How to Prepare for Your Gross Turnover Audit in Singapore

For many businesses operating within shopping malls in Singapore, Gross Turnover (GTO) audits are a routine—yet critical—requirement. These audits, often stipulated in lease agreements, are essential for verifying that the sales figures reported to landlords are accurate and transparent. But while the process might seem straightforward, poor preparation can lead to unnecessary delays, errors, or even rental disputes.

If your lease agreement requires a GTO audit, this guide will walk you through how to properly prepare for it, ensuring a smooth experience that keeps both your auditor and landlord satisfied.

What Is a GTO Audit?

A Gross Turnover Audit is an independent review of your reported revenue figures. It is usually conducted by a licensed audit firm in Singapore to confirm that the tenant has reported their total sales (gross turnover) accurately, in accordance with the lease agreement.

In most cases, tenants in malls like Junction 8, Jewel Changi, NEX, Century Square, Waterway Point, and many others are required to submit certified sales figures—monthly, quarterly, or annually—based on terms set by the landlord.

The audit culminates in a GTO Certificate, a document that certifies your reported turnover and is submitted to mall management.

Why Proper Preparation Matters

Failing to prepare adequately can cause a host of problems:

• Delays in certification

• Higher audit costs due to additional time and effort

• Penalties for late or inaccurate submissions

• Strained relations with landlords

Proper preparation allows the audit to be completed quickly and accurately, avoiding stress and extra costs.

Step-by-Step Guide to Preparing for a GTO Audit

1. Understand Your Lease Obligations

Every tenancy agreement is different, so your first step is to review your lease carefully. Pay special attention to:

• Frequency of GTO reporting (monthly, quarterly, or annually)

• Definition of gross turnover

• Deadline for submission

• Format required by the landlord

• Any exclusions allowed (e.g., refunds, GST, or staff discounts)

Understanding these details will help you gather the right information and documents in the correct format.

2. Maintain Accurate Sales Records

Your audit will depend heavily on the accuracy and completeness of your records. Maintain the following:

• Daily POS (Point-of-Sale) summaries

• Monthly sales reports

• Bank deposit slips and bank statements

• Credit card transaction slips

• Receipts from digital platforms (e.g., Deliveroo, GrabFood, Shopee, etc.)

• Cash register tapes or Z-reports

• Reconciliations between sales and deposits

A cloud-based POS system integrated with your accounting software can greatly simplify this.

3. Prepare Supporting Documents

Here’s a checklist of key documents most auditors will require:

Make sure these are organized and labeled clearly, either digitally or physically.

4. Reconcile Your Sales Beforehand

Before submitting records to your auditor, do your own internal checks to ensure:

• POS revenue matches what was deposited in the bank

• Refunds and voids are properly documented

• No discrepancies exist between reported and actual turnover

This internal review will help identify any red flags early, avoiding issues during the actual audit.

5. Appoint an Auditor Early

Most lease agreements require that the GTO certification be issued by a licensed public accounting firm in Singapore. Don’t wait until the last minute to appoint one.

An experienced GTO auditor will:

• Understand mall-specific requirements (each landlord may have different formats)

• Complete the audit efficiently

• Provide a signed GTO certificate by the required deadline

• Advise you on how to avoid common mistakes in future audits

Firms like Koh & Lim Audit PAC are well-versed in GTO audits for shopping mall tenants and can deliver fast, accurate, and compliant audit services.

6. Be Ready for Questions or Clarifications

Auditors may come back with queries, especially if they notice discrepancies or missing documents. Be responsive and transparent—this helps build a smooth working relationship and ensures timely submission.

7. Track Your Deadlines

Late GTO submissions can result in penalties, or worse, affect your lease renewal discussions. Use a calendar reminder system and start preparing at least 2–3 weeks before your audit deadline.

If your lease requires monthly certifications, you might want to implement a standard monthly reporting process that aligns with your audit firm’s requirements.

Common Mistakes to Avoid

• Underreporting sales – whether intentional or accidental, this can lead to serious lease violations.

• Missing bank statements or credit slips – without proper proof, auditors may not be able to verify your data.

• Incomplete records – always reconcile sales across multiple payment modes (cash, card, online).

• Failing to engage an auditor early – many firms are booked in advance, especially during peak seasons like January–March.

Benefits of Being Prepared

Besides meeting landlord requirements, proper GTO audit preparation also brings business benefits:

• Better financial management – maintaining clear and accurate records helps in monthly bookkeeping and tax filing.

• Easier financing – well-documented financials help when applying for loans or grants.

• Improved trust with landlords – timely and accurate audits demonstrate professionalism and transparency.

• Early detection of internal issues – you may uncover inventory mismatches, cash leakages, or POS issues.

Final Thoughts

A GTO audit doesn’t have to be stressful or time-consuming—if you’re prepared. By understanding your obligations, keeping your documents in order, and working with a reliable audit partner, you can ensure a hassle-free process and maintain a strong relationship with your landlord.

If you’re a tenant in a Singapore shopping mall and need help with your upcoming GTO audit, don’t leave it to the last minute. Start preparing today and consult a trusted audit firm who understands your industry.

Find help at https://www.auditservices.sg/gross-turnover-gto-audit-singapore/