Proper management of your accounts (bookkeeping best practices) is critical in managing and measuring your business’s finances. Book-keeping is essential — even mandated by law — for every business in Singapore, and must be done so regardless of policies and audit exemptions, if applicable. In other words, book-keeping is important not just for meeting audit standards and compliance matters, but to have an immediate overview of your business’s accounting operations at any given moment.

RCW accounting firm Singapore helps businesses maintain accurate, compliant book-keeping practices and accounting processes. By maintaining proper records, measuring business income and costs is easily calculated and analyzed. In Singapore, it is mandatory for businesses to retain proper accounting records for a minimum period of 5 years (for accounting periods ending on or after 1 January 2007), and for 7 years (for accounting periods ending before 1 January 2007). A business may be denied claims or other deductions if such records are not maintained properly and in full. RCW accounting firm Singapore can help your business manage its accounting processes, and track past records that may have gone astray, so your business becomes and stays relevant and up-to-date.

Mandatory Accounting Records for Businesses

A proper business accounting practice includes receipts and payment records for all income and expenditure. These receipts and payment records are referred to as source documents, and can help your business ascertain the validity of such transactions and entries into your accounting journals and documents. In addition, a business should record all of its assets and liabilities, including listings of debtors, creditors, and cash or bank account balances.

Maintaining Accounting Records (Manual Records)

Businesses in Singapore can opt for either a manual record or electronic record of their accounts and business transactions. For manual records, business transactions must be entered into a register along with source documents to verify the transaction. Receipts and record slips to suppliers must also be maintained, together with invoices, deposit slips, sales copies, and bank statements. These documents must be well-organized, legible, and chronologically arranged, with photocopies and backups. RCW accounting firm Singapore can help your business organize and record all accounting and other financial documents in a system that is approved by the IRAS, and that makes it easy for you to track and analyze your business transactions.

Maintaining Accounting Records (Electronic Records)

Businesses in Singapore can opt for either a manual record or electronic record of their accounts and business transactions. For electronic records, business transactions must be entered into an accounting or accounting-related software, which can adequately store and manage all your entries, while minimizing the potential of data loss or corruption. There are many options available to businesses in Singapore. Speak with RCW accounting firm Singapore on the best, most cost-effective accounting solution for your business. Note that while electronic records offer greater convenience and usability over manual records, some manual book-keeping is still required and must accompany or be recorded within the accounting software.

Manual Records or Electronic Records

Manual record keeping for accounts may be more appropriate to micro-sized businesses with few transactions that are easy to record and account for. For businesses with growing sales and slightly more complex accounting issues, electronic records will provide greater convenience and fewer hours of manual input. Speak to RCW accounting firm Singapore about which option is best for your business, and how to set up these options to suit your business’ operating requirements.

Sales Records

All businesses in Singapore are required to maintain and retain sales records. Proper maintenance of sales records ensures that businesses are able to explain every single sales transaction. Your business must have a system to record sales transactions. Records of sales include, but are not limited to:

• Cash register tapes
• Sales record book
• Receipts
• Invoices
• Private usage ledger
• Credit notes for returns
• Import and export documentation
• Sales listings for GST-registered businesses

RCW accounting firm Singapore has the expertise to optimize any one or several of these records to ensure greater accuracy and reporting for your business’s accounting requirements.

Bank Records

Businesses in Singapore are encouraged to separate bank account for personal and commercial purposes. Business owners are also required to be able to differentiate between personal and business expenses, and maintaining separate bank records can account for these purchases. For business purchases, it is best to use a cheque or a company credit card (if available) to maintain an accurate trail of business expenses. Businesses should also be able to identify all transactions that appear in bank statements. RCW accounting firm Singapore helps businesses to create expense and income trails that are easy to track and manage, so your business is aware of its financial dealings and position at any time.

Bank Statements

A bank statement is a list of every transaction made between your business and its corresponding bank for a specific period of time, usually one month. Bank statements are critical components of accounting and book-keeping practices. Bank statements should be filed chronologically and stored in a safe place.

Purchase Records

Businesses in Singapore are required to maintain all purchase records and be able to explain all purchase transactions. Recording purchases is usually done through receipts, invoices, or a purchase record book that stores all such transactions. RCW accounting firm Singapore can help your business organize and record its purchases as well as advise on how to make notations and fill in additional information that may not be reflected on the records issued by external vendors and businesses. If your business in Singapore is using a purchase record book, there is a specific format it must follow:

• Invoice Date
• Invoice Number
• Supplier Name
• Supplier GST Details
• Description
• Invoice Amount (S$ excluding GST)
• GST Amount (S$)

If your business is GST-registered in Singapore, it is recommended that these records be maintained in a Microsoft Excel Spreadsheet. RCW accounting firm Singapore can help your business organize and present this information according to the specifications prescribed by the IRAS and accounting bodies in Singapore.

Business Expense Records

Businesses in Singapore are required to maintain all expense records and be able to explain all business transactions. Common business expenses include, but are not limited to:

• Staff remuneration and employer’s CPF contributions
• Public transport expenses
• Traveling expenses
• Entertainment expenses
• Payments made to individuals for services rendered

All of the above expenses are deductible under Singapore tax laws. Speak with RCW accounting firm Singapore to understand which expenses are tax deductible and how you can ensure that your business pays its taxes in a fair and accountable manner.

Asset Records

Businesses in Singapore are required to maintain all asset records and be able to explain all business transactions and expenditures related to these asset records. Businesses in Singapore generally possess a number of assets that must be accounted for. Each asset must be recorded together with its details to present a full and complete picture of the asset’s history, use, and value. Details include:

• Date of purchase
• Cost
• Date of sale
• Price
• Copies of contracts, purchases, and sales

Businesses in Singapore are encouraged to prepare a fixed asset schedule when first starting out to ensure proper record of the asset. RCW accounting firm Singapore can help your business create a Fixed Asset Schedule and maintain proper record keeping processes that account for the assets your business owns and uses.

Stock-Take at the End of the Accounting Period

Businesses in Singapore are required to maintain all records of trading stock at hand, and be able to explain all business transactions related to the stock at the end of the accounting period. Trading stock refers to all produce and manufactured, acquired, or purchased goods for the purpose of manufacturing and sales. Physical stock counts must be done to determine the closing stock value. RCW accounting firm Singapore can help your business create and manage a stock list for inventory, recording, and accounting purposes.

Better Business Through Accurate Accounting

Good book-keeping and accounting practices help your business measure and manage its financial position. RCW accounting firm Singapore helps businesses to organize their records, and present these records in a clear, legible manner to the government of Singapore as well as your business’s stakeholders and customers. By keeping proper records, your business can operate on a more solid footing, confident that it is compliant and fully aware of all of its operations.