Corporate Finance and Accounting

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Main Ideas:

• Balance Sheet/ Statement of financial position)
  • Summary of finances at a certain point in time. E.g. audits or yearly accounting
• Income Statement/ profit and loss statement (P&L); revenue statement; statement of financial performance; earnings statement; operating statement; statement of operations
  • Financial statement of a company (showing revenues and expenses) over a certain period of time. E.g. Yearly or quarterly

Articles

• Difference Between balance Sheet and Income Statement http://www.diffen.com/difference/Balance_Sheet_vs_Income_Statement

Accounting Organisations and Associations

• Singapore
  • ISCA The Institute of Singapore Chartered Accountants - http://isca.org.sg/
  • Singapore Accountancy Commission (SAC) - http://www.singaporeqp.com/
    • Singapore Accountancy Commission (SAC) Act
    • Singapore Qualification Programme (SAP)
      • Academic Base
      • Professional Programme
      • Practical Experience

Education

1. ACCA: Association of Chartered Certified Accountants
   1. Fundamental Level (9 Exams)
      1. F1: Accountant in Business
      2. F2: Management Accounting
      3. F3: Financial Accounting
      4. F4: Corporate and Business Law
      5. F5: Performance Management
      6. F6: Taxation
      7. F7: Financial Reporting
      8. F8: Audit and Assurance
      9. F9: Financial Management
   2. Professional Level (first 3 are Compulsory, last 4 are Optional choose 2)
      1. P1: Governance, Risk and Ethics
      2. P2: Corporate Reporting
      3. P3: Business Analysis
      4. P4 Advanced Financial Management
      5. P5: Advanced Performance Management
      6. P6: Advanced Taxation
      7. P7: Advanced Audit and Assurance

Outlines

From: Bookkeeping for Start Up Companies in Singapore - http://www.slideshare.net/futureb00ks/diy-bookkeeping-for-start-up-companies-in-singapore

Incorporation

• Incorporation Steps
  • Business Name
  • Registered Mailing Address
  • SSIC Code
  • Directors: Local/ Foreigner
  • Shareholders: Individual/ Corporate Holding
  • Paid up Capital
  • Shares
  • Company Secretary
• People in an Incorporated Company and what they do
  • Bookkeeper: Makes management accounts
  • Accountant: annual financial accounts
  • Tax Advisor: Tax computation
  • Auditor
  • Company Secretary
    • Set date for AGM
    • Take minutes and pass resolutions
    • File Annual accounts with ACRA + IRAS
    • Store documents safely in Company Registra folder

Bookkeeping

• Bookkeeping
  • Open Corporate Bank Account
  • Open Mail weekly/ File and Toss
  • Pay Suppliers Monthly: Paymaster, Billing cycle to stakeholders
  • Manage personal Claims monthly
  • Bank statements and reconciliation
  • Bookkeeping software: New invoice, Banking, expenses, reports, customers, invoice list
• Accounting for Directors
  • Directors’ Expense Claims
    • Expense Claim
    • Loan to the company
    • Loan to the directors
  • Directors Income
    • Salary (with CPF)
    • Directors’ fees
  • Shareholder
    • Dividend
• General Ledger
• Profit + Loss Statements
• Balance Sheet

Bookkeeping and Record Keeping Basics

From: http://singapore.smetoolkit.org/singapore/en/content/en/28/Bookkeeping-and-Record-Keeping-Basics

• Revenues and Expenses: Keeping track of how much money is going out, where it is going and what is coming in
  • Revenue and expense Journal OR Ledger
    • Revenue and Expense Journal
      • Single-Entry Accounting - Recording receipts and expenditures
    • Ledger
      • Double-Entry Accounting - each activity recorded as a debit (Inflow of payment) and a credit (e.g. decrease in inventory).
  • Cash or Accrual-based bookkeeping
• Cash Expenditures
  • Reimbursable checks or petty cash record
• Inventory Records
  • Crucial Inventory information: Date purchased, stock number of item purchased, purchase price, date sold, sale price
• Accounts Receivable: Record of Products or Services payment
  • : At time of delivery OR at later date
  • Invoice date, invoice number, invoice amount, terms, date paid, amount paid and name of entity being billed
• Accounts Payable: Debts owed by your company for goods and services

Wave Accounting Software

From www.waveapps.com

• Dashboard (Accounting/ Invoices/ receipts)
  • Recent Activity
    • Bank Accounts and Credit Cards
  • Financial Snapshot
    • Income and Expenses
    • Payable and Owing
    • Net Income
    • Business Expenses
• Transactions: Add Income/ Add expense/ Add bank account/ Upload bank statement
  • Date
  • Type
    • Income
    • Expense
    • Equity
    • Invoice Payment
    • Bill Payment
    • Transfer From
    • Transfer To
  • Description
  • Amount
  • Category:
    • Expense
    • Equity
  • Account:
    • Asset: Cash on Hand
    • Equity: Owner Investment/ Drawings
• Invoices
  • Date/ Number/ Customer/ Amount Due/ Total/ Status
• Bills
  • Create Bills
    • By vendor
      • Vendor name
      • Currency
      • Date
      • Due Date
      • P.O./ S.O.
      • Bill Number
      • Notes
    • Item Information
      • Item Type
      • Expense Account: Expense/ Liability/ Equity
      • Description
      • Quantity
      • Price
      • tax
      • Amount
  • Date/Number/ Vendor/ Amount Due
• Receipts
• Accounts
• Reports
  • Balance Sheet: The Summary of what you have, what you owe and the business value
  • Account Transactions: See the transactions that occurred in each account
  • General Ledger: See All accounts (summary and details)
  • Income Statement: Income minus expenses
  • Sales Tax Report
  • Trial balance: The balance of all your reports at a certain date
  • Income by Customer: See income received by source
  • Expense by Vendor: See what you paid by recipient
  • Aged Receivables: See how much money is expected to come in, and how long you've been waiting for it.
  • Aged Payables: See the expenses you haven't paid yet and how long payment has been outstanding
  • Gain/ Loss on Foreign Currency: See Gain and Loss incurred when doing business in foreign currency
• Payroll

From http://mstar.com.sg/Our-Services.php