Our accounting firm's bookkeeping service involves keeping a record of all financial transactions that occur in a business. Examples of these financial transactions are financial statements, balance sheets, and income statements. He or she is also tasked to prepare a review summary and presentation, which will inform business owners and managers of the financial standing of their company and enable them to make well-informed executive decisions.
There are two types of bookkeeping that accounting firms practice when managing a business’s financial activities: single-entry and double bookkeeping.
Considered the most straightforward method, the single-entry bookkeeping method records every transaction in a single-entry journal. This entry can either be an income account or an expense account. One prominent example of this method is cash books.
In this method, bookkeepers have a cash book wherein they record the income and expenses of the business. They start with the current cash balance to which the business’ income will be added, followed by the subtraction of the expenses. Once all of these transactions are factored in, bookkeepers can calculate the ending balance within a specific period.
Double-entry bookkeeping records every transaction in two accounts: credit and debit. Here, the amount of the recorded debits (assets) must be equal to the recorded credits (liabilities).
Double-entry works by following the basic equation Assets = Liabilities + Owner’s Equity. Asset is the money that the business has or owns; liability is anything that the business owes; and owner’s equity is the owner’s investment in the company.
Our Singapore bookkeeping services offer a host of benefits to one’s business. Some of these include:
Bookkeeping enables a business to have a better understanding of its existing budget. By having a clear picture of their revenue, expense, profit and loss; as well as detailed financial projections, business owners are better able to allocate their budget for what should be prioritised.
Filing a tax return is one of the most taxing and time-consuming tasks that business owners and managers face, but with the aid of bookkeeping, tax preparation is made easier. This is made possible by the detailed organisation and proper keeping of all financial records such as invoices and receipts.
Due to the proper organisation of cash inflow, including profit and loss, business owners are able to easily analyse their financial statements, helping them to gauge their businesses' strengths and weaknesses.
Many factors contribute to a business’ optimal growth and success; one of which includes proper and robust bookkeeping. If your company does not have the necessary bandwidth or expertise to oversee this aspect of your business, engage our one-stop bookkeeping services today!
Casey Lin & Co. is an experienced accounting and auditing firm. With its expert bookkeeping services in Singapore, we make sure that all our customers are in good hands.