Running a business in Singapore means juggling multiple responsibilities—from compliance and payroll to budgeting and growth strategies. But if there’s one area that too many small and medium enterprises (SMEs) overlook until it’s too late, it’s tracking business expenses.

Without clear visibility into where your money is going, you're essentially flying blind. Whether you're a startup founder, HR manager, or finance executive, expense tracking should be a top priority—not only for accounting accuracy but also for smarter decision-making and long-term sustainability.Why Expense Tracking Matters for SMEs in Singapore

Many SME owners delay setting up proper expense tracking systems, often citing limited time or resources. But this can lead to bigger problems later, such as:

1. Cash Flow Issues

Without a real-time view of your expenses, you can’t accurately manage your cash flow. Even profitable businesses can go under if they run out of cash.

2. Tax and Regulatory Compliance

In Singapore, IRAS requires businesses to maintain proper records of all business transactions for five years. Inadequate documentation may lead to penalties, audits, or missed deductions.

3. Better Budgeting and Forecasting

By understanding your cost drivers, you can plan budgets more realistically and forecast future spending with greater accuracy.

4. Insight into Profitability

Expense tracking helps you identify which activities or departments are underperforming and eating into profits.

5. Accountability and Fraud Prevention

A structured system helps deter unauthorised spending and allows quick identification of anomalies or potential fraud.

Common Business Expenses to Track in Singapore

Let’s break down typical business expenses SMEs in Singapore should be aware of:

1. Employee Costs

This includes salaries, CPF contributions, bonuses, medical insurance, training, and other HR-related expenses.

Tip: Use Gutsy's payroll software to auto-calculate CPF, SDL, and generate itemised payslips effortlessly.

2. Office and Rental Costs

Monthly rental fees, utilities, repairs, and maintenance expenses all fall under this category.

3. Technology and Software

Subscriptions to cloud services, HR and payroll software (like Gutsy), accounting tools, and cybersecurity solutions.

4. Marketing and Advertising

Includes digital advertising (Google Ads, Facebook), branding, website maintenance, and event sponsorships.

5. Transportation and Travel

Transportation claims, Grab receipts, flights for business travel, accommodation, and per diem allowances.

6. Professional Services

Outsourced services such as HR consultants, legal advice, bookkeeping, or auditing fees.

7. Inventory and Supplies

Raw materials, office stationery, production tools, and packaging.

8. Miscellaneous

Meals, entertainment, gifts, or even training courses for employees.

Step-by-Step Guide: How to Start Tracking Business Expenses

Here’s how SMEs in Singapore can set up a reliable expense tracking process:

Step 1: Open a Business Bank Account

Never mix personal and business finances. Having a separate account streamlines reconciliation and prevents accounting confusion.

Step 2: Digitise Receipts and Invoices

Paper receipts are prone to fading and loss. Adopt a digital system to scan and store receipts. You can use apps like Xero or Gutsy-integrated solutions.

Step 3: Categorise Your Expenses

Use consistent categories (e.g. salary, rent, utilities, marketing). This makes analysis, budgeting, and tax reporting much easier.

Step 4: Record Expenses in Real Time

Don’t delay. Real-time recording prevents backlog and reduces errors. Set up reminders or automate data entry where possible.

Step 5: Reconcile Monthly

Compare your bank statements with your expense records every month. This ensures all transactions are accounted for and helps spot discrepancies.

Step 6: Monitor KPIs

Track key metrics such as:

• Expense-to-revenue ratio
• Employee cost as a % of revenue
• Marketing ROI
• Average cost per hire

Use these insights to make smarter business decisions.

Expense Tracking Methods: Manual vs. Automated

Let’s evaluate different approaches:

Gutsy Insight: Our all-in-one platform not only automates payroll and CPF calculations but also helps you tag and report employee-related expenses accurately.

Best Practices for Singapore SMEs

To stay ahead, adopt these tried-and-tested practices:

1. Stay Compliant with IRAS

Ensure your expense tracking system stores:

• Proper records (receipts, invoices)
• Supporting documents (contracts, claims)
• Bank statements and payment proofs

2. Align with MOM Guidelines

MOM requires employers to provide itemised payslips, keep detailed salary records, and ensure proper deduction tracking.

Check out our guide on itemised payslip for full compliance.

3. Review Monthly, Plan Quarterly

Conduct monthly financial reviews to adjust spending and a quarterly analysis to refine your overall strategy.

4. Empower Your Team

Train employees to submit claims accurately and on time. Use digital claim systems to reduce errors and manual processing.

5. Integrate with Payroll

Since employee costs are often your largest expenses, integrating your expense tracker with payroll software provides a full financial picture.

Gutsy allows seamless categorisation of staff costs, CPF contributions, bonuses, and more.

Expense Tracking and Tax Deductions

Did you know proper expense tracking can reduce your corporate tax bill?

In Singapore, deductible business expenses include:

• Employee salaries
• CPF contributions
• Business-related travel and training
• Rental and utilities
• Professional services

But they must be:

• Incurred wholly and exclusively for the business
• Supported by documentation
• Not capital in nature (unless capital allowances apply)

Refer to IRAS' official guide on deductible business expenses for more details.

How Gutsy Makes Expense Tracking Easy for SMEs

With Gutsy, you can automate the most painful parts of expense management—especially those tied to your workforce. Here’s how we help:

• Automated Payroll: Calculate and disburse salaries, bonuses, and CPF with zero manual effort.
• Expense Claims: Employees can upload receipts, submit claims, and get approvals—all within one platform.
• Real-time Reporting: Get visibility into staff costs and trends across departments.
• Integration Ready: Easily export or integrate data with your accounting platform.

Start with Gutsy today to simplify your HR and payroll—Book a demo now.

Final Thoughts

Expense tracking is not just a finance issue—it's a strategic advantage. When done right, it gives you clarity, control, and confidence. For Singapore SMEs, using tools built for the local regulatory environment (like Gutsy) ensures you stay compliant, informed, and prepared for growth.

Don’t wait for year-end panic or a surprise audit. Build the habit of tracking expenses today and watch your business make smarter, sharper decisions tomorrow.

Ready to take control of your business expenses?
Explore how Gutsy’s HR and payroll tools can support your Singapore business. Get started now →