Bookkeeping - your shield against losses!

A lot of Filipinos have been shifting to being an entrepreneur nowadays. Some were sadly retrenched and others who dream about it have finally found time to pursue it. Whatever their personal reasons are, for such a time as this, the Filipino indomitable spirit is just undeniable.

Bookkeeping - your shield against losses

This is actually aligned with the mandate of the government to produce as many entrepreneurs as possible for long term economic growth.

The painful part of this is that after all resources and efforts are put in, the business shuts down as fast as it was put up.

The struggle is real

Due to financial constraints, most small businesses, if not all, are a one-man team in the Filipino setting, at least temporarily until it gains momentum. Another reason for this setup is the preference of the budding entrepreneur to be hands-on and in control of everything. Everything from the management, marketing, purchasing, payroll, and most especially bookkeeping is being done by the owner himself or a family member, even if they have no background in accounting.

Too busy to get things done

The struggle with this setup is pretty obvious. The entrepreneur is pre-occupied with all the daily operations of his business instead of focusing on things that add value to the business. He comes home at the end of each day drained of any energy to do his bookkeeping duties. And even if he has done it, but due to his insufficient knowledge in accounting, there is the mix up of personal and business matters in his bookkeeping process, the lack of monitoring when it comes to spending, the absence of provisions for depreciation, maintenance and emergency funds. The financial statement that will be derived at the end of the period is then not the faithful representation of the business.

These seemingly insignificant issues when remain unresolved, will put the business at risk and over time untimely demise.

Why do you need a #bookkeeper in your business?

A correct financial report is a reliable source of information on the overall health of the business. Only professional bookkeepers can deliver this. As a doctor is to a patient, so is an accountant / bookkeeper to a business. A business is diagnosed from the figures reported in the statements and sensible decisions come about out of it. Red flags are oftentimes captured immediately and are given the much attention needed.

What does a bookkeeper do?

• Maintains records of financial transactions by establishing accounts; posting transactions; ensure legal requirements compliance.

• Develops system to account for financial transactions by establishing a chart of accounts; defining bookkeeping policies and procedures.

• Maintains subsidiary accounts by verifying, allocating, and posting transactions.

• Balances subsidiary accounts by reconciling entries.

• Maintains general ledger by transferring subsidiary account summaries.

• Balances general ledger by preparing a trial balance; reconciling entries.

• Maintains historical records by filing documents.

• Prepares financial reports by collecting, analyzing, and summarizing account information and trends.

• Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions.

• Contributes to team effort by accomplishing related results as needed.

Hiring a professional bookkeeper does not have to be expensive. But even if it is, businesses will reap the blessings of it over time.

You can message me if you have any queries regarding my online bookkeeping services!