Smooth financial operations are crucial when running a business. It is for this reason that you need to pay close attention to keeping your financial records in proper order. Therefore, you need professional bookkeeping services from a reputable service provider.
What is bookkeeping?
This is the process of ensuring all financial transactions in a business or company are recorded. Experts in finance will agree that bookkeeping is crucial in any business despite the fact that many entrepreneurs neglect this important aspect.
Businesses that do not keep proper financial records experience a number of challenges at the end of the day in the form of audit risks, enormous legal issues when they fail to follow government compliances and problems of cash flow margins among others.
For instance, the IRAS Annual Report 2016/17 measures have been taken to deter non-compliance and ensure every individual pays their fair share. Compliance capabilities have been strengthened including the use of advanced analytics techniques for fraud detection and auditing. Without proper bookkeeping, you may get yourself on the wrong side of the law and lead to dire consequences.
Here are some insightful tips on bookkeeping to help you efficiently manage your business’ financial records.
Have a working system in place
For better record keeping and maintenance, you need to follow a certain process strictly. The sole purpose of bookkeeping is to organize and arrange records in a systematic way for easier and accurate reference as and when needed. Bearing this in mind, you then need to choose a system that will help you achieve this purpose or record all financial transactions taking place within your business.
Regularly follow the process
Bookkeeping is not a one-time process. It needs to be followed on a regular basis; it is actually required to be a daily process at the end of closing business day. Regular updates guarantee an accurate record which you can easily forecast the future of your business and help prepare the necessary statements required by the authorities.
Record all transactions
Are you running a business in Singapore? You must be aware of the need to keep a record of every transaction carried out including invoices of transactions, serial-numbered receipts, record of expenses, debits and credits regardless of how small they are. As indicated in the IRAS report mentioned earlier, you can face serious legal charges from the government of Singapore if it is found that you do not keep these crucial records. The daily records should be maintained and kept safe for at least five years for reference and audit purposes.
Hire professional bookkeeping services
Sometimes, bookkeeping can be seen as a tedious task for many business owners. Hiring bookkeeping services in Singapore is crucial if you do not like keeping the records on your own. A number of reputable companies are available to provide these services to all entrepreneurs in need. Out of the many bookkeeping services in Singapore available, you need to find the right provider for your business and discuss with them on the cost of providing the services. Most of the companies offering these services are actually affordable so you need not worry about the costs.
Regularly file your tax obligations
It is usually recommended that you file your taxes at the end of every fiscal year. Bookkeeping comes in handy when filing for taxes since the documents act as proof of the transactions carried out in your business. A well-maintained bookkeeping process will help ease the task of tax returns respective to your transactions and expenses.
Plan future prospects accurately
Every business typically has its objectives and goals. Bookkeeping will ensure that you prepare and maintain accurate records of your financial transactions. All the reports and analytics prepared for your business planning are based on the records available on your books.
Bookkeeping is a crucial procedure in any business today. It is through maintenance of daily records of transactions that you can easily manage the financial performance of your business. Finding the right and best bookkeeping services in Singapore, you can easily keep your business and finances on track.