The majority of business in Malaysia invested plenty of time preparing accounts and bookkeeping. Even consultants claim that they spend much of their time helping business with accounting firm in Johor Bahru in evaluating results and forecasting.
The weakness of financial reporting weakness is easy but has significant effects: businesses do not use the right technology. We invested much time to figure out the financial reporting structure imposed by the federal government, develop a reporting system and training employees. However, the employees return to Microsoft Excel every time the financial report is required. In some cases, they need to input the accounting information manually, do computations, print the report – a one-off spreadsheet that has no future worth (Also see Accounting Allies You Need for Your Start-Up).
Well, this method can get financial reports like Trial Balance, Balance Sheet and Profit and Loss created. Nevertheless, it can lead to errors in data entry and incorrect calculation that have far-reaching outcomes consisting of inaccurate financial statements; wrong decisions made based on these reports, and more. It might lead to delays and unexpected overtime expenditures. Also, with such a method to financial reporting, the team member needs to go back to square one on another spreadsheet whenever a financial report is required. If your company carries out many transactions daily, this could be frustrating.
As a company owner, you can complain that you do not have time to fiddle with a new accounting system. The majority of people fear of utilising new systems because they think that they do not have an opportunity to review the training notes, or they do not feel comfy with new accounting systems; therefore, they decide to continue using their old accounting systems.
Company owner ought to comprehend that today’s company environment is too competitive, and they need a precise financial reporting and forecasting systems. They have to embrace an accounting and bookkeeping system that provides accurate outcomes, evaluates them, and can assist the management in making better decisions in growing the business.
While preparing for a new system, you should set aside time to talk with your employees about the current reporting system. You might discover that an easy solution like creating basic report templates with numerous parameters can assist. With such a template, your employees will no longer need to start with a proverbial blank slate whenever a financial report is required.
If you are still uncertain how the accounting system works, do not hesitate to contact any accounting service in Johor Bahru to assist you in your company’s accounting.