Keeping Proper Transaction Trails
There are many start-ups which focused too much on their initial operational start up actions which they have neglected on keeping proper transaction trails, which many regretted thereafter.
Many startup business owners will neglect the importance of keeping proper transaction trails as the initial transactions were insignificant.
They started off their business with bad habits of not having a system to file their various Receipts, mixing up many payments which they have paid on behalf of the company and missed doing Expense Claims to move these expenses back to the Company for tax purposes later.
Proper Transaction trails start from proper system of Filing your source documents, records, and cheque butts, having a meaningful Sequential Numbering system for own Documents like Sales Invoices and Purchase Orders, etc.
Proper Transaction trails also entail developing good habit of accessing and reconciling your corporate bank balances on a daily basis.
Many startup business owners were too focused on their initial operational actions that they only see a mess in their bookkeeping later.
There is so much your Accountant can do as the latter can only do his job if there are proper historical records for transactions already done. Your Accountants are not Creative Accountants where they can help you recreate the transaction where they were not involved earlier.
Many business owners fail to see the importance of proper document filings and safe keeping of source documents.
Mind you, IRAS has rights to ask you for source documents up to 5 years after the transaction has happened, and you are obliged and expected to provide that source document to IRAS with ease.
Proper Financial Analysis can only come from Meaningful Financial Statements. Meaningful Financial Statements can only come from proper Bookkeeping of Transactions and Consistent Accounting Policies. Proper Bookkeeping can only happen if Proper Transaction Trails are being maintained.
Remember, Garbage-In Garbage-Out.
You will only have yourself to blame if your Accounts are messy later.
There is so much your Accountant can do.
Remember that.
It pays to engage your accountant from the start, perhaps on a quarterly basis initially, to ensure proper books and records are being maintained from the very start.
Your Accountant is the master of transaction trails and records.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
