Record-Keeping Requirements for Singapore Companies

So if an accounting period ends on 31 October 2022, records will need to be kept until at least 1 November 2028. A good recordkeeping system includes a summary of all business transactions. These are usually kept in books called journals and ledgers, which business owners can buy at an office supply store. All requirements that apply to hard copy books and records also apply to electronic business records.

What business records do I need to keep?

As a small business, it’s easy to grow lax with practices like record retention. It’s tempting to push document retention aside, reasoning “I’ll do it later” — only to find that the “later” you promised yourself never arrives. The responsibility to substantiate entries, deductions, and statements made on your tax returns is known as bookkeeping the burden of proof.

Tips for Record Keeping of Your Books in Singapore

• You should keep records of income from employee share schemes or share-related benefits.
• There are a few different options when it comes to getting rid of old paper records.
• Don’t underestimate the power of your dollar – especially for a Small and Medium-sized Enterprise (SME).
• Limited companies must keep records about the company and its finance and accounting.
• A small business attorney can advise you on the full list of requirements that are necessary for your business.

Leases and insurance policies can be used to help your negotiating position when it comes time to renew, and you will want to keep them until they are replaced. Department of Labor, also have recordkeeping requirements for discrimination claims. Refer to the Record Keeping Checklist (PDF, 61KB) for a summary of the different types of records required. GST-registered companies may also refer to the types of records to keep to support their GST declarations.

Recordkeeping

Since South Africa’s Protection of Personal Information Act, 2013 (POPIA) enactment, there has been much uncertainty surrounding retaining information in South Africa. Health insurance policies and related documents are important to keep long term, too. So long as your health insurance is active, you should keep these records. If your coverage ended or you’ve moved to another insurance company, go ahead and toss paperwork once you’re sure you won’t need it. Many banks and credit card issuers offer electronic statements now, so you may not need to keep paper copies on hand, which will cut down on excess clutter.

• Use Patriot’s online accounting for stress-free tracking, secure storage, and more.
• You can get started with DropBox and earn 500 MB of bonus storage space by using this link.
• Our extensive nationwide network comprises of offices across the UK with a partner-led service offering immediate director advice and support.
• Since South Africa’s Protection of Personal Information Act, 2013 (POPIA) enactment, there has been much uncertainty surrounding retaining information in South Africa.
• There are rules about what you can and cannot claim as expenses on your tax return.

The below statutes are not exhaustive but rather a selection of common applicable ones. Persons found guilty of improper keeping of income tax-related records may also be liable to a fine of up to $1,000 or a jail term of up to 6 months in default of payment under the Income Tax Act. If accounting records are not properly kept, the company and any relevant officer will be liable to a fine of up to $5,000 or to a jail term of up to 12 how long to keep company records months, as well as a default penalty under the Companies Act. The records must be retained for at least 5 years from the end of the financial year in which the relevant transactions were made. If your records are kept manually in a physical form, they should be kept in a legible and well-organised manner. For example, photocopies should be made of receipts printed on thermal paper in case the original receipts fade over time.

Record Retention: A Handy List of What to Save (and For How Long)

Tax expert Barbara Weltman provides guidance on which documents you need to keep around — sometimes, permanently. We understand that you would like to contact the Information Officer about a Protection of Personal Information (POPI) or a Promotion of Access to Information Act (PAIA) matter. It is just a click away – click on the Deets link below for speedy service based on what you need and we will be in touch soon. In this regard, you may wish to consider engaging a corporate secretarial firm for professional assistance on record-keeping. For a complete list of records and how long to keep them, download our PDF guide here. HM Revenue and Customs (HMRC) may check your records with a compliance check to make sure you’re paying the right amount of tax.

• These fines can potentially amount to several thousand pounds or more depending on the severity of the offence.
• If the latter is chosen, it must be possible for hard copies of the electronically stored records to be replicated.
• However, these records are not necessary for non-GST registered companies.
• Here are some questions and answers to help business owners understand the ins and outs of good recordkeeping.
• This guide refers to the legislation (36 Acts in total) and identifies the timeframe in which certain documents have to be kept.
• Nerushka focuses on data privacy, and has experience with various data privacy matters for a number of international and local clients.

Keeping good records is an important part of running a successful business. You can scan paper records onto your computer, download files that are already digital, or even take pictures and upload https://www.bookstime.com/articles/business-accounting them to your computer or accounting software. Backing up your physical documents protects your files against loss and damage, improves organization, and streamlines efficiency. Companies that have registered as an employer must also ensure they store and maintain all PAYE records relating to their employees. These records are important to calculate the amount of National Insurance Contributions, annual PAYE returns and to ensure that the employer is paying their employees in line with laws and regulations.

How long should company records be retained?

• Should an IRS audit letter land in your mailbox, practicing good recordkeeping now will make an unpleasant process a little bit smoother.
• The length of time you should keep a document depends on the action, expense, or event the document records.
• The following questions should be applied to each record as you decide whether to keep a document or throw it away.
• Read on to learn about retention periods for your accounting documents.
• Small business owners tend to focus on building their companies and sometimes neglect keeping business records, such as expenses and invoices.

Depending on the item for which the record pertains, the IRS recommends keeping the records for years. Software such as Xero, QuickBooks and Sage are all compliant, and offer an inexpensive and simple way to store data. Using cloud accounting also means that those with permissions can access and update the records from any device, anywhere in the world.

Record Keeping Guide for Non-GST registered Businesses (PDF, 260KB)

In this case, the Uniform Preservation of Private Business Records Act (UPPBRA) is a good guideline. With the emergence of cloud accounting, it’s easier than ever to store records that relate to your company finances and workforce. However, it’s important to choose a provider that is compliant with HMRC’s Making Tax Digital (MTD) initiative. Alternatively, if you prefer the traditional accounting method of maintaining paper records, be sure to have photocopies of your records as a backup. However, there is no significant advantage to maintaining paper records since they are vulnerable to incidents such as coffee spills or misplacing documents.