Most small business owners in Singapore perceive bookkeeping as a heavy task that deprives them the time they need to run their businesses. It makes some of them nervous, and they may end up second-guessing their knowledge and skills in fear of the tax man knocking on their doors.
Bookkeeping is not something to bore or intimidate you, especially if you use a professional bookkeeping service. In fact, you shouldn’t be viewing it negatively if you want to expand your business. Instead, you need to adopt a few key procedures to gain control over bookkeeping. By doing so, you will save your time, money, and stay away from stress. Here are tips to help you gain control and stay in control of bookkeeping tasks (See also Common Accounting Mistakes and How to fix them).
Separate your business accounts from personal accounts
You should never mix your personal account and business accounts. Keeping your business accounts and credit cards separate from your personal accounts enables you to keep clear and consistent transactions records.
Instead of making or receiving cash payments use credit or debit cards. This will make it easier for you to track the receipts. For example, if you decide to get money from an ATM, you can note on the receipt the reason for making the withdrawal. Also, encourage debtors to pay through the bank or use electronic means of payments. With that, you will find it easier to track and extract transactions details from receipts.
Keeping your business documents such receipts, invoices, payment vouchers, and more for many years can be a hassle. Buying a fireproof safe to keep important personal and business documents is another option for safekeeping your documents.
Also, consider having a computerized bookkeeping system as this will enable you to back up your data using flash disks and other external storage devices. To ensure that you will never lose your business data, consider extra data protection by storing your data online (cloud storage).
With that, you will be able to pull your transactions records easily whenever you want to use them or update them.
Schedule a meeting with your Chartered Accountant (CA) at least twice a year
During this meeting, review your financial plans, business plans, tax strategies (Check out our taxation service for more details), and payroll procedures. Keep in mind that the costs associated with taxes are too high, and you can’t afford to have poor plans. Having a few minutes meeting with your chosen expert from accounting firm in Singapore regularly can save a lot of money.
However, it is important to ensure that the CA you choose is a qualified one to avoid dragging your business into a pit. In fact, you need to get a planner who will offer you new strategies and ideas to help your business grow.
Minimizing costs and maximizing revenue are some of the primary objectives of every business. Note that bookkeeping can help you save money and time, or waste them. What if someone offered to help with bookkeeping and ensure that all records are up-to-date and easily accessible? Contact us and start enjoying the benefits of outsourcing bookkeeping.