diy bookkeeping for start up companies in singapore part 1 of 2

Prepared for incubators and f d Sfounders in Singapore, May 2012.

BOOKKEEPING FOR #START-UP COMPANIES

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FINANCIAL + JUDICIAL RESPONSIBILITIES

Incorporation

Company secretarialp y

Bookkeeping

Annual financial accounts (audited / unaudited)Annual financial accounts (audited / unaudited)

Company tax computation

Personal income tax computation DownloadPersonal income tax computation Download


INCORPORATION

COMPLETING AN INCORPORATION

Business name

Registered mailing

Shareholders

• Individualg gaddress

SSIC code• Corporate holding

Paid up capitalDirectors

• Local

Paid up capital

Shares

Company secretary• Foreigner

Company secretary


#1 BIZFILE

DownloadDownload


#2 M+AA

DownloadDownload


#3 SHARE CERTIFICATE

DownloadDownload


#4 BOARD OF DIRECTORS RESOLUTION

DownloadDownload


LIVE INCORPORATION

http://futurebooks.com.sg/services/company-start-up/singapore-private-limited-incorporation-form


Search for ‘Singapore incorporation’ on the App Storeon the App Store.


IPHONE APP

Check availability of company names

Check URL

p y

Check URL availability

Buy incorporation kpackages


WHO DOES WHAT?

WHO DOES WHAT?

Bookkeeper

Accountant

Tax advisor

AuditorAuditor

Company secretary


ROLE OF THE BOOKKEEPER


ROLE OF THE ACCOUNTANT / AUDITOR


ROLE OF THE TAX SPECIALIST


ROLE OF THE COMPANY SECRETARY

Set the date for an Annual General Meeting

Take minutes and help pass resolutionsp p

File the Annual accounts with ACRA + IRAS

Store documents safely in company registrar folderStore documents safely in company registrar folder


ACCOUNTS ARE A SAUSAGE FACTORY


ACCOUNTS ARE A SAUSAGE FACTORY

Bookkeeper makes management accounts

Accountant makes annual financial accounts

Tax advisor makes the tax computation

Corporate secretary holds the AGM and files reports


f p

TIMELINEAnnual financial faccounts

Incorporation DIY bookkeepingManagement accounts

0 6 12 18 MONTHS


BUDGET FOR ACCOUNTING SERVICES YEAR 1

One-time fees Annual fees

Incorporation $750p $

Company secretary $700

Annual bookkeeping $3,600

Unaudited annual financial accounts

$1,500

Personal tax $300Personal tax $300

TOTAL $750 $5,100


BUDGET FOR ACCOUNTING SERVICES YEAR 2

Annual fees

Company secretary $700p y y $

Annual bookkeeping (inc GST + CPF) $7,200

Unaudited annual financial accounts $2,000

Personal income tax $300

TOTAL $9,900


HIDDEN FEES

Annual fees

Audited annual financial accounts +$1 000 Corporate holding $ llAudited annual financial accounts +$1,000

Quarterly GST filing +$1,200

TOTAL $2,200

or S$5million+ in turnover

S$1million+ in turnover.


AWAKEN YOU INNER CFO

C#CAAAAASHAASH


ENTREPRENEURS HATE BOOKKEEPING

I have no time for it.

I hate it.

I don’t understand it.

It adds no value.

It’s for beanIt s for bean counters Whatever


AWAKEN THE CFO

Establish a budget

The money belongs to thebelongs to the company

Setup a finance email address


SETUP A CFO AVATAR

PEACEFUL AGGRESSIVEPEACEFUL AGGRESSIVE


IDENTIFY YOUR STAKEHOLDERS

Transaction type Stakeholders Risk

Accounts receivable Customers Default onAccounts receivable (AR)

Customers Default on payment

Cash payments (Cash) Customers Security

Accounts payable (AP) Suppliers Cashflow

Payroll Staff + Government (IRAS + MOM)

Penalties and staff turnover(IRAS MOM) staff turnover

GST Government (IRAS) Penalties


ANALYSE TRANSACTIONS ACROSS 3 BUSINESSES

Consulting business

Restaurant businessRestaurant business

App store business



Consulting business (B2B)

220#Cash, 2

Payroll,

220TRANSACTIONS

AR, 80

GST, 20

20

Stakeholder: customer80

AP (fixed), 50

customer

AP (variable), 50



Restaurant business (B2C)

450

Payroll

450TRANSACTIONSStakeholder:

staff + Govt

#Cash, 90

AR, 10GST, 50

Payroll, 60

Stakeholder: Govt.

AP (fixed), 50

50

Stakeholder: suppliers

AP (variable), 200

suppliers



App store business (B2C)

1500AP (fixed), 30

GST, 10

Payroll, 100 Stakeholder:

1500TRANSACTIONS

AP (variable), 150

staff

#Cash,

AR, 10

1,000


TRANSACTION COMPARISON

P ll

GST

Payroll

App store

AP (fixed)Restaurant

Consulting

AR

AP (variable)

Cash

0 100 200 300 400 500 600


DO-IT-YOURSELF BOOKKEEPING

ESSENCE OF DIY BOOKKEEPING


AVOID RESCUES

Rescues are performedRescues are performed when companies don’t keep regular books.

http://futurebooks.com.sg/services/boohttp://futurebooks.com.sg/services/bookkeeping-service/bookkeeping-rescue


SAVE 30% INSAVE 30% IN BOOKKEEPING

S O GOO G

FEES BY DOING FOUR THINGSFOUR THINGS


#1 OPEN A CORPORATE BANK ACCOUNT


#2 OPEN MAIL WEEKLY

Get comfortable File mail Toss out


#3 PAY SUPPLIERS MONTHLY

Promote the billing cycle to stakeholders

Image as a good Make bookkeeping day sacred

g gpaymaster


#4 MANAGE PERSONAL CLAIMS MONTHLY

DownloadDownload

http://futurebooks.com.sg/blog/5-useful-excel-template-sites-to-streamline-your-bookkeeping/1329


IMPORTANT DATES


BOOKKEEPING POWER USER TIPS

DO YOU REALLY NEED TO BUY IT?

Buy items which contribute directly to revenue

Think twice.


AVOID CHEQUE PAYMENTS

They are erroneousThey are erroneous

Th bThey bounce

They are rejectedThey are rejected

They go missingy g g

Never banked


TREATMENT OF CHEQUE PAYMENTS

W S iFill in stubs

Write once a month

Scan using camera phone

Record cheque #Record cheque #


USE BANK TRANSFERS OR CARDS

Cannot over draw your limit

Statements


STATEMENTS

Highlight g gclaims


BANK RECONCILIATION

Tick, hi hli hthighlight, annotate


SETUP QUICKBOOKS ONLINE

I i E SnapshotsInvoice Expenses


VALUE RAPIDLYVALUE RAPIDLY DIMINISHESDIMINISHES AFTER A SERVICEAFTER A SERVICE IS RENDEREDIS RENDEREDROGER DAWSON SECRET OF POWER NEGOTIATIONROGER DAWSON, SECRET OF POWER NEGOTIATION


POSSESSIONPOSSESSION IS NINE-TENTHSIS NINE TENTHS OF THE LAWOF THE LAWA SMART LAWYER


ANTICIPATE RESISTANCE COLLECTING PAYMENT

Credit checks

Credit controlCredit control

Credit payments


CREDIT CHECKS

Rating of 5 is g fbelow average.


CREDIT CHECKS

List of creditorsList of creditors in front of you


CREDIT CHECKS

Company may p y ybe stressed


CREDIT PAYMENTS

Outsource credit risk


CREDIT PAYMENTS


CREDIT PAYMENTS

If you have a dog, why do the barking?


1.5-3% YOU1.5 3% YOU CAN HAVE A DOG DO THEDOG DO THE BARKINGBARKING


MANAGEMENT ACCOUNTS

ACCOUNTING FOR DIRECTORS

Director’s expense claims

Director’s income

• Salary (may incur • Expense claim

• Loan to the

y ( yCPF)

• Director’s feecompany

• Loan to directorsShareholder

• Dividend


GENERAL LEDGER

Every transaction yin date order


PROFIT + LOSS STATEMENT

DownloadDownload


BALANCE SHEET

DownloadDownload


STATEMENT OF CHANGES IN EQUITY

DownloadDownload


FINANCIAL RATIOS

Computation Notes Keep it simple

Current ratio 23.11 Very healthy result. The company has h h d bl

Higher the better. A fenough cash and accounts receivables

to pay off its current debts.score of 1 is poor.

Gross profit ratio 10% Unless the company is going for volume, this is not a good result. Most

Higher the better.

industries do a minimum of 15%. They may be inflating expenses to buy back stock.

Accounts receivable 1.48 Accounts receivables are a little high. I Lower the better. Download

http://futurebooks.com.sg/blog/6-financial-ratios-every-entrepreneur-should-master/774

turnoverg

would be checking receivables older than 90 days.

Less than 1 is excellent.

Download


TIME TO GET A BOOKKEEPER

COMPLICATED OPERATIONS

Quarterly GST filing

Monthly CPFMonthly CPF


IT IS TIME TO GET A BOOKKEEPER

Honey, shouldn’t you delegate that?


VALUE OF TIME

Satisfied customers d $21 d

Dissatisfied customers d $60 d fwanted $21 reward

for waiting.wanted $60 reward for waiting.

http://www.acrwebsite.org/volumes/display.asp?id=11176


FOCUS ON WHAT YOU LOVE


INCREASE YOUR FINANCIAL ACUMEN

Revenue over time and sales projectionp j

DownloadDownload

http://futurebooks.com.sg/services/bookkeeping-service/bookkeeping-retainer



Net profit over time and projection

DownloadDownload



Score entrepreneurs performanceperformance

DownloadDownload


METRICS

Cost per li k

Daily Active

click

Daily Active Users (DUA)

Cost of acquisition


ACCOUNTING IN THE CLOUD

INTUIT’S STORY


QUICKBOOKS ONLINE

Futurebooks provide training, customisationand bookkeepingand bookkeeping services.


STAY IN TOUCH

Email us at or visit our website.

@futureb00ks


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