From YA 2008, your company must keep proper records of its financial transactions by keeping all the invoices, vouchers and other supporting documents for five years.

These records should include:

• Income and Expenditure.
• Source documents such as vouchers, invoices, receipts and bank statements.
• List of assets (Debtors, Stock, Cash & Bank Balance, Other fixed assets), and liabilities (Creditors, unpaid bills)

To comply with these requirements, it is suggested that you maintain a manual system and a computerized system.

Manual System (Keeping Proper Records for IRAS)

You should have three files to keep track of payment, receipt and Cash movement.

File them in chronological order and photocopy them if they might fade.

Payment file should have :

• Original invoices
• Date of payment
• Payment Voucher Number
• Mode of payment (by cash or cheque number)

Receipt file should have:

• Duplicate invoices of your company
• Date payment was received from customer
• Mode of payment (by cash or cheque number)

Cash file should be sub-divided into cash and bank balance:

• Inflow & outflow
• Date money received or paid.
• Companies involved.

Computerized System (Keeping Proper Records for IRAS)

You can use accounting software to work out the monthly income and balance sheet, i.e . if you know about bookkeeping.Otherwise just use MS excel to total up the monthly receipt, payment, and the final figures of cash and bank balance. Any experienced bookkeeper or accountant will be able to finalize your financial statements based on the accounting records you keep over the accounting period.

Have a nice day! 

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