If you are running a business you must be completely aware of the importance of smooth financial operations. In order to keep your financial records in proper order you need to pay attention to bookkeeping services.
In layman’s language, bookkeeping is the process of recording all the financial transactions of a business. Most business owners often neglect this important aspect of the business. If your business is not following a record keeping process then you can suffer a big time in your business. Absence of a bookkeeping mechanism can lead you to problems like audit risks, cash flow margins and legal issues in case you failed to follow a government compliance etc.
We are presenting before you five simple tips on bookkeeping that will help you efficiently in managing your records.
- Follow a mechanism
To maintain records, receipts you must implement a system and follow it strictly. Choose a system or process after keeping in mind that the main purpose of bookkeeping is to arrange records in a systematic way and keep a record of all the transactions taking place in the business.
- Follow the process regularly
The process of bookkeeping must be followed on a regular basis. You should make it a part of your daily routine. At the end of the day, make sure that you have a clean record of all the transactions that took place and decide a day each week to tally all the records.
- Record even the small transactions
If you are running business in Singapore then you must be aware that you need to keep all the records including serially numbered receipts, invoice of transactions be it small, record of expenses, credits, debits. You can face legal charges from the government of Singapore if you do not keep these records. You have to maintain the records for at least 5 years.
- Hire professional accounting services
If you don’t like keeping records on your own then you can always hire professional bookkeeping services in Singapore. There are several companies in Singapore that offer the services of their trained business consultants to help you in the bookkeeping process. Their bookkeeping services are affordable and you don’t have to pay them much to manage your business records.
- Tax obligations
At the end of a financial year when you will have to file your taxes then bookkeeping will come to your aid and will help in showing the government all the proofs of the transactions done in your business. You can ease the task of tax returns if you have a well maintained record of all your expenses and transactions.
- Plan your future prospects accurately
If you are practising bookkeeping then it will be easier for you to speculate future business prospects accurately. You will access to figures in your accounting books, on the basis of which you can generate reports to see the future prospects of your business.