Starting and running an eCommerce business in Singapore is not as easy as eating cake, it comes with its own set of challenges and repercussions if not done right especially managing and dealing with your numbers such as, financial record keeping, paying your taxes, understanding the goods and services (GST) tax and a lot other minute things that are super important.
In this blog post, we’re going to walk you through the 15 most important accounting and tax preparation tips that are going to act as life savers for your eCommerce business in Singapore.
Partnering with accounting firms
As you begin managing your eCommerce business consider partnering with a reputable accounting company in Singapore, these firms have experts who have all the knowledge in the world when it comes to managing your finances and dealing with your accounts.
Your accountant will help you in tracking your expenses while complying with the accounting standards and regulations. They will assist you as you navigate your eCommerce business through the Singapore market while avoiding any errors or mishaps.
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Hire an accountant
The most important part of running a business is hiring professional staff that knows what they’re doing and when, so to keep your books in order you must hire a professional accountant in Singapore. An accountant will have all the knowledge of local taxes, bookkeeping, and other financial requirements that are specific to the Singaporean market.
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Keep your accounts separate
Now this is a pro tip to help you during an audit, keep your personal and business accounts separate. This will help you in keeping a proper record of what comes in and goes out throughout your business operations, this practice will also simplify the accounting procedures and help you when paying taxes or managing your inventory levels.
Maintain your financial records
Keep clear records of all your financial dealings and transactions such as sales, expenses, and inventory costs, this will assist you in filing for taxes, carrying out yearly financial analyses, and complying with regulatory standards.
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Track inventory cost and the cost of goods sold
Keep an eye on your profits and losses by implementing an inventory management system in your eCommerce business, this will allow you to track the inventory levels so you would know when you’re running out of products to sell and will also assist you in calculating the cost of goods sold.
Implement technology
Making use of technology in your eCommerce business will make your entrepreneurial journey in Singapore much more smooth and risk-free, implement the cloud-based accounting software to keep a backup of all your accounting details and financial records in case you lose your data. The accounting software also offers other features such as automated bookkeeping and real-time financial reporting.
Be aware of the goods and services tax
Getting familiar with the GST is crucial while running an eCommerce business in Singapore. It’s a tax that has to be paid on all kinds of goods and services that are sold in Singapore so filing your GST on time and keeping yourself updated with its regulations and standards will keep your business free from penalties. You can also hire a GST expert in Singapore who can help you with the GST filing.
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File your taxes on time
In order to file your business taxes on time and adhere to the deadlines set by the Inland revenue authority of Singapore (IRAS) you should consider hiring tax preparation services, the tax experts will ensure accurate and timely filing of taxes and prevent penalties and interest charges.
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Maximize your tax deductions
Tax deductions are the expenses that can be subtracted from your taxable income, this will reduce the amount of income that is subjected to taxes. Hiring a tax expert in Singapore will help you capitalize on your tax deductions. Seek advice from experts to know about deductible expenses such as marketing costs, utilities, employee salaries, office rent, and, professional fees.
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Monitor cash flow
Keeping an eye on your cash flows throughout your business processes is essential, cash flow management will ensure that you have sufficient funds for business operations, expenses, and expansions. You can monitor your cash flows by reviewing and adjusting your cash flow statements and implementing cash flow controls.
Implement strict internal policies
To save yourself from internal frauds and errors implement strict internal policies and controls while allowing access to financial records to only the authorized personnel also, segregate the duties of your employees and carry out regular financial reconciliations to maintain a working standard in the office.
Plan for annual audit
Carrying out an internal statutory audit once a year will help your business maintain a certain standard and comply with the rules and regulations set out for businesses. Seek help from an accounting company in Singapore to help you prepare for an audit and keep track of the reporting standards.
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Analyze financial statements
To make informed business decisions you should keep in mind to analyze your financial statements every once in a while, this will help you keep track of your cash flows, profits, liquidity, and the overall financial health of your business.
Stay updated on accounting standards
To stay ahead of the curve in your financial practices stay updated on the latest accounting guidelines and standards, keeping track of the ever-changing rules and regulations will help your business remain afloat while maintaining a relationship of trust and loyalty with the clients.
Seek professional help
One thing that every business owner should keep in mind is that it’s never too late to ask and seek help so if you find yourself under the waters in your business dealings always pursue professional advice from tax experts and hire business consultants in Singapore, to receive accurate guidelines and advice.
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