Organize you business through organized accounting
We have seen all types of poor accounting in our 10 years of service. Clients come to us when they have uncontrolled books, huge backlogs, no sign of profitability as management reports could not tell the correct position. The result they end up into penalties and losses, and streamlining seems almost impossible.
So how can one avoid such mistakes? Simple,” by organizing from start or if not from today only.”
Proper filing of different documents and recording them in real time specially cash based transactions help a great deal in avoiding such mistakes.
Understanding the nature of document, all sales invoices and receipts should be filed together, all regular purchase from suppliers should be filed together, all other petty and business related receipts and expenses can be clubbed in one file.
Now try and do accounting in a good software on regular basis, if daily is not possible atleast by the end of week one should enter all entries related to that week to start fresh next week.
For previous backlog try and make batches, take one week and finish it by entering on daily basis and that way by the end of month you are nearly done with atleast one month’s backlog entered.
Always analyse your cash account, if it’s negative that means cash inflow hasn’t been recorded as banks reconciliations are not done on timely basis.
Hope these points would help abit streamline your business through proper accounting, specially if you are looking for funding or investing, proper books would definitely create a better image in ones eyes.