Surprisingly, many small businesses do not handle bookkeeping with the seriousness it merits. As such, these enterprises eventually find themselves in a fix when arranging their accounts or if they suddenly need management statements for finance purposes. This process is usually a tedious one that takes up a lot of time and dents the business’s productivity. Bookkeeping can be a simple process if only these business people had the knowledge to undertake the task. Some of the most helpful tips in bookkeeping are the simplest.
- Engage in regular bookkeeping
This rule is for me the most important. Some sole traders and small businesses wait for the end of the month to begin bookkeeping. By putting the process off till then, such entrepreneurs will be setting themselves up for a hard time. Regular bookkeeping is more appropriate since it helps business people to monitor the progress of their business. At the end of the month, these entrepreneurs would have an easy time making their tax returns. They will also have spared themselves from making any errors related to tax returns since they would be in no hurry to do bookkeeping.
- Reconcile the petty cash
Petty cash involves the small amounts of money that go towards running certain business errands. Because of this, it is easier for business people to forget these small amounts. This could prove disastrous for people who do not engage in regular bookkeeping. Reconciling petty cash involves keeping track of the petty cash amount. When they use any money from the petty cash, they must replace it with a receipt for any purchases made with the money. The amount for the receipts or cash must also remain at a constant level.It happens so many times that when we do the first TB from the books that is given to us, the petty cash is in credit, or have hugh debits, which usually cannot be declared. The major problem with this is that theft can easily happen and there will definitely be an over-or understatement of expenses and income.
- Reconcile the bank
Reconciling with the bank means that the business person has posted all the transactions and sale purchases. At the end of every month, the records must reconcile with the bank statements. Furthermore, entrepreneurs ought to ensure that all cash is deposited in the business’s bank account immediately. If the bank is not reconciled on a regualr basis, it can slo happen that intercompany loans are not reconciled and that expenses, and even VAT for that matter can be overstated or duplicated.
- Keep all receipts and post all expenses
It is also vital that all owners of small enterprises should keep track of their expenses. This demands that they must keep all the receipts and track the expenses related to the business. They must adhere to this tip regardless of the magnitude of each expense since it would still impact on the enterprise’s tax bill. Those who fail to track their expenses could miss out on any tax write-offs. Posting all expenses entails keeping details of activities like coffee dates, business trips and lunches among others.
- Maintaining simplicity
Bookkeeping need not become a complicated exercise for all business people. It can be simple if these entrepreneurs make use of the various bookkeeping tools around. They include accounting software and excel spread sheets that can provide entrepreneurs with simple ways of maintaining their business records. The key to success is to stick to a certain system and use it consistently. This will spare businesses from errors that could amount from the act of using too many bookkeeping systems.
The full bookkeeping function can be outsourced to our company on a weekly-, monthly-, two-monthly-, six-monthly- or annual basis, depending on the client's requirements, and statutory requirements (VAT vendor status).
Some clients prefer to utilise in-house bookkeepers, whereby we partake in the interview process, and manage the bookkeepers on our client’s behalf. As the bookkeeping transactions are processed via our real-time web-based ERP system, we manage the processing quality and controls through various parameters and automated cross checks. Because most corporate clients are not financial experts and therefore find it difficult to manage staff within this industry, Taxrek takes that burden away, thereby ensuring the quality of processing is at the highest possible standard.
Inaccurate statements create cash flow peaks and troughs. By utilizing unique account receivable processes and procedures combined with the latest technology solutions, we process checks, post payments, transfer funds, and even provide digital images quickly and accurately.
By utilizing unique processes coupled with the latest technology solutions including imaging and automated workflow, our accounting experts provide you with timely and accurate financial information and analysis critical to strategic decision-making. Our bookkeeping services support receipt and management of paper-based payable documents including sort, batch preparation, scanning, and document storage and retrieval.
General ledger maintenance:
Business transactions are to be properly classified into appropriate accounting heads according to the accounting standards and the applicable legal provisions. Our use of comprehensive general ledger accounting software supports consolidated financial reporting across organizational lines. By generating the required information to manage your business, it provides an accurate picture of your organizations income and eliminates the possibility of being exposed to fines and penalties.
Bank Reconciliation is an absolute necessity for businesses as they make deposits and receive many receipts from their customers on a regular basis. Our bookkeeping services check the accuracy of your bank statement details, payments made into your account and withdrawals from your account to tell you whether your books agree with your bank balance. We provide a wide variety of reports reflecting debit and credit activity, and exceptions that have occurred on the account.
Trial Balance preparations:
We have skilled bookkeepers to prepare and complete accounts as per GAAP standards or IFRS standards. We can do these bookkeeping services either in house or at our offices. Our experience in the field of trial balance sheet preparation has grown over years. Our professionals check your existing trial balance for inconsistencies, reconcile them and prepare a proper trial balance for you. We have a wide range of financial accounting services to increase the efficiency and profitability of your financial accounting and bookkeeping business.