How to keep accounting for SMEs?

For SMEs to prosper they must keep an orderly accounting record of their activities according to their tax regime.

For an entrepreneur excited about his business idea, accounting can sound like a tedious activity. For the small or medium entrepreneur it can represent a waste of time.

However, both would end up in serious trouble if they did not carry it completely and neatly; and not only with the treasury.

Your business, regardless of its size, must make its decisions based on reliable data on income, profits, investments, losses and financial obligations.

A great benefit that SME accounting services Singapore have when keeping their accounting up to date is that they have access to a large amount of information on income and expenses that helps them plan for their future.

Among the reasons why you should keep your business accounting are:

  • Control the total sales in the day and thus know the income of each day.
  • Have a detailed record of administrative, operational and production expenses.
  • Know the balance sheet, do you record losses or gains?
  • Better manage the inventory of both inputs and products so as not to have money invested idly.
  • Control expenses in services such as electricity, telephony and water, as well as those made in stationery and other non-productive supplies.
  • Check business expenses to avoid unproductive disbursements and also facilitate deductibility.

In this last point it is worth mentioning the usefulness of the Ticket Empresarial® service cards, which allow you to allocate budgets for per diem and operating expenses, without depositing money in the payroll accounts of employees that may give rise to fiscal discrepancies.

Keeping the accounting record of your company makes possible a better management of resources, an optimal cash flow, a greater control of operations and the fulfillment of strategic goals.

The importance of accounting is such that it must be a task that you leave in the hands of professionals and, if your company cannot pay an accountant internally, you can always opt for an accounting firm that provides the service.

Accounting professionals will always be aware of the most recent tax provisions, to prevent your company from incurring fines or penalties,  and will have the knowledge and preparation necessary to support you in the financial planning of the business.

And if your business is just starting and what you need, for now, is to keep a basic accounting, technological tools such as accounting software are also useful because they allow you to keep an elementary record of income and expenses, deductible expenses and payments to tax authorities in an orderly and friendly manner.

Among the basic accounting concepts you should know are:

  • The balance sheet, which offers a detailed picture of where the company stands in terms of what it has, what it owes and what the partners contribute to it.
  • The income statement, which by subtracting income expenses gives an idea of ​​the financial health of the business
  • Cash flow, which reports the cash available at all times for the fulfillment of the payroll, fiscal and financial obligations of the company.
  • The patrimonial state, by means of which the changes registered in the capital are visualized.

If you are looking to control your company’s expenses, plan for the future, better manage cash flow and achieve profitability, keep accounting with the help of technology or a professional accountant is the answer.

The information offered by the figures recorded in your business accounting will make you make better strategic decisions.