A small business owner must keep a nice set of financial records and books that should be contemporaneously and constantly updated (Also see Things to take note when preparing accounts). The tax man will surely not like the records that were created just before the year end.
One of the main reasons to maintain a set of books that is quite detailed and complete is tax preparation. However, there are many other factors due to which preparing book sets becomes imperative. For instance, they allow you to record the profits and expenses of your business. This is important because you must know about the money that your business brings in and the money that is being spent.
With these details, you can compare the results with the industry standards in order to determine the places, where your business model needs improvement. Plus, you must weigh the expenses and sales of your business in the current year against the previous year(s). This will help you to evaluate your company’s progress in the corporate world.
In addition, when you review the balance sheet accounts of the current year, including liabilities, receivables, cash, etc. to previous years, then you can establish the sales and profit goals of your company. One of the other reasons to have your financial statements updated is to please a lender, who will definitely require them to assess whether you qualify for a business loan or not.
Due to all these reasons, you need to maintain the books and financial records of your business. For this, you business must employ sophisticated software as compared to a just a simple format of spreadsheet. This will help you to obtain comparative as well as current data of your business. For instance, the program should be able to display the profit and loss statements of 10 years simultaneously in just one report, so that you can compare the main elements of your business whenever you want to.
This tells us why bookkeeping is an imperative part of any type of business setup (Also see types of business structures in Malaysia). And, surely you cannot do all of this by yourself. After all, you have other tasks too that you need to complete, without wasting your valuable time to run your business. This means that you must take the services of bookkeeping from a professional accounting firm in Johor Bahru.
This is where we come to your rescue. Our bookkeeping services comprises of many things, including recording the transactions, recording entries, and preparing the bank reconciliation statement of the company based on the information and documents provided by the management (Also see Accounting – Is your business accounting up-to-date?). As a reputable accounting firm, we guarantee that you will get the best of bookkeeping services that can take your business to new heights. Plus, we do not charge much for our expert services.