Running a business is no easy feat. As the owner, you’ll probably wear many hats—CEO, finance head, marketing director, the list goes on. At the same time, bookkeeping for new businesses is one of the most essential processes to keep your company afloat.
Crunching numbers can get extremely manual and repetitive, but bookkeeping is important if you want to keep track of your expenses and growth. Even if you managed to hire an accountant to help you with your accounts, we believe that every business owner should know the basics of new business bookkeeping. Knowing your accounts can help your business to avoid last-minute revenue errors, and give you more insight into the feasibility of upcoming projects.
Here Are 10 Bookkeeping Tips for New Businesses to Help You Get a Hang of The Bookkeeping Process:
1. Keep business and personal expenses separate
We’re sure this isn’t the first time you’ve heard this. One of the key rules of starting your own business is to keep your business and personal finances separate! Here’s three reasons why:
- It’s easier to monitor which expenses are business related, and which are personal.
- Having a business account and card can help your business to build its own credit score, which can be useful in the future.
- It’ll give you a better view of your business budget.
Haven’t gotten round to opening a business account? Check out the best business accounts in Singapore to get started on it!
2. Try to avoid cash transactions
It’s undeniable that most transactions can be paid digitally today. However, there might still be times where you’ll have to pull out your wallet. Although cash transactions aren’t the worst, they might make bookkeeping a little harder if you’re careless with your receipts.
Not keeping track of small expenses might seem trivial—after all, what’s a few dollars off the accounts? But continued oversight might lead to a snowball effect, leaving you stranded at the end of the month not knowing where your money has gone.
3. Track business transactions and keep receipts
This is why tracking your business transactions and keeping petty purchase receipts are so important. No matter how small the purchase, keep a record of these transactions. To do this, we recommend:
- Downloading your monthly business bank statements
- Keeping all receipts related to business transactions in a file
Having these measures in place will make bookkeeping at the end of every month a way less frustrating experience for you.
4. Set aside money for major or recurring expenses
Instead of having to record the same expenses over and over again, set aside your monthly budget for essential items. Essential items and expenses refer to the purchases that your company will definitely be investing in from month to month. This could include office supplies and rent.
On top of this, setting aside a budget for major expenses can also help you to better keep track of your business’s monthly budgets. For example, having a big project in the pipeline that might require a larger budget can be inserted into your account early, This can help you to visualise what the expense limit will be like for your business in coming months.
5. Set aside money for taxes
Keeping track of your business finances also means setting aside a sum to pay your taxes when the last quarter of the year rolls in. You definitely wouldn’t want to be behind on your tax payments, or worst still, have to take a loan to pay your taxes.
6. Don’t forget your invoices
Late-payments can really affect your business relationships. Having to chase unpaid bills from both clients and partners could strain relationships, and make accounting difficult at the end of the month.
One way to combat this is to prepare and send out invoices once jobs are done. This could help you to remind customers and clients to make payments on time. Doing so will also help to facilitate your payments to partners and suppliers! Keeping this organised will also help to ensure that cash flow is consistent throughout the month
7. Track your expenses once a week, and do your books once a month
It can be tempting to push bookkeeping to the back of your mind, especially when you’re overwhelmed with other business needs. But if you want to keep your business up and running, bookkeeping should definitely be a priority.
Setting some time aside weekly to check-up on your transactions and ensure that they tally with your purchases will make things easier come the end of the month.
8. Use an automated payroll system
The payroll is one of your company’s largest expenses. Sometimes, paying your employees by bank transfer, or doing it manually every month can lead to discrepancies. As an employer, paying your employees on time can also help to forge stronger bonds and trust amongst the team.
This is why automating your payroll is the best way to keep things concise and punctual for all parties involved.
9. Try to automate your record-keeping
The best way to make bookkeeping for new businesses more manageable is by looking for ways to automate the record keeping. This could come in the form of an online accounting software.
There are a host of online accounting softwares that specialise in new business bookkeeping. They usually offer users a range of features that include day-to-day business administrative basics such as:
- Automated bill payments
- Invoices
- Integrating bank details and transactions
- Budget dashboards
- Financial reports
By automating your bookkeeping processes, you’ll free up time for you to focus on other aspects of the business you’re handling. However, every business has different needs, so do your homework before plunging into purchasing one.
10. Use Aspire
The Aspire business account is fully integrated with Xero, and will soon cover expenses, invoice, and payroll management. This means that you’ll be able to view all your business expense information in one platform. Business spend is also categorised into groups, allowing you to keep track of expense budgets in each business department.
What’s more: if you’re currently outsourcing your bookkeeping to an accountant, he or she will also be able to access your dashboard on the Aspire app!
Bookkeeping for new businesses doesn’t have to be tedious.
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
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