1. Ensure completeness of accounting entries for the FYE
It is common for businesses to receive invoices for payments and expenses that are incurred for revenue that could be earned in the next financial year. Similarly, if the business paid for insurance premiums on its fixed assets and the period of coverage extends beyond the current financial year, adjustments to the accounts will have to be made. There could be other adjustments that apply to your company, depending on your business.
2. Prepare financial statements
After the accounts are finalised, a set of financial statements needs to be prepared in accordance with the Singapore Financial Reporting Standards. These financial statements have to be tabled at the AGM and will be used for statutory filing with ACRA and IRAS. Essentially, financial statements show a snapshot of the business’ financial health and comprises of the Statement of Financial Position, Statement of Comprehensive Income (commonly known as the profit and loss statement), Statement of Cash Flow, and Statement of Changes in Equity. Accompanying disclosures are also included.
3. Holding AGM/ Filing Annual Returns (AR)
For FYE before 31 August 2020 - A Singapore incorporated company has to hold its first AGM within 18 months from the date of incorporation and hold subsequent AGMs at yearly intervals of not more than 15 months. The company has to table its financial statements at the AGM and file its AR within 30 days from the date of AGM.
For FYE on or after 31 August 2020 - A listed company has to hold its AGM within 4 months and file its AR within 5 months after its FYE while any other types of company has to hold its AGM within 6 months and file its AR within 7 months after its FYE. AR can only be filed after:
(a) AGM has been held;
(b) Financial statements are sent if the company need not hold an AGM; or
(c) FYE for private dormant relevant company that is exempted from preparing financial statements