A Modern Guide to General and Administrative Expenses

Today, grasping the concept of administrative expenses, commonly referred to as General and Administrative (G&A) expenses, is not just a fiscal responsibility but a strategic necessity. These expenses, vital yet not directly linked to production or sales, are crucial for day-to-day business operations. 

This guide delves into the essence of administrative expenses and their role in a business’s success.

Understanding General and Administrative Expenses

G&A expenses are the nuts and bolts that keep the business machinery running smoothly. They include day-to-day operational costs such as rent, salaries for corporate staff, office furniture, electronics, and legal fees. These costs, though indirect, support the core activities of your business.

G&A expenses are not directly linked to the primary business activities. For example, while your manufacturing costs contribute directly to the production of goods, the salaries of your finance team or the rent for your office space are indispensable for the seamless operation of your business but don’t directly generate revenue.

Importance of G&A Expenses

G&A expenses, while not directly generating revenue, are essential to a company’s efficiency and profitability. Effective management of these expenses improves the bottom line. A reduction in G&A costs often translates into increased profitability. However, indiscriminate cuts can be detrimental.  

As McKinsey research points out, efficient G&A management can raise earnings before interest, taxes, depreciation, and amortisation (EBITDA) by three percentage points and potentially increase valuation by 25%. It highlights the direct correlation between strategic G&A expense management and improved corporate performance.

Categories of Administrative Expenses

Administrative expenses encompass various operational costs such as: 

Salaries 

This isn’t just about the paychecks. In G&A expenses, salaries often comprise those of the corporate staff – the behind-the-scenes heroes. It includes your management team, finance department, and IT personnel. Their roles are required to steer the company’s strategic direction, manage funds, and ensure technological efficiency.

Rent

Rent is about the space where your business comes to life. For many companies, especially those in prime locations, rent is a substantial chunk of G&A expenses. It reflects both – the cost of physical space and its value in facilitating business operations.

Office Amenities

Often overlooked, this category nurtures a productive work environment. Whether basic tea and coffee or more comprehensive offerings like meal kits or cafeteria services, these amenities fuel and satisfy your team. It contributes to overall efficiency.

Employee Perks

Beyond basic compensation, perks can range from health benefits to team-building activities. These perks are investments in employee well-being and satisfaction. It directly impacts retention rates and the company’s attractiveness to potential talent.

Furnishings and Electronics

This goes beyond initial purchases. Quality furniture and updated technology, essential for a modern workplace, fall under administrative expenses, enhancing productivity and efficiency.

Legal Fees

Legal fees encompass more than just contract reviews. They’re about protecting your business interests and ensuring compliance. These costs vary greatly but are essential for safeguarding your company’s future.

 

Each of these categories forms the foundational support that allows the revenue-generating aspects of your business to thrive. 

Analysing G&A Expenses Vs. Revenue

Analysing general and administrative expenses concerning company revenue reveals financial health. Industries differ in their allocation of revenues to G&A, with gaps of 4-8% of revenues observed even among competitors in the same industry. 

Effectively managing and reducing G&A expenses can increase a company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) by up to three percentage points, potentially leading to a 25% increase in valuation.

Challenges in Managing G&A Expenses

Managing G&A expenses involves differentiating between transactional activities and those that add value. For example, in human resources, value-added activities include recruiting and organisational development. But transactional ones involve tracking hours worked or administering benefits. 

Reducing G&A expenses without harming revenue growth requires a strategic approach. It requires focusing on containing transactional activities and freeing up resources for value-adding functions like marketing and product development.

However, as companies expand across different business lines or geographic markets, the complexity and costs of support functions tend to increase. This complexity is a primary contributor to G&A costs. 

Effective Management Strategies

Effective management of G&A expenses requires a strategic approach tailored to the unique needs of each company:

Strategic Allocation of Resources

Focus on areas with the most significant impact. For instance, a major European insurer reduced its full-time-equivalent expenses by 26% and improved customer satisfaction by focusing on key drivers in finance and risk functions.

Investment in Value-Adding Initiatives

Allocate resources to areas that enhance customer experience and operational efficiency. A global logistics company invested in IT and people, leading to a 25-30% reduction in customer complaints and a nearly 50% increase in customer satisfaction. 

Simplification of Processes 

Streamline operations to cut costs and increase efficiency. A European energy company simplified 30 core processes, cutting 20% of its expenses while maintaining employee retention rates.

Smart Payment Methods

Move away from cash and traditional company cards. Opt for prepaid cards with spending tracking.

Spend Management Platforms

Use tools that categorise and track every payment and facilitate real-time expense monitoring.

Cost Reduction Plans 

Implement policies requiring managerial approval for expenses, review subscriptions and services for unused resources, and consider remote or hybrid work models to reduce office-related costs.

Unified Approach to Expense Management

Adopting a unified approach to expense management enhances control and efficiency:

  • Holistic Strategy: Manage all company expenses, from travel to subscription payments, under a single strategy.
  • Standardisation and Simplification: Standardize transactional activities across all departments to reduce complexity and costs.
  • Continuous Review and Adaptation: Regularly assess and adjust strategies to meet changing business needs and market conditions.
  • Incorporate Technology: Utilize all-in-one spend management tools for streamlined tracking and reporting.

Conclusion: The Impact of Administrative Expense Management

Mastering G&A expenses is a game changer for big businesses. Smart management, from resource allocation to cost-cutting, drives efficiency and profit. Remember, proactive control over these expenses isn’t just about saving money; it’s about fueling business success. 

Master Your Expenses More Efficiently

Xpence’s automated expense management tool enables you to issue virtual cards and visa debit cards, track spending, control spending amounts, and auto-categorise expenses for quicker analysis. 

Make expense management at work hassle-free with Xpence Visa cards, either physical or virtual.

10 Automated Accounting Software You Must Try to Speed Up Your Bookkeeping

We are currently experiencing a shift similar to when digital spreadsheets replaced traditional bookkeeping in physical ledgers. Automated accounting software is becoming the new standard, replacing manual data entry and spreadsheet calculations. 

Small businesses benefit from accounting software, saving time and increasing productivity while detecting errors. 

This blog explains the top 10 software to help you automate your accounting and bookkeeping process.

10 Automated Bookkeeping Software You Should Know

Here’s a quick list of the top 10 software for accountants today. 

Xpence

Xpence is by far the most easy-to-use, user-friendly tool for automated bookkeeping on this list. It can capture, digitise, and automatically categorise transaction receipts with a simple scan.  

Its auto-categorisation capabilities have helped business owners save valuable time when tallying their expenses at the end of the month. It also provides rich insights into where your money is going and areas to cut back on. 

After its user-friendliness, Xpence’s second most excellent standout feature is how far it goes to foolproof your bookkeeping without burdening you. It sends reminders to capture a picture of your receipt every time you pay, so you never lose any records. 

Xpence keeps expanding its integration ecosystem to more and more accounting tools and payment service providers, allowing its users to export their data quickly, no matter where they’re based. To get started, you only need to open an Xpence account

Best-suited for: All business types of all sizes and Industries looking for a budget-friendly plan. 

Unique Features Pros Cons
  • – Real-time auto-categorisation of payments.
  • – Deep spending insights.
  • – Budget-friendly for all business sizes.
  • – Beginner-friendly.
  • – Incredibly user-friendly interface.
  • – The time you were saving. 
  • – Ever-expanding integration ecosystem to support all vendors. 
  • – It is only available in the UAE and Bahrain (for now).

QuickBooks

Small businesses, self-employed individuals, and freelancers widely use QuickBooks due to its user-friendly interface and pricing options. 

It also integrates natively with most payment services like PayPal and Stripe, so the records appear automatically when you send or receive payments in QuickBooks. 

Best-suited for: Small businesses, Startups, and self-employed individuals looking for budget-friendly plans. 

Unique Features Pros Cons
  • – User-friendly interface.
  • – Affordable pricing plans.
  • – Automated invoice and expense tracking.
  • – Budget-friendly.
  • – Limited scalability for larger enterprises (unless you upgrade to the Desktop plan).

Xero 

Xero is an award-winning cloud-based accounting software known for its ease of use and advanced automation capabilities. Because it’s cloud-based, it’s accessible from anywhere, making it ideal for businesses with remote teams in varying locations. 

Xero has become one of the most popular accounting tools for businesses with international operations because of its multi-currency support, allowing easy management of foreign transactions. 

Best-suited For: SSmall businesses, Startups, and self-employed individuals looking for budget-friendly plans. 

Unique Features Pros Cons
  • – Multi-currency support.
  • – Cloud-based.
  • – Inventory Support
  • – Remotely accessible.
  • – Budget-friendly. 
  • – Advanced features may require add-ons.
  • – The learning curve for some users.

Sage Intacct

Sage Intacct is an accounting software tailored for businesses with advanced financial management requirements. 

While not the cheapest, Sage intact comes with incredibly sophisticated reporting and analytics tools, making it ideal for medium-sized enterprises that require data-driven insights for strategic decision-making. 

It also offers dimensional accounting to track transactions made by various dimensions such as department, location, or managerial level, allowing you to create all kinds of reports. 

It is best suited for Medium-sized businesses with flexible budgets.

Unique Features Pros Cons
  • – It has advanced reporting and analytics for businesses that rely on data-driven insights.
  • – Flexible and Scaleable.
  • – Robust automation capabilities
  • – Pricing may be higher than alternatives on this list. 
  • – It may be complex for beginners.

FreshBooks

Like Xero and QuickBooks, FreshBooks is also a cloud-based software for accountants and is tailored specifically for businesses offering a service. Freshbooks includes time tracking, automated invoice reminders, and many other project management features that make it ideal for companies that bill clients based on hours worked.

It’s also known for having an aesthetically pleasing user interface and being easy to use for non-accounting professionals. 

Best-suited for: Large service-oriented or creative businesses looking for budget-friendly plans.

Unique Features Pros Cons
  • – Visually pleasing interface.
  • – Time tracking to bill hours worked. 
  • – Easy to learn and use.
  • – Automated invoice and expense tracking.
  • – It may lack some advanced accounting features.
  • – It is not the best fit for companies that sell products.

Plooto 

Plooto is a payment automation platform designed to simplify and streamline account management and payment processes for businesses of all sizes. It’s cloud-based and offers automated bill management, multiple payment methods, and multi-currency support, making it ideal for companies with remote teams. 

Plooto’s accounts payable automation sets it apart, which is particularly beneficial for businesses focusing on cash flow and timely payments. 

Best-suited for: Businesses of all sizes looking for a budget-friendly plan. 

Unique Features Pros Cons
  • – Streamlined accounts payable automation. 
  • – Multi-currency support.
  • – Affordable for businesses that focus on payments.
  • – Simple and easy-to-use interface.
  • – Limited financial management features.

NetSuite

NetSuite is a comprehensive ERP system that offers advanced automation and financial management with extensive customisation options to tailor your experience according to industry-specific standards and your unique needs. It’s known for its powerful e-commerce integration that allows businesses to manage online sales channels and inventory. 

In addition to its library of customisation options, NetSuite is adaptable to all countries and industries as it supports multiple languages, currencies, tax regulations, and compliance requirements.

It’s on the pricier side of all the other entries on this list, but it might be your ideal choice if you have the budget and need an all-in-one solution. 

Best-suited for: Large Businesses with advanced needs and a high budget.

Unique Features Pros Cons
  • – Allows a high degree of customisation.
  • – E-commerce Integration.
  • – Comprehensive ERP management system. 
  • – Advanced automation and scalability.
  • – Highly Adaptable to different business types and Industries.
  • – High price.
  • – Implementation and customisation can be complex for beginners. 

Wave Accounting

Wave Accounting is a free-of-cost software for accountants that offers automated invoicing, receipt scanning, and financial report generation. The core features are free, but add-ons like mobile receipts, payroll, bookkeeping support, and expert consultations cost an additional price. One of its most unique features is the receipt scanning app that allows users to digitise paper receipts for expense tracking. 

Wave integrates with your bank accounts so that you can automate the bank reconciliation process. It also offers multi-currency support and integration with third-party payment processors to extend functionality. It’s an excellent option for small business owners or freelancers at the start of their journey. 

Best-suited for: Small businesses, Startups, and self-employed individuals looking for budget-friendly plans. 

Unique Features Pros Cons
  • – Core features are free.
  • – Receipt scanning. 
  • – Budget-friendly plans.
  • – Easy-to-use.
  • – Limited advanced features.
  • – It may lack scalability for growing businesses.

Oracle Financial Services Accounting Hub

Oracle Financial Services Accounting Hub is an intensively designed software solution for businesses with highly complex financial requirements. Oracle’s solution excels in managing complicated compliance requirements for heavily regulated industries such as Insurance, Banks, and Asset Management firms. It helps ensure compliance with accounting standards like IFRS and GAAP.

Oracle’s advanced accounting logic can also handle various financial products and transactions, including loans, deposits, securities, derivatives, etc. It serves as a centralised repository for financial data by consolidating and unifying data from different economic systems. 

The only major drawback to Oracle’s Financial Services Accounting Hub is the price.

Best-suited for: Large organisations with a substantial budget, complex financial requirements, and heavy regulatory oversight. 

Unique Features Pros Cons
  • – Complete financial management solution.
  • – Advanced customisation and automation for large enterprises.
  • – Highly advanced data security.  
  • – Highly expensive, only suitable for large enterprises.
  • – Learning and implementing the software can be a time-consuming process. 

Kashoo

Kashoo is a cloud-based accounting and bookkeeping software designed primarily for small businesses, freelancers, or sole proprietors planning to scale. It has one of the most user-friendly interfaces of the other entries on this list and uses simplified accounting tools to cater to users who may not have a strong background in accounting. Kashoo’s standout feature is that it offers tutorials and resources to help users enhance their accounting knowledge. 

Kashoo uses double-entry accounting principles that help maintain accurate financial records by recording the debits and credits for each transaction. It also offers automated invoicing, bank reconciliation, and financial reports. 

It is best suited for small businesses, startups, and self-employed individuals with a flexible budget. 

Unique Features Pros Cons
  • – In-app learning with resources and tutorials.
  • – Real-time bank feeds. 
  • – Easy-to-use interface.
  • – Easy for beginners with limited accounting knowledge.
  • – Limited advanced features compared to some of the other entities.
  • – It may not suit every industry’s needs. 

Final Thoughts

Automated accounting software offers a multitude of benefits to organisations of all sizes. By taking care of repetitive tasks, not only do they save time and enhance productivity, but they also prevent errors. By embracing these tools, businesses can take a significant step towards efficiency, precision, and future-proof financial management. 

Mastering Petty Cash Reconciliation: How to Manage Company Cash Payments

Petty Cash Reconciliation

Petty cash, often used for minor expenses, requires meticulous attention to ensure accuracy and transparency. Many accounting scams happen in petty cash, and how to reduce errors or fraud in petty cash reconciliations is still complicated. 

In this blog, we dive into petty cash reconciliation, offering valuable insights and practical tips to help your organization maintain control over company cash payments while streamlining financial operations.

What is Petty Cash?

Petty cash is cash kept for business or company expenses that are small in amounts and incur on a day-to-day basis. Petty cash transaction expenses are typically small in value, frequently occur, and are often unpredictable. It streamlines small expenses, saving time and resources while offering convenience, efficiency, and flexibility. Other petty cash controls include monthly checks created by someone other than the custodian and limits on withdrawals, such as 10% of the entire fund.

Petty Cash Transactions and Records

Effective management of petty cash transactions involves a systematic approach to handling transactions and maintaining accurate records:

Establishing the Fund

Determine the appropriate amount for the petty cash fund, typically ranging from $100 to $500, to cover routine expenses.  A small business might need just $50, but a large company department might start with $150.

Securing the Funds

Safeguard the cash securely, appointing a custodian to oversee its management.

Recording Expenses

Ensure employees collect detailed receipts for every expense, including the date, vendor, items purchased, and the amount paid.

Regular Replenishment

At set intervals (e.g., weekly or monthly), tally expenses and request reimbursement from the organization’s primary cash or bank account.

Maintaining a Ledger

Keeping a ledger for transparency and monitoring fund balance can help us track the flow of fund amounts.

Understanding the Process of Petty Cash Reconciliation

The petty cash reconciliation process verifies the accuracy of a company’s petty cash fund by comparing the ledger with the actual cash on hand. This ensures transparency and accurate financial reporting. To reconcile, count the cash, compare it to recorded expenses, investigate discrepancies, and adjust the fund as needed. This process maintains financial accuracy efficiently.

  • – Recording Expenses: Whenever a petty cash expense occurs, document it immediately in a logbook or a digital spreadsheet. Add date, expense description, and amount spent.
  • – Retaining Receipts: Always collect and keep receipts or invoices for every petty cash expenditure. This helps in verifying the expenses during reconciliation.
  • – Frequency of Reconciliation: The petty cash fund should be reconciled regularly, such as weekly or monthly, depending on the volume of petty cash transactions.
  • – Count Cash on Hand: Physically count the cash remaining in the petty cash box or envelope. This amount should match the initial fund amount plus any replenishments.
  • – Compare with Recorded Expenses: Total the recorded expenses from the logbook or spreadsheet. This total should match the cash on hand.
  • – Identify Discrepancies: If there is a difference between the counted cash and the recorded expenses, investigate and reconcile the discrepancy.
  • – Replenishment and Adjustment: If the petty cash fund has a surplus or deficit, adjust it accordingly. In the case of a deficit, request replenishment from the company’s main cash account.
  • – Document Reconciliation: Maintain a record of the reconciliation process, including the date, the initial fund amount, expenses, and any adjustments made.
  • – Review and Approval: Ensure that a responsible party reviews and approves the reconciliation to verify its accuracy.
  • – Secure Documentation: Safely store all reconciliation records, receipts, and related documents for auditing and record-keeping purposes.

By following these steps, a company can effectively manage its petty cash fund, maintain financial accuracy, and ensure that cash expenditures are well-documented and accounted for.

Petty Cash Challenges and How to Address Them?

Managing petty cash effectively is crucial for maintaining financial control within a company. However, challenges often arise, and here are some common problems and streamlined solutions to address them. 

Problems Description
Petty Cash Shortages Petty cash shortages occur when the fund doesn’t have enough money to cover legitimate expenses, disrupting daily operations and creating financial challenges for the organization.
Inadequate Documentation Poor documentation practices make tracking how petty cash is used difficult, leading to discrepancies, errors, and difficulties in reconciling expenses.
Lack of Accountability When there’s no clear individual responsible for managing petty cash, it can lead to a lack of accountability, making monitoring fund usage challenging and preventing misuse.
Irregular Replenishment Delays in replenishing the petty cash fund can cause interruptions in routine business activities, as employees may not have access to the necessary cash for small, legitimate expenses.
Unauthorized Expenses Unauthorized or unapproved expenses can lead to misuse of petty cash and disputes over reimbursement, undermining the fund’s integrity.
Lack of Security Inadequate security measures for petty cash can make it susceptible to theft or misplacement, putting the funds at risk and compromising financial control.
Inefficient Reconciliation Inefficient reconciliation practices make it hard to match petty cash expenses with records, leading to difficulties in verifying transactions and ensuring accurate financial reporting.

Manage Your Cash Payments With Xpence corporate cards

Using Xpence corporate cards for business spending makes it seamless for you and your employees to automatically record expenses without manually adding each expense into the system. 

Here’s how Xpence cards address the petty cash reconciliation problems:

  • – Set Limits: You can set spending limits on employees’ Xpence cards so that their spending does not exceed your budget.
  • – Seamless Recording: The Xpence cards generate a statement on demand and help you access the details of your spending from anywhere. Thus, your recording is error-free and does not require manual effort.
  • Digital Receipt Recording: Your employees don’t need to submit or fill out any forms; they need to take a picture of the receipt, and it will be saved in the Xpence app.
  • – Security: All your transactions are safe and secure in the Xpence cards, and you can change settings as to who gets access to these cards.
  • – Issue Multiple Cards: You can use a single company account, issue multiple cards from one account, and track their spending in one app.

Conclusion

By adhering to best practices and utilizing modern tools, petty cash can remain a valuable asset in your financial toolkit, ensuring smooth day-to-day operations and accurate financial reporting. cash reconciliation is a vital financial practice that helps organizations maintain accurate records, transparency, and accountability. 

It ensures that the cash on hand aligns with recorded transactions, providing a clear financial picture and reducing the risk of errors and misuse. Proper reconciliation contributes to efficient financial management and supports organizational integrity.

 

Bookkeeping 101: Essential Guide for Startups & SMBs

Bookkeeping 101: Essential Guide for Startup and SME

Recording financial transactions require skills, consistency, and time to generate useful reports such as income statements, revenue, and spending analysis. However, many startups and small business owners overlook the benefits of bookkeeping.

This blog is your ultimate guide on bookkeeping that explains its basics, methods, importance, and steps to record the entries.

Bookkeeping Basics

Bookkeeping, in simple terms, is the recording of the day-to-day business transactions as per the applicable accounting standards. It is a part of the accounting process that helps small businesses and startups streamline their financial transactions.

Small businesses these days use accounting software that are available easily in the market. You can automate the recording of your financial transactions smartly with these softwares. However, the bookkeeping is done in one of the two ways mentioned below:

Choose a Method of Bookkeeping

Cash-based and accrual-based bookkeeping are the two methods you can choose for your startup.

Cash-based Bookkeeping

Under this method, the entries are recorded only when the money is received or paid. For example, if you paid an advance rent for March in February, you will record the rent paid for two months in February.

Similarly, if you have not received your sales income for December and receive the four months’ sales income in March, then you will record sales income in March for four months (December, January, February, and March).

Accrual-based Bookkeeping

Under this method, the financial transactions are recorded when they occur, even if no money is paid or received. In the above example of rent paid in advance for March in February, the accrual-based method considers recording rent expense when it is incurred.

It means you cannot record rent expenses in February for March; hence, you will have to pass a journal entry of rent paid in advance in February and book a rent expense for March only.

Similarly, the sales income received in March for the four months must have accrued in all those months; hence, under the accrual-based method, you will record sales income in all four months by debiting the account receivable.

Tip: Use the accrual method of accounting. It is preferred by the Generally Accepted Accounting Principles (GAAP) because it records revenue and expenses when they occur.

Explore more: Financial Management & Bookkeeping App For Startups.

How to Record Accounting Entries?

– Identify the transaction as to sales, purchase, receipt, payment, etc., before passing an entry. This is the most important step, where you must identify the type of entry. It helps you to identify which accounts will be affected in a particular transaction.

– Once you have identified the transaction, determine which accounts will be affected by a particular transaction. For example, you will need a salary expense account and a cash account or bank account for a salary payment transaction.

– Create ledger accounts for each transaction, such as purchase, cash, depreciation, etc. Once you identify which accounts will be affected, you will have to create those accounts in your ledger.

– Identify which account/s will be debited or credited. In this step, you will have to categorize the transactions as to which accounts needs a debit entry and which accounts need a credit entry.

– Pass an entry. Once all of the above is done, you are good to go with an entry. To record an entry, you will debit the accounts that need a debit entry and credit the accounts that need a credit entry. It will make both the debit and credit sides equal.

Steps to record accounting entries

Choose Your Type of Bookkeeping

You will have to decide between two types of bookkeeping methods: single-entry bookkeeping or double-entry accounting.

Single-entry Accounting

This method uses only one entry as a negative or positive amount depending on the outflow or inflow of money. It is widely used by very small businesses when they have fewer activities.

You can use single-entry bookkeeping when you are new to recording the entries in the general ledger and want to keep track of your financial transactions. You can record transactions as either income or expense.

For example, if you incurred a printing and stationary expense of AED 450, then you will record it as an expense of AED 450, and you do not need to record its cash or bank entry.

Double-entry Accounting

The double-entry bookkeeping method considers two columns for each transaction debit and credit. In other words, this method considers two effects for each transaction. Most businesses and companies use this method.

You should use this method when you have many financial transactions to record. In this method, you have always recorded transactions with two columns. Every transaction will have debit and credit sides affected.

For example, if you bought material worth AED 5,000 from a vendor, you will debit the material purchased account and credit the accounts payable (vendor) account. Thus, for every expense or income, you will have two sides affected: debit and credit.

Why is Bookkeeping Important for Startups & Small Businesses?

Big companies have accountants and online software that help them streamline their books of accounts. At the same time, startups and small businesses may not have started maintaining their books of accounts.

The points below explain how bookkeeping enables you to achieve your business goals:

– Bookkeeping helps you separate your business expenses and personal finances. You can even identify how much money you spend on a particular activity in a month. You can also set controlling measures if it exceeds your budgeted goal.

– Accounting simplifies your business spending and expenses by segregating them under separate ledgers. For example, you can group expenses related to office cleaning, tea and coffee, and snacks under office expenses.

– It allows you to organize documents and records. Bookkeeping provides preliminary information for financial statements such as cash flow statements, ratio analysis, and many other important financial reports for your business balance sheets.

– It helps you streamline your taxes, loan repayments, and investments since you have records for all of them in your accounts.

– Bookkeeping makes it easy for you to track your receivables and payables.

How to manage bookkeeping for your startup or your small business?

  1. Hire In-house Bookkeeper: You can employ a qualified accountant. He can use his skills to record the financial transactions for your business.
  2. Manage yourself: You may also decide to manage your accounts all by yourself. It helps initially when you have just started off your business.
  3. Use online bookkeeping service: You can also use various online bookkeeping services to automate your accounting entries. They can also generate invoices and other important financial reports.