Most small business owners in Singapore think that keeping accounts is cumbersome and deprives them of the time required to run their business. Bookkeeping makes some of these business owners nervous and may wonder whether their accounting knowledge can cope with them because they are worried that tax officers will come to their door.
Separate your business account from your account
You should not mix your personal and business accounts but separate them to maintain a clear and consistent transaction record.
Make use of technology
Technology is meant to save time. The accounting field has also acquired technology in the form of accounting and inventory software. This type of accounting software allows your company to manage its finances more efficiently and to be kept up to date.
Avoid using cash
Rather than paying or receiving cash, it would be best if you chose to use a credit or debit card, as the latter will allow you to track receipts easily. For example, if you decide to withdraw money from an ATM, you can indicate the reason for the withdrawal on the receipt. Also, it would be best if you encouraged debtors to pay through banks or electronic payments. In this way, you will find it easier to track and extract the receipt’s transaction information.
It can be troublesome to keep business documents such as receipts, invoices, and payment vouchers for years. If you want to keep important personal and business documents intact, buying a fireproof safe is another option.
Meet with your certified public accountant (CA) at least twice a year
When you meet with your CPA, please review your financial plan, business plan, tax strategy (check our tax services ) and payroll procedures. Remember, the costs associated with taxes are too high, so you must make sure you have a good plan. If you meet regularly for a few minutes with experts selected from an accounting firm, you can virtually save a lot of money.
However, you must ensure that the CA you choose is qualified, lest your business is dragged into the abyss. It would be best if you had a planner offer in compromise advice.