As an incorporated company in Singapore, you need continuously update your accounting books to ease the tax filing process. If you don’t, calculating taxes will become a nightmare. Luckily, there are accounting systems that you can implement to automate various bookkeeping processes. More importantly, you need to hire a reputable bookkeeping secretary in Singapore to monitor the accounting systems as you concentrate on other equally important chores.
Here are four important tips for a newly incorporated company in Singapore.
Monitor Your Expenses
Monitoring your expenses will not only help during the tax filing process but also in making crucial business decisions. Otherwise, you may end up with unforeseen debts and massive tax bills that could compromise the financial stability of your business. If you prefer the accrual basis of accounting, monitor the account payables and account receivables continuously to create a robust financial plan. Concisely, through monitoring, you will be able to identify expenditure trends and areas that you can change to enhance the financial stability of your business.
Compliance and Obligations
Having a clear picture of your financials will help you to budget and set aside money for all the stipulated legal compliance and requirements early. This step will prevent you from missing taxes or bills as well as help you manage your finances more efficiently. Proper accounting and bookkeeping will help you to achieve this objective.
Keep All Your Records
All companies incorporated in Singapore are required to keep all their accounts and files. Failure to do so can result in penalties and cancellation of licenses. Examples of some of the records that you should keep include invoices, serially numbered receipts, income records, purchase and business expense records, accounting and statement records. The law requires companies to have records for at least five years.
Invest in a Bookkeeping System
Thanks to advancement in technology, there are some bookkeeping systems that you can invest in to assist you to keep track of your expenses and records. The systems will help you manage your company better and assist government agencies to monitor your business activities accurately. Make sure that the bookkeeping secretary understands how to input data into the system and monitors it to avoid any inconveniences down the road.
Finally, you can outsource bookkeeping tasks to a reputable and licensed accounting and bookkeeping company in Singapore. Doing so will help you to save time and money that you would have spent going through all the documents and submitting them to IRAS and other government agencies.