Advantages of Bookkeeping in Singapore
Here are some of the advantages that bookkeeping will bring about to your company.
1. Maintaining your budget
Bookkeeping allows your business to keep track of your spending in order to maximise your profits. It allows the company to manage their expenses and income and to determine which expenses are over-budget.
2. Efficient business analysis
After the process of bookkeeping, a financial statement will be generated, and it allows stakeholders such as investors to have a clear view of how the company is doing in terms of profitability and liquidity. Through that, you are also able to identify your company’s strengths and weaknesses.
3. Proper business structure
You should be able to easily assess your financial information at any time with an organised bookkeeping. This will help when it comes to applying for grants, loans, or even attracting investors.
4. Tax preparation
Bookkeeping makes filing your annual tax return easier for your business. With a proper structuring of records on your profits and losses, you won’t have to worry about finding frantically for receipts and invoices because all your records are properly recorded and kept.
5. Portrays a good image for your company’s stakeholder
Before investing, investors will have to understand and properly analyse the financial performance of your business in terms of profitability and liquidity before deciding on whether they want to pump in money into your business. With a proper bookkeeping structure and well-done financial statements, investors are more confident in investing in your company.
6. Tracking where your cash flows
Bookkeeping helps to improve your cash flow, making it just as crucial as the business itself. It contains all invoice information, including the name of the client or vendor, the amount, the date issued, and the due date. You can keep track of when your customers and vendors pay their invoices by collecting revenues on a regular basis.
7. Provides a clear view of where your company stands in the market
Financial documents such as a balance sheet, income statement, and bank statement are used in bookkeeping to provide an overview of your organisation. These statements contain all of the necessary information for you to assess your company’s performance.