Accounting and Bookkeeping Basics for Ecommerce Businesses

This guide is designed for founders and directors of Singapore startups, particularly tech startups, IT companies, telecom businesses, and ecommerce ventures. It helps first-year companies establish proper accounting and bookkeeping practices to manage finances effectively and comply with Singapore regulations.

Singapore private limited companies must maintain proper accounting records in accordance with the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Financial Reporting Standards (SFRS). This includes recording transactions, tracking cash flow, and keeping financial statements ready for audit and corporate tax filings.

Accurately tracking COGS helps determine gross profit, calculate taxable income, and make informed pricing and inventory decisions. For ecommerce and IT businesses, COGS may include product costs, shipping, and other directly attributable expenses.

Yes. Maintaining a dedicated corporate bank account ensures proper separation of personal and business finances. This simplifies bookkeeping, supports compliance with ACRA and Inland Revenue Authority of Singapore (IRAS) requirements, and helps with audit preparation.

A structured bookkeeping system allows founders to track revenue, expenses, and inventory efficiently. For tech startups and ecommerce companies, this supports better cash flow management, informed decision-making, and smooth preparation for statutory filings and tax compliance.