Monthly accounting, like numerous other services, is also in the throws of radical change. Some people are still of the opinion that accounting is a staid and unchanging way of keeping the books. This opinion is often held by clients of accountants who sporadically pass their total financial records in a shoe box to their bookkeeper. However, there are others who are embracing the latest technological changes in the field of cloud based- or online accounting systems as provided by Strategic Accounting Services.
The Necessity of Monthly Accounting
Many smaller organisations can’t afford to employ fulltime accountants. Yet there are unavoidable needs for bookkeeping services.
Keeping Track of Financial Resources
People who do business, especially entrepreneurs, who are not accountants, are notorious for omitting to keep accurate track of their company finances. Unfortunately, these details can sometimes sink the best of businesses. Monthly accounting can greatly facilitate keeping track of financial resources.
It is safe to say that every country has legislation aimed at regulating the financial side of all businesses. Some are more formalised than others. The systems used by Strategic Accounting Solutions are compliant in this regard.
Keeping Track of Clients and Suppliers
Every business has some kind of input from suppliers and outputs to clients. In the simplest terms this is determined by what the customer pays for. All businesses have suppliers, whether it is the local bookshop from which the stationary is bought, or some highly specialised supplier of scientific industrial equipment.
Quite simply put: suppliers need to be paid with money that comes from customer purchases. Monthly accounting also gives the picture or how the business’ needs fluctuate over time. There are of course many other areas of customer relations which ensure a company’s longevity which are not tracked through monthly accounting.
Attracting Future Investors
It’s not unreasonable to assume that a successful business will attract the interest of investors. Were they to approach such a business in order to invest in it, it is most likely that they would enquire about the finances of that company. Having the accurate financial data readily available would have an important influence on their decision. A cloud based accounting system would make this so much easier for everyone involved.
Best Practice Monthly Accounting
In 2000 the National Treasury (Republic of South Africa) released a Best Practice Guideline to assist Accounting Officers in government. While intended for government departments, some of these guidelines can be applied to business in general.
Cloud based monthly accounting can provide a business with best practice reporting on the financial state of the company. Aspects of best practice include:
- Graphic presentation: Financial performance is not simply presented in the form of endless tables of numbers and spreadsheets. While this remains important, it’s the picture of a company’s performance for the month that helps most.
- Operational and financial focus: A system of best practice provides management commentary on the overall performance of the business.
- A set of financial statements: Organisations are required by law to produce this for auditing.
- A concise report from each major business unit, highlighting variances against budgets.
The information generated by Strategic Accounting Solutions is:-
- accurate, for meaningful decisions and steps to be taken;
- clear and unambiguous;
- flexible, and easy to adjust as needs change;
- comparable, to ensure that decisions have a baseline;
- relevant to each particular client’s business.
Monthly Bookkeeping and Accounting Services
Monthly bookkeeping services cover several areas of accounting. Basically it tells the story of what is going on the business from a financial point of view. The following areas are covered:
- Income Statement & Balance Sheet
- Monthly accounting up to trail balance
- Debtors Age Analysis
- Creditors Age Analysis
- Fixed asset register maintenance
- Balance sheet adjusting journals & reconciliations (Incl. Stock)
- Bank Reconciliation
- Debtor’s processing and reconciliations
- Creditor’s processing and reconciliations
An online accounting system addresses all these areas in such a way as to make it understandable to people who are not trained accountants. Ultimately, good monthly accounting enables the business to run more smoothly. People can occupy themselves with tasks directly related to production, rendering service and generating profit.
Ramos, M (2000) IN YEAR MANAGEMENT, MONITORING AND REPORTING Best Practice Guideline National Treasury, Republic of South Africa.