As much as growing your business through sales, it is just as important to have a solid hold on your accounting. It is so easy to get caught up in designing a brilliant website or meeting with investors, but without a sound understanding of your numbers, it can spell danger to your business.
There may come a time where some unexpected surprises come sneaking up, and you overlook some details in your ledgers, or forget tax filing deadlines, or even lose track of the company’s cash flow status, which is vital to keeping the business alive.
Here are some tips to manage your company’s accounts effectively:
Your business will be a roller coaster ride. Be pragmatic and forecast large expenses so that the business stays afloat through low seasons or upgrades on IT or acquire an attractive business opportunity. Create a sustainable budget for static expenses and make adjustments accordingly to those that change over time.
Keep Records From the Start
As soon as you start your business, start recording all your costs and sales. In fact, start recording your finances as soon as there is movement even before your business starts. Make sure you know your due dates for taxes, GST and so on.
Read up and stay up to date on tax laws so you enjoy a ton of savings during tax season. In a pro-entrepreneur nation, Singapore-based Small Medium Enterprises (SMEs) are have schemes available to set up a new business and benefit from incentives and tax cuts. Study details of Tax Exemption and deduction scheme by IRAS (Inland Revenue Authority of Singapore), such as the Startup Tax Exemption Scheme (SUTE) and Productivity and Innovation Credit (PIC).
Outsource Accounting Activities
If numbers are not your thing, or you don’t have the required capital to hire an in-house accountant, getting experts in accounting services could save you a lot of precious time so you can concentrate on running your business.
Read our Accounting Partner’s blog for a checklist of documents to prepare for accounting.
Your One Bizhub Team