Bookkeeping Service In Singapore: Why Do You Need It?

Before you start bookkeeping a business must decide what method you will follow. When selecting, consider the daily volume of transactions a business has and the amount of revenue earned. If you are a small business, the complex bookkeeping method for enterprises causes unnecessary complications. Conversely, a less robust method of booking doesn’t suffice for large companies.

The bookkeeping singapore service is a process of organizing, classifying, and maintaining financial records of the financial. It involves recording transactions and keeping financial documentation to manage the entire financial health of a company. Most businesses use electronic financial health of a company. Most companies use electronic methods for bookkeeping, whether it is a simple spreadsheet or more advanced specialized software.

Why is bookkeeping important?

When an effective bookkeeping system, businesses have information and knowledge that allows them to make the best financial decisions. There are tasks, such as:

Establishing a budget
Planning for next fiscal year
Preparing for tax time

These are easier when financial records are correct.

The components of bookkeeping

Bookkeeping tasks will provide the records needed to understand a business’s finances, including recognising any monetary issues that need to be addressed. Appropriate planning and scheduling are key since staying ahead of records on a weekly or monthly basis provides a clear overview of the company’s financial health. For each type of business, bookkeeping may include several components and steps, including:

Documenting each financial transaction
Recording all debits/credits
Sending invoices and processing the payments
Preparing financial statements, such as:
- balance sheet
- income
- cash flow
Maintaining and balancing the general ledger
Running daily banking activities
Completing payroll functions

Bookkeeping for small business

Keeping up with the records in small business is a task you are willing to tackle yourself. The system you choose to use doesn’t need to be complicated and ledges must be straightforward, especially when you have a few or no workers/employees. The most essential parts of bookkeeping are staying organized and keeping track of the details. Start to decide on the system you want to employ, whether it is an online program, a spreadsheet or paid software.

You can set aside a dedicated time, either weekly or biweekly, for:

reviewing the bookkeeping
reconciling the transactions
completing required data entry

Finally, you want to decide how all documents and receipts are stored. You can keep hard copies or opt for electronic files through scanning paperwork.

Single-bookkeeping method

Single-entry bookkeeping. It is a straightforward method where an entry is made for every transaction in your books. These transactions are maintained in a cash book for:

tracking incoming revenue
outgoing expenses

You don’t need formal accounting training for a single-entry system. The method suits small private companies and a sole proprietorship that don’t buy or sell on credit, have little to no physical assets, and then hold small inventory amounts.

Double-entry bookkeeping. It is more robust. It can follow the principle that each transaction affects two accounts and is recorded as: