Bookkeeping is the skill to organize every business transaction systematically. This allows business owners and decision-makers to stay updated about the transaction and the company’s financial status.
The significance and necessity of bookkeeping services
- With updates about cashflow, the small to medium enterprises in Singapore can operate a successful business.
- Monthly financial statements include detailed accounting schedules that are sub-categorized. You gain an overview of the cash on hand.
- You can identify where your cash is used and if necessary create a plan on how to save.
- You can even get to know about the fluctuation in cash flowing in and going out. The fluctuations can be low or high. However, you can take steps to find a solution.
- During tax audits, organized bookkeeping smooth’s the process.
- You are confident to make crucial decisions as you are aware of your financial status and this helps to feel in control.
- In large organizations, where is plenty of cash flow, the possibility of embezzlement at any level is high.
- Bookkeeping embezzlement is at a minimum as the numbers are consistently watched by the bookkeepers and business owners.
- If you intend to borrow for expansion or merger, the detailed bookkeeping schedules are invaluable. When the time comes to visit a bank, the paperwork is prepared and the lenders see you have sufficient cash to cover the mortgage. It is proof that you are operating an income-generating healthy business.
- If you plan to sell the business, then the major selling point is the amount of money you pull each month and the bookkeeping helps in deal closing. The potential buyer sees accounting paperwork as proof and takes action.
Bookkeeping services are necessary not just for Singapore businesses but for every organization around the world. JL Accounts not only offers accounting and bookkeeping services but even handles GST, tax, business incorporation, litigation support, and more.
List of daily bookkeeping tasks
Daily bookkeeping tasks a reliable bookkeeping service in Singapore streamlines. The professionals use their knowledge and customize a process to streamline the financial workflow of your business.
Track cash position
Clients are advised to keep business liquid. It means watching cash flow to ensure it is sufficient to handle current and upcoming expenses. Lack of cash can place your business under stress and possibly damage goodwill. The cash in hand indicates the financial health of a business, which is crucial for a successful relationship with suppliers and creditors.
The professionals monitor accounts receivable & payable. This gives you a clear idea of the assets & liabilities.
Digitalize financial transactions
The advanced accounting system is used to record financial transactions. This allows for keeping track and comparing cash flow. You can check how much is received in cash or credit or when a payment is made to a specific vendor.
In Singapore, according to ACRA’s mandate account records need to be maintained and stored for a minimum of five years. The accounting services record every transaction and store invoice copies issued and received. Besides, statutory regulation compliance the records verify purchases and sales, when you file tax claims with IRAS.
It is essential to maintain a healthy connection with suppliers. You need to pay them on time to avoid damaging your goodwill in the market. The professionals update accounts and payables regularly. You know which vendor needs instant payment.
On-time payment even helps in getting purchase discounts, extended credits, and other perks. Each dollar saved adds to cash-in-hand.
Detailed invoices need to be made for getting paid on time. The invoices need to be accurate like include company name, address, date, invoice number, payment terms, and items/services sold. Some companies don’t accept inaccurate invoices.
Bookkeepers are experts and help in properly structuring the invoices. The payment terms mean when you expect payment from clients and how they can gain from following them. The invoice number helps to identify the transaction.
The digitalized financial data can be used to understand the profits and expenses. Use this to anticipate the cashflow. It helps to get an idea of how much funds are necessary to fulfill the expenses of future growth and plan for it accordingly.
Reconcile books of account
The transactions recorded in books of account have to match with bank records. It helps you to stay updated. Annual account preparation depends on the books of accounts. Updated books mean no concerns about last-minute effort.
Track old receivables
Small businesses need to keep track of old receivables because they cannot allow them to accumulate. Overdue payments from clients can hinder the cash flow. The professionals monitor and advise you to take action. Add a step in the payment terms about what action to take in case of consistent missing due dates.
Generate a fresh balance sheet
With a few clicks, the accounting service will generate a fresh balance sheet. It offers an idea of the real-time financial status. If the growth rate is not improved as expected, review things and plan accordingly.
This article first appeared at https://jlaccounts.com.sg/bookkeeping-in-singapore/. Check out more about bookkeeping and accounting at JL Accounts website.