Singapore has always been one of the top countries when it comes to economic conditions. Singapore has always been one of the best places to conduct business as it has an economic environment that supports both big and small businesses. Its policies are business-friendly which makes it easier for everyone to conduct business transactions here. During the polls last year, it was named as the most open-market economy which means that business transactions can be openly conducted and done here.
This is the reason why there are still many businesses coming and new investors looking for a place in Singapore. Small businesses also try their luck in the busy streets of Singapore as it offers many perks and promising rewards. As a small business, one of the few things that must be done to be able to fully and legally operate is the company incorporation Singapore procedure.
This ensures that the business is duly registered and legal. The company incorporation Singapore process can be done by a professional or the owners themselves. After this, the next step is to set up a managerial system in the company. One of these systems or structures is the bookkeeping Singapore system.
What is bookkeeping?
Bookkeeping is the activity of keeping records of the financial affairs of a business. It can also handle payroll, make purchases, prepare invoices, and keep track of overdue accounts. Bookkeeping keeps all the important documents in check and makes sure that all important documents are where they should be. This helps the business in so many ways that is why it should be taken seriously. Small businesses might have a harder time doing this after the company incorporation Singapore process. So, in this article, let us talk about some tips when it comes to the bookkeeping Singapore system for small businesses.
#1 List down everything for bookkeeping
To be able to conduct a bookkeeping Singapore system effectively, a detailed list is required. Bookkeeping literally means keeping a record of all things that concern your company. That is why even the smallest things or details must be kept, listed, or recorded. This way, there would be no discrepancies or lost documents in the long run.
The listing of things is done even before the company incorporation Singapore process has started. This is because all the procedures before this are vital parts of the business’s beginning. These small details might or might not play an important role in the future of the company. That is why as a business owner, you would want to be able to list and keep a record of everything. This is one way of having an effective bookkeeping Singapore system for your business.
#2 Keep a system for bookkeeping
The second tip is to keep a consistent system or a routine. The act of listing and recording everything might be a heavy workload for some. However, once a routine is established, bookkeeping can be done easier. The routine includes setting up a schedule of when to record things in your database. It can be the end of every day, every other day, or weekly. The frequency depends on you or whoever is going to record it. The important thing that must be considered is that the schedule should always be followed.
#3 Separate personal from business documents
The most common mistake that small businesses do is mixing the personal finances of the business-related ones. This is because they often think that the business money is also theirs automatically. However, mixing these two finances might lead to future problems as the owner wouldn’t be able to manage the business finances properly. It is important to always separate these two to ensure that business finances can be easily tracked.
#4 Open a separate bank account
This is connected to the point previously mentioned. A business owner should have a separate account for personal matters and business accounts. This is to avoid the mix of the finances that may lead to problems and issues in the future. A bank account for the business would also set a good impression on your clients as it would seem more professional to have one. This kind of bank account can be set up after the company incorporation Singapore process to ensure that the name of the business is available and ready for your use. Having a separate bank account will not create any financial difficulty for the business and owner later in the future.
#5 Hire a professional
At the end of the day, the most effective way to conduct bookkeeping in Singapore processes is to hire a professional bookkeeper. A professional would always know what to do therefore you can avoid problems and complications along the way.
#6 Have an organized database
Computers or databases must be kept organized. This is because the database is where you store all your company’s important documents. Payroll, tax papers, and bank papers are documents that should be kept and organized. If you want to make it even more effective, then you should back it up regularly. This is to ensure that your database is always safe so you won’t lose anything.
#7 Be consistent
In doing bookkeeping, consistency is one of the most important factors that must be considered by businesses. Even if you’re doing it alone, you should be consistent in recording all the important documents. That way, you’ll never miss a thing and you’ll be able to keep track of anything.
#8 Follow the law
As a business owner, it is important to be aware of the law and follow it. You should always be aware of your responsibilities to avoid having problems with the government in the future. It is better to know everything especially the laws and restrictions mandated by the government to run the business operation smoothly.
Hire one now
Many firms offer professional bookkeeping Singapore services. WLP Group is one of the most trusted and reliable bookkeeping companies in Singapore. Contact us today to know more about our bookkeeping Singapore services.