status.

Moreover, if you have a clear picture of your business’s finances, you can set a budget you can stick to and ensure you deal with the legal compliance and requirements smoothly. This will ensure you won’t miss bills or taxes and help you manage your finances efficiently.

Keep all your Accounts and Files

Every company incorporated in Singapore must keep their records to avoid penalties and cancellation of licenses. These records include invoices, income records, official receipts with serial numbers, business expense records, as well as statement and accounting records. Companies must keep records for at least five years.

Work with an Independent Bookkeeper

Sure, you can invest in bookkeeping systems to help you monitor your records and expenses. These systems can help in managing your company better and assist government agencies in monitoring your business activities. However, you will need to have a bookkeeping secretary to input data into the system and keep track of them to avoid any issues down the road. Thus, if you want to save on your bookkeeping cost, why not hire the services of a bookkeeper from ACHI instead of invest in a system and hire a full-time employee to make it run. This way, you can be sure you only spend a reasonable amount of money and save time since the job of preparing documents and submitting to the IRAS is not in your hand.