Many businesses face financial complications and hinder their progress before they can take roots and reach their potential. You can avoid it happening to your small business by updating your records and filing receipts promptly. It will make it easy for you to reconcile your accounts.

A professional provider of accounting and bookkeeping services in Singapore can assist you in maintaining your books of accounts.

Accounting Standards

You should be familiar with the accounting standards dictated by your country, or you can hire a reliable bookkeeping service provider. Knowing the accounting principles, procedures, and standards, in force will be of enormous value in accurate financial reporting. It will assist you in typifying business' liabilities, assets, and depreciation exactly.

Chart of Account

Recording your business' financial transactions in the income or expense column will give you limited information. It will not help you in understanding what exactly is happening in your business. You need to categories the transactions under Income, Expenses, Assets, Liabilities, & Equities. Under each of these categories, create appropriate accounts with unique code.

Updating Accounts

Now, whenever you get into a financial transaction, record it under the appropriate account. And tag it with related account code. Xerox Machine? Record it under the Office Equipment account under Asset. Dividend? Record it under the Dividend account under Liability.

Doing so helps in analyzing your business transactions and zeroing on unnecessary expenses. It also helps in pinpointing areas where you need to spend more in order to generate more profit.

Be Consistent With Your Bookkeeping

Being consistent with your bookkeeping means doing your updating your accounts promptly after each transaction. However, as a small business owner, you may not be able to enjoy such a luxury. However, you should aim to do it every day. Doing so regularly means you will be ready with your filing on the due dates. You should also schedule a day to take the review of the progress and follow up on serious issues.

Bank Account Reconciliation

Make it a habit to balance your books of account at the end of each month. Compare your debits and credits. Go through your recorded transactions and compare the amounts against that on the statement for your corporate bank account. It is the best way to know your cash flow and manage it. Some of the businesses do it after each transaction.

Track Accounts Receivables

When you sell your products or services on credit, it becomes necessary to track them and make sure that you receive payments for them within due dates. Accountants call these amounts as accounts receivables. If you do not get the payments on time, you should remind your customers about the outstanding payments. You should not let your accounts receivables pile up, or it is going to affect the liquidity in your business. It will also hamper your ability to pay your vendors.

Do Not Mix Business & Personal Finance

Small business owners, especially the newbies, get their personal and business finances mixed up. You need to be practical and keep them separate. You can achieve it by opening a corporate bank account for your business. Use it strictly to pay your vendors and receive payments from your customers. It will assist you in reconciling the bank account. Pay yourself a salary and pay your personal expenses out of your personal bank account.

Hire a Professional Accounting & Bookkeeping Services

If you are a small business owner, then it is most probable that you are juggling many tasks. If at the end of the day, you cannot find the time or are unable to book-keep, give serious thought to appointing an accounting and bookkeeping services Singapore.

Bookkeeping service providers employ experienced bookkeepers & accountants. Their experts can save you a lot of effort, especially if you are not familiar with the accounting principals and concepts. In the long run, you will find that their services are affordable. You will be able to focus on business' core activities without having to worry about statutory compliance.

Author's Bio: 

SBS Consulting is one of the leading corporate service providers in Singapore. It specializes in Company Incorporation, Accounting, Preparation of the director's report, Taxation, GST, Payroll, XBRL, IT software development and maintenance, and other value-added business services for residents and non-residents of Singapore.