7 Helpful Ways to be Timely & Accurate with Your Accounting

The accounting and financial functions of a company are inherently vital for business continuity. Whether it is done by someone hired specifically for this role, or executed by the business owners themselves, there is no denying that someone has to do these unassuming but essential tasks.  

Despite being essential, accounting can be tedious and repetitive every month and quarter. Since it is not going anywhere though, we might as well do it right and systematically. So, here are some ways to improve your accounting process and update your books in time.

1. Create an Accounting Plan Early 

At the start of a fiscal year, it is helpful to have a plan on what your financial goals and accounting activities are. Planning early and aligning with the rest of the team ensures that everyone is on the same page. List out important events, due dates, or schedule big expenses so that you can be prepared. 

2. Set a Reminder to Prepare Monthly Statements on Time 

Monthly financial statements such as bank reconciliation and profit & loss statements (P&L) are some of the most important documents to prepare on time. Bank reconciliation should be done at the end of every fiscal month to tally up your accounts payable and receivable. This is opposed to only reconciling upon management or auditor’s request, which just spells trouble for the company. 

The same can be said for the profit & loss statement (P&L). Timely preparation would ensure accuracy and save you a lot of hassle during auditing later on. You can prepare an annual calendar with the internal finance team to have your bank reconciliation and P&L statements prepared on agreed-upon monthly reporting deadlines. 

3. Specify a Cut-Off Date for All Claims Submissions 

With many moving parts of a business operation, it is only natural to have a lot of receipts and invoices that need to be filed and processed. You can minimise errors and last-minute work by setting a cut-off date for all reimbursements and invoice payable submissions. Inform your team and all employees so everyone knows when to submit their claims on time. This will also ensure that no receipts are left unaccounted for. 

4. Chase Your Receivables

Never take your account receivables for granted. As the primary source of incoming cash flow for a business, accounts receivables determine the business’s ability to persevere. Getting paid is, therefore, another important aspect that you need to monitor closely besides driving top-line revenue. 

To better ensure that your clients will pay you on time, set up policies and reminders about your payment structure. Having a good relationship with the customers will also lessen disputes and ease communication. Then, you can proactively follow up on those outstanding invoices from clients without any hassle. 

5. Pay Your Taxes on Time

Everyone knows that you should pay your taxes on time. More so for companies that would otherwise need to pay hefty fines and penalties for late payments. Thus, you have to be alert to your local tax submission due dates. 

For example, the final date to submit a bi-monthly Sales & Service Tax (SST) filing in Malaysia is the last day of the following month. Timely tax payment ensures that your company avoids unnecessary costs, as well as keeps your records clean and accurate for the Inland Revenue’s tax audit later on.

Read more: 7 Questions on the Malaysian SST Answered

6. Continuously Learn & Improve 

As a key function of a company, accounting needs to keep up with changing regulations and presentation standards, workflow, and even company values. Accounting is not just transactional bookkeeping. Instead, it provides the company with valuable financial insights and interpretation of the vast numbers and ledgers that can aid management decision-making. Hence, your company’s accounting processes can always be revised, upgraded and improved upon so your company’s financial data stays relevant. 

7. Partner Up with a Professional 

Working with a certified chartered accountant can give a great advantage to your business. These trained professionals can provide you with helpful, practical advice and expertise in accounting best practices. 

You could also consider outsourcing your accounting functions to trained accountants and getting it done the right way. Outsourcing takes off the workload for you while you focus on core business activities and help your team achieve their goals. Done right, outsourcing improves accounting efficiency and promotes compliance through independent checks and balances. 

Read more: When is the Right Time to Outsource Your Accounting Function?

Conclusion

As mentioned before, accounting is a critical part of every business. It is very important to stick to a plan, and budget, and get things done before their deadlines. Timely and accurate accounting will result in a company’s records looking impeccable. The benefits of this will only compound over the years and assist the business further. 

The team at Ledgen consists of chartered accountants who are well-versed in local regulations, tax filing, accounts payable and receivables, and the maintenance of accounts that meets compliance standards and audit requirements. Our team is ready to help with a wide range of professional accounting services.

Get started with better accounting efficiency today.

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