Why Freelancers Should Monitor Their Bookkeeping Records
The thought of having flexible hours and handling issues your way, all while building your client base is probably the most exciting aspects of freelancing. Keeping tabs on your books, on the other hand, is probably the farthest thing from exciting.
As a freelance content provider, graphic designer or web developer, you need to understand the basics of accounting and bookkeeping. It is mandatory for everyone – including freelancers – to report their income to the Inland Revenue Authority of Singapore. Moreover, IRAS doesn’t take poorly prepared records, and they have issued guidelines to help you file your taxes properly.
Avoiding the wrath of IRAS is just one of the reasons freelancers should keep a close eye on their bookkeeping. Here are some other reasons freelancers should always stay on top of their bookkeeping records.
To Stay on top of Your Business
Monitoring your books keeps you on top of your business, or in this case, your work-related finances. Keeping a tight grip on your finances can allow you to check if you are growing or stagnating.
If you have the skills, that’s great! But do you have the time and are you objective in your books and time?
Here’s where accounting services in singapore can come in handy to give you regular updates and keep you a step ahead in your business.
There Could Be Legal Complications If You Don’t Monitor Your Books
You should’ve already seen the guidelines for reporting taxes to IRAS. The flip side is that if you don’t track your books and file your taxes on time, not only is your business likely to suffer, but you may also be subject to prosecution, fines and penalties. If bookkeeping truly turns you off, it would be smart if you hired accounting services in Singapore to help you out on that.
Saves you Time and Money
Monitoring your books and keeping good records will give the accounting firm, or yourself, an easier time when handling your books. Even if you are doing your own books, you will spend less time working through a mess and more time focusing on what you need to do. When you hire an external accountant or bookkeeper, they can devote their time on more important aspects of your finances than being bogged down in messy books.
It will be easier for you if you get audited
Getting audited is always a nerve-wracking experience. The only way that you can be sure the audit process goes as smoothly as possible is if you have your financial accounts in order.
Many freelancers do things such as file inconsistent returns and make many mistakes with their returns. It sets them up to be prime candidates for an IRAS audit. Engaging accounting services in Singapore can help you keep good financial records, submit excellent returns and avoid catching IRAS’ eyes.
Bookkeeping isn’t everyone’s favourite activity. However, it is a crucial part of a prosperous freelancing business. Monitoring your bookkeeping will help ensure your continued growth and keep you out of trouble.