We handle Accounting, payments, invoicing & salary slips

An accountant is a professional who is adept in performing accounting work, be it recording business transactions and keeping records, preparing financial statements, issuing an invoice to the customer, recording receipts and payments.

Main  Role of an Accountant may include:

• Recording of all business transactions for eg sales, purchase, income, expense, receipts, payments,  etc
• Maintaining accounting records and files
• Preparing and maintaining tax reconciliations, accrual, prepaid reconciliations
• Reconcile the bank accounts with Books
• Reconcile the account receivable and accounts payable
• Preparing and maintaining tax reconciliations, accrual, prepaid reconciliations
• Compile, analyse, verify and prepare financial records for their department or organisation as a whole

Different Types of Accounting:

• Financial accounting
• Managerial accounting
• Cost accounting 
• Tax accounting

Here are some ways that can help in maintaining accounting accuracy:

• Keeping separate records and files for personal and business finance
• Need to identify revenue streams and book the revenue as per service contract/purchase contract and applicable generally accepted accounting principles (GAAP) in your respective country. 
• Need to keep a track of Sale invoices and recording of receipts from customers and knocking off the same in system against respective sale invoices to reflect the picture of correct accounts receivable balance in financial statements
• Need to book vendor invoices for COGS and expenses under correct expense head and to keep track of payments made to vendors and knocking off the same against respective invoices to ensure correct accounts payable balance reflects in financial statements and ageing reports can be fetched from system
• Timely recording of payroll expense and payments thereof
• Correct classification and booking of fixed assets and capital expenses in respective heads
• Recording of correct tax impact in entries while booking of sale and purchase invoices and ensuring periodic reconciliation of tax payable on sales and input tax credit available on purchase /expenses
• Month/ Year end adjustments to reflect the correct accruals, Prepaid and other accounting adjustments required as per applicable GAAP to ensure Profit and loss account and balance sheet reflects true and fair view
• Preparing financial statements from trial balance and analysing the same. 
• Periodic review of the financial statements and MIS, Passing rectification entries for errors observed in periodic review /audit

• Accounts payables comprise amounts that company owes to suppliers and other creditors — items or services purchased and invoiced for
• Accounts receivable are the funds that customers owe your company for products or services that have been invoiced. The total value of all accounts receivable is listed on the balance sheet as current assets and include invoices that clients owe for items or work performed for them on credit

• Procrastinating and making data entry errors
• Improper record keeping
• Inadvertent changes in closed period
• Delay/Failure to reconcile books with bank accounts
• Mixing of Personal and business transaction and records 
• Skipping to inform or discuss the big financial transactions with the accountant and losing track of the transactions
• Inadequate knowledge of accounting software
• Punching of entries in wrong classifications or heads of accounts resulting in discrepancy 
• Expensing off assets instead of capitalising
• Creating an accounting structure that does not mimic the business and can’t scale up with the business
• Choosing accounting softwares not complying with local GAAP and tax laws

If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant.

When you enter an accounting entry, you often cancel it with an equal entry that is its opposite. This cancellation of one entry by another in the general ledger is a form of offsetting. However, offset accounting generally refers to the creation of contra accounts to offset, or net, one account from another on the balance sheet. Offset accounting also refers to the partial or full offsetting of debt of one party by another.

Executive accounting involves preparation of budgets, forecasts, financial reports and collaborating with top management of the company to help them analyse take business decisions based on the prepared reports and inputs shared by executive accountants. executive accounts are general certified professionals like Certified Public Accountant (CPA), Certified Management Accountant (CMA). They are professionally handling all the areas of executive accounting along with taxation and applicable regulatory compliance for respective business entities.

• Accrual basis accounting is better as it tracks revenue as it is earned and expenses the moment they are incurred. This system mandates that business should follow matching principle i.e. revenue and expenses pertaining to a period are booked in the respective period which results in reflection of correct Profit/loss earned by business along with visibility of correct receivable and payables in Balance Sheet prepared using this method
• Furthermore, the cash-basis system is not acceptable according to the Generally Accepted Accounting Principles, or GAAP. For companies required to comply with GAAP standards , the accrual-basis method is the preferred form of accounting
• Cash-Basis Accounting focuses only on your business’s cash flow, tracking money that comes in as revenue or goes out as expenses paid

Material fact is bills or documents on the basis of which accounting entries are recorded in books like sales invoice/contract.

Accounting System

• Good way to maintain accounting records is to opt for the right  accounting system as per industry and size of your business

It’s important that any new business sets up a system as soon as possible. You’ll need to be able to keep records of expenses, income and taxes from the start.

Make sure the system you choose is easy to use and fits in with your day-to-day activities. There are a range of options available from keeping paper records to using accounting software. Online systems can be easier to use, as they automate calculations, allow you to run reports and give you access to the data you need.

• Softwares with an option to store data on cloud is also a very good option. It enables real time and easy access of records by concerned stakeholders and it is very convenient to share data and records with Consultant/accountant/Auditor/internal team/management for their respective purpose and their timely intervention wherever required
• Supporting documents are named and stored for easy retrieval
• Ensure the authenticity of the document created; every document should pass through the approval process.Restricted access and regular archiving
• Safety of the records and maintaining audit trail

Consult Professional for Support

• Maintaining accurate accounting records comes with its own set of rules which you may not be familiar with, so it’s important to ask for support
• Get advice about the matters you don’t understand as soon as you can. Your consultant can help with this. Don’t leave it until the end of the financial year, as by then it can be hard to correct historical information. Get in touch with us for any questions/ support  at info@startupmetrics.ch