Transparency From The Start In Small Business Accounting

September 20, 2014 12:31 am0 commentsViews: 70

By : Jitendra Consulting

Transparency-AcctgYou have a startup service or a small business. You need transparent accounting from the start. As businesses grow progressively, you simply cannot set up a computerized accounting system without proper audits and bookkeeping. Sans a system, the business has no directions. But there is no place for confusion in a business where even the mismatch of the smallest amount can make a difference.

The best part about it is that, if you are not yet ready, you do not need to invest a dime to purchase accounting software products. The default MS Office suite works just fine! As your business expands, you can automatically have the funds to subscribe to an advanced MS Office plan (Office 365 or MS SharePoint) or commission a specialized accounting software. In fact, nowadays most mobiles have default software applications to generate an invoice or keep records.

Because of technology trends and updates, you can also even access your accounting data from your smartphone, besides your desktop or laptop applications. There are always great software applications available for the purpose. However, do check the following criteria before getting into the particulars of small business accounting.

transparency-jitendraThe accounting software application should be …

  • Highly systematic with accurate figures down to decimals
  • Made in clear formats explaining every minute details of cost breakdown
  • Able to make the basic calculations such as addition, subtraction, multiplication or division, among other things
  • In file types that you can integrate with MS Office
  • Available with a cloud backup system to keep your data safe (If you use gmail, you get a good amount of FREE cloud space in Google Drive. Setting up a gmail account is also fast and easy.)

Guidelines for simple accounting process … 

Once you take care of the above arrangements, get started with your simple small business accounting using MS Excel. Remember that accurate and organized recordkeeping is vital for taxation purposes.  Thus, your accounting records should be able to monitor your employee details, keep track of your revenue and evaluate the progress of your enterprise. Listed below are some guidelines for a simple but ideal small business accounting process.

  1. excelStart using the typical MS Excel for your accounting worksheets. Make sure you have proper file names, mentioning the month and other necessary details. These are tiny aspects but they make a big difference when you need to find the right file name in a jiffy. Also, follow the same naming format for all files of the same type. This allows your computer to arrange your files automatically in successive order.
  2. Set up your accounting worksheet columns based on your unique business requirements. So, if you run a startup SEO content writing agency, your file columns should have headings such as ‘Project code’, ‘client code’, ‘project specifics’, ‘total word count’, ‘deadline’, ‘rate per word’, and ‘total amount’.
  3. Make sure you are following a standard work protocol, never to miss enlisting any single project or account, even though it may be a small one. Hence, as soon as a new project or account is created, immediately prepare an accounting entry into the excel sheet.
  4. Make sure to create an individual excel sheet for each employee record on top of the master record.  In the individual sheet, maintain a complete breakdown of the employee compensation which will include employee benefit details such as insurance, social security, and Medicare.
  5. Record all your business expenditures including electric bills for the firm, cost of computer repairs, staff salary, additional charges, fines & penalties (least expected) in the different columns.

Most accounting software applications nowadays also provide the necessary analytic functions for your MS Excel accounting data. You can easily chart graphs and pie diagrams in order to have a quick look at the Big Picture. This helps you to set your objectives and gauge your progress. The graphs and charts are also aids in the proper analysis and allocation of your available resources.

 

Jitendra Consulting Group is one of the best consulting services of Dubai,UK.  We work on global partnerships which allowed us to move further, serve your accounting needs better and produce points of contact that certify we are always within reach. Initially delivering services and support in the areas of Auditing, Assurance and Accounting, we build upon our core competencies so we can adapt to the dynamic market in leading and innovating business processes. To know more about us, browse @ http://jitendragroup.ae/

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