Being smart about financial record keeping will save you a lot of effort and heartache when it comes to managing cash flow. However, most business owners don’t know where to start (Also see Reasons Working Capital Requirements Can Increase).
Note that being smart in managing cash flow in your business begins with having a sound bookkeeping and accounting system (or equip your business by using accounting services in Singapore) to avoid being a slave to these roles, but you remain in control. Here are the top three ways to develop a strategy to be current and cognizant when it comes to managing your business cash flow.
Learn the basics of bookkeeping
Though learning the basics of bookkeeping strikes fear in the hearts of most business owner, it could be the primary reason your business books are not up to date and have uncountable mistakes. Therefore, it is recommended to have a better understanding of accounting concepts (Also see Accounting Period Assumption and Matching Principle: Understand their Relationship). With that, you will be in a better position to check the accuracy of your records and advise your staff accordingly.
Sometimes you have to undertake the entire bookkeeping role especially if your accountant has retired or off-duty for a few days. If you have no idea of what bookkeeping is, you may have a hard time and also make costly bookkeeping mistakes.
Hire an accountant
It is easy to find a bookkeeper who is willing to pick up full-time or part-time work. It is advisable to hire a full-time accountant to ensure that the bookkeeping and accounting processes run as expected. Also, a full-time accountant will learn your business finances quickly and advise you when it comes to cash flow decisions.
You will have to supervise or get your outside Chartered Accountant (CA) train and supervise your bookkeeper. This will ensure that all bookkeeping activities are done accurately and in agreement with the accounting standards in Singapore.
Use your tax professional or CA throughout the year
It is good and secure to have highly skilled taxation services provider to help with both tax and planning and closing accounts. It may sound expensive, but the resultant effect of better long-term planning outweighs the cost of a CA or tax professional. Remember, you should not be just chasing after tax deductions but valuable information to help you make sound decisions.
Managing cash flow can turn out to be a daunting task for most business owners in Singapore. Contact us today and we will be your bookkeeper, accountant, and CA for your business – all in one.