How to make your company’s accounting simpler?

MVery SME, but very organized, you will say vainly when you are asked about the accounting of your company. One of the first things that a company must leave ready to start off on the right foot is its accounting. Remember that the objectives of accounting are to manage, control and see the company grow through its processes. So here’s how you can turn your bookkeeping into something simpler but fairly organized.

And to whom are we accountable?

It is important before we get into the content of this article that we understand why to keep an accounting.

We have already said that order in our operations is of the utmost importance, an accounting system organizes us and allows us to manage ourselves better. But there are also a series of control entities that are necessary for this order to be reflected in results; far from fraud, bad practices and evasion, are we?

Accounting is a legal obligation, but it would be great if you did not see it as such and instead, try to give it the value it deserves and that will ultimately be for the growth of your company.

What does accounting control?

Controlling is the key word to describe accounting, it is basically the synonym that would best describe it and the most real concept that defines it.

The financial situation of your company has to pass through the hands of accounting, therefore, it reflects how you are doing in billing, cost calculations and financial statements.

In addition, accounting controls and manages your inventories, accounts receivable and, of course, accounts payable.

Here you can get an idea of how helpful bookkeeping can be. In case you were thinking about it, don’t even think about doing the accounting yourself, even if it’s true that your company is small, it doesn’t mean that you’re going to mess with it, leave this job to a professional accountant to do it perfectly, obviously, you can do all the follow-up you want.

Logs all movements

In order for you to go along the accounting path without difficulty, (it came out in verse), it is necessary that you establish a strict and meticulous record of all the movements that your company makes.

Yes, we know that the idea of this article is to tell you how easy it is to do bookkeeping, but we also said to leave it in the hands of an expert, so at this point you shouldn’t be worried, a qualified accountant is helping you with this, right?

That could be the first step towards simplicity, an accounting professional who is in charge of keeping in detail, all the movements that your company makes.

When we talk about detailed we refer to the fact of having the person designated for such purposes account for all transactions arising in the day, so there will be control of income, expenses, if purchases were made from suppliers and consumption or services.

It’s not a time-consuming task, but you’ll need to hire someone with a lot of attention to detail so that you don’t forget to record these movements on a daily basis.

In addition, the advertising agency is able to market and find the right opportunities for your product or service to grow in impact, authority and positioning. Want more reasons, read on!

Sistematízate

Today it is much easier to have technology as the best ally for bookkeeping. Gone are the days of books and manual bookkeeping. The modern and complete software to carry both billing and accounting in companies are the order of the day and you just have to choose the one that suits you according to your needs.

In Colombia you can find

Alegra

Alegra, an accounting software in the cloud that is designed to be used in a simple way and is ideal and complete for SMEs.

It allows you to work in modules for accounting, purchasing, portfolio, invoicing, inventory, orders, treasury and payroll. Very complete, we put it first because, as we said, it is ideal for small and medium companies; you might be interested in it.

Then there is

Siigo

The daddy, the cucho, which has been talked about in Colombia for a long time and which many companies of different sizes have implemented.

Siigo can be installed on a computer, that is, locally, but also offers cloud service (could not be left behind), and solves tasks such as: invoicing, purchases and expenses, accounts payable and receivable, quotes and inventories.

It even has an app for Android, that is; senior, but efficient.

We landed at

Softland

Softland, a software that also aims to solve the issues of small and medium-sized companies in a fast and efficient way.

It has modules for accounting, purchasing, portfolio, billing, inventory, orders, treasury and payroll.

There are many more, but we leave you with these three because according to the same users, they are the most pro of the market, but if you want to look at other options, it’s okay.

The accounting books like the bible, sacred

Yes, I know that at some point we talked about the modernities offered by accounting software and all its benefits, but we can not leave aside the accounting books to carry out the movements because, as we also mentioned, the Colombian legal framework requires us to carry them.

However, there is no law that determines in detail what these books are, but from the continuous exercise in the companies, it is known that they are these:

Main Books:

  • General ledger and balance sheet

  • Inventory and balance book

  • Daybook

  • Shareholders’ book

  • Minute book

Auxiliary books:

  • Bank book

  • Client book or portfolio

  • Cash book

Do not worry, apparently there are many, but in practice your accountant will know what to do and it would not hurt if you learn a little of the function of each of them so that you are informed, but it is not for you to go crazy with all that information.

Set dates to carry out the balance sheet

Some companies prepare the balance sheet on the last business day of each month to make adjustments and keep track of their expenses and income.

This may be your case too, set the dates that suit you best to control your information so you don’t miss anything.

Here we throw you a little pearl that some people forget when they are starting their small business and it is the value of the services, water, energy, telephony, gas, rent among others; these are denominated (

fixed costs

) and should be recorded in the accounts in detail as they will influence the costs of your company, although it is well known that utilities handle an average consumption, ie always arrive in the order of the same thousands of pesos, are of great help against a consumption shot or a significant savings and accounting should keep track, so, at the end of the month, you will have valuable information that will be reflected in the balance sheet.

The petty cash that sometimes doesn’t add up

Are you familiar with this point in any sense, the petty cash has become a reason for immediate cash for anything and everything and the truth is that it wasn’t meant to be that way.

The

petty cash

of a company, no matter how small, must be handled with absolute responsibility and detail. This has been earmarked for emergency expenses, for things that are really urgently needed and for which cash is required.

Whenever money comes out of petty cash for a purchase or payment, there must be an invoice or receipt to support and justify the purchase or payment. Be careful!

At the time of a cash count, the cash that there is, must coincide perfectly with the missing cash, which has to be supported with these invoices. And yes, as the owner or manager of a company, you can ask for an audit when you need it, and everything must be perfectly justified.

Also check that the person in charge of this work, as well as to keep your accounting is your entire confidence because, there are daily cases in which the person in charge makes improper use of cash, so the importance of being on top of things of your company and more if there is money involved.

Watch your inventory

Accounting for inventory is of the utmost importance to know how much you have, how much you have left to produce and what is about to expire.

We’re already talking about the fact that your company is small, but that doesn’t mean you won’t keep an inventory of your products, because if you don’t, you run the risk of it going up in smoke in the blink of an eye.

It often happens to small businesses that, in their eagerness to make themselves look good to potential customers or to gain the loyalty of some, they have product permanently available, and those units will represent an output in your inventory line and it has to be recorded.

If you are going to do it, be aware of your duty to inform the accounting part of your company so that they can make the necessary movements in the base where the inventory records are kept.

Paying taxes, the moment of truth

This will be the moment when the importance of keeping your company’s accounts in detail will also come to light.

To overlook this is to “throw the noose around your neck” with the control bodies and you may not have to take responsibility for this part during the first year, but we guarantee that at any moment you will be called to order.

A legally incorporated company will inevitably have to be accountable and when the time comes, you must be prepared.

And how will you do it?

  • Being honest and sincere with whoever handles the accounting of your company, classify all your economic activities in an honest way and take away the paradigm that counting everything is by law that you will be charged more taxes, that is not so true and many entrepreneurs omit valuable information for this reason.
  • The

    tax benefits

    to which you can avail yourself are many, among them, interest reduction, interest refund, income tax deductions, among others, so why not play fair to the country and do everything with transparency?
  • Ask your accountant to keep you informed of the movements of your company, of these benefits mentioned above and if possible to provide information for you to read about the provisions of the government and the benefits for those who create business in the country.
  • Get in the habit of filing and not throwing away your travel bills or anything that can justify a line item in your accounting. This happens to many business owners when they travel, they throw away the supporting documents, in this case invoices for food or transportation, among others, and then it becomes much more complex to reconcile the accounting information.

Tell us what else you do in your small business to make bookkeeping a success, you can help many more entrepreneurs with your knowledge.

Do you like what you are reading?

Join Apunt-e for free online marketing tips and resources
directly into your inbox.

Contact us at

Free of charge. Cancel your subscription at any time.