Importance of Efficient Bookkeeping for Annual Compliance in Singapore
Once successfully incorporated, new companies must begin proper and efficient record keeping for compliance purposes. Inland Revenue Authority of Singapore, IRAS, mandates financial records and accounts be properly maintained so that income earned and business expenses can be determined readily. Records and accounts must also be supported with invoices, serially numbered receipts, income records, purchase and business expense records and other records of financial transactions related to your business.
Come annual tax filing time, IRAS would not accept estimates or any other improperly prepared financial statements, and non-compliance for a company’s record keeping may lead to a maximum fine of $5,000 and / or a jail term imposed for a period up to 6 months. With effect from 1 January 2007, registered businesses in Singapore need to keep their records for at least 5 years, so it is imperative newly incorporated companies begin to properly manage all their financial records from day one, to avoid the mistakes and pitfalls of flawed bookkeeping and tax filing.
Benefits of Well-maintained Bookkeeping and Accounting
- clearer financial foresight and understanding of your company’s overall financial health and business performance
- early discovery of any possible internal fraud or financial mismanagement
- better tracking of your company’s expenses and ways of conserving your resources, monetary or otherwise
- peace of mind, knowing your financial records are kept in order and up to date
- well facilitated filing of annual returns and taxes with regulatory authorities, such as IRAS and ACRA
Professional Accounting & Outsourced Bookkeeping Services.
Companies or entrepreneurs with the requisite skills and resources may choose to house an accountant or accounts personnel to upkeep their company’s books and financial records. However, many companies, for reasons such as added expenses and insufficient resources, prefer to outsource bookkeeping and accounting tasks to Professional Accounting & Outsourced Bookkeeping Services. Experienced and reliable outsourced bookkeeping professionals provide a complete range of cost and time efficient accounting services to Singapore companies so that business owners like you can spend your valuable time and energy on conducting your core business transactions. Contact VentureHaven today for a free consultation.