To understand your business and make it operational for a long period of time, there are five important accounting books that you should understand. An accountant will help you understand each book if you will avail the Accounting Services Singapore for your business. Whether you are opting to use the Xero Accounting or other accounting software Singapore, it will be best if you have your accountant to explain the process in in completing these books full details.
- Liabilities and Payables
This book is all about the amount you owe to supplier, employees, amortization, or to debtors. It is always important to regularly look at your schedules for payments to avoid incurring unnecessary charges for late payment.
The amount you paid for some items are expenses, but not all can be out righted as an expense until consumed. Example of this is the supplies. You can only consider the supplies as an expense once they are used up or consumed. Otherwise, a supply is included in the inventory even if it is already paid. For some other expenses, it is best to ask for bookkeeping services to make your recording precise and consistent.
The assets of your business are all the items it owns, including property, building, office inventories, equipment, machinery, and cash and accounts receivables. This book is important in your accounting records because it is included in the Balance Sheet for reports and financial position.
The revenue in your balance sheet is in the equity side. This is your income from sales. It is important that you keep this book properly updated because it will be used whenever you are making decisions for the business.
- Equity or Owner’s Capital
This is the amount of your financial investment and interest in the business. You can easily make your business grow if you know and understand the value of your equity or what you own in the business. This will also help you motivate yourself to do better.
Many accounting firms are offering quality and reliable accounting services for small business Singapore. If you are managing a small business, it is best to entrust this kind of task to an expert and be precise about your decisions. The Accounting Services Singapore will guide you on how you can manage your business from simple bookkeeping to major financial decisions for the growth of your business.