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Bookkeeping tips for new companies in Singapore

July 25, 2022

When registering your first company in Singapore, you will be required to keep accounting records right away. However, it should be noted that bookkeeping in new Singapore companies is not just keeping records and receipts. As an entrepreneur, you will need a vast amount of new knowledge in managing and reconciling these records. Therefore, when taking the first independent steps in the accounting business of a Singaporean company, your actions must be verified and well thought out to avoid future financial complications.

Important! For offences in Singapore, there are very serious penalties, up to and including imprisonment. To protect yourself from mistakes and prevent serious complications, we advise you to consult with accounting specialists in Singapore.

Here are some tips on how to properly manage bookkeeping in your Singapore firm:

Singapore company accounting templates

There are basic accounting templates that you can exercise control over. We think such recommendations can be helpful, especially if you have not had experience in accounting before. If you learn how to use these templates, you can move on to more complex accounting programs in the future.

Accounting standards in Singapore

All over the world, unified accounting standards should be applied to companies. If you know the accounting standards of Singapore, then you will have a general idea of the required financial statements. For small businesses, we recommend you study the accounting standards of Singapore without fail.

Print data and software

If you have not previously had experience with programs, you will not be able to figure out accounting programs on your own. Therefore, we recommend you make several copies of your accounting for finances and keep them not only in electronic form but also in printed form. It will allow you to understand the accounting records better. Then, as soon as you become a more confident user of the program, you can gradually move to work already in the accounting program.

Loan transactions and bank statements

If you choose automated payments, you can count on some benefits. The undoubted advantage of such operations is that banks make it possible to analyse all operations in detail by providing statements. In addition, using account statements significantly reduces the time in searching for transactions and filling in accounting records. Accuracy is maintained with these statements, as it is impossible to exceed the account's credit limit when making transactions and using credit cards.

Debit and credit of Singapore companies

There are two types of transactions in accounting: expenses (debit) and income (credit).Make it a rule to take a little time after each transaction to make accountings and record your activities in your ledgers. And remember! If you make a mistake in the calculations, it will inevitably lead to an imbalance in your company. Ideally, your income should exceed your expenses.

Receivable and payable accounts of Singaporean companies

Payable accounts are overdue invoices that your company is obligated to pay. Receivable accounts are unpaid invoices of debtors that they need to pay. If your Singapore company provides services or goods, you will need to monitor both invoices to ensure that you keep all invoices under review.

Bank reconciliation for a Singaporean company

In the case of paying bills, the company should always cross off paid accounts from its list of expenses and check if the data matches your cash book. It should also allocate the deposits and indicate the source. Monthly reconciliations will allow you to track the movement of your Singapore company's funds and control the accounts.

Regularity in the management of a Singaporean company

For a competent Singaporean company, you must choose a specific day for conducting accounting management of accounting and making decisions on administrative matters. As soon as you start with statements and documents, make sure that all administrative issues are resolved within a week. In this case, we recommend that you monitor your mail, prepare and submit your financial statement on time, and control your expenses. Timely weekly control will allow you to correctly distribute your workload and in the future it will be easier for you to resolve any issues.

Singapore company payments

You should notify your partners about receiving payment if your system is in order. Then, once the accounting cycle is established, control the consistency in invoicing. This practice will allow you to manage your payments and build trusting relationships with partners. Such "contacts" will be very useful during negotiations or if you need any services from your partners.

What professional services can a Singaporean company provide

When opening a company in Singapore, you should focus on operations and profits. Accounting requires professional knowledge, so you will most likely need to hire an accountant on a contract basis, possibly on a part-time basis. It is a part of the prerequisites for companies in Singapore to provide annual data. Working with an accounting firm in Singapore will help you comply with these requirements and create the conditions for your company to receive the appropriate tax benefits. In addition, you may contact our company specialists to optimise your operations regarding taxation and accounting.

By registering a company in Singapore in Russian, you will be able to solve accounting issues in Singapore also in Russian.

If you have any questions about bookkeeping in Singapore, don't hesitate to contact our company's specialists using any of the communication channels indicated on the website. We work quickly, professionally, and confidentially. We are waiting for your requests!

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