Setup of Accounting System Services in Singapore

Accumulate Financial Documents

  • Keep all documents relating to your business including invoices, bills, bank statements, receipts, government documentation and assessments.

  • When in doubt about the relevance of document to your business, hold on to them and ask your accountant (or someone else who can help) at a later date.

  • Invest in a stamp that indicates the received date of the documents.

Create Filing System for Documents

  • Use file folders and labels to organize financial documents

  • Maintain bank statements, customer invoices, vendor bills, government assessments etc. in separate files

  • Investing in colour coded file folders can greatly facilitate file retrieval

  • File regularly to avoid scrambling at the end of the year

  • Maintain separate folders for outstanding invoices, bills and other documents which require follow up.
     

Determine Accounting Requirements

  • Review volume of transactions and complexity of business as well as your budget and time constraints.

  • Depending on your requirements either hire a bookkeeper (full or part time), do it yourself or outsource to a third party

  • Usually a good idea to have access to a professional accountant to help out with setup of accounting system, and ongoing questions as well as financial reporting and analysis and tax preparation.
     

Select Accounting Software

  • Accounting requirements i.e. whether you hire a bookkeeper or DIY will determine if you need software.

  • MYOB is good for many small businesses and freelancers. Speak to an accountant if unsure

  • Free software also available , although functionality is limited

  • If doing it yourself, select software that is user friendly. Many small business software have free trials.
     

Enter Financial Transactions into Accounting Software

  • Important to enter transactions on a timely basis including customer invoices, vendor bills, deposits and cheques.

  • Reconcile bank statements monthly to track balances and reduce potential errors

  • Month end adjustments like depreciation, foreign exchange, accruals etc. help improve accuracy and reliability of financial statements, but can be done by accountant at year end.
     

Generate and Analyze Reports

  • Accounting software will generate reports based on data entered. Review Accounts Receivable and Aging Reports, accounts payable to vendors, inventory balances etc.

  • Financial statements can be generated monthly reflecting Profit and loss of the business as well as Balance Sheet.

  • Analysis of financial statements can help improve sales, reduce expenses and ensure that customer balances are being collected and loan covenants are being met.

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