Accounting

For many Singapore business owners, bookkeeping feels like an administrative burden. But accurate books are the foundation of good tax compliance, smart financial decisions, and a business you can actually trust the numbers of. What is Bookkeeping? Bookkeeping is the systematic recording of all financial transactions in your business — sales, purchases, expenses, payroll, and bank movements. It forms the foundation for your financial statements, tax returns, and management decisions. 💡 Bookkeeping is not just good practice — it is a legal requirement under the Companies Act (Cap. 50) and the Income Tax Act in Singapore. What Records Must You Keep? Under Singapore law, all businesses must maintain proper accounting records that correctly explain their transactions and financial position. At a minimum, this includes: How Long to Retain Records IRAS requires businesses to retain all records and supporting documents for a minimum of 5 years from the relevant Year of Assessment. For GST-registered businesses, records must be kept for 5 years from the end of the accounting period covered. Cash vs Accrual Accounting Most Singapore companies use accrual accounting — recording income when earned and expenses when incurred, regardless of when cash changes hands. This is required for SFRS-compliant financial statements and is generally expected by IRAS for corporate tax filing. Smaller businesses (particularly sole proprietors) may use cash-basis accounting for management purposes, but should understand the implications for tax filing. Signs Your Books Need Help