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Small Business Accounting Mistakes – Are You Making These Errors?

by admin on June 3, 2015 Comments Off

Small business accounting is the responsibility of accounting firms in Singapore. With more new businesses starting up each year, it is necessary that they receive the most up to date advice on the small business accounting. One main area in which many small businesses experience difficulty is the cash flow. Most often the issue is the timely delivery of cash in their business accounts. Therefore, you should examine your business and find out if you are making these three common cash flow mistakes? You can also enquire for the Accounting Services Singapore so that they can eliminate these mistakes from your business.

  1. Forgetting to record invoices as soon as possible.

Now this might seem little absurd but it happens on regular basis. For example one client forgot to send an invoice to a corporate client. The client had a 60 day payment cycle. By being several days late in sending the invoice they experienced an unnecessary delay of four weeks before their fee was paid to them. For small businesses number of these mistakes can make a difference in surviving or thriving. Alternatively, if you are not sending your invoices on time you can request for the Bookkeeping Services Singapore to resolve this issue.

One should make it a priority that the invoices are always sent within twenty four hours of the delivery of service. Depending on the services that you offer, it is advisable that you enquire for the payment upfront. If you don’t enquire you will not get the payment.

  1. You may not have various payment options

Most the business owners still lag behind when it comes to collecting payments. It could be painful for the business owner if the cheque for services arrives in four business days. It will also increase stress levels. Therefore, a quick way to resolve this issue will be increasing the payment methods or options for the clients. You can achieve this by outsourcing accounting.

  1. Using the wrong type of service providers

There are often times when the business owner gets into the routine of using the same old service provider. They do not concentrate on the value that they bring. If you take some time to search for the other service providers you may find out that someone is offering better services than your current service provider.

Let’s take up an example of the stationary service. What if a new version of an ink cartridge was little bit more expensive but it allowed to print extra hundred times. You should not consider the large national companies to be less expensive. Recently one of the bigger companies stopped using an expensive national stationary supplier and changed to an economical one. The company saved money and the delivery was provided within two hours instead of twenty four hours’ time period. All these mistakes can be eliminated by the top notch accounting firm in Singapore. That can benefit your company by offering different accounting strategies like cloud accounting.

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