Vital Accounting Tips for Every New Entrepreneur In Singapore Should Know
Accounting is always challenging for every entrepreneur, especially if you are just starting out and you are in an environment like Singapore, where there are tough regulations on business accounting and taxations. Failure to be thorough with your bookkeeping in Singapore is a sure way to incur a lot of problems and penalties, not to mention the fact that you can easily have your license revoked and jailed for breaking the financial rules and regulations. To ensure that none of such bad things happens to you, below is a look at some of the vital accounting tips every new business in Singapore should strive to observe.
Make good use of available accounting tools
At the beginning of a new business, it may be tempting to go manual on how you handle the business books. By manual, we mean that you don’t employ the use of any accounting software, but instead keep track of the records in simple applications such as Microsoft Access and Excel. Such may suffice for the short term, but you should know that they were not designed with core accounting in mind, and you will find them limiting in a number of ways.
The most ideal route to consider is to invest in a decent accounting software package that will come with all the functionalities you need to stay on top of your bookkeeping. You will be pleased to know that using an accounting tool in Singapore will not just make it easier for you to look at your business numbers and have a good understanding of what the numbers say, but also, when it comes to the taxation, such a too may help you save a lot of money.
This is because companies that use accounting software qualified under the Productivity and Innovation Credit Scheme may be liable for up to 400% corporate tax rebates. This is good news for every business, and instead of sticking to the old ways of doing things, you should take advantage of technology for more efficiency and cost saving.
Work with professional accountants
Perhaps this is one of the best accounting tips you will ever consider when starting a new business in Singapore – hiring professional accountants. At the infancy stages, you may not see the need the services of a professional accountant because the transactions are few and the numbers are small, so you can just track them on your own.
However, as the business grows, the transactions will also increase, and the figures will also start growing and keeping up with them may not be possible, especially if you have training in accounting. So why don’t you let the pros do their thing while you concentrate on other aspects of growing the business? You do this by hiring professional accountants, either in-house, or you can simplify your accounting services to the many accounting firms in Singapore.
With them, you are assured of reliability, professionalism, and efficiency in your bookkeeping, and you will also not have to worry about tax compliance.
Review your accounting books regularly
Hiring an accountant should not be the end of you checking on your books. As the owner, you should be proactive in all aspects of the business, especially if it comes to the ones touching on finances and this is why it makes perfect sense that you review your accounting books from time to time. You don’t have to wait until the year is almost over for you to go over the numbers or when you have to compile your records for tax purposes.
This will not just ensure that you are on top of your business finances, but also will give you a clear picture of your financial standings and be able to tell whether or not you are on the right track as far as the business profitability is concerned. Active participation in your record keeping will not mean that you don’t have trust in your accountant, but it will enhance smooth functioning of the business, and the accountant will also be happy that you are genuinely interested in your books, thus giving them a further reason to do a very good job for you.
Hire the services of a payroll manager
Hiring a payroll manager is one many crucial accounting tips experts will recommend to you. Payroll is a vital aspect of accounting, and you need to give it an extra thought if you desire to have smooth operations in your business. With regards to payroll, there are a thousand and one things that could go wrong, and it is imperative that you have a professional to keep tabs on how you do your payroll.
It is possible that you may accidentally underpay, overpay or delay employee remunerations, and this may come with devastating consequences to your business. For example, it is possible that due to poor payroll management, disgruntled employees may leave and work for your competitors. Worse still, in Singapore, if you are found to have failed to pay your workers within seven working days at the end of every salary period, you risk paying fines of up to $5,000 or six serving six months in prison or both.
A dedicated payroll manager will help you navigate through such and similar problems and it will also come along with a horde of other benefits for your business. For example, when employees are remunerated commensurately to their work and they get the money in good time, they will be motivated to work hard, and they will not think of seeking for greener pastures elsewhere.
Don’t complicate your finances
Simplicity in finances will never miss amongst the best accounting tips for businesses. And the basics of this is to simply separate business finances and personal finances. This is a rookie mistake that most new entrepreneurs do fall for and which ultimately end up hurting the financial aspects of their businesses. It is imperative that you have separate bank accounts and credit cards for your businesses and you should restrict purchases using such accounts and cards only to business-related items. Don’t go shopping for clothes with the credit card designated for the business.