KEEPING PROPER ACCOUNTING RECORDS - AnnualReturnsSingapore.com

“Keeping Proper Records for IRAS …”

Do You Know The Latest Requirements In Keeping Proper Records for IRAS In Singapore?

Your company must keep proper records of its financial transactions by keeping all the invoices, vouchers and other supporting documents for five years.

These records should include:

Income and Expenditure.
Source documents such as vouchers, invoices, receipts and bank statements.
List of assets (Debtors, Stock, Cash & Bank Balance, Other fixed assets), and liabilities (Creditors, unpaid bills)

To comply with these requirements, it is suggested that you maintain a manual system or use an accounting software package.

Manual System (Keeping Proper Records for IRAS)

You should have three files to keep track of payment, receipt and Cash movement. File them in chronological order and photocopy them if they might fade.

Payment file should have :

Original invoices
Date of payment
Payment Voucher Number
Mode of payment (by cash or cheque number)

Receipt file should have:

Duplicate invoices of your company
Date payment was received from customer
Mode of payment (by cash or cheque number)

Cash file should be sub-divided into cash and bank balance:

Inflow & outflow
Date money received or paid.
Companies involved.

Computerized System (Keeping Proper Records for IRAS)

You can use accounting software to work out the monthly income and balance sheet, i.e . if you know about bookkeeping. Otherwise just use MS excel to total up the monthly receipt, payment, and the final figures of cash and bank balance. Any experienced bookkeeper or accountant will be able to finalize your financial statements based on the accounting records you keep over the accounting period.

Unaudited financial statements for EPC and small companies

As most of the companies in Singapore are exempt private companies limited by shares or small companies with a yearly turnover of less than $10 million, employing less than $10 million of assets, or less than 50 employess. They are not required to have statutory audits. Instead these companies need to prepare Unaudited Financial statement which should have the following reports:

Statement by directors
Comprehensive Income statement (profit and loss)
Financial position (balance sheet)
Statement of Cash flows
Changes in equity capital
Notes to the financial statements

Just call 9489-9429 now if you need help in keeping proper records for IRAS. The one-to-one tuition (normally one to one and a half hour including basic bookkeeping and setting up your charge of accounts) will only cost you $150. If you need me to prepare Unaudited financial statement, the fee is $350!