So you are done with setting up your business—from Singapore company registration, securing required business licenses, looking for a perfect business location, and a lot more—you are finally set to run your start-up.
First-time entrepreneurs mostly find themselves faced with challenges. While running a business means pursuing something you are passionate about, it also means you have to take on responsibilities that do not entirely fall in your area of expertise. Accounting more often than not belongs to the latter category. It is a meticulous, painstaking process and frankly, boring compared to the excitement that running the business brings but nonetheless, must be done. Proper bookkeeping should not only be undertaken simply to comply with statutory requirements but more importantly, to evaluate the business’ financials and overall performance.
It is imperative to understand the significance of proper bookkeeping in running a successful business. The following are simple but essential tips for Singapore start-ups:
1. Set clear boundaries.
Many start-up entrepreneurs make the mistake of using the company budget in order to finance personal transactions. Whether it is just a few dollars worth of purchase, if it is personal then it should not be paid for by the company. Most likely, the small purchases will add up to larger sums of money that could hurt your company and cause confusion in bookkeeping. It is also highly possible for more problems to arise when you file for tax returns. To address this, strictly keep a separate account for personal transactions and another for official business transactions.
2. Strictly keep records.
It sounds simple – do not let a single transaction go unrecorded. However, even the easy but low-priority tasks can be neglected when the busy atmosphere of running start-up kicks in. This is where discipline and dedication come. Strive hard to keep your finances updated. This is not only for compliance as doing so can help you spot trends in your spending, recognise weak points, and even see potential opportunities for growth. Moreover, religiously keeping records can serve you well as a written proof should there be any financial disputes.
3. Sound Accounting Process.
Start-ups can greatly benefit from establishing and implementing a sound accounting process. It can be instrumental in generating timely financial information which can be analyzed and utilized in financial planning and decision making. A general rule you can adhere to is avoiding any backlogs. Dedicating a specific time of your day or week solely for bookkeeping and making sure you commit to it is highly recommended.
4. Sort through, organize and review your financials.
Whether you have decided to hire a professional or do the accounting yourself, maximise the benefits of having a sound accounting process and an impeccable record by reviewing your financials. Keep updated on the financial health of your business. Doing so will allow you to have a better understanding of what works and what doesn’t work for your business.
5. Take advantage of technology.
Start-ups must maximize their resources in whatever way they can especially during its early stages. There are many ways technology can help start-ups run operations more efficiently, even in bookkeeping. For one, it lessens the likelihood of human error and guarantees accuracy in your financial records. Reducing the quantity of printed documents in your business will not only be economical and environment-friendly but will also save you space, cost, and time. Going digital will also provide an easy access to financial records, view transactions in real time, and backup files for safeguarding.
6. Seek assistance from the right service provider.
Looking to focus on more gainful activities of your newly-registered Singapore start-up? Outsourcing your company’s accounting services will prove to be a wise idea. For one, it will cut down your start-up’s expenses and save you more money in the long run. Corporate service providers have resources at their disposal, minimising risks for error. With the right service provider, you can be assured of complete government compliance and have access to insights from experts in the industry.
If you are interested in outsourcing the accounting of your business in Singapore, make sure to only trust the experts. We specialize in providing a complete range of Singapore accounting and taxation services to small and medium-sized businesses. At Richmond, we endeavour to help our clients focus more on more gainful business endeavours while we take care of their accounting and taxation needs. If you have any questions, simply get in touch with one of our specialists for a free consultation.