Many Singapore business owners only look at their books when a filing deadline is close, and by then the gaps are expensive to fix. A bookkeeping checklist that you work through every month is the simplest way to avoid that problem. This article explains how using a bookkeeping checklist to stay organised month by month keeps your records accurate, your filings on time and your year-end far less stressful.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
The idea is not complicated. You decide which tasks must happen each month, assign an owner and a date to each, and tick them off. What matters is consistency, because small monthly habits prevent large year-end clean-ups.
Who this applies to
Every company incorporated in Singapore needs proper accounting records, whether it is a start-up with a handful of transactions or an established firm with a finance team. A monthly checklist is particularly useful for:
- Owner-managed private limited companies without a full-time accountant
- GST-registered businesses that file returns every quarter
- Companies with employees, where payroll and CPF contributions recur monthly
- Dormant or low-activity companies that still have statutory duties
- Foreign-owned companies whose directors are based overseas and rely on remote reporting
Key rules and requirements in Singapore
There is no single law that tells you to keep a “monthly checklist”. The checklist is a practical tool that helps you meet several real obligations together.
Under the Companies Act 1967, directors must ensure the company keeps accounting records that explain its transactions and show its financial position, so that true and fair financial statements can be prepared. These records must generally be kept for at least five years. IRAS also expects businesses to retain supporting documents such as invoices, receipts and bank statements for five years, and GST-registered businesses must keep records that support every claim made on a GST return.
Other deadlines tie back to the same records. Companies must file an Estimated Chargeable Income (ECI) with IRAS within three months of the Financial Year End, unless they qualify for a waiver. Annual returns are filed with ACRA through the BizFile+ portal, and tax returns through the IRAS myTax Portal. Employers must pay CPF contributions by the 14th of the following month. Accurate monthly books make each of these filings a matter of extraction rather than reconstruction.
Step-by-step process
The following sequence works for most small and medium-sized companies. Adjust it to your own volume and software.
1. Collect and file source documents
Gather all sales invoices, supplier bills, receipts and expense claims for the month. Keep them in a consistent folder structure, or upload them directly to your accounting software. Missing paperwork is far easier to chase within a few weeks than after a year.
2. Record sales and purchases
Enter all invoices issued and bills received, using the correct GST code. Check that invoice numbers are sequential and that foreign currency transactions carry the right exchange rate and are converted to SGD.
3. Reconcile bank and credit card accounts
Match every line on the bank statement to a transaction in the books. Investigate unexplained items immediately. A reconciled bank account is the single best test of whether the month’s records are complete.
4. Review accounts receivable and payable
Run an ageing report for customers and suppliers. Follow up on overdue invoices, and confirm that bills due for payment are scheduled so that you do not incur late fees or damage supplier relationships.
5. Process payroll and statutory contributions
Confirm that salaries, CPF contributions and any foreign worker levies for Employment Pass, S Pass or Work Permit holders have been recorded and paid. Reconcile the payroll report to the ledger.
6. Check GST and other tax balances
If you are GST-registered, review the GST control account and make sure input tax claims are supported by valid tax invoices. Set aside the amount payable so that cash is available when the quarterly return is due.
7. Review the monthly reports
Look at the profit and loss statement and balance sheet. Compare them with the previous month and with your budget. Unusual movements often point to a miscoded entry or a missing invoice.
8. Lock the period and note open items
Once reviewed, close the month in your software so that earlier figures are not changed by accident. Keep a short list of open queries to resolve the following month.
Common mistakes to avoid
- Letting records pile up. A backlog of several months makes errors harder to trace and increases the cost of catching up.
- Mixing personal and business spending. Using the company account for personal expenses creates director loan balances that must be tracked and explained.
- Skipping bank reconciliation. Unreconciled accounts hide duplicate entries, missed receipts and even fraud.
- Wrong GST treatment. Claiming input tax without a valid tax invoice, or applying the wrong tax code, can lead to penalties on review by IRAS.
- Discarding documents too early. Records should be kept for the full five-year period, even after the books have been filed.
- Relying on memory. Without a written checklist, tasks depend on one person remembering them, which breaks down when that person is away.
Practical examples
Consider a small trading company with a 31 December Financial Year End. The owner uses a monthly checklist and reconciles the bank account by the tenth of each month. When the ECI is due at the end of March, the figures are already in place and the filing takes little time.
Now compare a consulting firm that updates its books only twice a year. At year-end, the accountant finds several unmatched receipts and a supplier bill recorded twice. Resolving these takes weeks, delays the financial statements and puts the AGM and annual return timeline under pressure.
A third example is a company with a handful of employees. Because payroll and CPF are on its monthly checklist, a late CPF payment is spotted on the 12th rather than discovered months later, avoiding interest charges.
How a corporate secretary can help
A corporate secretary in Singapore does more than file annual returns. At Raffles Corporate Services, our team supports companies with ACRA filings, annual general meetings, statutory registers, accounting, tax and payroll support. We can help you design a bookkeeping checklist suited to your business, handle the monthly bookkeeping on your behalf, or review your existing records before the financial statements are prepared. This general information does not replace tailored advice, so speak to us about your own circumstances.
Frequently Asked Questions
How often should I update my company’s books?
Monthly is a sensible minimum for most companies. Businesses with high transaction volumes may prefer weekly updates. The aim is to catch errors while the details are still fresh.
Can I keep my records in Excel instead of accounting software?
The law does not prescribe a particular tool, but the records must be accurate, complete and retrievable. Very small or dormant companies can manage with spreadsheets, though cloud accounting software makes reconciliation, GST reporting and audit trails much easier.
How long must I keep accounting records?
Companies should generally keep accounting records and supporting documents for at least five years. IRAS applies the same five-year expectation to tax-related records.
What if my books are already months behind?
Start by obtaining all bank statements and outstanding documents, then work forward from the oldest unrecorded month. A professional can help you catch up efficiently so that your filing deadlines are not missed.
Does a dormant company still need bookkeeping?
Yes. Even a dormant company must keep records of its limited transactions, such as bank charges or professional fees, and comply with its ACRA and IRAS obligations.
Key takeaways
- A monthly bookkeeping checklist turns several legal obligations into manageable routine tasks.
- The Companies Act and IRAS require adequate records, generally retained for five years.
- Bank reconciliation, GST review and payroll checks are the core monthly controls.
- Consistent books make the ECI, annual return and tax filings faster and cheaper to prepare.
- Professional support can help you build the checklist and keep to it.
Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.
If you would like to find out more about how Raffles Corporate Services can assist with your company’s compliance and corporate secretarial requirements, please get in touch with the team at [email protected].
Yours sincerely,
The editorial team at Raffles Corporate Services
Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.