Basics of Record Keeping for Singapore Company

For small Singapore companies’ owners who have no experience on how to keep Singapore company record, this article will help you to gain a basic understanding of what are the starting steps to maintaining transactional records.

Ingredients of small business record keeping for Pte Ltd Company in Singapore

  1. Monthly Bank Statements
  2. Sales Invoices / Records
  3. Credit Note Records
  4. Purchase Receipts and Documentation
  5. Stock or Inventory Records
  6. Payroll Records
  7. CPF Records
  8. Fixed Assets Records
  9. Rental Agreement and Payment Records
  10. Bank Loan Agreement / Hire Purchase Agreement with their schedule of repayments and interest table
  11. Receipts and Documentation of Expenditure incurred by Directors or Business Owners on behalf of the Company (expenses out of your own pocket)
  12. A suitable accounting recording system (You may invest in an accounting software or simply use Excel if your business is small and simple enough)
  13. A set of Self Inking Stamps that include Paid, Received and Posted.

Tips on source records for a Singapore company

Under the Income Tax Act, it is required a company to keep proper business records for a minimum period of 5 years.

This is a fairly simple rule to follow if you are able to keep a good filing system for all your business records. For a start, be very generous with the number of files you create for your company records. From our experience, we noticed that businesses like to file everything in one or two files with no proper segregation of document types. We recommend that a separate file be created to keep track of specific transactions for ease of retrieval and tracking. Refer to our illustration for a sample category of files to create for your business.

ACCOUNTING FILE

DESCRIPTION

SALES FILE

Houses all your sales invoices with a section for Credit Note (if any)

SUPPLIER (COGS) FILE

Houses all supplier invoices. The difference between this file and the Expense file is that this file contains expenses incurred for goods, services or materials that you will use for your business sales whilst the expense file will contain all other administrative and operating expenses

PAYROLL + CPF FILE

Keeps all payroll records, CPF and Foreign Worker Levy transactions here

EXPENSE FILE

Contains all other administrative and operating expenses (example: Utilities, Telecommunication, Printing & Stationery etc. You may opt to categorize the expenses by Date (recommended) or by Type of Expenses.

If a certain type of expense is high in volume, example if a company has numerous transport claims, it is recommended that you maintain a separate expense file for that particular expense.

BANK STATEMENTS FILE

Contains all Monthly Bank Statements for your Company. This is one of the most important files in your record keeping

IRAS TAX FILE

Contains all IRAS letters, notice of assessments and correspondences

DIRECTOR ACCOUNTS FILE

Contains all transactions paid on behalf of the Company, by the Directors of the Company, and yet to be reimbursed by the Company. You may consider creating this file if there is a significant volume of transactions that are paid by the Directors initially. With this file, it will be more efficient for the person preparing the accounts to identify transactions not paid through the Company account, and also facilitates Reimbursement.

RENTAL FILE

You may create this file to keep track of rental expenses. If you only lease one office with no variable charges, you may keep rental invoices in the Expense file.

FIXED ASSETS FILE

Contains all invoices relating to acquisition of Fixed Assets like Computers and Softwares, Office Equipment, Furniture and Motor Vehicles.

This will allow you to account for taxes and make relevant claims and allowances for Fixed Assets when it’s time to file your company taxes.

LOANS FILE

Contains all Bank Loan agreements, Hire Purchase Lease agreements, Third Party Loan agreements with the corresponding payment schedule and interest amortization table.

Leave your accounting matters to ACE Global Accountants, we offer a full spectrum of accounting and bookkeeping services that are cost-effective to companies. Find out more information related to our bookkeeping services, click here.

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