Accounting Checklist By Audit Firm In Singapore
Keeping your accounts and finances in good shape does not always have to be a tedious, uphill task without Audit firm in Singapore. It can be immensely simplified if you detail transactions accurately, keep a close eye on your business performances, and maintain your financial accounts meticulously. The three fundamental financial reports, namely the balance sheet, income statement, and cash flow statement, are also crucial in managing your finances.
At OneStop Professional Services (Audit firm in Singapore), we have condensed the essential components of financial accounting and management into a checklist.
1. Monitor Liquid Assets
Cash is king in financial management. Hence, it is imperative to monitor your available funds. You can start each workday by checking the amount of money you have, and you should also be aware of expected incoming and outcoming payments.
2. Note Every Transaction
Every single one of your firm’s dealings must be meticulously written into the correct account regularly. This noting of transactions can be done using the traditional method or Excel sheets, but most audit firms in Singapore use advanced accounting software such as QuickBooks.
3. Store Invoices
Store all documents that detail your firm’s transactions, including cash invoices and payments. It will be immensely beneficial to categorize these transactions by creating a folder for suppliers and arranging the alphabetical order invoices. You could also start a folder for payroll, arranged according to date, and a folder for bank statements, arranged by month. This will help to organize your transactions and allow for an easier tax filing process.
4. Track Outstanding Payments
You should also keep a folder which details outstanding payments to suppliers, including the payment amounts and payment dates according to an audit firm in Singapore.
5. Prepare Invoices Well
It is crucial to prepare your invoices well to ensure timely payment and accurate estimation of monthly revenue. You can adopt a fixed invoice structure with relevant information, including the payment due date, amount, and address.
6. Plan for Future Cash Flows
It is also advised to keep a cash flow statement, noting expected cash inflows and outflows. This will allow you to estimate the amount of cash you will need in the future and adjust expenditures to ensure payments to staff and vendors can be made.
7. Review Transactions
Review your transactions regularly to ensure the accuracy of your entries and cash position. Continually reviewing your cash flows enables you to spot and rectify any mistakes and overlooked areas.
8. Compare Actual Profits and Losses to Budget
The profit and loss statement indicates the number of earnings and expenditures your firm has made. You should compare this to your firm’s planned budget, to determine where and how you should reallocate your resources.
9. Compare Balance Sheets
It is also helpful to compare your firm’s balance sheets across the years, which sheds light on how your firm has been handling its assets and liabilities. Take note of any changes and analyze the underlying reasons for these changes.