The world is advancing rapidly and so are its requirements. If you are a business owner in Singapore, you will probably realize this better than anyone else out there it is becoming harder to stay in the competition.
There is advancement every day and before you could complete the previous one, there is a new one waiting for you. It is what it is and it is a cost that we have to pay to become a part of the modern world.
While most of the requirements can just be ‘requirements’, some can actually be a great deal of help for your business and have the potential to set your business on the path of great success if done right.
Two of those beneficial requirements are SME accounting and bookkeeping services Singapore. In this blog, we will discuss what latest standards you can follow before making the best out of them.
Difference between Accounting & Bookkeeping:
Before we go into detail, let’s discuss the difference between accounting and bookkeeping for the record because the terms are interchangeably used and are easy to confuse.
Simply, a bookkeeping service Singapore is a service that keeps and maintains a record of financial transactions while SME accounting is a service that interprets, analyzes, and organizes those records.
The purpose of both services is to have a well-maintained financial record that can be used to track and trace transactions.
Modern Bookkeeping Singapore:
Now that you understand the difference and basic definitions, let’s go straight towards the new standards that your business needs to maintain in order to stay in the business.
Dedication:
Bookkeeping might not even need a book when you start a business because you are so conscious of the transactions that you might have all the details in your head. Later on, you might be okay with just making notes on a rough paper.
But as your business really picks up, so does the need for proper bookkeeping done with dedication. You can do it yourself for sure but will you be able to do it dedicatedly?
Modern bookkeeping requires dedication because as a business owner, you would be busy looking after, supervising, and making arrangements for so many things that you might not be able to give it its due attention. And missing only one point or getting a single figure wrong can have you worried about it for a long later on.
Vigilance:
The second standard to maintain for bookkeeping services is to do it vigilantly i.e. right as a transaction happens. It is no big deal either but as a business owner, you will be so occupied with so many things, and rightfully, because there will be other things that would require your attention and cannot be moved forward with until you are onboard.
You should pay your attention to the things that require your absolute attention to make your business progress while leaving your bookkeeping services Singapore to someone who can do it vigilantly as his only job.
Separation:
As you become busier, more of your mental space will be occupied and you will be less efficient at even basic tasks. That’s normal because bigger things need your attention now.
But in such a situation, it is very easy that you mix up different areas of your life together, such as your personal and professional transactions.
Doing this will make it even harder for you to maintain records. In such a case, you need to separate your all other finances from your professional transactions so that they can easily be maintained.
Accuracy:
Modern SME Accounting:
Now that you have learned the latest standard of bookkeeping services Singapore, let’s learn how you can make the best out of it with SME accounting.
Experience:
As your business grows, your figures will not only be a lot, they will start to get messy and difficult to handle.
Handling them will also require a certain level of experience with accounting, which you are not likely to have as a businessman because you have a different role to play.
Similarly, experience comes with mistakes, and using your own business to make mistakes, experiment, try and learn might not be the best place as you do not afford it especially when your business is picking up.
The best way out of this would be to hire someone who has made his mistakes somewhere else and is now ready to deliver performance to your business.
Expertise:
Messy figures also require higher levels of expertise to be handled. This expertise can only be acquired with formal learning and practice. You can acquire these skills too but you will have to divide your attention between your business and learning accounting, and as a result, both will be compromised.
You can also abandon your business to go and learn accounting but by the time you will return, you might not even need your expertise because most likely there will be no business less.
The smart move here would be to find this expertise in someone else and focus on your business so that he can get to use his skills and you can benefit from them.
Technology:
The most important standard to maintain for SME accounting today is the use of technology. There is special software available that handles and interprets your figures for you and gives you nice and digestible results.
But using that software might not be everyone’s cup of tea because that includes having sound knowledge of figures, accounting, and technology. Moreover, such software is neither accessible nor affordable for everyone, let alone making their optimum use.
Similarly, they will require enough human interference to generate proper results that they can still keep you busy for a while.
But the use of technology is a standard that you cannot afford to turn your back on because of its utility and benefits.
A One Stop Solution:
Now that you understand the modern requirements and the problems around them, you are in a better state to make an effective decision.
The effective decision in this scenario is inevitably hiring professional bookkeeping and accounting staff but that is not up to the modern standards.
Instead, the modern solution is to hire a company for bookkeeping services Singapore and SME accounting that will not only have all the experience, expertise, technology, dedication, and vigilance you need for suitable results, it will also do your job without any supervision and maintenance.
