Bookkeeping in a business entails recording, classifying and organising all financial transactions made by the entity in the course of business operations. It may be on a simple notebook, or in a complex accounting and bookkeeping software.
Many small businesses struggle with bookkeeping as they are balancing their business and bookkeeping, and they may be relying on outdated solutions such as books rather than technology. One of the quickest and best ways to make bookkeeping simpler for small businesses is by outsourcing to firms that offer accounting services in Singapore.
For more on how you can make bookkeeping simpler for your small business, here are 4 essential tips to get started.
1. Outsource to firms offering accounting services
Rather than having to deal with the accounting tasks yourself, a quick and effective way to get the job done is by outsourcing. Here’s what you can stand to benefit:
- Gain access to expert accountants who would also serve as business advisors
- Eliminate the costs and risks associated with hiring
- Save on interview time and money when hiring an accountant
- Enable you to scale without stress depending on business needs
- Give you access to the best accounting systems
Our accounting firm is able to ensure that your business will be able to fully comply with the requirements that are in accordance with the IRAS and ACRA. Our experienced and professional accountants can also help you to stay on top of your business financials while providing proper accounting and bookkeeping records. By working with us, you can continue to grow your business without having to worry about financial matters.
2. Use accounting and bookkeeping software
Technology allows us to be efficient and accurate – and with the use of accounting software, you can eliminate the tiring and mundane aspect of bookkeeping by automating many processes. Online accounting and bookkeeping software can also help you to maintain accurate records of transactions, generate reports, and even create updated financial statements. Keep in mind that your choice of accounting software should be suitable for the nature of the transaction that is in your business.
3. Record daily and review periodically
Accounting software makes bookkeeping easier, accurate, and easier to retract. However, it does not eliminate the need to record daily. What an online system can provide you is the ability to record in real-time.
Many small business owners have a hard time capturing transactions daily. Some days can be too hectic, and you already have a lot on your plate. One of the best ways to ensure that you can capture all of the transactions accurately and on time is to go cashless and integrate the payments systems with your accounting systems.
Once you have all of the data, you will be able to review it periodically. If you engage in a firm that provides SME accounting services, they can share a weekly review to help you eliminate errors and give you a better understanding of the financial health of your business.
4. Leave an audit trail
Bookkeeping can be made faster and easier with the help of an accounting software through daily recording. However, these steps do not eliminate the risk of error. Nothing can be more frustrating than not being able to identify the root of an error or dispute. The IRAS requires that you keep records of transactions for the last five years. Thus, you should keep an audit trail for all of your transactions for a longer period.
With our accounting and bookkeeping services, we can help you identify how long you should maintain your financial records, depending on the nature of your business. We also provide your business with better financial reporting, improved transparency, as well as being able to respond to any regulatory and market changes appropriately. It is vital to ensure that there are no errors in your financial records, and our team of professional and experienced accountants can help you achieve that for your business.
For a small business, bookkeeping is an essential step forward that can help your business to grow and expand. Follow the 4 tips above to ensure that you make the best decisions for your business.