When you start your company, you must weigh several factors, such as conducting exhaustive research on your target market, maintaining a healthy work climate, handling your employees, and keeping financial records. All of these elements are necessary for a successful business venture.
More importantly, you must understand that sound financial management is essential to the long-term viability of any business. You must implement a proper bookkeeping Singapore process in order for it to be financially sound. But how do you do it? Most organizations, on the other hand, struggle to keep their own financial records. They suffer as a result of negligent financial reporting.
Poor cash flow margins, major financial difficulties, audit risks, and missing growth opportunities can result from the absence of an excellent financial bookkeeping Singapore method. What should you do as a business owner if you find yourself in one of these situations? Begin by identifying the source of the problem. If you’re not good with numbers, it’s best to hire bookkeeping Singapore services rather than risking non-compliance.
If you want to do your own bookkeeping Singapore platform, take a look at these ideas for effective bookkeeping for SMEs. We’ve compiled a list to assist you.
#1 Be familiar with compliance guidelines and statutory laws
As a company owner, you must understand the intricacies of the industry. You must consider the Singapore Financial Reporting Standards enforcement regulations (SFRS.)
It’s also a smart idea to be well-versed in Inland Revenue Authority of Singapore (IRAS) legislation. It will greatly assist companies in claiming tax credits. For example, all domestic and international businesses can be eligible for tax breaks.
#2 Provide a thorough and streamlined bookkeeping scheme
Aside from acknowledging the rules of small business bookkeeping, the firm should streamline its operations. Accounting services Singapore firms provide tools that can also be purchased for ease of use and smooth bookkeeping.
Each software application has its own distinct set of features. Although, above all, it will assist you in meeting your objectives and adhering to your bookkeeping criteria. So, if you choose to invest in advanced accounting service Singapore experts for tools or handle your books manually, you must create a comprehensive structure that meets your needs.
#3 Maintain consistency with the bookkeeping
Will you get bored of sitting on stacks of source documents? The easiest way to escape this situation is to keep the books updated on a regular basis. Keep track of the company’s everyday transactions. When you do it on a monthly basis, it becomes a more time-consuming process than you expected.
Consider maintaining a year’s worth of financial reports. This job will consume your time as well as other important resources. So, set aside at least ten minutes per day for bookkeeping Singapore procedures.
#4 Keep a record of any purchase
One of the most common issues that finance managers face is that their companies do not have any of the requisite documents to fix financial gaps. If this occurs, they are subjected to enforcement breaches and fines.
To stop financial problems, make sure to maintain accurate records. You should design your own system for distinguishing receipts, invoices, transaction and company expense reports, revenue records, accounts, and tax records.
It can be unlikely for a bookkeeper to log any single transaction in certain cases. However, it is the bookkeeper’s duty to ensure that the SFRS is followed.
#5 Avoid using cash
One of the most effective ways to keep track of your purchases is to go cashless. If you’re curious why most cash transfers come with receipts. It can be difficult to keep track of any of them.
You should pay with a credit or debit card to prevent missing a copy of your financial transactions. This system means that you keep track of your transactions and they will appear in your bank statements. This alternate means of payment will greatly assist you with tracking and tracking the company’s expenses.
#6 Keep personal and corporate finances apart
Had difficulties with your books? You most certainly did not keep your personal finances separate from your company finances. You will stop tracking private expenditures in your books by doing the following:
- Make a wage for yourself.
- Create a bank account specifically for your company.
- Make a list of all you’ve spent money on for your company and pass the funds to your personal account.
You can reliably monitor your money by doing these things on both your personal and company accounts.
#7 Consistently complete bookkeeping tasks
Have you ever used the expression, “a stitch in time saves nine?”
One of the most essential bookkeeping concepts is consistency. Make an attempt to report the purchases on a daily basis. There will be no exceptions. If you postpone those activities until the end of the year, you will discover that they are much more time-consuming than you expected. Make it a tradition to set aside 10-20 minutes of bookkeeping time each day to chart your spending on a daily basis. Set aside a certain time of day or week for bookkeeping and adhere to it.
If you own an e-commerce company, we recommend that you combine your system with an efficient accounting services Singapore program to make your life easier. Having electronic notes also reduces the company’s bookkeeping expenses. Furthermore, if you plan to outsource your duties to an accounting services Singapore company, keeping electronic logs of your business activities will help you stay on top of matters.
#8 Keep your personal and business finances apart
It is not optional for you as a business owner to keep your personal and business finances apart. Often small business owners mix their business and personal accounts, which causes problems when recording and processing business expenses. Start by giving yourself a paycheck to stop disclosing personal spending on the company’s financial books. This allows you to handle your personal costs more accurately, such as vacations and dinners, rather than claiming them as company expenses.
Another useful strategy is to open a corporate bank account solely for commercial purposes as soon as the corporation is established. This would help to separate multiple financial activities, making it easier to evaluate the company’s financial status as needed. Furthermore, it allows you to cross-check your financial accounts more professionally in both the short and long term.
Apart from the tax benefits, another great advantage of having a corporation is the ability to obtain a separate credit card for the company. This way, you can manage your business expenses more easily. You can also keep track of the expenses in a more professional manner. A business credit card can be used to purchase expenses related to the company, including office equipment, office supplies, travel expenses, etc.
The expenses can then be recorded and processed using an accounting services Singapore program, with a professional accountant overseeing the business. You can also use a corporate credit card to make business-related purchases. This allows you to use the card to pay for lunch meetings and other business expenses.
Employ a team of licensed bookkeepers in Singapore
Starting a company can be a daunting and time-consuming endeavor. While you’re at it, you can concentrate on what’s most important to your business. That is why it is preferable to outsource the bookkeeping requirements. If you lack the time and expertise to handle your company’s accounts, you may want to seek outsourced bookkeeping services in Singapore. Most service providers are a team of professionals who will relieve you of the burden. Seek the assistance of specialists such as WLP Group whenever you are unsure where to begin.
WLP Group is an accounting and incorporation services practice in Singapore that provides bookkeeping and accounting services to companies. To assist you with your needs, our staff is well-versed in a variety of accounting services Singapore tools and platforms. Do you want to learn more about our services? Let’s set up a meeting to go over the information or visit our website today.