• Thu. Jan 27th, 2022

Tips for Efficient Bookkeeping & Foreigner’s Guide to Set up a Business in Singapore

Small bookkeeping for small business is an art of managing each business transaction in a structured manner, which allows the user to know the real state of any transaction in a fast and productive way. 

So, a bookkeeper can help your business in the following ways,

Record Everything

Finance managers frequently find it problematic to reason out the faults between actual and recorded expenditures, more so when the parting of all expenditures are not recorded accurately. This then becomes a serious issue for the manager and later for the bookkeeper.

Thus, it becomes essential for a bookkeeper to go through a structured approach throughout the bookkeeping method. At times, it may not be feasible for a bookkeeper to note a transaction in a thorough manner. However, he has to take maximum efforts to manage the files in close accordance with SFRS.

The idea of outsourcing bookkeeping is to record everything.

For example, even though a small expenditure of S$20 for a client lunch cannot be testified against a bill, such transactions must also be recorded rather than dropping them completely from the book of accounts. 

Following this method diligently assists a bookkeeper to come up with precise accounting and management data as and when needed.

Know Where to Note Each Item in the Books

Another point of note for a bookkeeper is the precision knowing-how regarding the procedure of profits in the books as certified by the SFRS and IRAS.

Frequently the same items from financial statements are looked after differently for different reasons. For example, a marketing manager can manage profits differently for accounting and taxation necessities. A business owner can declare expenditures incurred on his/her car as accounting expenditures, which, however, are not permitted to be seen on the tax statement.

Know Payables and Receivables Accurately

Bigger corporate firms have to go through a thorough auditing process to make sure ethics and legitimization. However, smaller firms have the compatibility to pass the auditing procedure, which can be anchored to maintain precision while managing financial statements.

Thus, a bookkeeper must make sure that all bank statements are compatible with the business transactions launched in the accounting software on a monthly. If there are any issues, a brief bank reconciliation statement must be generated to give an idea of the cash and bank balances.

Real-Time Accounting

Finally, a prominent bookkeeper will also use the latest accounting technologies based on cloud computing, which have made it feasible to manage business transactions in real-time. This real-time bookkeeping enables a firm to better handle its manufacturing and finances. Further, as the software is cloud-based, the company saves money on downtime and pays according to their usage.

Set Up a New Business in Singapore

If you are looking to setting up company in Singapore, you will have to go through the following stages.

Choose Your Business Entity

Though options subsist, most new companies register with the Accounting & Corporate Regulatory Authority or ACRA as “private limited companies” due to its flexibility. Besides, the shareholders are not responsible for bankruptcy and losses beyond their shared capital.

Set Up Your Company

The private limited company is regulated by the Singapore Companies Act and must follow its laws under ACRA and the Inland Revenue Authority of Singapore or IRAS. 

Designations include:

  • Company name
  • Shareholders 
  • Directors 
  • Company Secretary
  • Paid-up capital 
  • Registered address 

Open a Bank Account

After getting incorporated, you will have to open a bank account in Singapore, which can either be a local or an international bank.

Leave a Reply

Your email address will not be published. Required fields are marked *