Top 3 mistakes business owners make with bookkeeping

Businesses are always drawn to economies that can give them sure returns. That is why Singapore has always been one of the top choices when it comes to business startups or expansions which is why it is known to be one of the most business-friendly countries in the world. This country has always been business-centered. It is also dubbed as the freest economy, in the 2020 business index. This has even made Singapore more attractive to many local and foreign investors.

Since there are already various businesses in Singapore, the economy gets too crowded. Therefore, it is harder to survive or to keep being profitable. There are many other competitors and that is why every business decision is important and crucial for the survival of the business. One of the things that can help you keep track of your company resources and inventory is to do bookkeeping. 

What is bookkeeping Singapore?

It is an important part to keep the company organized and intact. It involves recording consistently all the financial related documents of the company. When this is done the right way, the company will be able to keep a tab of all the important financial records that can make or break the business. Bookkeeping Singapore procedures require a professional to be done correctly. There are many bookkeeping services Singapore firms that offer these kinds of services. 

 

These bookkeeping services Singapore firms have trained professionals to help every business. This way you can be sure that the bookkeeping Singapore procedures in your company are done correctly. However, even if there is already a bookkeeping services Singapore firm that does the work, mistakes are inevitable and common. To know more, here are some of the mistakes that business owners make when it comes to bookkeeping Singapore processes.

Common mistakes

#1 Hiring an incompetent bookkeeper

One of the most common and easiest mistakes an owner can make is hiring a bookkeeping services Singapore specialist that is not the right fit for the company. There are many bookkeeping Singapore specialists as it is a big industry. However, there are various specializations and qualifications of a bookkeeper that may make him or her qualified for your business. 

This kind of mistake is avoidable by opting to hire someone from a bookkeeping Singapore firm that is already credible and has positive feedback from businesses similar to yours. This way you can make sure that the bookkeeping Singapore service you will receive is top quality and worth the money you are spending.

#2 Combining personal and business matters

Another common mistake done in bookkeeping  Singapore processes is mixing personal finances and business finances. This is not a good practice as you might lose count and track of the real money that is going in or out of your business.

The best thing to do is to give yourself a salary even if you are the owner. This way you can account for your salary together with the other employees. This practice can help you track your finances and be able to plan better. 

For example, George is the owner of a manufacturing services company. When he was just starting, he started mixing his personal finances with his business finances. As the years went by, he became successful in this industry. However, he faced challenges as he was expanding because he found it confusing and complicated when his personal money is mixed with the business’ finances. He had to give some time sorting out these two separately.

#3 Not having a bank account solely for your business

Lastly, one of the simplest things to do but is often ignored and or forgotten by many business owners is to create a separate account for the business. This is almost the same as the second pint as business owners tend to mix their personal savings and business finances.

It is also unprofessional to offer or present your personal bank account when conducting business. It somehow affects how clients or other entities view our business. Setting a bank account is easy to do as there are many banks that offer fast applications. You can even ask the help of your bookkeeping services Singapore firm to help you decide which kinds of accounts perfectly fits your company structure.

Hire us today

The process of bookkeeping is rigorous. That is why it is more advisable to hire third-party firms to help you sort things out. In WLP Group, we specialize in these things. Visit us today to know more about our services.

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