Accounting Services Singapore: 3 Important Tips for Start-ups
Despite Singapore is known to offer a favorable business environment, the majority of start-ups are facing problems to comply with strict accounting standards, imposed by the provisions of the companies act, ACRA and GAAP. Right now the only feasible solution they have is to outsource their accounting functions, to legitimate and genuine accounting services Singapore.
In case you happen to have a startup in Singapore and if you are looking for an easy way out, here are some of the interesting but vital accounting tips for start-ups in Singapore.
Below are the 3 accounting tips for start-ups in Singapore:
1) Track Expenses and Keep Records:
Usually, businesses have to ride on the roller-coasters when it comes to expenses. Every business will have to face ups and downs. At one time you will have to spend more and at another, your core business related expenses will be low. Therefore, you have to be prepared for the best and worst scenarios in order to stand tall even in difficult financial times. Analyzing and staying prepared for the major expenses for grabbing golden business opportunities is the best sign of managing your accounting functions effectively.
When you want to focus on managing your finances and expenses; then it is important that even the lowest financial transactions incurred for business need to be tracked and recorded in the account books. Often, a business neglects or do not monitor small expenses. Remember, these small expenses one day pile up to become a major accounting error. By tracking expenses and keeping a record of all the financial transactions, startups usually get an added advantage in executing their financial plans effectively.
2) Keep Aside Funds for Tax and Other Finance Obligations
Messing with the already flexible tax structure is a punishable offense in Singapore. Therefore, no startup entrepreneur would like to face the difficulties related to non-compliance issues of IRAS (Inland Revenue Authority of Singapore). Initially, allocate special funds for taxes and other statutory financial obligations, so that your startup and you as an entrepreneur can stay relaxed and focus on improving their business functionality.
Governing authorities like IRAS simply fines and penalizes, if any company misses deadlines of filing taxes or fails to comply with the prevailing tax laws. Thus, it is not only necessary to pay taxes on time, but not missing tax deadlines is also far more important. Morale of the story, it is always better to keep aside specific funds for taxes and other financial statutory obligations if you want to earn a better reputation for your business.
3) Outsource Accounting Activities
For many startup entrepreneurs, accounting and bookkeeping seem to be bothersome and tedious jobs for which they need to have specialized skills. Not all the start-ups have required capital to hire an in-house accountant for managing day-to-day account activities. Therefore, the best way to manage company accounts effectively is by outsourcing it to one of the acclaimed accounting services Singapore.
With experienced and skilled professionals of accounting firms in Singapore, adhering to basic accounting principles and complying with the accounting standards becomes easy for start-ups. With the use of either, cash method or Accrual method, preparing and maintaining balance sheets, income statement and cash flow statements offer a basic idea to start-ups about their positive or growing net income or negative cash flow which eventually helps in taking corrective measures for the growth and development of core business.