Prepared for incubators andfounders in Singapore,f   d       SMay 2012.BOOKKEEPINGFOR #START-UPCOMPANIES
SPONSORSwww.futurebooks.com.sg
ABOUT US                         @futureb00kswww.futurebooks.com.sg
FINANCIAL + JUDICIALRESPONSIBILITIES          Incorporation          Company secretarial             p y          Bookkeep...
INCORPORATION
COMPLETING ANINCORPORATION          Business name        Shareholders          Registered mailing            g            ...
#1 BIZFILE                         Downloadwww.futurebooks.com.sg
#2 M+AA                         Downloadwww.futurebooks.com.sg
#3 SHARECERTIFICATE                         Downloadwww.futurebooks.com.sg
#4 BOARD OF DIRECTORSRESOLUTION                         Downloadwww.futurebooks.com.sg
LIVE INCORPORATION  http://futurebooks.com.sg/services/company-start-  up/singapore-private-limited-incorporation-formwww....
Search for                         ‘Singapore                         incorporation’                         on the App St...
IPHONE APP      Check availability of      company names         p y                              Check URL               ...
WHO DOESWHAT?
WHO DOES WHAT?          Bookkeeper          Accountant          Tax advisor          Auditor          Company secretarywww...
ROLE OF THEBOOKKEEPER                                                                                                  ...
ROLE OF THEACCOUNTANT / AUDITOR                         www.futurebooks.com.sg                             
ROLE OF THETAX SPECIALIST                         www.futurebooks.com.sg                             
ROLE OF THECOMPANY SECRETARY          Set the date for an Annual General Meeting          Take minutes and help pass resol...
ACCOUNTS ARE ASAUSAGE FACTORYwww.futurebooks.com.sg
ACCOUNTS ARE ASAUSAGE FACTORY                                                    Bookkeeper makes                         ...
TIMELINE                                                   Annual financial                                               ...
BUDGET FOR ACCOUNTINGSERVICES YEAR 1                                 One-time fees   Annual fees    Incorporation         ...
BUDGET FOR ACCOUNTINGSERVICES YEAR 2                                          Annual fees    Company secretary       p y  ...
HIDDEN FEES                                          Annual fees                                                        Co...
AWAKENYOU INNERCFO
#CAAA CAASHwww.futurebooks.com.sg
ENTREPRENEURSHATE BOOKKEEPING                                            I have no                                        ...
AWAKEN THE CFOEstablish abudget The money belongs to the companySetup a financeemail addresswww.futurebooks.com.sg
SETUP A CFOAVATAR                         PEACEFUL   AGGRESSIVEwww.futurebooks.com.sg
IDENTIFY YOURSTAKEHOLDERS    Transaction type        Stakeholders         Risk    Accounts receivable     Customers       ...
ANALYSE TRANSACTIONSACROSS 3 BUSINESSES     Consulting business     Restaurant business     App store businesswww.futurebo...
IDENTIFY YOURSTAKEHOLDERS                         Consulting business (B2B)                                               ...
IDENTIFY YOURSTAKEHOLDERS                                     Restaurant business (B2C)                                   ...
IDENTIFY YOURSTAKEHOLDERS                                        App store business (B2C)                                 ...
TRANSACTIONCOMPARISON      P    ll      Payroll          GST                              App store                       ...
DO-IT-YOURSELFBOOKKEEPING
ESSENCE OF DIYBOOKKEEPING                                                                                       www.fut...
AVOID RESCUES                          Rescues are performed                          when companies don’t                ...
SAVE 30% IN OOBOOKKEEPING GFEES BY DOING   S     O GFOUR THINGSwww.futurebooks.com.sg
#1 OPEN A CORPORATEBANK ACCOUNTwww.futurebooks.com.sg
#2 OPEN MAILWEEKLY Get comfortable         File mail   Toss outwww.futurebooks.com.sg
#3 PAY SUPPLIERSMONTHLY                         Promote the billing                         cycle to stakeholders         ...
#4 MANAGE PERSONALCLAIMS MONTHLY                                                            Download  http://futurebooks.c...
IMPORTANTDATESwww.futurebooks.com.sg
BOOKKEEPINGPOWER USERTIPS
DO YOU REALLYNEED TO BUY IT? Buy items which contribute directly to revenue                              Think twice.www.f...
AVOID CHEQUEPAYMENTS                         They are erroneous                         They bounce                       ...
TREATMENT OFCHEQUE PAYMENTS                         Write once a                         W                                ...
USE BANK TRANSFERSOR CARDS                         Statements   Cannot over draw                                      your...
STATEMENTS                         Highlight                            g g                         claimswww.futurebooks....
BANK RECONCILIATION                         Tick,                         highlight,                         hi hli ht    ...
SETUP QUICKBOOKS ONLINEInvoiceI i                        Expenses                           E          Snapshots  www.futu...
VALUE RAPIDLYDIMINISHESAFTER A SERVICEIS RENDEREDROGER DAWSON SECRET OF POWER NEGOTIATION      DAWSON, www.futurebooks.com...
POSSESSIONIS NINE-TENTHS   NINE TENTHSOF THE LAWA SMART LAWYER www.futurebooks.com.sg
ANTICIPATE RESISTANCECOLLECTING PAYMENT     Credit checks     Credit control     Credit paymentswww.futurebooks.com.sg
CREDIT CHECKS                         Rating of 5 is                              g f                         below averag...
CREDIT CHECKS                         List of creditors                         in front of youwww.futurebooks.com.sg
CREDIT CHECKS                         Company may                              p y y                         be stressedww...
CREDITPAYMENTS                         Outsource                         credit riskwww.futurebooks.com.sg
CREDITPAYMENTSwww.futurebooks.com.sg
CREDITPAYMENTSIf you have a dog,why do the barking?www.futurebooks.com.sg
1.5 3%1.5-3% YOUCAN HAVE ADOG DO THEBARKINGwww.futurebooks.com.sg
MANAGEMENTACCOUNTS
ACCOUNTING FORDIRECTORS          Director’s expense      Director’s income          claims                                ...
GENERALLEDGER                         Every transaction                              y                         in date ord...
PROFIT + LOSSSTATEMENT                         Downloadwww.futurebooks.com.sg
BALANCE SHEET                         Downloadwww.futurebooks.com.sg
STATEMENT OFCHANGES IN EQUITY                         Downloadwww.futurebooks.com.sg
FINANCIALRATIOS                          Computation Notes                                               Keep it simple  C...
TIME TO GET ABOOKKEEPER
COMPLICATEDOPERATIONS     Quarterly GST filing     Monthly CPFwww.futurebooks.com.sg
IT IS TIME TO GET ABOOKKEEPER                         Honey, shouldn’t                         you delegate that?www.futur...
VALUE OF TIME             Satisfied customers                         Dissatisfied customers             wanted $21 reward...
FOCUS ON WHATYOU LOVEwww.futurebooks.com.sg
INCREASE YOURFINANCIAL ACUMEN                         Revenue over time and                         sales projection      ...
INCREASE YOURFINANCIAL ACUMEN                         Net profit over time                         and projection         ...
INCREASE YOURFINANCIAL ACUMEN                         Score entrepreneurs                         performance             ...
METRICS                                         Cost per                                         click                    ...
ACCOUNTING INTHE CLOUD
INTUIT’SSTORYwww.futurebooks.com.sg
QUICKBOOKSONLINE                         Futurebooks provide                         training, customisation              ...
STAY IN TOUCH                         Email us at or visit                         our website.                         @f...
TERMS OF USERestrictions on Use of Contents                                    4. Any request to otherwise reproduce the C...
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DIY Bookkeeping for start up companies in Singapore PART 1 of 2

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Understand the principles of do-it-yourself bookkeeping and refresh your knowledge of incorporating a Singapore Private Limited Company.

This ppt will explore the role of bookkeepers, accountants, auditors and company secretaries, and important dates to mark in your calendar.

- Budget for accounting services in year 1 + 2;
I- dentify your company’s unique transaction DNA;
- Better manage paperwork and cash books;
- Managing personal expenses;
- Methods of remunerating directors.

In the second half we will show power users how to get the most out of DIY bookkeeping including credit payments, credit control, credit checking and financial reporting. Discover the most appropriate time for your business to take advantage of outsource bookkeeping.

Plus we will demo QuickBooks Online, Intuit’s small business accounting application in the cloud.

Find out more visit: http://futurebooks.com.sg/blog/jfdis-bookkeeping-for-singapore-start-ups-event/3475

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DIY Bookkeeping for start up companies in Singapore PART 1 of 2

  1. 1. Prepared for incubators andfounders in Singapore,f d SMay 2012.BOOKKEEPINGFOR #START-UPCOMPANIES
  2. 2. SPONSORSwww.futurebooks.com.sg
  3. 3. ABOUT US @futureb00kswww.futurebooks.com.sg
  4. 4. FINANCIAL + JUDICIALRESPONSIBILITIES Incorporation Company secretarial p y Bookkeeping Annual financial accounts (audited / unaudited) Company tax computation Personal income tax computation Downloadwww.futurebooks.com.sg
  5. 5. INCORPORATION
  6. 6. COMPLETING ANINCORPORATION Business name Shareholders Registered mailing g g • Individual address • Corporate holding SSIC code Paid up capital Directors Shares • Local Company secretary • Foreignerwww.futurebooks.com.sg
  7. 7. #1 BIZFILE Downloadwww.futurebooks.com.sg
  8. 8. #2 M+AA Downloadwww.futurebooks.com.sg
  9. 9. #3 SHARECERTIFICATE Downloadwww.futurebooks.com.sg
  10. 10. #4 BOARD OF DIRECTORSRESOLUTION Downloadwww.futurebooks.com.sg
  11. 11. LIVE INCORPORATION http://futurebooks.com.sg/services/company-start- up/singapore-private-limited-incorporation-formwww.futurebooks.com.sg
  12. 12. Search for ‘Singapore incorporation’ on the App Store. Storewww.futurebooks.com.sg
  13. 13. IPHONE APP Check availability of company names p y Check URL availability Buy incorporation packages kwww.futurebooks.com.sg
  14. 14. WHO DOESWHAT?
  15. 15. WHO DOES WHAT? Bookkeeper Accountant Tax advisor Auditor Company secretarywww.futurebooks.com.sg
  16. 16. ROLE OF THEBOOKKEEPER    www.futurebooks.com.sg
  17. 17. ROLE OF THEACCOUNTANT / AUDITOR www.futurebooks.com.sg 
  18. 18. ROLE OF THETAX SPECIALIST www.futurebooks.com.sg 
  19. 19. ROLE OF THECOMPANY SECRETARY Set the date for an Annual General Meeting Take minutes and help pass resolutions pp File the Annual accounts with ACRA + IRAS Store documents safely in company registrar folderwww.futurebooks.com.sg
  20. 20. ACCOUNTS ARE ASAUSAGE FACTORYwww.futurebooks.com.sg
  21. 21. ACCOUNTS ARE ASAUSAGE FACTORY Bookkeeper makes management accounts Accountant makes annual financial accounts Tax advisor makes the tax computation Corporate secretary holds the AGM and files reports f pwww.futurebooks.com.sg
  22. 22. TIMELINE Annual financial f accounts Management Incorporation DIY bookkeeping accountsMONTHS 0 6 12 18 www.futurebooks.com.sg
  23. 23. BUDGET FOR ACCOUNTINGSERVICES YEAR 1 One-time fees Annual fees Incorporation p $ $750 Company secretary $700 Annual bookkeeping $3,600 Unaudited annual financial $1,500 accounts Personal tax $300 TOTAL $750 $5,100www.futurebooks.com.sg
  24. 24. BUDGET FOR ACCOUNTINGSERVICES YEAR 2 Annual fees Company secretary p y y $ $700 Annual bookkeeping (inc GST + CPF) $7,200 Unaudited annual financial accounts $2,000 Personal income tax $300 TOTAL $9,900www.futurebooks.com.sg
  25. 25. HIDDEN FEES Annual fees Corporate holding Audited annual financial accounts +$1,000 +$1 000 or S$5million+ in $ ll Quarterly GST filing +$1,200 turnover TOTAL $2,200 S$1million+ in turnover.www.futurebooks.com.sg
  26. 26. AWAKENYOU INNERCFO
  27. 27. #CAAA CAASHwww.futurebooks.com.sg
  28. 28. ENTREPRENEURSHATE BOOKKEEPING I have no time for it. I hate it. I don’t understand it. It adds no value. It s It’s for bean counters Whateverwww.futurebooks.com.sg
  29. 29. AWAKEN THE CFOEstablish abudget The money belongs to the companySetup a financeemail addresswww.futurebooks.com.sg
  30. 30. SETUP A CFOAVATAR PEACEFUL AGGRESSIVEwww.futurebooks.com.sg
  31. 31. IDENTIFY YOURSTAKEHOLDERS Transaction type Stakeholders Risk Accounts receivable Customers Default on (AR) payment Cash payments (Cash) Customers Security Accounts payable (AP) Suppliers Cashflow Payroll Staff + Government Penalties and (IRAS + MOM) staff turnover GST Government (IRAS) Penaltieswww.futurebooks.com.sg
  32. 32. ANALYSE TRANSACTIONSACROSS 3 BUSINESSES Consulting business Restaurant business App store businesswww.futurebooks.com.sg
  33. 33. IDENTIFY YOURSTAKEHOLDERS Consulting business (B2B) 220 #Cash, 2 TRANSACTIONS Payroll, 20 GST, 20 AR, Stakeholder: 80 customer AP (fixed), 50 AP (variable), 50www.futurebooks.com.sg
  34. 34. IDENTIFY YOURSTAKEHOLDERS Restaurant business (B2C) 450 Stakeholder: TRANSACTIONS staff + Govt Payroll, Payroll 60 #Cash, 90 Stakeholder: GST, AR, 10 Govt. 50 AP (fixed), Stakeholder: 50 suppliers AP (variable), 200www.futurebooks.com.sg
  35. 35. IDENTIFY YOURSTAKEHOLDERS App store business (B2C) GST, 10 1500 TRANSACTIONS AP (fixed), 30 Payroll, 100 Stakeholder: staff AP (variable), 150 AR, 10 #Cash, 1,000www.futurebooks.com.sg
  36. 36. TRANSACTIONCOMPARISON P ll Payroll GST App store Restaurant AP (fixed) ConsultingAP (variable) AR Cash 0 100 200 300 400 500 600www.futurebooks.com.sg
  37. 37. DO-IT-YOURSELFBOOKKEEPING
  38. 38. ESSENCE OF DIYBOOKKEEPING   www.futurebooks.com.sg
  39. 39. AVOID RESCUES Rescues are performed when companies don’t keep regular books. http://futurebooks.com.sg/services/boo kkeeping-service/bookkeeping-rescuewww.futurebooks.com.sg
  40. 40. SAVE 30% IN OOBOOKKEEPING GFEES BY DOING S O GFOUR THINGSwww.futurebooks.com.sg
  41. 41. #1 OPEN A CORPORATEBANK ACCOUNTwww.futurebooks.com.sg
  42. 42. #2 OPEN MAILWEEKLY Get comfortable File mail Toss outwww.futurebooks.com.sg
  43. 43. #3 PAY SUPPLIERSMONTHLY Promote the billing cycle to stakeholders Image as a g g good Make paymaster bookkeeping day sacredwww.futurebooks.com.sg
  44. 44. #4 MANAGE PERSONALCLAIMS MONTHLY Download http://futurebooks.com.sg/blog/5-useful-excel-template- sites-to-streamline-your-bookkeeping/1329www.futurebooks.com.sg
  45. 45. IMPORTANTDATESwww.futurebooks.com.sg
  46. 46. BOOKKEEPINGPOWER USERTIPS
  47. 47. DO YOU REALLYNEED TO BUY IT? Buy items which contribute directly to revenue Think twice.www.futurebooks.com.sg
  48. 48. AVOID CHEQUEPAYMENTS They are erroneous They bounce Th b They are rejected They go missing yg g Never bankedwww.futurebooks.com.sg
  49. 49. TREATMENT OFCHEQUE PAYMENTS Write once a W Scan using S i Fill in stubs month camera phone Record cheque #www.futurebooks.com.sg
  50. 50. USE BANK TRANSFERSOR CARDS Statements Cannot over draw your limitwww.futurebooks.com.sg
  51. 51. STATEMENTS Highlight g g claimswww.futurebooks.com.sg
  52. 52. BANK RECONCILIATION Tick, highlight, hi hli ht annotatewww.futurebooks.com.sg
  53. 53. SETUP QUICKBOOKS ONLINEInvoiceI i Expenses E Snapshots www.futurebooks.com.sg
  54. 54. VALUE RAPIDLYDIMINISHESAFTER A SERVICEIS RENDEREDROGER DAWSON SECRET OF POWER NEGOTIATION DAWSON, www.futurebooks.com.sg
  55. 55. POSSESSIONIS NINE-TENTHS NINE TENTHSOF THE LAWA SMART LAWYER www.futurebooks.com.sg
  56. 56. ANTICIPATE RESISTANCECOLLECTING PAYMENT Credit checks Credit control Credit paymentswww.futurebooks.com.sg
  57. 57. CREDIT CHECKS Rating of 5 is g f below average.www.futurebooks.com.sg
  58. 58. CREDIT CHECKS List of creditors in front of youwww.futurebooks.com.sg
  59. 59. CREDIT CHECKS Company may p y y be stressedwww.futurebooks.com.sg
  60. 60. CREDITPAYMENTS Outsource credit riskwww.futurebooks.com.sg
  61. 61. CREDITPAYMENTSwww.futurebooks.com.sg
  62. 62. CREDITPAYMENTSIf you have a dog,why do the barking?www.futurebooks.com.sg
  63. 63. 1.5 3%1.5-3% YOUCAN HAVE ADOG DO THEBARKINGwww.futurebooks.com.sg
  64. 64. MANAGEMENTACCOUNTS
  65. 65. ACCOUNTING FORDIRECTORS Director’s expense Director’s income claims • Salary ( y incur y (may • Expense claim CPF) • Loan to the • Director’s fee company Shareholder • Loan to directors • Dividendwww.futurebooks.com.sg
  66. 66. GENERALLEDGER Every transaction y in date orderwww.futurebooks.com.sg
  67. 67. PROFIT + LOSSSTATEMENT Downloadwww.futurebooks.com.sg
  68. 68. BALANCE SHEET Downloadwww.futurebooks.com.sg
  69. 69. STATEMENT OFCHANGES IN EQUITY Downloadwww.futurebooks.com.sg
  70. 70. FINANCIALRATIOS Computation Notes Keep it simple Current ratio 23.11 Very healthy result. The company has Higher the better. A enough cash and accounts receivables h h d bl score of 1 is poor. f to pay off its current debts. Gross profit ratio 10% Unless the company is going for Higher the better. volume, this is not a good result. Most industries do a minimum of 15%. They may be inflating expenses to buy back stock. Accounts receivable 1.48 Accounts receivables are a little high. I Lower the better. g Download turnover would be checking receivables older Less than 1 is than 90 days. excellent. http://futurebooks.com.sg/blog/6-financial-ratios-every-entrepreneur-should-master/774www.futurebooks.com.sg
  71. 71. TIME TO GET ABOOKKEEPER
  72. 72. COMPLICATEDOPERATIONS Quarterly GST filing Monthly CPFwww.futurebooks.com.sg
  73. 73. IT IS TIME TO GET ABOOKKEEPER Honey, shouldn’t you delegate that?www.futurebooks.com.sg
  74. 74. VALUE OF TIME Satisfied customers Dissatisfied customers wanted $21 reward d d wanted $60 reward for d df for waiting. waiting.http://www.acrwebsite.org/volumes/display.asp?id=11176 www.futurebooks.com.sg
  75. 75. FOCUS ON WHATYOU LOVEwww.futurebooks.com.sg
  76. 76. INCREASE YOURFINANCIAL ACUMEN Revenue over time and sales projection p j Download http://futurebooks.com.sg /services/bookkeeping- service/bookkeeping- retainerwww.futurebooks.com.sg
  77. 77. INCREASE YOURFINANCIAL ACUMEN Net profit over time and projection Downloadwww.futurebooks.com.sg
  78. 78. INCREASE YOURFINANCIAL ACUMEN Score entrepreneurs performance Downloadwww.futurebooks.com.sg
  79. 79. METRICS Cost per click li k Daily Active Users (DUA) Cost of acquisitionwww.futurebooks.com.sg
  80. 80. ACCOUNTING INTHE CLOUD
  81. 81. INTUIT’SSTORYwww.futurebooks.com.sg
  82. 82. QUICKBOOKSONLINE Futurebooks provide training, customisation and bookkeeping services.www.futurebooks.com.sg
  83. 83. STAY IN TOUCH Email us at or visit our website. @futureb00kswww.futurebooks.com.sg
  84. 84. TERMS OF USERestrictions on Use of Contents 4. Any request to otherwise reproduce the Contents from this y q p1. Except as otherwise provided, the Contents of this Web Site for publication or commercial use should beDocument shall not be reproduced, republished, uploaded, addressed to: info@futurebooks.com.sg.posted, transmitted or otherwise distributed in any way, Disclaimer of Warranties and Liabilitywithout the prior permission of FUTUREBOOKS PTE LTD. To use 5. The Contents of this Document are provided on an “as is”any parts of the Contents of this Document, the user must seek basis without warranties of any kind. To the fullest extentpermission in writing, stating the c Contents for use; intent of permitted by law, FUTUREBOOKS PTE LTD does not warrantuse; manner of use; time frame of use and identity of the user. and hereby disclaims any warranty:FUTUREBOOKS PTE LTD reserves the right to refuse permission (a) as to the accuracy, correctness, reliability, timeliness, non-without declaring reason(s); and/or if information submitted by infringement, title, merchantability or fitness for any particularuser is deemed insufficient. purpose of the Contents of this Document;2. You may view, download and print the Contents if: (b) that the Contents available through this Document or any(a) the Contents are used for non-commercial or personal use functions associated therewith will be uninterrupted or error-only and will not be copied or posted on any network free, or that defects will be corrected or that this Documentcomputer or broadcast in any media, and media and the server is and will be free of all viruses and/or other(b) no alterations, additions or modifications of the Contents harmful elements.are made in any way 6. FUTUREBOOKS PTE LTD shall also not be liable for any(c) due acknowledgement is given to “FUTUREBOOKS PTE LTD” damage or loss of any kind caused as a result (direct or indirect)and citing the sources for the relevant data extracted. of the use of the Document, including but not limited to any3. Modification of any of the Contents or use of the Contents damage or loss suffered as a result of reliance on the Contentsfor any other purpose will be a violation of FUTUREBOOKS PTE y p p contained in or available from the Document.LTD ‘s copyright and other intellectual property rights.Graphics and images on this Document are protected bycopyright and may not be reproduced or appropriated in anymanner without written permission of FUTUREBOOKS PTE LTD. www.futurebooks.com.sg

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