The end of the company’s financial year can be a stressful time for any ill-prepared business owner. The thought of having to backtrack on all the different business records from the last 12 months of work isn’t just tedious, but also affects your current business dealings, perpetuating the vicious cycle of ineffectiveness. Here are some quick steps of what to do (and what not to do) to get your financial statements in order.
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Know your corporate tax rates in Singapore
Depending on whether you’ve started the Sole-Proprietorship or a Private Limited company, there are varying tax rates you need to be clear of. For the former, you’re looking at business taxes in the range of up to 22 per cent, while Private Limited entities face 17 per cent across the board. That said, don’t forget that most new companies have a tax exemption for the first three years that you could take advantage of.
It’s all about the bottom line
Essentially, it’s about the reconciliation of your business numbers — a balance sheet and supporting documents to clearly indicate all the revenue that has come in and all the costs that have been paid out by company. These need to tally with the final numbers in your business bank account at the end of your financial year. You probably already know this activity isn’t the simplest or quickest thing to do. But that’s mainly because of the next point…