Small Business Accounting – Basics Guide

An office environment or home based, any sector – retail, sales, service, or manufacturing, accounting is that one aspect in your start up or small business which, if done accurately will help you to sore heights if not can cost you losses. If you are good at your math and calculations, consider yourself to take the responsibility of accounts. It is no rocket science, and can be done on your own. However, it is better to consult an accountant periodically. An accountant will make things easier by making it process oriented, setting up a system for tracking records and maintaining the ledger.

Understanding the term: Accounting

Accounting services can broadly be kept under some main terms: general bookkeeping, tax planning and reporting, financial consulting, cash flow management, price control, business financing, maintaining general ledger and so on. All the financial records of a business are maintained in a document that tracks all the transactions done. This document is known as ledger in accounting terms. The ledger tracks the expenditure and receipts, what is the financial condition of the company in present scenario, how much of liquidity is in and how much will be going out. Receivable and payable accounts are maintained along with payroll processing etc. Tracking of individual transaction is also recorded in the ledger.

Methods of Accounting

There are two methods of accounting:

Cash Accounting: Income is counted when cash is received, and expenses are counted when money is paid.

Accrual Accounting: Income is counted when transaction is made, irrespective of receiving cash, and expenses are counted when goods or service is received.

Although small business owners prefer to follow the cash accounting system over accrual accounting, yet the latter one is widely used.

Accounting requirement in a small company

The question may pop up - What is the importance of accounting services for a small business? Irrespective of the size of your business, there are several benefits to keep your accounts up-to-date

• Financial planning is the most advantageous aspect.
• To keep track on the performance of the company.
• Getting loans and filling taxes are much easier.

If the business is too small or is run by an individual, accounting can be managed by spreadsheets like Excel or widely available accounting software, however, if required a bookkeeper can be hired to update the accounts books. Hiring an accountant or outsourcing accounting services to an outside firm help small business to concentrate on the core business rather than managing non-core business functions

How outsourcing accounting services help small businesses:

Considering outsourcing accounting to an outside firm will be beneficial in the long run. Companies like SBS Consulting Pte Ltd who are qualified for their work can handle your accounts more effectively hence converting your investment into profit.

Why selecting SBS group for accounting will be a wise choice

SBS Consulting Pte Ltd is a Singapore based accounts and taxation company, which is catering to a diversified list of clients around the globe. Since its inception in the year 2010, the company is providing its expert services in Accounting, Auditing, Taxation, Payroll Services, Bookkeeping, IT consulting, Software Development, Company Registration in Singapore, and other finance related advices. The company has years of experience in disbursing quality services related to accounting to small and mid sized business owners. If you are looking for an accounting partner whom you can involve in decision making of your company’s future plans for growth, SBS group is the company where your search ends. You can rely for risk management and efficiency, for business solutions, and to identify best methods for the success and growth of your company.