Whether you are a new startup or an existing business, accounting is mandatory for all businesses in Singapore!
If you are planning to startup a business, or had just incorporated a new business, you will need to perform accounting works.
What is a startup? Well, this is an organization formed for business purpose. Startups in Singapore could be product or service centric. Most of the time, these startups are characterized by innovation.
Did you know that as at 2012, three out of four new startup businesses fail within their first five years of operation? There are many factors attributing to it. Some common factors are:
– Products being created that are not accepted in the market. People who know about the product generally do not accept it, while those who accept it do not want it;
– Poor management of resources such as time, labour or even funding for the business;
– Failure to prepare and maintain their accounts, thus do not have an idea of the business performance from time to time;
– Etc
Amongst the reasons, failure to keep accounting records comes high up in the list. Most firms have an opinion that accounting and bookkeeping matters for new startups are not important. Most argue that they have little transactions and activities are limited, thereby they do not need to maintain a set of accounting records.
If you are one of them, then I have to say that you got it all wrong!
According to Singapore regulations for businesses, all firms whether you are a new startup or an existing firm has to prepare a mandatory set of financial statements and accounts. This set of accounts is to be presented at the Annual General Meeting , where the directors present the company’s accounts to their shareholders. You then need to file annual returns although you may just be a local startup company.
On top of that, you being a startup also need to file your organization’s tax return to the Inland Revenue Authority of Singapore. It does not mean that a new startup business has exemptions to these standard procedures, be it filing of annual returns or the filing of tax returns.
New Startups in Singapore, it is important for you to get your set of accounts and financial statements prepared and done up correctly. If you do it wrongly, this will land you into trouble with the Singapore authorities. So, seek professional help and request for accounting services if needed. Be in compliant with the Singapore Regulations and Singapore Financial Reporting Standards today!
