What Financial Components should an Accounting System Show?
Experience in the field of accounting and business enables us to study certain things most entrepreneurs and business persons may not know about their accounting systems. KGRN Accounting Associates has been around for more than a decade and in that time we have assisted numerous UAE companies with their auditing and business growth. It has revealed to us that many organizations do not know what financial components their accounting system should provide.
If that is the case with your business organization as well, here is what you need to know:
It is vital for small organizations to reconcile your checking account records with your bank statement. It enables you to ensure both match and catch any anomalies before things get a bit out of hand. Bank reconciliations allow you to question the checks you may not remember writing and notice thefts from within your company.
Regular Profit and Loss Statement
New and current data is essential for a business to survive and grow. This includes your business’ profit and loss records. They need to be updated on a regular basis so that you know how you are performing. If you wait for your year-end financial statement, you will be ignoring big problems that can be fixed right now. Accounting programs use a company’s financial data to provide accurate statements of their finances. You can make correct assumptions this way and efficiently plan for the future instead of guessing whether or not your next step will work.
Product Sales Information
Your accounting program is should enable you to track how well your products and services are selling in the market. This will help you prepare adequate sales reports that help you answer questions about the performance or your products and the financial factors affecting them.
Customer Sales Data
Sales by customer summaries include data about your customers and their buying patterns. It should help you determine if your customers are staying or taking their business elsewhere. This information will also help you identify the customers that need your attention most.
Preparing a budget is vital for any company. Without one you could be heading in for financial ruin. A financial budget helps you device steady plans that deliver results. A budget serves as the standards against which you compare actual expenses and what changes need to be made and where.
Preparing a Payroll
To prepare a payroll for your firm make sure you use accounting software computer programs like QuickBooks to prepare them. This will ensure your payrolls are prepared quickly and efficiently.
Monitoring Accounts Payable Data
There are so many business establishments that end up paying penalties due to the non-payment of their bills on time. And as strange as it sounds, a great deal of businesses also pay their invoices twice which is a huge waste of financial resources. Maintaining good payable records can help you develop an accurate cash budget that ensures all you set aside the right amount of cash to pay your bills.
Reports for Accounts Receivable
No sale is complete until you have received the payment. If you delay collection it will reduce your chances of obtaining it back. An efficient accounting system will provide you with a list of open invoices at any point of time.
Partnering with Dubai’s finest, KGRN Accounting Associates, will help you coordinate your financial activities and maintain consistent records of your finances so that you can work efficiently and focus on your organization’s goals and vision.