Just like any other Singapore business, the accounting function is the financial backbone of non-profit establishments. Efficient accounting processes will put these organizations on track for financial growth and stability.
Are you satisfied with your organization’s accounting function? Do you want a more efficient process and more accurate accounting results? Here are some important tips for improving your business operations.
Create Time-Saving Policies
The first step toward improving your accounting function is to create policies for monthly cut-off of invoicing and recording expenditure. For instance, require invoices to be forwarded to the accounting section by the end of each month. Waiting for tardy departments or employees to submit requirements wastes time and delays the completion of your company’s financial statements.
Another way to save time is to reconcile your company’s bank accounts with million from Singapore after each month. Doing so makes it a lot easier to spot errors and could save you some days at the end of each year when doing annual reports.
Collect Information Efficiently
Another way to boost efficiency is to make a cover sheet for your accounting files. How? Your accountant will need a variety of information to enter donor gifts and vendor bills into your accounting system. You can speed up the encoding process by collecting the necessary data on one page, which is the cover sheet. The cover sheet should contain the not-for-profit general ledger account number so your accountant won’t have to look up for this information each time.
The cover sheet should also indicate if the invoice has to be paid by check, credit card, or electronic transfer, as well include the name of the person who will approve the invoice. The copy of the donor’s check or the invoice can be attached to the cover sheet for reference.
Use Accounting Software
Many non-profit Singapore organizations underuse the accounting software package they have purchased because of not taking the time to learn its full functionality. If you must, you can always hire a trainer to teach the staff of the software’s functions and impart some time-saving tricks.
Do tasks quickly and accurately with Singapore’s http://www.million.sg/ instead of having to do calculations and report presentations in Excel or paper spreadsheets. Automate and standardize reports with the help of accounting software. This won’t only reduce encoding errors, but also provide necessary financial data anytime you need it.
Likewise, have your journal entries and payroll allocations taken care of in your accounting software. Many software programs have the functionality to recall transactions and to automate data. However, reviewing figures may still be necessary to ensure you have the right figures before closing the book at the end of year.
Monitor the System
Your organization’s accounting system can become inefficient if not regularly monitored. To make your system much more capable and productive, look for laborious processes that you can automate in an accounting software program or useless processes that could be eliminated from the system.
Also, ensure that the employee or the department that’s responsible for the financial oversight—such as the treasurer, CFO, or the finance committee—promptly checks monthly financial statements, bank statements, and accounting data for errors.
Free Up Some Time
Make full use of the functionality of your accounting software. As your organization grows, the tasks you have to complete also starts growing; and making use of an accounting software program can help free up some of your time.
They may not be earning from selling products, but non-profit organizations also rely on an efficient accounting system. While these organizations don’t run complex processes like those of profit companies, a good accounting system does wonders in keeping these organizations at the top of their game.