1. Businesses need to buy goods or services to sell them to their end customers at a profit and to keep their operations running smoothly. There are two ways that a business can purchase goods or services – by cash or credit. 2. For cash purchases, payments are made to the supplier or… Continue reading Understanding Trade Payables
1. Hire purchase is a type of payment arrangement that allows the buyer to purchase expensive goods and assets without paying the full cost upfront. It is a financing solution suitable for businesses wishing to purchase assets without paying the full value immediately. The business pays an initial deposit, with the remainder of the balance and interest paid… Continue reading Using Hire Purchase Loan to Purchase Company’s Assets
1.A business sometime may need urgent funds for various reasons. This may range from helping it to navigate during turbulent periods such as machinery breakdown to having to pay deposits for inventories orders. There are various options that a business can consider to raise the funds they need. They can either source it from bank… Continue reading Loan from Director to Company
1.When you buy a share in a company, you are effectively becoming a part owner of the company. As a shareholder and owner of the business, you would expect to receive some returns periodically, usually on an annual basis when the company performs well and making profits. This return on investment can be in the… Continue reading Dividends Explained
1. A Pte Ltd company in Singapore is required to have a certain share capital amount at the time of its incorporation. Share capital refers to the amount of capital or funds that the company requires to start its business activities. It can raise this funds by issuing shares to investors. The minimum issued share… Continue reading Share Capital of a Company
1. Fixed assets are tangible assets that are employed in the business to generate revenue/income. This assets are not intended for resale in the normal course of business. Typical examples of fixed assets are items such as property, plant, and equipment. 2. The purpose of its use distinguishes a fixed asset from other assets… Continue reading Fixed Assets in Business
1. Inventory or stock refers to the goods and raw materials that a business had purchased and hold for the eventual resale to customers, production of semi or finished goods or own use. It is important for any business to understand and manage its inventory effectively to avoid goods shortages, over production or obsolescence that… Continue reading Inventory Accounting in Business
1. Cashflow of a business generally refers to the movement or flow of cash into and out of the business over a specific period of time. For example, a business will receive money from the sales of goods and services that it made to its customers. On the other hand, withdrawals of cash out of… Continue reading The Importance of Cashflow in Business
1. Operating expenses are generally known as the costs incurred by the business during its normal course of operations and in the day-to-day running of the business. 2. Some common examples include advertising, rent, utilities, salaries, and other necessary expenses. These costs are related to the core operations of the business and are not directly… Continue reading Operating Expenses of a Business
1. All Singapore incorporated business entities are required to prepare Annual Financial Statements. The Annual Financial Statements has to be filed with ACRA and IRAS, except for those which are exempted. 2. A typical Annual Financial Statements for business entities such as sole proprietorship, partnership, limited liability partnership, or limited partnership, comprises of Profit… Continue reading Preparing and Filing Financial Statements with ACRA and IRAS
