<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Overview

The information contained is this chapter is sourced from IRAS but the essence of record keeping is fundamental to all businesses globally.

All businesses have to meet various record keeping requirements for tax purposes, but small businesses tend to have simpler business and tax affairs.

To make record keeping easier for small businesses, simplified but comprehensive record keeping requirements could be sufficient for your needs.

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Importance Of Record Keeping For Businesses

Ability to make better business decisions.

Be aware of the financial status of the business e.g. profit or loss position, whether there is any internal fraud or theft.

Reduce the cost and effort required to file the annual income tax return, and to reply to queries.

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Simplified Record Keeping (SRK) Requirements for Qualifying Small Businesses

• Small businesses should keep the following business records where applicable:
  • Daily Revenue Record
  • Daily Purchases Record
  • Monthly Record of All Business Expenses
  • Details of Daily Transport Expenses
  • Details of Daily Transport Expenses
• Business records kept for a financial year can be used to prepare the
  • Statement of Accounts
  • Balance Sheet
• A business can refer to the Statement of Accounts and the Balance Sheet when preparing its annual income tax return. </aside>

<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Best Practices

A business bank account should be used for business transactions only, such as accepting payments and paying employees and vendors.

Some businesses don’t require a business bank account, but a separate account offers many advantages, including fewer headaches at tax time and a more professional image.

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