Leading Accounting Services in Singapore

What are the accounting records I should keep in order to pass them to Grof?

Do keep your bank statements, customer invoices, bills, payroll, and other accounting records in the year. It'll be great if they are in digital format so our team can access them readily.

I have not set up a corporate bank account for my company yet, but I have already incurred certain business-related expenses, such as the cost of incorporating the company. How should I record this in the bookkeeping?

You can record this as the amount due to you. It is quite common for startups to cover expenses personally in their initial stages. Once the company's business account is set up, you can seek reimbursement for the expenses you paid earlier.

Do my financial statements need to be audited?

Since 1st July 2015, companies can be exempted from auditing their financial statements if they qualify as a small company.
There are 2 conditions for a company to qualify as a small one. Firstly, a company has to be private in the financial year in questions. Next, a company has to meet at least two of the following three criteria for the immediate past two consecutive financial years:

1. Total annual revenue is not more than $10 million.
2. Total assets are not more than $10 million.
3. The number of employees is not more than 50.

What is Singapore’s tax rate?

The tax rate stands at 17% in Singapore. Businesses can benefit from generous tax exemptions provided they align with the Inland Revenue Authority of Singapore (IRAS) stipulations.

Is my accounting profit the same as taxable income?

Not exactly. Your accounting profit, which follows Generally Accepted Accounting Principles (GAAP), might differ from your taxable income, which plays by the Income Tax Act's rules. Here's the lowdown on the differences:

1. Some gains in your books won't be taxed.
2. Tax rules don't always recognise depreciation like accounting does.
3. Certain expenses you might write off, like some car costs and penalties, aren't tax-deductible.
   
   

What about this ECI thing, and when's the deadline?

ECI, or Estimated Chargeable Income, is due to IRAS 3 months post your company's Financial Year End. Say your year wraps up on December 31st; you'll need to submit ECI by March 31st the following year. ECI's your best guess at your company's taxable profits after accounting for tax-allowed expenses.

If my ECI's looking like zero or negative, do I still file?

If your ECI is nil/ negative, and your revenue is less than $5M, you do not need to file ECI. You are still required to submit the Form C/ C-S by 30 November every year.

How should I record the funds I deposit or withdraw as a shareholder?

Deposits are typically recorded as shareholders' capital, and withdrawals are treated as loans to shareholders, both reflected in the company's bookkeeping.

Is it possible to pay shareholders a monthly or yearly salary?

Certainly, shareholders may receive salaries if employed by the company, ensuring all social contributions are settled. For detailed assistance, our payroll service team is at your service.