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7 Accounting Tips to Keep You on Top of Your Business Finances

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7 Accounting Tips to Keep You on Top of Your Business Finances

2021-02-04T16:46:40+08:00January 10, 2015|Comments Off on 7 Accounting Tips to Keep You on Top of Your Business Finances

The proper management of business finances, accounts, financial records, and accounting documents is necessary for the proper operation of any company based in Singapore.

Efficient organization of documents such as receipts, invoices, and payments is just the beginning.  Managing business finances is a significant task for any business owner no matter how big or small your entity is.  There are so many aspects to consider such as software, procedures, forms, reports, understanding about corporate tax in Singapore  and how to save money on certain services needed to help run the business.

Accounting Tips to keep on top of Business Finances

Paying attention to the needs of your business is a good place to start.  Whether it is tax time or you are planning future financial goals for your company, there are simple tasks you can complete throughout the year to ensure your finances remain under control.

  • Maintain financial records in an efficient manner. Keep track of all expenses, profits, earnings, losses, and other transactions that occur throughout operations. Doing so will help save time in the future when creating reports, preparing for audits, and revising data that is updated on a regular basis.  People who are in direct contact with business funds, related reports, and other financial operations should know where information is stored, recorded, and made accessible when necessary.

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  • Invest in quality accounting software. Even if you work with an accountant or accounting service, there are basic software programs that are easy to use and affordable.  Some may help you track, organize, and structure certain financial tasks within your business. For instance, there is software programs that can help you create forms to use to record transactions. There are programs that can assist in record keeping for tax forms, expenses, and losses. Consider programs best for your industry and get recommendation from colleagues on what to use.

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  • Minimize paper usage to help streamline processes. Not only are you encouraging your business to go green, you can help reduce clutter to improve record keeping practices.  You may want to review forms used by the company and consider ways to reduce the need for printing content.  Review processes with high paper volume. Can you eliminate a step to help complete the process more efficiently in a timely manner?
  • Use a time clock system to manage employee hours. When you have a group of people working for you this makes managing time worked easier to review and keep track of.  This is also something to consider when employees work overtime. Having accurate records can help save money and time in the future.
  • Get advice from an experienced business advisor or mentor. Running a business has multiple aspects that are reviewed on a regular basis. Having good financial operations is important for the company to achieve and maintain its success. Talk with other business owners and those in your industry for advice on how to improve financial operations.  Who do you admire in your industry and what lessons have they learned about maintaining assets, earning more profits, and management of finances?
  • Keep accounting methods and forms up-to-date. Ensure procedures and standards continue to meet company standards. Depending on your business operations you may need to make changes or updates to how cash flow is managed, accessed, or distributed. You may want to consider reviewing possible ideas with employees and get their input on current operations. Is there something they recommend a change for and why? Is the business using funds efficiently and if not, why?

Continue to build good relations with your accountant or accounting services. You are more likely to stay on top of financial issues as they arise.  Working with a Certified Public Accountant (CPA) can help your business stay current with technology, financial processes, and other important details related to business finances. Ask questions when you have concerns and listen to information provided by your financial expert.

Additional Accounting Information You Should Review about Your Business

If you are a sole-proprietor of a business you should keep personal and business expenses separate.  This may become an issue when an audit is conducted, especially with poor recordkeeping.  Even though technology is able to help us with calculations and balancing numbers, you should consider rechecking balances yourself. In some cases, you may enter a number incorrectly and it could produce balances that are not accurate.

7 Accounting Tips to Keep You on Top of Your Business Finances FAQs

How to claim for tax exemption?2020-07-01T11:32:29+08:00

You are required to make a declaration in your income tax returns by giving the nature and amount of the foreign-sourced income that was remitted to Singapore. You are also required to complete the Declaration Form for Foreign-Sourced Income Received in Singapore From 22 Jan 2009 to 21 Jan 2010 (60KB) for submission to IRAS. Although you have to state the use of the foreign income in the declaration form, the usage of such foreign income will not affect the claim for tax exemption.

How income is assessed?2020-07-01T11:32:05+08:00

Income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year preceding the YA.

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