Best Accounting tips for Startup businesses in Singapore – Startups are great for a young person who wishes to change the world and create something that will not only build wealth for the founders but also change the world as it is.
The startup culture of recent years have helped to push innovation around the world and speed up the changes that humanity wants to see in its inventions and also changes and improvements in processes and consumer needs across the board.
The startup culture has also seen some of its downfall and slowdowns with the recent WeWork saga seeing funded startups running on so much money that it is burning without even properly turning a profit.
As a professional firm providing accounting services, we will like to share with you some tips on how you as a Singapore startup can improve your accounting work to improve your chances of doing well in the long term in this tough and cut throat world with a new article on “Best Accounting tips for Startup businesses in Singapore”.
1. Pay close attention to your company expenses
The biggest problem with many startups is the run away spending that many will make when they are trying to grow their business and try to grow them fast.
The thing about company expenses is that you think that you know what is happening but actually you don’t.
You end up spending way more than you are making and this is going to start causing cash flow issues.
If you are a startup that is bootstrapping which means you do not have external funding, you will go under really soon!
This is one thing that most startup founders do not realize that can kill their goals before it barely took off.
Watch them by having someone do your accounting work or you yourself doing accounting work on a regular basis. This will allow you to have a clearer view of how things are going.
If you realize you are over spending on something, cut it back and work on it again.
2. Make a plan of your company expenses
If you fail to plan, you plan to fail.
Budgeting is always a good choice when it comes to working on anything.
When you budget, you will at least be paying close attention if you realize you are running way above the budget that you have set forth for yourself at the start of this course of action.
When you know what you are expected to be paying and you are way above it, slow down and make sure it makes sense before you push ahead again.
Many business owners especially startups do not budget and end up over spending what they should.
Clear time out to plan a budget for the year and also quarterly and you will realize how efficient you become.
3. Keep your records properly
Have you heard of lost receipts, lost expenses documents, lost invoices and lost cheque stubs.
This are all very common things that happen along the way when you are running a business because you are just so busy running the business to handle all this administrative documents.
The fact is, keeping this documents intact and proper is actually very important.
When you get audited by the tax agency, you will need to present this documents.
You will not know when this is going to happen so which is why keeping accounting records are very important for a business especially a startup that does not have good systems in place.
For those items where you need to expense off especially, keep them well.
Also your bank statements, you can lose them easily if you do not file them up properly.
4. Watch your profits and tax planning
You might not expect to make a profit but when you do, you will realize you have to pay too much taxes.
You could tax plan early when you start to realize the profits are coming in.
This is something that many business owners do not really pay attention to and freak out when things start to work out well.
You can sit down with your accountants to tax plan if you have the time to do that.
There are also expertise that your accountants will need to work things out with you.
At K Cloud Accounting, we will guide you to set up a good system for your business so that you as a startup founder will need to just focus on your business and leave the rest of the startup accounting work in Singapore to us.
Our friends at Avant Consulting can also assist you if you require some form of Insurance advisory needs and introductions.