Stay compliant and financially organized. Here’s what every business owner in Singapore should know about monthly accounting in 2025.
Why Monthly Accounting Matters
- Financial Clarity: Up-to-date numbers for smart decisions.
- Compliance: Keep in line with ACRA, IRAS, CPF, and GST requirements.
- Cash Flow Management: Monitor inflows and outflows accurately.
- Business Planning: Use reliable data for budgeting, forecasting, and securing funding.
Essential Monthly Accounting Tasks
- Record Transactions: Log sales, purchases, salaries, loans, and capital movements.
- Reconcile Accounts: Match bank and credit card statements.
- Accounts Receivable: Invoice clients, follow up on late payments, review aging reports.
- Accounts Payable: Track and pay supplier invoices timely.
- Payroll: Calculate salaries, CPF contributions, and file by the 14th of next month.
- Inventory: Update stock levels and reconcile differences.
- Assets: Log depreciation and review asset register.
- Financial Reports: Generate monthly profit/loss, balance sheet, and cash flow.
- GST Checks: Ensure GST records are complete for upcoming quarterly filings.
Bookkeeping Best Practices
- Timeliness: Record entries weekly to avoid backlog.
- Accuracy: Double-check entries and documentation.
- Documentation: Keep clear digital or physical records for 5+ years.
- Internal Controls: Separate recording, approval, and payment duties where possible.
Monthly Financial Statements
- Profit & Loss: Revenue – expenses = net profit. Helps assess performance.
- Balance Sheet: Shows assets, liabilities, and equity at month-end.
- Cash Flow Statement: Breakdown of operational, investment, and financing cash flow.
- Supporting Reports: A/R and A/P aging, expense analysis, and inventory valuations.
Regulatory Compliance in Singapore
- ACRA: Maintain updated books and prepare financial statements in SFRS format.
- IRAS: Track records for ECI and annual corporate tax submissions.
- GST: File quarterly GST returns (Form F5) if registered.
- CPF: Monthly CPF contributions due by the 14th of the following month.
- SDL: 0.25% of monthly employee wages submitted with CPF.
Accounting Technology & Automation
- Xero: Cloud-based, great for real-time access and multi-currency use.
- QuickBooks Online: User-friendly and rich in features.
- Financio: Localized for Singapore compliance.
- Automation: Use bank feeds, recurring invoices, and AI categorization to save time.
Common Mistakes to Avoid
- Delaying updates, leading to backlogs.
- Mixing business and personal transactions.
- Misclassifying expenses, skewing reports.
- Missing reconciliations or compliance deadlines.
- Overlooking CPF, GST, or tax obligations.
In-House vs. Outsourced Accounting
- In-House: Suits large companies; higher cost and admin workload.
- Outsourced: Lower cost, scalable, and expert-led.
- Hybrid: Basic data entry in-house; financial reporting and compliance outsourced.
Key Takeaways
- Monthly accounting keeps your finances healthy and IRAS-compliant.
- Tasks include recording, reconciliation, reporting, and payroll.
- Use technology to streamline processes and reduce manual work.
- Avoid costly mistakes by staying consistent and compliant.
- Outsourcing can save time and ensure professional accuracy.
FAQs
- 1. Do I need monthly accounting if my company is small?
- Yes. Staying organized monthly reduces year-end stress and keeps your business compliant and financially healthy.
- 2. What software do most Singapore SMEs use?
- Xero, QuickBooks Online, and Financio are popular choices for their user-friendliness and local compliance features.
- 3. How long should I keep my records?
- At least 5 years, as per IRAS and ACRA requirements.
- 4. Can I do monthly accounting myself?
- If you understand bookkeeping and regulations, yes—but many owners outsource to ensure accuracy and free up time.
- 5. How can Stars Bridge help?
- We provide monthly bookkeeping, payroll, GST, and financial reporting so you can focus on running your business.
Need Monthly Accounting Help in Singapore?
Stars Bridge is your trusted partner for outsourced accounting and compliance in Singapore. We simplify your finances so you can grow with peace of mind.
📧 Email: enquiry@starsbridge.com
📞 Call/WhatsApp: +65 9380 7956
Let us take care of your accounting while you focus on what you do best—running your business.