Bookkeeping for Small Businesses in Singaporeby Chris Pawn Marketing
Regardless if you record accounting books by yourself on paper or have hired someone who does accounting and bookkeeping services, proper bookkeeping is essential in evaluating your operations and helps you manage your business thoroughly. All current and future cashflow must be tracked and accounted for to prevent loss and comply with legal practices. Accurate business records complete with all transactions and vital information will help you make the best financial decisions. Just in case you’d like to do bookkeeping by yourself, here are the basic steps to do bookkeeping for your small business:
Being involved with the numbers of your business is quite daunting at first. But once you understand the simple process of recording thoroughly, you are helping your business be on the right track. And just in case you don’t want to deal with the hassle of all these numbers and work, there are always trusted accounting and bookkeeping services providers in Singapore ready to help setup and maintain accounting systems for small businesses like yours. Investing in something that helps you manage finances is definitely one of the most important business steps you need to make!
1. Financial Accounts
The current balance of all your financial accounts must be recorded into a ledger. A ledger is a method that records transactions as credit or debit. Initially, you can record it on paper to keep track of everything temporarily, and later on transfer the transactions into your computer with software that would help you better navigate data. Most businesses segregate their accounts into: cash on hand, checking account (for rolling revenue and expenses), and supplementary accounts to manage funds properly.
2. Payments Made
You would definitely need to keep track on how much money is going out and where it’s going. Record all your business expenses into your ledger. Important information must be recorded too, to help you monitor everything such as: date, payee, category, check number (if check was used), and a memorandum—as a note for future reference.
3. Money Received
Revenue should be in another category of your ledger. Record all money received by the business, with the same grouping of information according to date when the money was received, payer, category, and memorandum. Loans and investment funds are excluded from this and must be recorded into another ledger.
4. Accounts Payable
Accounts Payable are comprised of all the upcoming payments your business needs to make such as utilities and rent. Record as much information as possible including the amounts, due dates, balances, and client information, to keep track of the debts you owe others.
5. Accounts Receivable
This comprises of the amount that customers owe you. This is very much applicable to companies that process invoices to clients and do not receive payments until the clients actually turn over the checks. Information to be recorded should include invoice dates, amounts, terms, the date when it was paid and the equivalent amount, remaining balances, and client information as well.
The flow of money can be easily seen through your bank statements. Reconcile the data that you’ve recorded onto the ledgers with your bank statements. It‘s best if you can avail of an accounting software rather than doing it manually, as accounting software can download your bank records and easily show you discrepancies, and help you distinguish payments and deposits which are already present in your ledger, in the least amount of time. This is preferably done on a monthly schedule or even less.
Created on Aug 7th 2015 03:56. Viewed 241 times.