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Business Invoicing Tricks to Get Paid Faster

Business Invoicing Tricks to Get Paid Faster

The success of every business often relies on you getting paid on time. In order to get paid, you will need to issue an invoice and invoicing should not be seen as a back-office administrative nuisance. Rather, it is a vital first step in achieving healthy cashflow.

Here are the ways to get paid faster so you can worry about scaling your business instead of chasing down exhausted clients.

Automate

Do you have clients that are billed the same amount each month because of ongoing projects, retainer relationships, or subscription service? You can automate invoice process with monthly recurring invoices. It only takes two minutes to set-up and you’re guaranteed to be paid each month since funds are withdrawn from the client’s bank account or credit card automatically, as opposed to creating and sending invoices for the same amount each month.

Send Your Invoice ASAP

Once your client has confirmed your quote, you should invoice your client immediately. This reminds your client that work is completed and payment is the last step, a good practice which found to results in immediate payment. The best way to make sure your invoice reach your client will be by email.

Shorten your policy terms

Shorten your payment terms to 30 days or less so that you’re receiving money into your account more quickly. Just make sure that you discuss these terms with your client during the cooperation process of a project so that they’re not caught off-guard.

Timing is Everything

Just like most things in life, timing is everything. If you are sending out recurring or short-term invoices, be sure to make the payment intervals crystal clear in the agreement. Set deadlines and make sure your client respects your time.

Get Your Invoice Details Correct

Make sure you have to get the right company details, delivery date and location, customer purchase order number, clear description of the goods or services supplied, payment terms, accurate quantities, prices, discount (if any), GST and total amount due so that they can proceed to prepare payment without changes and delay.

Review Pending Clients Payment Regularly

It’s usual to have a few clients that don’t pay on time, but if the majority of your clients are skipping payments or paying late, then the problem is with your payment system. You should keep track of your invoices narrowly and monitor any late payment behavior so you can catch any flaws sooner. The best way to track that is with your account receivable aging report to resolve which clients have not paid and when they are due to pay.

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Reasons Why Startups Consider Virtual Offices

Reasons Why Startups Consider Virtual Offices

In the virtual world of today, it is really surprising that physical offices and stores still exist. Availability of the modern technology, it gives the impression of a real office could be abandoned by just about every business and chooses a virtual office instead.

However, hundreds of companies open up every month, but only a few stay alive doing business. One of the main weaknesses that startups have to put up with is not having a physical business address. In developed countries like Singapore, it is mandatory for any legal entity to register a business address, in order to obey regulatory requirements.

While it is essential to have a registered business address, this is often not a feasible option for startups. New entrepreneurs might not have the required funding to invest in a business address. Using a residence address, as a company address becomes one of the satisfactory alternatives. However, this is not all the time the best choice, especially when trying to show a professional image to prospective clients. Keep in mind, the image is everything in business, and having a professional image can make all the difference between making a reputation and attracting new customers.

A virtual office provides communication services, including phone and address, to persons and companies without the cost of a physical office. Most virtual offices comprise mail collection, normally a shared receptionist who signs and accepts letters and packages, scanning and storage, and disposal services.

Benefits of a Virtual Office

Address Requirement

A valid business address may be required for various reasons. Initially, when registering a business in Singapore, it is compulsory for a company to provide a valid office register address. Some companies will use a virtual address because they need a prominent address. There are many reasons a company would need a prominent address. It could be that a company wants to be connected with other companies within its industry that are commonly located in the same area. For a Singapore Company with no physical office, having a virtual office will make the business better image and better manage their important business documents.

Cost Effectiveness

Subscribing to a virtual office service is much cheaper than renting a physical office space. Significantly, startups that use virtual offices only pay for what they want. Entrepreneurs do not have to invest in office furniture or equipment and they do not have to worry about paying rent and utility bills. Services such as mailing, meeting space can be added to a package when the need arises. The ability to pay for a service only when the need arises makes hiring a virtual office cost effective.

Legitimacy

Issues with legitimacy may arise if a company does not have a registered business address. Nonetheless, by using a virtual office, issues with legitimacy will not be a problem. A virtual office provides services similar to a conventional office, including a prestigious address. Amusingly, clients seem to have more trust in a business that has an impressive address. Having a prestigious address deal with not only the issue of legitimacy but also handles the query of customer trust.

Continuity

Having a virtual office is a viable option for realizing business continuity. It is better than move to a different office; a virtual office put up extra services that a business might require.

The advantages of using a virtual office are many. Startups have since blossomed into large companies, by simply using virtual offices.

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Payroll Errors that could damage your Business

Payroll Errors that could damage your Business

Payroll is a significant lifeline that shows business a key role in staff retention and workers morale. Any business with human resources must have a system in place for handling payroll activities, which includes paying employees, filing all necessary government forms, and paying taxes promptly. There are numerous aspects to payroll, particularly in larger companies with full-time and part-time employees plus independent contractors. Here are 10 of the most common payroll mistakes to be responsive to.

Missing filing deadlines

It is very important that you mark your payroll chart and report and deposit and payroll taxes to federal and state agencies in a timely manner. Late deposits can result in penalties and interest charges. In order to avoid such payroll mistake, the management, the accounting department or the HR department should keep logs on when these deadlines are. Singapore companies are required to file Forms IR8A and IR8S and Appendixes 8A and 8B before March 1st of every year.

Misclassifying employees

Because of the increasing number of short-term employees, consultants, and other independent contractors, it is necessary that you accurately determine the classification of everyone working for your company so you can determine how to report payroll information for tax purposes.

Not maintaining privacy

Payroll information should not be disclosed to anybody exterior of the payroll department or the senior management team. It is important that such privacy is maintained and that payroll is handled in a secure environment.

Miscalculating overtime pay                 

There is the course of action that must be followed when determining overtime pay and miscalculations can be costly. Litigation has been rising in recent years claiming that employees who were treated as “exempt” employees and therefore not entitled to overtime were misclassified.

Poor record keeping and data entry

Singapore is generally made up of expats, foreign citizens working here based on employment permits. One of the most usual payroll mistakes the HR department could make is not maintenance its employee’s records updated. Information such as bank account number, residence status or address should always be updated.

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Blockchain Technology in Accounting

Blockchain Technology in Accounting

Blockchain makes a decentralized record of all exchanges where all records are upgraded and open to everybody in real-time. It records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint”. Blockchains are resistant to modification of data and cannot be altered retroactively.

Here are some key points to consider about the impact blockchain technology will have on the future of accounting.

Smart Contracts

With the security of blockchain technology, smart contracts that automatically process invoices, bank balances, and other accounts are also made possible with absolute transparency.

Consolidated Bookkeeping

Rather than keeping multiple records, companies can log off their transactions into a joint registry.

Standardization in Auditing

Since blockchain creates absolute standardization in the accounting practice, auditors will be able to verify larger amounts of data much faster. Conducting audit would also be much cheaper and easier.

Security and Trust

In blockchain, every transaction is recorded as a block that contains in timestamp and a unique fingerprint. Hacking an entire blockchain means hijacking all the computers connected to the ledger network. This makes it the most secure data management system ever to be conceived.

Less Paperwork for Accountants

In theory, blockchain will reduce or eliminate the dependency on paperwork in the future. For example, since the government can theoretically peek into a public ledger at any time. Companies no longer need to file tax returns. Everyone will be automatically taxed accordingly.

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Best Inventory Management Software in Singapore 2018

Best Inventory Management Software in Singapore 2018

The purpose of an inventory management system is to track the warehouse items through purchase, sales, locate them across one or many warehouses, and price the inventory so you are familiar with the value of items you have in inventory for accounting purposes.

Small-business owners face several problems when they are just starting up, such as securing financing, finding customers and managing inventory. As small businesses grow they think they have to leave their accounting solution in favor of a more expensive solution to take their business to the next level. Fortunately, Singapore Accounting Software offers best inventory solution for the small businesses. It is an inexpensive and cloud inventory management system that’s flexible and will grow with you. It offers inventory system in the form of EZ inventory and Sage_Ubs Inventory Software.

Integrating Sage_Ubs Inventory Software with Sage_Ubs Accounting Software helps in:

  1. Sales and purchase invoices figures are link to its accounting software
  2. Viewing of accounts Expenses VS Sales is available after posting of inventory software data to its accounting module
  3. Printing of statement of accounts is available once sales billing is posted to its accounting module.

The main functionality of these softwares absolutely about your inventory levels, but this kind of software also tracks sales, purchase orders and deliveries. However, any business bigger than that will want the asset identification, order tracking, and supply chain optimization capabilities that a good inventory management system delivers.

Features of EZ Inventory Software:

  • Allocation/ Transfer of stocks of different locations
  • Costing of stocks
  • Salesman stocks and Serial number stocks reporting
  • Stock card and Stock adjustment
  • Item listing valuation
  • Billing of invoice and purchase and other billing
  • Batch expiry stocks functions

Features of Sage_Ubs Inventory Software:

  • Multi-location stocks reporting
  • Salesman, Stock balance and Bill of material reporting
  • Items assembly function and stock adjustment
  • Location transfer
  • Consignment function for stocks control
  • Issue billing such as invoices, debit note and many more
  • Customer database update

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How to save on Business Taxation in Singapore?

How to save on Business Taxation in Singapore

In general, deductible business operating expenses are those entirely and absolutely incurred in the production of income. The Singapore government has allowed for tax deductions on several areas of operations for businesses, and ignoring them is as good as leaving money on the table.

Here are some of the most commonly overlooked areas:

Office Renovations

In Singapore, companies can claim deductions on the cost of renovating business premises, up to a total of $300,000. These costs cover a wide range of applications, from lighting to bathroom fittings and even certain decorations. The deduction needs to be claimed over three consecutive years, starting from when the costs are incurred. You also need to keep supporting documents, including a list of work done and related costs, for five years. Therefore, remember to file these invoices during your accounting.

Research and Development

Incentives for research and development are considerable in Singapore – up to 100% of the costs are tax deductible. To claim for R&D, your business needs to bear the costs and own the results. Activities also need to meet certain necessities: your objective should be to obtain new facts, create, or improve products or processes. It must also possess an element of novelty or attempt to improve upon technical risks and must undertake a systematic, investigative and experimental study.

Additionally, it is important to note that R&D related to trade is 100% deductible, while projects not related to trade only attract the same deductions if they’re conducted in Singapore.

Employee Medical Expenses

Keep a clean bill of health for your employees and reduce tax bills for your business at the same time by claiming for employee medical expenses. Medical expenses, which also cover dental and preventative treatments, are tax-deductible as long as they are capped at 1% of an employee’s total remuneration, including salary, allowances, and bonuses. This increases to 2% if you implement certain government medical and insurance schemes, or if you contribute directly to your employees’ Medisave accounts.

Goods and Commercial Motor Vehicles

In Singapore, you can claim a capital allowance for vans, lorries, and motorcycles acquired for commercial use, as well as cars so long as they’re hired out, or used for driving instruction. This includes the cost of obtaining and renewing your Certificate of Entitlement (COE) for vehicles. Additionally, motor vehicle expenses such as parking fees, maintenance, and petrol costs can also be deducted from your taxes.

Donations

Donations made to an approved Institution of a Public Character (IPC) are tax-deductible. Apart from cash donations, you can also claim for donations of shares, computers and even artifacts to approved museums.

Moreover, you needn’t have to deal with the hassle of including donation claims on your income tax return. IPCs will submit the information with your Tax Reference Numbers to the IRAS.

Being aware of tax deductions that your business is eligible for is the first step. Next, ensure that your expenses are well-tracked throughout the year so you don’t miss out on any deductions come tax time. For this, consider accounting software which helps you to manage your accounts with ease and convenience.

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