Despite what many may believe, bookkeeping is wholly different from accounting. This difference arises from the fact that bookkeeping itself is just one part of the entire accounting process.
Bookkeeping is defined as the proper documentation of financial transactions, either incoming or outgoing, on a day to day basis. This documentation spans all aspects of your business that deals with finances, including but not limited to, payroll, income, and business expenses.
For businesses of all sizes, bookkeeping is an integral function that allows the management of the business’ entire cash flow and accurate perception of the financial situation. If you’re a budding entrepreneur or a newly established business owner, read on to learn how proper bookkeeping can help you legally and financially.
Maintain accurate records for all transactions
The core purpose of bookkeeping is to gather exact data of the business’ expenditures and gains. This process of documentation is the foundation in which other parts of the accounting process rely on.
It’s important to know when and where your cash is going, especially for small to medium business owners. These records serve as evidence that can be used for many things; for example, it can solve possible discrepancies and disputes or provide data about your growth.
Make tax filing more efficient
Come tax season, the purpose of bookkeeping will lend itself clear. By having all your financial transactions organised and ready, your tax filing process will be a breeze – saving you plenty of time and effort that is better off spent on growing your business.
To ensure your taxes are filed correctly and with accuracy, enlist the expertise of agencies that provide accounting services in Singapore. At Ackenting Group, we offer tax services that cover all your needs. You will be assigned a personal tax consultant who will furnish you with details like corporate tax benefits to help you save costs. No matter your business needs, we have tailored corporate solutions to provide value to your business, including tax planning and financial accounting.
Improve business budgeting
With the data collected from bookkeeping, one can begin analysing business expenditures and weed out unnecessary spending. The business world moves at a rapid pace – as such, early investments may no longer prove to be effective at present.
Apart from reallocating the budget for some expenses, one can also analyse the revenue gained from the financial statements. Products and services that generate more revenue than others can be easily discovered after processing the raw data. Having this knowledge can allow better and informed decision making, so you can reorient your business strategy and pave the way to greater profits.
Conclusion
Bookkeeping is a necessary process to track your cash and analyse business performance. It provides you with vital financial information to focus on your company’s strengths, improve on its weaknesses and make profitable decisions.
Take control of your business’ finances and let certified professionals in the field handle this responsibility. Our accountants at Ackenting Group have years of experience and knowledge across various industries. With our accounting and bookkeeping services, you can gain better understanding of your business’ financial performance and figure out the roadmap for future growth. We also offer professional audit services to meet the regulatory requirements and add strong credibility to your financial statements.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
