Top 7 Accounting Tips for Start-ups in Singapore
Running a start-up business is challenging as it entails a lot of responsibilities as well as risks. One such responsibility is the process of accounting. Though accounting is painstaking, a meticulous and accurate financial report will go a long way in enhancing the growth of your company. Also, note that proper accounting will help you keep pace with the statutory requirements and accounting standards imposed by the ACRA. Read on to learn more about the 7 vital accounting tips for start-ups in Singapore.
Maintain Adequate Records
Make sure that you record all your transactions, whether they are small or big. Keeping your finances updated will not only enable you to meet your statutory obligations but also help you reduce your expenses, plan your taxes and spot the strengths and weaknesses of your business. You may use Google Sheets or Microsoft Excel to update your transactions and keep an eye on your expenses. While these are highly beneficial, Jaanik’s professional accounting services ensure that your books of accounts are well maintained.
Separate Business Finances from the Personal Ones
It might be tempting for new entrepreneurs to use a few dollars of their company budget on personal expenses. This could prove detrimental as it could confuse you when you file for your tax returns. Mixing personal and business transactions can also lead to bookkeeping problems. Thus, it is best to exercise discipline and keep the two entities separate.
Budgeting, Planning and Decision-making
An appropriate accounting plan helps new start-ups plan their business needs and allocate their cash and resources accordingly. In addition to that, a strong accounting system, such as the one offered by Jaanik, will also enable you to develop policies that improve the efficiency of your business processes. It will also provide confidence to your creditors, enabling them to determine the creditworthiness, solvency and net worth of your business.
Planning for Major Expenses
As a business start-up, you may need to predict your major expenses like technology upgrade, research expenses and employee expenses. To do meet these expenses, you need to have larger working capital. You will also require your accounting personnel to keep a proper record of cash flow so that they can advise you on the benefits and shortcomings of a major business decision. Planning your business decisions with an accounting system well in place will prevent you from incurring losses.
Track Small Expenses
Small expenses may seem insignificant when you start a business. However, they may pose a big problem if left unmonitored. With our accounting services, you will be able to track your small expenses and maintain your records, thus facilitating a smooth payment of taxes. Project Management Software, which runs on any browser, helps you track your cash flow and handle sales lead. Due is yet another Project Management program that will help you analyse your financial state and deliberate the strengths and weaknesses of your business.
Your Tax Payments
Do not create a situation where you have to pay taxes from your income. Though this practice prevails among some start-up entrepreneurs, it could be avoided if you allocate tax money well before the payment of taxes. Save money from your working capital so that you do not have to rely on your income for tax payments. A late payment could lead to penalties by IRAS. Therefore, keep your accounting records to avoid dealing with strict measures by the government.
Technology is a Great Help
The use of technology reduces human error and ensures accuracy in your financial transactions. Digital records, in addition to saving time and cost, will also offer you easy access to your financial statements. Automated bank payments facilitate access to digital invoices after each purchase, thus making your accountant’s job easier. Thus, with automated bank payments, you will be able to avoid manual errors in accounting.
While these project management programs will help you, our professional accountants will make your job easier by reducing your financial burden. You may reduce your start-up expenditure and save more money with the help of our accounting services. With our expert resources, we will minimize your risk of errors and ensure your tax compliance while you focus on your business endeavours.