Accounting system setup

Accounting information systems are considered as important organizational mechanisms that are critical for effectiveness of decision management and control in organizations. Businesses are said to adopt sound accounting systems if their bookkeeping and accounting systems are reliable, able to produce accurate and updated financial information.

Having the correct accounting systems in place can be critical to the success of your business.
There are a number of reasons why effective business accounting systems are important:

Easy references

Data about prices, suppliers, customers and inventory are important in trading businesses.Proper records and filling system will help entrepreneurs in term of getting the required information promptly and the information is available when needed.

Effective planning

Financial data and analysis are important for management to make effective decision-making. However, the data must be reliable, accurate and updated. Without a proper records system, entrepreneurs may ask for debts, which have been settled by debtors.

Right decision at the right time

Ability to make right decision at the right time is an important ingredient for a business to be successful. This requires the availability of accurate and complete information. Management may issue bounce cheque because the cash book is not updated.

To ease loan approval process

With a sound accounting system, entrepreneurs could supply all those required information immediately.

To obtain suppliers’ trust and confidence

It is important to get the supplier’s confidence in term of the business financial position and ability to pay debt on time. A proper record keeping and filling system will give confidence to suppliers to do business with.

Early detection of problems and enhance business competitiveness

Accurate and updated records of profit and loss, cash flows, sales, purchases and expenses enable entrepreneurs to know the actual position of their businesses.Proper records will alert entrepreneurs and help them to wisely plan for their business developments.

Effective internal control

Sound accounting system also serves as an effective internal control. Psychologically, good record keeping and filing system warns staffs that fraudulence activities will be easily detected. Businesses dealing with cash are exposed to risks related to insincere staffs.

Smoothing the auditing process (for company)

Having a proper record keeping and filling system can help to smoothing the auditing process. Improper records and documentations can lead to additional costs being incurred by the management.

At CheckedandBalanced, we believe that successful implementation of accounting systems requires  a fit between three factors - A fit must be achieved with dominant view in the organization or perception of the situation. Second, the accounting system must fit when problems are normally solved, i.e. the technology of the organization. Finally, the accounting system must fit with the culture, i.e. the norms and value system that characterize the organization.
We take pride in implementing accounting systems appropriate for your small business. For new businesses or those moving to MYOB or Xero, we can help customise your chart of accounts and design your invoice / statement. We can also train you with the basics of record keeping if you require.