Have you ever come across the term “financial integrity?”
Financial integrity describes when a financial system works in a transparent and accountable manner.
As a small business owner, you need to incorporate financial integrity in your accounting. Therefore, it is important to reorganise your accounting in such a way that it helps you efficiently manage your finances, which goes a long way in setting up your business for success.
This means that you need a solid plan rigged with invaluable strategies that will help you maintain that efficiency.
Below are 7 sure-fire ways that you can easily implement in order to reorganize your small businesses accounting in Singapore.
1. Separate Your Personal and Business Accounts
Form the onset, ensure you do not use the same account for your small business to make payments or receive money for your personal needs. Open a separate personal or business account to help you separate all transactions accordingly, as this goes a long way in enhancing efficiency and overall cash flow.
If you ignore this simple step, you will find it so difficult to track your finances, especially when the tax season is around the corner. Furthermore, in case of any legal actions, it will be more challenging to protect your assets because you will barely know how much your small business owes in taxes.
A separate business account also plays a key role of making your small business look more reputable and credible, for example, when clients see the name of your business on their banks statement s and invoices.
2. Use an Efficient Bookkeeping System
Basically, bookkeeping systems help businesses record their financial transactions and information. Typically, it helps in reconciling bank transactions, maintaining a general ledger, and being aware of your accounts payable and receivable.
Whether your preferred bookkeeping system is a single entry system or a dual entry system, you need to evaluate the pros and cons of each and selecting the one which is most suitable for your business. Since the double entry system is widely used, it is advisable to have a digital software.
An efficient bookkeeping system gives you some peace of mind because it not only lowers the likelihood of grappling with human errors, but also minimises the number of documents and receipts that constantly float around your office.
Choose a bookkeeping systems that provides an effortless way of monitoring your spending habits, and even more.
Not every small business in Singapore needs to outsource its accounting services especially because their transactions could be simple and straightforward during the early stages.
However, if you can outsource your accounting tasks or hire an accountant who is well polished upstairs and has an impressive work ethic from the get go, you can save yourself from handling mundane accounting tasks and instead focus your energy on handling the main operations of your small business.
Professional accountants can help you learn ways of maximizing your returns and adhering to the requirements of financial reporting without missing deadlines. You’ll discover that outsourcing the task also frees your time for compiling financial reports, conducting briefings, and collaborating with various team members to unravel complex numbers.
4. Create a Workable Schedule
Once you hire an accountant, having regular meetings with him is important, and this means that you need to come up with a workable schedule. During these meetings, prioritise discussions about tracking the finances of your small business to ensure you cover all loopholes in time.
Creating a schedule means setting aside a specific hour, day, week, or month depending on the agenda to take stock of a number of accounting essentials including:
- Categorizing expenses
- Reviewing unpaid invoices
- Creating and reviewing budgets
- Analysing financial statements and reports
- Evaluating your start-up performance
- Preparing and estimating your taxes
- Reconciling bank statements
It is important to note that your schedule along with the above mentioned accounting essentials may change depending on your business type, your line of business, the number of employees, or even the urgency involved.
5. Use Small Business Accounting Software
To implement the most efficient accounting software for your small business, it is important to examine which accounting software systems are used by small business in Singapore.
You should examine them with respect to their ability to address the pain points in your accounting for the long term survival of your business.
Many small businesses and start-ups in Singapore commonly use QuickBooks, as it easily tracks transactions, while others go for ledgers to track your income and expenses.
However, there are also other wide-ranging high quality and affordable accounting software options that can address your needs as outlined in the table below.
|Accounting Software||Use Case||Starting Price per Month|
|QuickBooks||Small businesses||SGD $20|
|Xero||Growing businesses||SGD $11|
|Zoho Books||Microbusinesses||SGD $12|
|Zarmoney||Transparent Pricing||SGD $20|
|Sage Business||Freelancers/self-employed||SGD $15|
|Wave Financial||Free Option||Free|
Rather than performing your accounting tasks manually in the name of saving money, any of the above-mentioned accounting software is the easier, quicker, and more precise choice.
Gone are the days when businesses had to mobilize employees to sort and organise tonnes of papers in shelves and cabinets just to ensure that auditors don’t find them off-guard. Dealing with paperwork is an extremely repetitive task, which can be eliminated by digitizing.
You can scan the paperwork and store it electronically on a simple filing system or your small business accounting software. It is advisable to arrange them on a monthly or annual basis, and keep them on separate e-folders for easy retrieval.
Examples of QuickBooks add-ons that your small business can use to digitize your accounting paperwork include:
- Bill management software: Zoho Invoice
- Document management software: HubDoc
- Expense tracking software: Certify
While digitizing your accounting paperwork is the solution, avoid storing them on your main computer without having a back-up elsewhere because you might lose all your files and barely recover them. Storing your digitised files on the cloud is a better option because you’ll only need one data file to manage your accounts.
- As a small business owners, you need to incorporate financial integrity in your accounting
- Separate your personal and business accounts to enhance efficiency and overall cash flow.
- Choose a bookkeeping system that effortlessly monitors your spending habits.
- Outsourcing accounting tasks helps you focus on the main operations.
- Scheduled discussions with your accountant about finances to cover all loopholes in time.
- Many small businesses and start-ups in Singapore commonly use QuickBooks
- Back-up all your digitised files on the cloud.
Looking for a dedicated accounting firm for your small business in Singapore? Choose Tianlong Services. Our expert accountants can provide you with the best service possible, while minimizing your accounting problems and maximizing your profits.