Bookkeeping Services
Preparing Financial Statement
Companies Act requirements
Recording, storing and retrieving day-to-day financial transactions of a business - purchases, sales, receipts, and payments.
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Book of Prime Entry - recording a different type of transaction : Sales day book, Purchases day book, Sales returns day book, Purchases returns day book, Cash book, Petty cash book, The journal.
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Ledger Accounts - the double entry records of all transactions and events are made.They are the principal books or files for recording and totalling monetary transactions by accounts.A Company's financial statements are generated from summary totals in the ledger.The term'general ledger'is used to refer to the overall system of ledger accounts within a bussiness.
Financial Statements or called Financial Report represent a formal record/information of the financial activities of an business entity-Statement of Profit & Loss, Statement of Financial Position , Cash Flow Statement & Statement of Change in Equity.
The main objective is to provide financial information about the reporting entity to users(Investors, Employees, Lenders, Government, Suppliers, Customers) of the financial statments that is useful in making decisions about providing resources to the entity, as well as other finanical decision.
The Financial Statmeents summarise five key elements :
1) Assets
2) Liabilities
3) Equity
4) Income
5) Expenses
Under sections 201(2) and 201(5) of the Companies Act (the "Act"), directors are responsible to present and lay before the company, at its annual general meeting, financial statements that:
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comply with Accounting Standards1 issued by the Accounting Standards Council; and
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give a true and fair view of the financial position and performance of the company.
In addition, directors of a company incorporated in Singapore are responsible to maintain a system of internal accounting controls and keep proper accounting and other records that will enable the preparation of true and fair financial statements under sections 199(2A) and 199(1) of the Act, respectively.