5 Bookkeeping Tips Every Singapore Startup Should Know
Starting a business requires close attention to financial records. The capital is limited, so as much as possible, you would want to maximize your money for functional purposes. Further, if you are expanding on a new location, it is especially important to have tight control of how income and expenses flow from your business
Are you a Singaporean company planning to venture out in Malaysia? Do you need bookkeeping tips on how to properly manage your startup? Here are 5 bookkeeping tips every Singapore startup should know.
1. Set Boundaries
Startup owners may still be adapting to the changes in running a business. And oftentimes, your mindset is still stuck on using company money to finance personal activities. This is a bad practice. As a business owner, you always have to separate personal transactions from business transactions.
Establish clear boundaries. You may think that it’s okay to pay your personal groceries with company money. But it is an inappropriate practice, no matter how small the amount is. If you continue with this line of thinking, this may become a habit. And you will then get used to spending company earnings for personal means.
Early on, practice separating the personal from the business. This will lead to better and honest record-keeping. Further, it will prevent taxation problems in the future. Lastly, it will also prevent you from accumulating small personal expenses into large sums, that can steer your business into failure.
2. Keep a Strict Financial Record
Establish one simple rule from the very beginning: record every economic transaction. You have to remember that your financial records are the foundation of your financial reports. These are important to gather information on how your business is doing. Therefore, you cannot allow any transaction from being left forgotten.
Sometimes, it’s easy to say that you can do your bookkeeping tasks at a later time. However, this practice is usually the reason why the reports and the filing of compliance are late and full of errors. So it is always better to record every transaction daily. This way, you have enough time to ensure the accuracy of your records.
3. Use Bookkeeping Solutions
Running a startup is not an easy job. If you are alone in managing the business, it takes a lot of effort and time to go over every business aspect. One bookkeeping tip is to make use of the available bookkeeping technology.
There are many bookkeeping and accounting solutions online that can help you ease the burden of running a business. With bookkeeping solutions, you can complete your bookkeeping tasks with only a few inputs and clicks. It’s much more efficient than the traditional paper-based record-keeping. You can finish in less than an hour a day, on average. Thus you can spare more time in analysis and decision-making.
4. Keep an Eye on Your Cash Flows
When you’re not keeping track of your cash flows, it’s easy to think that you’re not spending too much on a particular expense. But small expenses accumulate to large sums. If these are left undetected, these small expenses could be the downfall of your business. It could leave you with not enough cash to pay regular operating expenses.
This is why it is important to track your income and expenses regularly. This way, you can see which products are earning the most, and which expenses are taking too much of your resources. When you have this information with you, then you can make changes and improve your performance.
5. Do Not Be Afraid to Ask for Help
It’s okay to admit early on that you need assistance. This way, you can better prepare and look for support before the work starts to pile up. If you think you need professional help in keeping your books, do not be afraid to consult and ask for assistance from professionals. As a result, you can feel competent from the very start that your bookkeeping will be in order.
Professional Bookkeeping for Startups
These bookkeeping tips are here to help guide you through your startup journey. We know that startups can be stressful and that different business tasks can get overwhelming on your own. And with how important keeping your financial records are, you cannot let your bookkeeping function be the last priority.
Do you need expert advice and assistance on your new venture? 3E Accounting is here to help. We specialize in bookkeeping and report compilation services for any business structure. Contact our teams today to acquire our Malaysia bookkeeping services.