In the early stages of your business, good recordkeeping practises may be quite beneficial. When starting a business, you may not think about maintaining records, but as your business expands, you’ll see how important it is. It may help you manage your cash flow, file your taxes promptly, detect fraudulent activities, and possibly improve your company’s profitability.
Why do you need to keep a record of your activities? Recordkeeping is the cornerstone upon which all other aspects of accounting are based. You cannot make an accurate accounting statement without correct records, thus it is imperative that you maintain all of your data current. There are a number of fundamental reasons to keep records:
Responsibilities Under the Law Singapore mandates that enterprises have a robust recordkeeping system that helps them file their taxes on time. Additionally, it acts as the underlying framework for all financial transactions that take place within the fiscal year. Transactions may be verified via the use of these records, which serve as physical proof. So if you are a New Business Owner in Singapore: Know About the Important Records You Must Keep.
Taxes should be filed correctly. As previously mentioned, the cornerstone of correct accounting is solid recordkeeping procedures. Thus, the company will be able to file its taxes in a timely way with the help of effective recordkeeping. In order to file its taxes, it has the capacity to fulfill the required criteria.
Detection of Fraudulent Acts is Essential. Fraud is being committed despite the fact that company owners have established rules for their organizations. In addition to financial records, the simplest way to establish this behavior is by examining the papers that have been maintained in their place. It is capable of quickly retrieving all transactional data from the past. Decision-makers can now tell the difference between legitimate and fraudulent transactions. 
Do you have to keep any certain kinds of company records? In Singapore, there are two types of registered firms based on the Goods and Services Tax. Maintaining certain financial records, regardless of whether your business is GST or non-GST registered, is mandatory.
Keeping records may be done in a number of different ways. You may keep track of your records in one of two ways. Paper documents may either be physically archived, or they can be digitally scanned and stored on a secure online platform. Both approaches are feasible. This includes both physical and electronic copies of the data, and it’s essential that they be maintained in a position where company directors and business owners can easily access them. In the event of an emergency, they should be able to get their hands on these documents as quickly as possible.
How Long Should a Facility Keep Records? Most countries require firms to keep records for at least five years from the end of the most recent financial year in which transactions were completed. All records should be kept until the conclusion of the financial year in December 2026 if your company’s year ends in December 2021. You must follow these guidelines even if your company has already closed its doors. Therefore, you must ensure that all paperwork is kept for at least five years after the transaction has been completed.
