Chart of Accounts Singapore: How to Set Up a Basic Chart of Accounts for Your SME

Introduction

Many small and medium enterprises (SMEs) in Singapore struggle to set up a proper chart of accounts that meets regulatory needs and supports good management reporting. A clear chart of accounts helps you track revenue, expenses, assets and liabilities—and ensures compliance with ACRA and IRAS requirements. In this article, Setting Up a Basic Chart of Accounts for a Singapore SME explains the fundamentals you need to create a practical, audit-ready account structure.

Who this applies to

This guide is aimed at directors, finance managers and business owners of Singapore private limited companies, and their corporate secretaries or outsourced accounting teams. It is particularly relevant for SMEs preparing for statutory filings with ACRA via the BizFile+ portal, corporate tax submissions through IRAS myTax Portal, GST accounting and payroll accounting (including CPF contributions).

Key rules and requirements in Singapore

When planning a chart of accounts in Singapore, consider the following statutory and administrative requirements:

Companies must maintain proper accounting records in accordance with the Companies Act; records should be retained for at least five years and be readily available for inspection.
IRAS requires accurate records to support corporate tax filings. GST-registered businesses must separately track Input GST and Output GST and retain tax invoices and supporting documents.
Payroll-related liabilities such as employer CPF contributions, Skills Development Levy (SDL) and other statutory items must be recorded and reconciled to CPF and MOM reports.
Financial statements should align with Singapore Financial Reporting Standards (SFRS) where applicable; larger companies may require audited accounts.
For compliance filings, directors must ensure that the accounts reflect the company’s Financial Year End and support the annual returns filed with ACRA and tax filings with IRAS via the myTax Portal.

Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.

Step-by-step process

Follow these steps to design a simple and effective chart of accounts for a typical Singapore SME.

1. Define your primary account categories

Assets (e.g. Bank, Accounts Receivable, Fixed Assets)
Liabilities (e.g. Accounts Payable, CPF Payable, GST Payable)
Equity (e.g. Share Capital, Retained Earnings)
Income (e.g. Sales, Service Income, Other Income)
Expenses (e.g. Cost of Sales, Salaries & Wages, Rent, Utilities, Depreciation)

2. Use a logical numbering system

A simple numbering convention improves consistency:

1000s — Assets
2000s — Liabilities
3000s — Equity
4000s — Income
5000s — Expenses

3. Include statutory control accounts

GST control accounts: separate Output GST (on sales) and Input GST (on purchases).
Payroll control accounts: Gross wages, Employer CPF payable, Employee CPF payable (if withheld), SDL and other statutory levies.
Accruals and prepayments: ensure month-end adjustments for expenses incurred but not yet invoiced and prepayments.

4. Add fixed asset and depreciation tracking

Include separate asset cost accounts and accumulated depreciation accounts to meet audit and tax requirements. This supports capital allowance calculations for IRAS.

5. Keep supporting documentation organised

Design account codes that make it easy to link transactions to invoices, receipts and payroll reports. Retain digital or physical records for at least five years in line with Companies Act and IRAS expectations.

6. Map accounts to reporting needs

Ensure your chart of accounts supports management reporting, budgeting and statutory reporting. Plan groupings that align with SFRS income statement and balance sheet presentation where relevant.

Common mistakes to avoid

Too many accounts: an overly granular chart makes bookkeeping slow and error-prone. Start simple and expand as needed.
Mixing personal and business transactions: director loans and drawings should be recorded distinctly to avoid confusion at Financial Year End and during audits.
Failing to maintain GST control accounts: incorrect GST tracking leads to filing errors on GST returns submitted via IRAS systems.
Not reconciling statutory liabilities: unresolved differences in CPF payable, SDL or tax provisions can lead to penalties or unexpected cash shortfalls.
Inadequate supporting documentation: missing invoices or payroll records increase risk during an IRAS review or ACRA inspection.

Practical examples

Here are three simplified account structures for common SME scenarios in Singapore.

1. Small trading company

1000 Bank – Current Account
1100 Accounts Receivable
1200 Inventory
2000 Accounts Payable
2100 GST Payable (Output GST)
4000 Sales – Domestic
5000 Cost of Goods Sold
5200 Freight & Shipping

2. Service company (e.g. consultancy)

1000 Bank
1100 Accounts Receivable
4000 Service Income
5000 Salaries & Wages
5100 Employer CPF Contributions
5200 Rent

3. E‑commerce business

1000 Bank
1100 Accounts Receivable (Marketplace)
1200 Inventory – Finished Goods
4000 Online Sales
5000 Payment Gateway Fees
2100 GST Payable

How a corporate secretary can help

A corporate secretary in Singapore typically focuses on statutory compliance under the Companies Act, but many corporate services firms also support directors with accounting and administrative matters. Key ways a corporate secretary or corporate services provider can assist include:

Ensuring the company maintains proper accounting records and statutory registers required by ACRA.
Advising on Financial Year End timing and coordinating audit or review processes when needed.
Assisting with filings on the ACRA BizFile+ portal, and reminding directors of filing deadlines and annual return obligations.
Coordinating with outsourced bookkeepers, accountants or payroll providers to ensure GST, CPF and corporate tax compliance. Raffles Corporate Services can help with filings, compliance, accounting, tax and payroll support where firms require end-to-end assistance.

Frequently Asked Questions

Q: How detailed should my chart of accounts be?

A: Start with a structure that supports statutory reporting and management needs—typically assets, liabilities, equity, income and expenses. Avoid excessive detail initially; add subaccounts as the business and reporting complexity grow.

Q: Do I need separate accounts for GST?

A: Yes. GST-registered businesses should maintain separate Output GST and Input GST accounts to support GST returns to IRAS and to reconcile GST collected and claimed.

Q: How long must I keep accounting records?

A: Companies should keep accounting records and supporting documentation for at least five years in line with Companies Act and IRAS guidance. Ensure records are stored securely and are retrievable for inspections or audits.

Q: Should payroll liabilities such as CPF be included in the chart of accounts?

A: Absolutely. Employer CPF contributions, employee CPF withholdings and other statutory levies should be recorded in dedicated liability accounts and reconciled against CPF submission reports.

Key takeaways

A well-structured chart of accounts is essential for compliance with ACRA, IRAS and for effective management reporting.
Include statutory control accounts for GST, CPF and other levies; retain supporting documentation for at least five years.
Use a clear numbering convention and start simple; expand the chart as the company grows.
Regular reconciliations—bank, GST and payroll—reduce errors and make year‑end processes smoother.
Raffles Corporate Services can assist with corporate secretarial filings, bookkeeping setup, tax and payroll support to keep your company compliant.

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