Top 10 bookkeeping tips small businesses must follow for 2021

Running a company is a difficult task. As the owner, you would most likely wear several hats CEO, finance chief, publicity director, and so on. Crunching numbers can be tedious and time-consuming, but the bookkeeping Singapore platform is essential if you want to keep track of your expenditures and progress. Even if you were able to find an accountant to assist you with your accounting, we agree that any company owner should be familiar with the fundamentals of new business bookkeeping. Knowing your accounts will help the company prevent last-minute revenue mistakes and provide more insight into the viability of future programs.

Businesses in Singapore must adhere to annual compliance standards and maintain correct accounting records, which is why it is beneficial to hire an accounting firm to assist you with the requirements.  Accounting services for small business Singapore firms should be handled by experts. Here are 10 bookkeeping tips for any Singaporean small business.

#1Bookkeeping tip : Independent corporate and personal costs

We’re positive this isn’t the first time you’ve experienced anything like this. One of the most important principles to remember when beginning your own company is to keep your business and personal finances apart. Here are three reasons:

  • It is simpler to keep track of which costs are business-related and which are personal.
  • Having a business account and card will assist the company with developing its own credit score, which can be helpful in the future.
  • It will provide you with a clearer picture of the company’s spending.

#2 Bookkeeping tip : Try to stop cash transfers as much as possible

The fact that most sales will now be paid online is undeniable. However, there can be moments when you ought to reach for your wallet. Although cash transfers aren’t the worst, they can make bookkeeping more difficult if you’re not careful with your receipts.

Small expenses can seem insignificant—after all, what’s a few dollars off the books? However, prolonged oversight could cause a snowball impact, leaving you stuck at the end of the month with no idea where your money has gone.

#3 Bookkeeping tip : Keep track of company expenses and receipts

This is why it is important to keep track of your corporate expenses and petty purchase receipts. Keep a list of all purchases, no matter how insignificant. To do this, we recommend:

  • Obtaining a copy of your monthly company deposit accounts
  • Maintaining a register on all receipts relevant to company transactions

Having these safeguards in place would make the bookkeeping Singapore process at the end of and month a much less aggravating process for you.

#4 Bookkeeping tip : Put money together for large or recurring costs

Instead of continuing to report the same spending over and over, set aside a portion of your monthly budget for necessities. The term “essential goods and costs” refers to the investments that your company will undoubtedly make from month to month. This could include things like office equipment and leases.

Furthermore, putting aside a schedule for big costs will help you keep track of the company’s monthly expenditures. For example, if you have a major project in the works that would necessitate a bigger budget, you can enter it into your account early on. This will allow you to visualize what your business’s spending cap will be in the coming months.

#5 Bookkeeping tip : Put money together for taxes

Keeping track of the company’s accounts also entails putting up money to pay your taxes in the fourth quarter of the year. You really don’t want to be behind on the tax payments, or worse, having to take out a loan to cover them.

#6 Bookkeeping tip : Don’t forget about the invoices

Late payments will have a negative impact on your business relationships. Having to chase down unpaid bills from both clients and partners can strain relationships and make month-end accounting challenging.

To tackle this, plan and give out invoices until jobs are completed. This will assist you in reminding consumers and clients to make timely payments. This would also make it easier to pay the associates and suppliers! Keeping this organized will also help to ensure steady cash flow across the month.

#7 Bookkeeping tip : Keep track of your spending once a week and do your accounting once a month

It’s easy to push bookkeeping to the back of your mind, particularly if you’re swamped with other business needs. However, if you wish to keep your company going, the bookkeeping Singapore process should be a top priority.

Setting aside some time per week to review your receipts to ensure that they match your sales will make it smoother at the end of the month.

#8 Bookkeeping tip : Make use of an electronic payroll scheme

Payroll is one of the company’s most expensive expenditures. Paying the workers by bank transfer or manually every month will result in inconsistencies. Paying the workforce on time as an employer will also help to build deeper ties and confidence amongst the team.

This is why automating the payroll is the most effective way to keep it concise and on time for all parties involved.

#9 Make an effort to simplify the record-keeping

Looking at opportunities to simplify record-keeping is the perfect way to make bookkeeping Singapore procedures for new companies more manageable. This may be accomplished by the use of online accounting tools. If you are interested to write and store your book keeping record in Malayala, then you can use ISM Malayalam software to start tying in Malayalam. 

There are several online accounting software programs that specialize in new company bookkeeping Singapore platforms. They usually provide consumers with a variety of features, including day-to-day business administrative basics such as:

  • Bill payment automation
  • Expenses
  • Bringing bank information and transactions together
  • Dashboards for budgeting Financial results

By automating your bookkeeping procedures, you will have more time to spend on other facets of your company. However, each company has unique requirements, so do your research before making a purchase.

#10 Seek professional assistance

When accounting becomes too time-consuming, or when your time is better spent on other facets of your company, you can still outsource your bookkeeping to accounting services for small business Singapore professionals. It also saves you more money in the long term. It helps with enforcement by ensuring that the individual doing the books knows what they are doing.

Hire one today

Accounting services for small business Singapore firms entail properly maintaining and reconciling documents. It is something that business owners must either learn or outsource. Since bookkeeping necessitates a certain amount of effort, you might want to consider hiring part-time or contract accounting services for a small business Singapore firm. Since your company is required to meet annual compliance criteria in Singapore, it is beneficial to seek assistance from a firm that provides accounting services for small businesses that can handle your ledgers as well as assert tax breaks. Simultaneously, bookkeeping Singapore procedure for new companies is one of the most important methods for keeping the organization afloat.

WLP Group is formed by a group of experienced bookkeepers who previously worked in a few high-profile SMEs. We have several years of experience and expertise from various industries and strive to be the most value-added service provider for our clients. Check out our website today to learn more about our products and services.

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