Setting Up Bookkeeping & Accounting
To plan and manage business operations and growth, a business needs to know where it stands financially. A good bookkeeping and accounting system can contribute to providing those insights. Accurate records are needed to process payroll, pay suppliers & taxes, etc. Selecting the right-sized solution for a business considers the business size and complexity of operations and revenue streams; and business compliance requirements to select the type of bookkeeping and accounting software needed. Once selected, an accountant can establish a chart of accounts to support accounting and reporting needs and transaction recording processes. A bookkeeper can then help with processing transactions and generate periodic standard reports for management and accounting review.
A key elements of a good accounting process includes:
- Segregation of duties
- Account Reconciliations
- Independent reviews and approvals
- Data access management
- Data back-up
- Internal audits to ensure compliance with policies and procedures
These are basic elements of Internal Controls intended to detect errors and fraud.
Having a reliable financial data is key to keeping management aligned on the current state of business in comparison to budgets and forecasts.