Importance of Payroll and Bookkeeping
If you own a business, then you must know that bookkeeping and payroll are the two most important aspects of accounting. In some countries, including Singapore maintains bookkeeping and payroll are a legal requirement. Some companies, mostly smaller ones tend to overlook the importance of these two requirements due to the expenses related to them. In such case, it is ideal to engage bookkeeping services in Singapore and Payroll services in Singapore to maintain impeccable records on bookkeeping and payroll. This will also help you for future reference.
Why you need bookkeeping services in Singapore?
- To keep a record of all your sales, with copies of all invoices you have issued till date.
- To keep a record of all the purchases and expenses of your business
- To keep a record of all the invoices for all the purchases and expenses of your business.
- To keep details of the personal finances brought in out taken out of your business.
- They keep track and file copies of business bank statements related to business transactions.
By hiring bookkeeping services in Singapore, you will be able to use the above information to generate a profit and loss statement which shows the sale income received by the company and the expenses. This will show you the exact amount of profit and loss of the company which is essential to determine the tax liability of your company for that financial year.
There are also many other records that are essential and should be properly maintained by the company, they are – cash books, petty cash book, order notes and invoices, copy of sales invoices, details of other business income received (if any), details of private money brought into the business (if any), till rolls or other form of electronic records of sales, details of other income (if any), any cash taken out of the till to pay small business expenses, bills and invoices of purchases and expenses, a record of stock on hand at the end of the year, all bank and building society statements, pass books, cheque stubs and paying-in slips which include details of business transactions.
Maintaining proper bookkeeping records is essential because there is a possibility that you may end up paying more tax due to lack of evidence for deductible expenses. You may hire bookkeeping services in Singapore however, it is better if your records are more accurate as this will consume lesser time for which the accounting expert will charge you less.
Maintaining your records will ensure you have a total control over your business and assess its profitability and cash flow and help you prepare ahead for any potential problems and take the right financial decisions.
While on the other hand Payroll is an important aspect of accounting. Every business owner must know the importance of a payroll system, irrespective of the size of the business. The paperwork in every payroll system is more or less the same. One must understand that payroll is not just calculating employees’ salary, but it also includes tracking the working hours of every employee, insurance, traveling bills, meal vouchers, retirement benefits, keeping a track of all the taxes and their deadlines and finally processing the invoices, receipts and company’s payroll.
Inaccurate and disordered papers and bills will definitely pose problems by the end of the year. But Payroll is mostly overlooked due to the humungous amount of paperwork and the amount of time it demands. In such cases, it’s better to opt for payroll services in Singapore.
Advantages of outsourcing payroll services in Singapore:
- Save up time: Outsourcing helps you save up time because there is an expert working on your payroll while there are other things you may work on. Therefore, increasing your productivity as well as getting your work done. The experts working in these firms will be able to produce accurate payroll numbers and all you have to do is just give them the employ details and all the basic particulars of your company.
- Escape the paperwork: You can unload your paperwork burden by outsourcing payroll services in Singapore. However, there will be minimal paperwork required as you will have to provide the payroll services of the employees’ details, working hours, benefits etc. The calculations will be done by the payroll services.
- Prioritize: You can prioritize your work while they prioritize your work as well. Usually, payroll processors are very well versed with all the latest tax laws, new amendments, deadlines, etc. You can set up a deadline according to your convenience and the work will be done for you. They will also process the salary checks, state, federal and Medicare taxes for your employees which is otherwise a very strenuous job.
- Cost effective: Hiring a full-time employee to manage your company’s payroll can burn your finances, but when you outsource payroll services you only pay them whenever you need some work to be done. Most of the firms providing Payroll services in Singapore only charge by the hour. In some cases, it is a fixed amount which way lesser than that of a monthly salary of a payroll manager.
Therefore, these are the benefits of engaging payroll services in Singapore to manage your company payroll. This will help you save a lot of valuable time, money and effort. It is essential to realize the importance of bookkeeping services in Singapore and Payroll services Singapore as these services will help you keep up with the competitive business environment by helping you focus more on your company goals than to spend your effort, money and time on activities that can be outsourced.