Company Formation – Bookkeeping Secrets as Revealed by Licensed Accountants

Trust the licensed accountants to educate you on this

Do you have a business? If you think you are ready to operate your business just because you have ample product stocks, quality staff, and appropriate amount of capital, think again

You might be lacking the most important thing in running a business, especially after a company incorporation – financial management

Not all businessmen have enough knowledge and experience in managing business financials, let alone the proper procedures in bookkeeping

The lack of knowledge and background in the important concepts of bookkeeping, accounting, and financing often leads to the business’ downfall

Licensed accountants share their bookkeeping secrets to avoid accounting mistakes, including the following: 

1

Employ skilled and reliable accountants

The most common problem among business owners after company registration is that they usually are the ones handling and maintaining their books even without proper knowledge in accounting

Not only does this endanger the finances of the business, but takes away the time of the owner or nominee director from doing more important managerial tasks

Hence, allocate a specific amount from your budget for employing experienced and reliable accountants

 2

Keep your business records clean and well-managed

This will not only ensure smooth bookkeeping, but will also inform you about some important business metrics such as knowing who your biggest buyers are

Moreover, a good record shall help you identify how much you owe to suppliers, how much tax to be filed, and who among your customers has debt among other things

 3

Apply and maintain an efficient filing system

Financial records such as receivables, payables, bank statements, receipts, tax records, and the likes should be filed properly for easy and quick auditing

This shall also help you resolve any financial dispute with customers or suppliers, if necessary

 4

Keep bank statements properly

One common mistake that business owners make is mixing their personal bank transaction records with business records

Never do this as this would put your bank accounts and transaction records in shambles

To avoid this, again hire an experienced accountant or bookkeeper that will help you separate the two different accounts

 5

Establish clear and comprehensive policies and procedures

And make sure that your accounting system shall be strictly followed by all of your staff at all times