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Importance of Bookkeeping Services in Singapore for Small Businesses

Last modified: March 29, 2022
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Importance of Bookkeeping Services in Singapore for Small Businesses

Streamlined bookkeeping and accounting are the foundation of every successful business. And, accounting and bookkeeping services firms like SBS Consulting can assist you in being one by taking care of your bookkeeping, payments, payroll, tax planning, advisory and assurance.

Today, small business owners trust bookkeeping service providers like SBS to take care of their financials. They rely on our accountants to keep an eye on their daily financial transactions and offer expert advice. We assist them in controlling business costs and staying competitive by maximising their ROI.

Our certified accountants start by setting up a well-defined accounting system for your small business. Such a system collects your business’ financial data, which you can use for making data-driven decisions and cash flow management. It helps in keeping track of your business goals.

Find More: Bookkeeping Services in Singapore

 

Tasks You Need to Do to Streamline Your Business’ Financial Workflow

Our accountants use their knowledge to install accounting processes to streamline your business’ financial workflow. Here is a list of daily bookkeeping tasks you can trust for bookkeeping service companies in Singapore.

 

Tracking Cash Position

Accounting and bookkeeping services advise their clients to keep their business liquid. In practical terms, it means watching over your cash and ensuring that you have plenty of it. At the least, you need to have the cash to take care of your present and upcoming expenses.

Cash-in-hand is an indicator of your business’ financial health and a vital ingredient of successful relationships with your creditors and suppliers. Lack of it can put you under stress and even hurt your goodwill.

We track your cash flow by monitoring your business’ accounts receivable and payable. It enables us in advising you on the necessary steps if required. It also gives you a clear picture of its assets and liabilities.

 

Digitise Business’ Financial Transactions

Our bookkeeper record and digitise your business’ incoming and outgoing financial transactions using the latest accounting software system. It helps in tracking and matching its cash flows. It gives you a chance to check how much cash or credit you received from your customers or when you paid a particular supplier.

If your transaction volume is high, finding and keeping track of multiple items can easily confuse things. And the benefit is that you can track your data very fast with a few mouse clicks. You don’t have to bury your nose in an Excel spreadsheet and strain your eyes to locate the data that you are interested in.

 

File Your Invoices

As per ACRA’s mandate, you must file and maintain your accounts records for at least 5 years. Our bookkeepers take care of the filing while you are growing your business. They record your transactions and store copies of invoices received and issued.

In addition to complying with the statutory regulations, these records help verify your sale and purchase. They also serve as the proof of purchase at the end of your financial year when you need to file your taxes with IRAS.

While running your business, you need to take care of a few bookkeeping and accounting tasks every week. Here is a list of such tasks that you can trust for bookkeeping service companies in Singapore.

 

Vendor Payments

Maintaining healthy relationships with the vendors or suppliers is part and parcel of running a successful business. You have to be efficient in paying them on time to avoid penalties or damaging your credit.

Our bookkeepers update your accounts payable regularly so as to keep you know which suppliers need to be paid immediately. And they, in turn, reward you with more extended credit, purchase discounts, and other facilities. Every penny saved adds to the cash-in-your-hand.

 

Generate Invoices

To get paid on time, you need to prepare detailed invoices. You need to include company name and address, invoice number and date, items or services sold, terms of payment, Etc. Many companies refuse to honour invoices that are not accurate. Your accounting and bookkeeping services firm can assist you with the proper structure of invoices.

Your payment terms tell your customer when you expect payment from them and how they will benefit by abiding by them. The invoice number helps you and your customer refer to the same transaction.

 

Projected Cash Flow

You can use the financial data digitised by our bookkeepers to understand your earnings and expense. You can use it to predict your cash flow. Doing so helps you in understanding how much money you need to meet your future expenses and planning for it.

Here are a few bookkeeping and accounting tasks that your bookkeeping service provider can do for you every month.

 

Reconcile Your Books of Accounts

From time to time, you need to make sure that the transactions recorded in your books of account match with those recorded by your bank. Doing so allows you to track transactions that you forget to enter into your books.

Updated records come in handy while preparing financial statements and management reports. The preparation of your annual accounts depends on these records. However, our clients do not have to make a last-minute effort, as our bookkeepers regularly update your books.

 

Track Aged Receivables

Whether you get paid on time or not can make or break your business. And small businesses have to watch out for their aged receivables. They cannot afford to let them pile up. These figures represent overdue payments from their customers. Their cash is stuck with their customers.

Experts from your bookkeeping service provider can keep an eye on your aged receivables and advise you. You can then call or send emails to these customers abusing your due dates.

Depending on the individual cases, you can ask your customers to respect your due dates in future or penalise them. You can also take the drastic step of changing the payment terms on your invoices to those consistently missing your due dates. Sometimes you have to take stern measures to secure your cash flow.

 

Balance Sheet

Our accountants and bookkeepers need only a few mouse clicks to generate a fresh balance sheet for you. You can compare it with the projected cash flow. It will give you a fair idea about your growth rate. Whether it is improved or not. You can start reviewing things if it is not satisfactory. Accountants working in bookkeeping service companies in Singapore can advise you on eliminating waste.

Every small business owner, who is not well-versed in accounting, needs an expert to advise. However, not all of them can afford an in-house accountant. Hiring one of the accounting and bookkeeping services like SBS Consulting can improve things for you. Talk to us on +65-6536 0036 or email us at info@sbsgroup.com.sg to know more.

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