Singapore Accounting

Accounting Bookkeeping Tax Services

2010-04-12T06:33:00.000-07:00

We provide the following services:

Accounting & Bookkeeping services - www.accountingbpo.com

Income tax filing Form Cs

GST filing

Corporate secretarial services

Accounting software - www.profit-cpa.com

Trial balance - Suspense account

2008-04-21T08:37:00.001-07:00

Jane has a problem, because Mr. Manager cannot produce the receipt for the missing $20.

The auditors are coming, and she has to close the accounts. What should Jane do now?

Credit Cash $200
Debit Entertainment $100
Debit Petrol $80
Debt SUSPENSE ACCOUNT $20

Her Trial Balance will look like this:

	Debit	Credit
Cash		200
Entertainment	100
Petrol	80
Suspense account	20

	200	200

To simplify matters, Mr. Auditor will ensure that this amount of $20 is accounted either as a loan to Mr. Manager or Mr. Manager has to return the $20 to the company.

Thus the final balance will look like this:

	Debit	Credit
Cash		180
Entertainment	100
Petrol	80

Total	180	180

Trial Balance

2008-04-17T04:45:00.000-07:00

Some people insist on spelling it as "Trail" balance...don't ask me why!

Why do accountants always ask for the TRIAL balance?

They want it to know that your debits and credits balances out! There is ying and yang, cause and effect and nothing as specific as debit and credit! Not a single cent less!

For every debit, there must be a credit! For example,

Debit Expenses $100
Credit Cash $100

That means cash is taken out and spent on an expense item!

The above entries will be entered into a ledger which we call General Ledger. The auditors/accountants will check the total balance of EACH item in the general ledger and ensure it matches with those in the trial balance.

I wouldn't go into suspense account...etc, but as a prelude, imagine this:

1. Manager says "Jane, give me $200, I need it to make some purchases and buy a drink for a customer".

2. Jane says, "Ok, but remember to bring back the receipts"

3. Manager comes back and hands a stack of receipts to Jane, and says "There's your $200"

4. Jane records the following:

Credit Cash $200
Debit Entertainment $100
Debit Petrol $80
Debt ????? $20!!!!

Oh no! Jane is short of $20! Her trial balance WILL NOT BALANCE!

Terminating your company

2008-04-16T08:42:00.000-07:00

Decided to throw in the towel?

There are several ways to close your company:

1. Striking off (more info here)

2. Members' Voluntary Winding up

3. Creditors' Voluntary Winding up

4. Compulsory Winding up

5. Receivership

6. Judicial Management

Click here

The difference between accounting and bookkeeping

2008-04-15T03:44:00.000-07:00

Are you performing an accounting or bookkeeping function?

Bookkeepers
They are required to maintain precise and accurate records, they produce the critical reports that keep the shareholders and directors up to date on the financial position of their company.

They usually maintain the general ledger, cash books, ledgers & other accounting information.

Accountants
Accountants are responsible for the design and management of the financial systems for the company. They prepare monthly financial statements, cash flows, budgets and tax returns at year end.

Some accountants perform bookkeeping functions too.

There are different "categories" of accountants.

Some may have graduated from their Universities or ACCA with accounting qualifications but NOT PURSUE professional qualifications.

An accountant by academic qualifications may not be a CPA. A CPA has to go through rigourous training and pass extra examinations before being recognised by his/her local accounting body.

There are diploma holders who hold positions usually reserved for accountants as they are deemed to be able to perform the role of accountants. However, there are limits because certain industry/listing requirement requires a CFO to be a qualified accountant (CPA).

Just like a lawyer may not be called to the bar, but he could work as a legal advisor or consultant in other fields. See here

Keeping your accounting records

2008-04-13T04:46:00.000-07:00

You have been given some guidelines on your record keeping.

Click here for IRAS guidelines

Go to http://www.accountingbpo.com for help if you need to do DIY accounting.

Commodity prices raised by low stockpiles, says Jim Rogers

2008-04-12T03:41:00.000-07:00

From the Singapore Straitstimes -

HEDGE funds have been blamed for sending commodity prices skywards but international investor Jim Rogers believes the cause is far simpler - record-low inventories.

Singapore-based Mr Rogers dismissed the argument that prices have been at the mercy of hedge funds making bets on futures markets.

'Prices are going up because inventories are at the lowest they've been in decades. People invest in things that are successful and where fundamental supply and demand is positive,' he said.

'Rice is going up not because hedge funds are pumping money into them; rice is going up because there is no rice.

'Whenever you have a bull market, people will put their money there. That's where the attractive investments are.'

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Despite the world inflation, how is YOUR BUSINES?

It is INCOME that you have to worry about. Strong companies go through boom and bust cycles. One thing is constant, they strive to get MORE business and stay competitive.

Keep track of your business valuation with Profit Wealth today!

MAS makes drastic move to fight inflation

2008-04-11T00:40:00.000-07:00

The MAS said in a statement that oil and food prices were likely to stay high for some time. 'Domestic cost pressures will persist due to short-term capacity constraints in certain segments of the economy,' it added.

Inflation is expected to moderate in the latter half of the year, but experts believe policymakers should consider moves beyond currency strengthening.

'A stronger Singdollar cannot mitigate domestic sources of inflation like higher housing costs, wage costs and road usage costs,' said Standard Chartered Bank economist Alvin Liew.

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Inflation or not, you have to pay the IRAS. The good news? They do not have inflation adjusted tax rates!

Filing deadline 15th April 2008

What dividends to declare in your Form B1

2008-04-10T06:54:00.000-07:00

http://www.iras.gov.sg/irasHome/page03.aspx?id=146

Personal tax deductions

2008-04-09T05:48:00.000-07:00

Quite alot of professionals forget that they can claim for deductions against their income for their personal income tax.

Get the information from the horses mouth! Quoted from IRAS website:

Employment expenses are expenses which are wholly and exclusively incurred in the production of your employment income.

These expenses can be deducted from your employment income, which helps you to save tax.

Who can claim

You may claim your employment expenses if you satisfy ALL conditions below:

* Expenses are incurred when you are carrying out your official duties.
* Expenses are not reimbursed by your employer.
* Expenses are not of capital/private in nature.
* Travelling expenses are not those incurred on motorcars.

Examples of allowable expenses

* Entertainment expenses incurred in entertaining clients.
* Travelling expenses incurred on public transports.
* Subscriptions paid to professional bodies or society.
* Mosque building fund, zakat, fitrah or any other religious dues authorised by law.

Examples of wrongful claims

* Entertainment expenses incurred on meals with colleagues.
* Travelling expenses incurred on motorcar.
* Travelling expenses incurred to and from home and office.

How to claim

You need to enter your employment expenses claim under 'employment expenses' in your tax form.

You have to keep complete and proper records of all expenses incurred. Estimates are not acceptable for income tax purpose.

Receipts/vouchers etc. should be kept by you. We will inform you when we require them for verification.

http://www.iras.gov.sg/irasHome/page03.aspx?id=1554