Maintaining precise financial records isn’t just a smart move for Singapore businesses—it’s the law according to IRAS. Good bookkeeping helps you file taxes , track how your business is doing, and shields you if you face an audit or disagreement.
Many small and medium businesses get why records matter. Their struggle lies in how to keep them accurate and consistent over time. Using paper files, Excel sheets, or makeshift systems often results in lost documents spotty records, and last-minute panic when tax time rolls around. This is where solid accounting software steps in: it keeps you organized, in line with rules, and prepared for IRAS whenever they come knocking.
In this guide, we’ll explore:
- The required duration for keeping your records
- What occurs if your company gets struck off or wound up
- The effects of poor record-keeping
- How accounting software helps you stay on top of tax compliant
The Importance of Good Record-Keeping for Tax Compliance
IRAS needs companies to maintain full and correct records of all income and expenses, along with supporting documents and accounting schedules, for a set period. These records serve as the foundation to:
- Preparing correct financial statements
- Filing corporate income tax returns (Form C / Form C-S / Form C-S (Lite))
- Helping with GST returns (where applicable)
- Answering questions, audits, or investigations by IRAS
Good bookkeeping does more than just follow the rules. It also helps businesses to:
- Know their real financial situation
- Choose better about spending, pricing, and cash flow
- Cut down time and work needed to get ready for yearly tax returns
- Steer clear of fines from missing or incomplete records
Without a good system, businesses might find it hard to track down old invoices, bank statements, or expense records—when IRAS asks for paperwork from years ago.
How Long Should You Keep Business Records in Singapore?
In Singapore, businesses have an obligation to keep their accounting and tax records for a minimum of 5 years from the relevant Year of Assessment (YA).
This means you need to hold onto your records for YA 2025 (based on the financial year that ended in 2024) until at least 31 Dec 2030 even if your company is no longer in operation.
What Records Do You Need to Keep?
You need to maintain a full set of documents that back up your financial statements and tax compliant turns. These include (but aren’t limited to):
- Source documents: invoices, receipts, payment vouchers, delivery orders
- Sales and purchase records
- General ledgers and journals
- Bank statements and bank reconciliations
- Expense claims and petty cash records
- Fixed asset registers and depreciation schedules
- Contracts, agreements, and loan documents
- GST workings and supporting schedules (if GST-registered)
You can store these in physical or digital form. The main thing is to make sure they are easy to read, correct, and easy to find when IRAS or other authorities ask to see them.
How Long to Keep Records: Quick Look at Key Situations
This simple table shows how long you need to keep records in different cases:
| Scenario | Who Keeps the Records? | Minimum Duration for Keeping Records |
| Active company | Company directors / management | At least 5 years from the relevant Year of Assessment |
| Company struck off & dissolved | An officer of the company immediately before dissolution | At least 5 years from the date of dissolution |
| Company wound up & liquidated | The liquidator | At least 5 years from the date of dissolution |
Companies must keep records for the required period even if they stop trading.
If Your Company Is Struck Off
A company that is struck off and dissolved ceases to exist as a legal entity. This does not mean you can throw away its records right away.
A company official (like a director or secretary) who was in office right before the company closed down has these duties:
- Keeping all company files and papers for at least 5 years after the company shuts down
- Making sure records like money reports, meeting notes, deals, and bank papers are stored
- Showing these records when asked by officials or if legal or tax compliant problems come up
Not keeping these records can get the official in trouble with fines, lawsuits, or problems if arguments happen later.
What Happens If Your Company Closes
When a company shuts down (liquidation), the liquidator takes over the job of keeping records.
The liquidator must:
- Protect the company’s books and papers
- Keep them for at least 5 years after the company dissolves
- Make sure they’re available to key people, like:
- Creditors
- Shareholders
- Regulators
- IRAS or other authorities
These records can help to solve open claims, check payments to creditors, or handle any questions that come up after the company closes.
What Happens If You Don’t Keep Good Records
Not following record-keeping rules is against the law under Singapore’s Income Tax Act 1947 and Goods and Services Tax Act 1993. If a company doesn’t keep or show records when asked, IRAS might take tough steps such as:
- Guessing your income based on what they think is right (which could lead to higher tax bills)
- Rejecting expense claims and capital allowances if you can’t back them up
- Turning down GST input tax claims (if they apply) because of missing proof
- Giving out fines up to $5,000 and / or putting you in jail for up to 6 months if you don’t pay
Poor record-keeping has consequences beyond financial penalties:
- It increases the chances of disagreements with customers, suppliers, or partners
- It makes tax compliant reviews or audits more stressful and time-consuming
- It harms your reputation with banks, investors, and regulators
To put it simply, the cost of not keeping proper records far outweighs the investment in a good record-keeping system.
Why Choose Infotech Accounting Software for Tax Compliance?
Infotech’s Accounting Software is built to help Singapore businesses manage daily operations and meet tax compliant requirements more. Our solution allows you to:
- Use templates to manage inventory, generate quotes, bills, and purchase orders
- Keep precise income and expense records for each fiscal year
- Figure out and monitor required payments, like taxes
- Work with Infotech Payroll Software to maintain consistent data
- Link to nearby banks for simpler account matching
Rather than switching between several programs, you get a single, all-in-one system that helps you keep accurate books and store records for the long haul.
If you want to find a more organized way to stay on top of your finances and ready for tax compliant time, our staff can show you how the system suits your company’s setup and field.
Frequently Asked Questions:
How long must a company keep accounting records in Singapore?
Businesses in Singapore need to hold onto their accounting records for at least 5 years from the relevant Year of Assessment (YA). This rule applies even when a company has stopped operating, been struck off, or wound up. You can store these records as hard copies or digital files as long as they stay accurate, complete, and easy to access.
What happens if my company does not keep proper records for IRAS?
If you don’t keep proper records, IRAS can: Make guesses about your income based on what they think, Say no to expense and GST input tax claims, Give out fines up to $5,000 and/or put you in jail for up to 6 months in bad cases Bad records might also make audits, arguments, and extra tax checks more likely.
Is Excel okay to use instead of accounting software to follow tax rules?
You can use Excel, but as you deal with more transactions, it gets more likely to have mistakes and harder to handle. Accounting software does things , keeps data organized, tracks changes, and makes reports easier. This cuts down on the risks of breaking rules and saves time when it’s tax season.
Is it compulsory to use accounting software in Singapore?
IRAS doesn’t require a specific software. Yet, they push for proper accounting systems that maintain complete and accurate records. Accounting software makes it easier to meet legal record-keeping and tax reporting needs for companies that handle many transactions.
Does Infotech Accounting Software work with payroll to follow tax rules?
Yes. Infotech’s Accounting Software works with our Payroll Software. This means it records salary costs, CPF payments, and related items. This helps you keep accurate books and makes sure your financial reports and tax calculations have proper records to back them up.
