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The Benefits of Updated Bookkeeping and Accounting Record for Your Small Businesses
The Lanturn Team
As a small business, you may have heard that it’s essential to keep updated with your bookkeeping and accounting records. Business owners have to consider taxes, compliance, and other legal requirements. Neat, well-organized bookkeeping and accounting records can increase your company’s chances of survival.
If good finances are that important, why don’t all businesses take good care of their books? Well: many business owners don’t have the relevant expertise or experience to handle their finances. They often spend more time developing better products and services and building strong customer relationships.
Unfortunately, finance is a part of every business owner’s life.
It’s challenging to keep up with policies and procedures in accounting. One of the simplest ways to reduce the burden of finance management is to engage in a virtual accounting service.
Role of Bookkeeping & Accounting Services for All Businesses
Both Bookkeeping and accounting services are essential for all businesses to manage their finances. Bookkeeping keeps track of your company’s daily operations in ledgers, whereas accounting services analyze financial data to offer insights to help in your business decisions.
Bookkeeping requires excellent organizational skills and time management to perform the job to its full potential. The
The Secrets to Good Bookkeeping and Accounting Practices in Singapore
There are so many different bookkeeping best practices on the Internet that it can be difficult to choose which advice to take and which to ignore. Fortunately, there are just a few basic tips to follow that can help your financial journey go more smoothly.
Separate personal and business finances
As a basic best practice, all business owners should create a business-only bank account. This helps you gain better control of your finances; you can view your personal and company funds individually. Properly allocating funds for personal and company use also helps solve cash flow, tax filing, and auditing problems for your business.
Use accounting software to track expenses
There will be times when there are too many records to track. An accounting software system such as
Group bookkeeping practices into daily, monthly, and yearly tasks
Bookkeeping can be hectic, especially when you have so many other responsibilities to handle. To prevent pile-ups or late filing of taxes, be diligent in organizing your bookkeeping tasks. Balance your bank statements regularly; evaluate your financial data monthly with management reports and Key Performance Indicators (KPIs) to better understand your business’ progress. To make it easier to file your taxes, review documents yearly.
To save time, use an outsourced virtual bookkeeping service
If all these are taking too much of your time, it is wise to outsource a virtual bookkeeping service. One common mistake new businesses make is delegating accounting tasks to their employees to save on the cost of a formal in-house accountant. However, the
Pros of Outsourced,
More time to concentrate on essential activities
Entry-level accountants may not have the
Outsourcing virtual bookkeeping and Accounting services mean that your business can save on data storage and employee costs. Instead of paying for storage costs and office spaces to store documents, hiring a full-time accountant, or forking out training costs for your employees to handle bookkeeping, you get to pay a single flat fee per month for a virtual bookkeeping service. This all-in-one service helps you store documents online, covers all your bookkeeping and accounting services, and provides access to the latest software and technology.
Prevents any errors from occurring
Doing your own bookkeeping might result in
Provides transparent access to information about your business
Virtual bookkeeping has
Besides, virtual bookkeeping has the advantage of
Cons of Outsourced,
Digital external bookkeeping may come with more risks because you’ll have to trust a third party to be responsible for your data. For instance, if a data security breach affects your chosen outsourcing partner, you’ll be at risk as well.
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