why are bookkeeping important for business

Regular bookkeeping and accounting of books are an integral part of business management. It ensures your statutory compliance mandated by the ACRA. You also come to know how your business is doing financially. If required, you should appoint a professional bookkeeping service provider to see to it.

Bookkeeping is more than just filing your receipts and invoices appropriately and digitizing the financial data they carry. Reliable bookkeeping services for small businesses can make your task easy by offering services like:

• Preparation of P & L statements

• Preparation of Balance Sheet Statement

• Maintaining Fixed Assets Ledger

• General Account Filing

• Account Reconciliation

• Preparation of XBRL Statements

• Preparation of Cash Flow Statements

• Financial Analysis (weekly, quarterly, monthly, & yearly)

• Singapore Financial Reporting Standards (SFRS) Services

• Preparation of Directors’ Report

Trust in a Bookkeeping Services for Small Business

DIY Bookkeeping

It is natural for newbie owners to think of bookkeeping their business' books on their own. Saving a few dollars has its attraction. It may even work when the business has only a handful of transactions. However, if you are not completely familiar with the accounting principles and practices involved, it could lead to mistakes and trouble with the authorities.

Business Insights

On the other hand, such inaccurate data will not give you a valuable understanding of your business's financial health. It will also not give you useful insights for making any business decisions. Especially for the multi-tasking owners, it makes sense to appoint bookkeeping and accounting services for business.

Accounting Software

These bookkeeping service providers use the latest accounting software to deliver their services and ensure your compliance. It is a necessity. These tools are helpful in accomodating the changes in the accounting and taxation rules. If a tax rate changes from X% to Y%, they can easily update it in the accounting software. It is why you can rely on them to produce accurate and compliant output.

The digitized financial transaction-related data is reusable. Your bookkeeping service provider can process it to generate various financial statements and management reports. You can use accounts payable and receivable reports to know which of your customers are late in paying their dues. Such knowledge is useful in managing the cash flow of your business.