Your business is a separate entity to your personal financial matters. This is the reason why you need to properly record each transaction and separate your accounts from your own account. The Bookkeeping Services Singapore can be your option if you need bookkeeping and other accounting services. More than that, there are also a lot of reasons why your business needs a reliable and accurate bookkeeping. There are several factors why bookkeeping is a necessity, and one of those is the taxation.
Every business is required to pay taxes. To be able to do that, you should keep every transaction of your business posted, recorded, and filed. The receipts are also important, and you need to file them in an organized manner so that the accountant who audits your business will be able to file your tax correctly. You may opt to use accounting software for your business or avail services from professional accountants. There are many accounting firms in Singapore that can offer you the needed accounting services for small business Singapore.
Preparation of the financial statements is one of the main things to furnish before you can come up with the amount to pay for tax. To make an accurate financial statement, you need proper bookkeeping procedures. The income and expenses should be correctly recorded, and in relation to this, the accruals and deferrals should be considered as well. The cash and other assets, such as accounts receivable and supplies and inventories should be properly accounted for because they may have an effect in the financial statements if under or over stated.
These statements are also useful and needed if you are applying for a business loan. The lender will look at your statement and see if you are capable of paying the monthly amortization, in case you are approved of the loan. If you have improper bookkeeping, this will affect your credibility and might cause your lender to put down your loan application.
Another reason why you need proper bookkeeping in your small business is because you want it to become successful. If you have big plans of expansion in the near future, or if you are planning to acquire a property for your business, you have to prepare all your finances and keep your records clean. It will be easier for you to make your plans happen if you have a reliable bookkeeping procedures from the start.
Many accounting firms understand that, and they know how to help you achieve your goals. If you cannot handle the basic bookkeeping tasks on your own, avail the bookkeeping services from a reputable company. These Accounting Services Singapore will help you make your business productive and more valuable in the coming years.