You’ve finally incorporated your Singapore-based business. Great! But what’s next? Depending on your incorporation package with your service provider, you may have already settled a few necessary steps including appointing a corporate secretary and registering your business address. But there are a few other things you need to take care of post-incorporation.
Ready to dive in? From getting your taxes in place to opening a 'business bank account' or a 'business account' with a payment service provider, here are six things to do after incorporating your business in Singapore.
6 Financial Tips For Newly Incorporated Businesses
- Choose your company's Financial Year End (FYE)
- Hold your first Annual General Meeting (AGM)
- Get your business taxes in order
- Hire an accountant
- Automate your business accounting
- Open a business bank account or a business account
1. Choose your company's Financial Year End (FYE)
Also known as the fiscal year-end, a company’s Financial Year End (FYE) is the completion of a 12-month or one-year accounting period. Essentially, this period gives businesses across all industries the time to prepare all the necessary statements and accounting documentation needed. Preparing all your financial statements before the fiscal-year end date is crucial as
Unlike in other countries, all companies in Singapore have the liberty to choose the best DYE that works for them, designed with the needs of the business in mind.
However, some factors to consider when choosing your fiscal year-end date include:
- Eligibility for tax exemptions
- Seasonal business activities
- Subsidiary company
If you’re still unsure of how to choose the FYE for your business, we’ve created a resource just for you.
2. Hold your first Annual General Meeting (AGM)
In Singapore, all incorporated companies need to hold an Annual General Meeting (AGM) to update key members of the business on the company’s business health. In these gatherings, company directors would present their current financial performance, where shareholders are allowed to vote on key issues affecting the business. It is useful to note that Singapore-incorporated companies should hold their first AGM no more than 6 months after the FYE.
In the succeeding meetings, this is where other resolutions are made such as the remuneration of directors, the re-election of directors, as well as the appointment of external auditors.
While it may seem like just another business meeting, don’t take this lightly; there are penalties for companies that fail to hold annual general meetings!
3. Get your business taxes in order
After you’ve settled on a Financial Year End date, it’s time to get your taxes in place. One of the main reasons why modern entrepreneurs from around the world choose to incorporate in Singapore is because of their favourable taxation system. During tax season, your chosen business structure or entity will determine the taxes you need to pay. But don’t worry—this would’ve already been determined during the incorporation process.
According to IRAS, the corporate tax rate for companies in Singapore is taxed at 17% on its chargeable income regardless of whether it is a local or foreign company. During this process of getting your taxes in order, it is useful to know the general tax incentives your company is eligible for.
Find out more about corporate income tax in greater detail by clicking here.
4. Hire an accountant
Small business owners may skip this step in the beginning, but it may be worth considering hiring an accountant for all your financing needs at some point. Yes, it is an added expense to employ an additional team member. But having someone with professional experience in the managing and reporting of financial information can do wonders for your business numbers.
Some of the benefits that come with hiring an accountant include handling payroll, utility payments, annual financial statements, employee tax management, and the list goes on. Leave the numbers to your accountant while you focus on the bigger picture of the way your business is growing.
5. Automate your business accounting
While some believe that automation will never replace the work of accountants, it’s helpful to automate your business accounting processes nonetheless. Automating the accounting process doesn’t take over an accountant’s job; it just means using software to automate essential finance and accounting tasks. This may also make finance professionals more efficient and competent than before.
To give your a better idea of what to expect, these are just some of the few benefits of accounting automation:
- Increased data accuracy
- Real-time integrations
- Simplified payroll accounting
- Quicker data retrieval
- Secured file storage
- More time saved
- Minimal human intervention
If this is something you’d like to have for your business, maybe it’s time to take the plunge and say hello to automation.
6. Open a 'business bank account' or a 'business account'
You may have been using your personal account for all your business expenses pre-incorporation. Now that you’re a full-registered business, it’s time to take your business finances to the next level. Opening a business bank account or business account from a payment service provider, adds a certain level of credibility to a company, especially towards customers, suppliers, shareholders, and potential investors.
But one of the most important benefits is drawing the line between personal and business finances. Some banks and financial institutions won’t allow founders to use their personal bank account for professional business transactions. However, most banks give introductory offers on business accounts and additional benefits as well.
Take the next step in streamlining your finances. Trust us, it will be a lot easier to manage than attempting to do it all through a personal account!
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