Statement of Account in Singapore: Definition & How to Prepare

If you run a business, work for yourself, or sit in a partnership, you have met the term statement of account. But what does it mean, and why does it matter? Whether you manage a small company or a professional practice, preparing a statement of account is more than good housekeeping. In Singapore, it is a legal requirement.

This guide breaks down what a statement of account includes, what its purpose is, when you certify it, how to view it online, and which filing requirements apply once your revenue crosses certain thresholds.

What Is a Statement of Account?

A business statement of account is a financial document that outlines every transaction your business made over a specific period, such as a quarter or a financial year. It covers revenue, expenses, profits, losses, assets, liabilities, and other financial activity. The document gives a snapshot of your business's financial health, so owners, stakeholders, and the government can read your position at a glance.

Think of it as an account summary of your business's financial information. It shows you, and the authorities, where the business stands.

The meaning shifts a little by context, which causes most of the confusion:

This guide focuses on the first one, since that is the version Singapore business owners prepare each year. The others come up later.

What Is the Purpose of a Statement of Account?

The document serves four jobs at once.

Tax compliance. IRAS uses your accounts to assess your business income. Sole proprietors and partners report these figures in Form B or B1.

Financial planning. A clear view of income and expenditure tells you which parts of the business earn money and which drain it.

Cash flow management. The statement flags what customers owe you and what you owe suppliers, before either becomes a problem.

Credibility. Banks, landlords, and partners ask for accounts before they approve a facility, a lease, or a contract. A clean set of records shortens every one of those conversations.

The document also builds transparency and accountability into your reporting, which matters the day someone audits your books.

What Is Included in a Statement of Accounts?

A statement of accounts rests on two components. Together, they cover performance and position.

Profit and Loss Account (P&L)

The P&L shows how the business performed across the statement period. It includes:

• Income: sales, service fees, commissions, and other operating revenue
• Expenditure: rent, salaries, utilities, professional fees, marketing, and bank charges
• Cost of goods sold, for businesses that hold stock
• Net profit or loss for the period

Balance Sheet

The balance sheet captures your financial position on one date. It includes:

• Assets: cash at bank, receivables, inventory, equipment, and property
• Liabilities: loans, trade payables, tax payable, and accrued costs
• Owner's equity or capital: what remains once liabilities come off the assets

A complete set also carries an opening and closing balance for the period, a note on the accounting basis you used, and the date range the document covers. Companies add a cash flow statement and notes to the accounts.

When Do I Need to Get My Statement of Account Certified?

If your business revenue exceeds SGD 500,000, you prepare a certified statement of account. The self-employed individual, sole proprietor, or partner signs it and confirms that the figures are accurate and complete. You then submit the certified statement during e-filing. If you cannot e-file, mail it to the Inland Revenue Authority of Singapore (IRAS).

Below SGD 500,000, you skip the submission. You still prepare the statement and keep proper records of every business transaction. IRAS can request those documents for verification, and the request often arrives years later.

How to Prepare a Statement of Account

Preparation means pulling your financial records into the two components above. You can handle it yourself, engage an accountant, or use accounting software. Most software tracks transaction history, generates sales invoices, and builds the balance sheet for you. Tools such as Xero also sync straight from your bank feed, which removes most of the manual work.

If you do it yourself, follow these steps.

• Step 1: Gather financial records. Collect invoices, receipts, bank statements, and payroll records for the reporting period.
• Step 2: Organise transactions. Sort income and expenses into clear categories such as rent, utilities, or sales.
• Step 3: Record entries. Enter every transaction in your software or ledger, one line per item.
• Step 4: Generate the P&L and balance sheet. Summarise income and expenses for the P&L. Compile assets, liabilities, and equity for the balance sheet.
• Step 5: Reconcile accounts. Match each recorded transaction against your bank statement and card statement. Chase the gaps now, not in April.
• Step 6: Review and finalise. Check the arithmetic, confirm the period covered, and save a PDF copy for your records.

IRAS publishes official guides and working sheets for sole proprietorships and partnerships on its website. Follow the worksheet, and the preparation takes an afternoon.

Key Considerations for Preparing a Statement of Account

Here are the points that trip up most first-time filers.

Filing Requirements in Singapore: Who Must Prepare Financial Statements?

Your entity type decides what you file and where you send it. This is where sole proprietorships and companies part ways.

Directors of every company in Singapore carry a duty to prepare financial statements that give a true and fair view of the business. The Accounting and Corporate Regulatory Authority (ACRA) collects them in XBRL format, a structured file that the regulator can read across the whole sector.

Two dates drive the corporate calendar. The filing deadline for the annual return falls 7 months after the financial year end for non-listed companies, 5 months for listed ones. The income tax return follows on 30 November. Small companies that meet the audit exemption thresholds file unaudited accounts, which cuts both cost and preparation time.

How to View Your Statement of Account Online

For tax, IRAS keeps a running record of what you owe and what you paid. The procedure takes two minutes.

• Step 1: Go to myTax Portal and log in with your Singpass. Business users select the company or the sole proprietorship they act for.
• Step 2: Open Account and select View Account Summary.
• Step 3: Review the transaction statement. It lists each assessment, payment, and refund, with the closing balance at the bottom.
• Step 4: Download or print the statement as a PDF. Banks and grant officers accept this document as proof of your tax position.

You can also request a Statement of Account by email through the IRAS contact channels if you need an official copy on letterhead. Keep the file with your other corporate documents. Someone will ask for it during a loan application, a tender, or an incorporation in another market, such as Hong Kong.

How to Apply for a Financial Standing Statement

A financial standing statement is a different document. Your bank issues it, and it confirms the balances you hold and how long you have banked there. Grant bodies, immigration officers, landlords, and tender committees ask for one.

Here is the process:

1. Contact your bank. Reach out through online banking, the mobile app, or your relationship manager. Most banks list it as a bank reference letter or a certificate of balance.
2. Give the details. Name the account, the date the balance should reflect, and the party who will receive the letter.
3. Pay the fee. Expect SGD 30 to SGD 100 per copy, plus a courier charge for a hard copy.
4. Allow 3 to 7 working days. Some banks issue a secure PDF the same day through the online portal.
5. Check the letter before you send it on. A wrong entity name or an outdated address sends you back to step one.

Keep your registered entity name identical across your bank records, ACRA register, and IRAS profile. A mismatch is the most common reason a financial standing statement gets rejected.

Other Uses of a Statement of Account

Tracking Outstanding Balances and Invoices

Managing your statement of account means tracking outstanding balances and unpaid invoices. If your business issues sales invoices or takes card payments, keep a detailed record of each transaction. Your bank statement shows the balance due on payments, and tracking invoice amounts and outstanding payments keeps customer accounts current.

For example, a credit note you issue appears as part of the account activity and adjusts the amount payable for that transaction.

Tracking Bank Account and Credit Card Usage

If your business handles payments by transfer or card, reconcile your bank accounts against your statement of account each month. Every debit and credit then lands in the right place, and you catch discrepancies while they are still small.

Most accounting software ships a template that matches bank account statements to your business's account activity.

Tracking Monthly Statements and Cash Flow

A well-prepared statement of account keeps cash flow under control. Monthly statements surface any balance due from customers or suppliers and flag overdue payments. Review them, and you deal with outstanding balances before they hit operations.

The same records help you monitor remittances and plan around late payments. Over a year, that visibility tells you more about the business than any single report.

Conclusion

Preparing a statement of account is a core practice for business owners in Singapore, whether you work for yourself, run a sole proprietorship, or sit in a partnership. It keeps you compliant with local regulations and gives you a clear view of your financial transactions.

Keep accurate bookkeeping records, and the rest follows. You track your current balance, you know what customers owe you, and you meet every due date for tax filing without a scramble. Start the habit in month one, and the year-end takes care of itself.