After a successful Singapore Company Incorporation, the next thing you want to focus on is running your business operations as smoothly as possible. Sound financial management is important in sustaining any business – big or small.
An essential building block in keeping a business financially healthy is through implementing a proper bookkeeping process. Many business owners neglect the importance of record keeping; it is rarely anyone’s favorite task. The absence of a well-founded record-keeping process, however, may result in low cash flow margins, money problems, audit risks, non-compliance to government requirements and missed growth opportunities. Is it worth having all these risks while running your business? If you think otherwise then these simple tips for efficient bookkeeping in Singapore are for you.
5 Simple Tips for Efficient Bookkeeping in Singapore:
1. Implement a system. More than simply keeping receipts and invoices, one must remember that among key objectives of record keeping is to help you manage your business and enable government agencies to evaluate your business activities. Whatever system or process you choose to implement must satisfy these goals.
2. Make it a habit. Regularly track your expenses. Devote a certain time of the day or week that is entirely for bookkeeping and commit to it. An accurate record of your business transactions will help you to be on top of things. Treat it like a habit and it will no longer feel like the painstaking task that it is.
3. Keep all your records. The very core of bookkeeping, based on the word itself, is keeping records. Companies incorporated in Singapore are all mandated to properly keep accounts and records. Failure to do so merits corresponding penalties. Among the records that you must keep are serially numbered receipts, invoices, purchase and business expense records, income records, statements and accounting records. You are required to keep these records for at least 5 years.
4. Keep up with compliance and obligations. Financial foresight is one of the positive things you will gain through proper accounting and bookkeeping. You will be able to see if there are trends in your expenses, areas you can improve on in your financials and an overall understanding of your cash flow. To have a clearer picture of your financials, set aside money for all your compliance and obligations early on. Not only will this prevent you from missing bills or taxes but will also aid in helping you manage your finances more.
5. Or hire a professional. Many entrepreneurs in startup businesses do not have time and skills to manage the company’s books on their own. Hiring a professional might appear as an added expense for your company. However, if you are not equipped to manage your financial records, you will end up with more problems in the future. If this is the case, it is advisable to seek the help of a professional from the get-go. Good bookkeepers let you focus on running and growing your business while taking care of your important record keeping. It is not only cost efficient but also time efficient as they are experts in what they do.
Are you interested in outsourcing your bookkeeping services in Singapore? Richmond offers a complete range of accounting services to Singapore companies that seek efficient management of their accounts and bookkeeping. Our accountants can take over all your accounting tasks while you can spend your valuable time on core business matters. Contact a Richmond specialist for a discussion.