Understanding Catch Up Accounting in the Philippines
Small and starting business owners juggle so many responsibilities at once that oftentimes they miss doing few things. Most of the time, they fall behind keeping their books and on making compliance reports.
Are you one of these entrepreneurs who are at the end of deadlines and don’t know what to do? Don’t panic! You can still catch up. This article lays down tips on how to do catch up accounting.
Catch Up Accounting: What to do?
It is possible to get back in pace with your bookkeeping. It just takes patience, grit, and cups of coffee to get through with it. You just got to start it. Otherwise, you’ll never get anything done.
Simply, Catch Up Accounting is doing the accounting tasks long overdue. Catching up is important, especially for small and starting businesses because you need the numbers to know what’s happening with your business.
Further delayed compliance reports with government agencies like BIR charges heavy penalties. You need Catch Up Accounting to avoid getting more charges. Here’s what you should do.
Search and Gather Your Source Documents
Getting your documents ready is very crucial in starting. If you have gone for weeks or months without recording a transaction, you’ll likely not remember any once you start to Catch Up Accounting. Getting these source documents is the first step to starting.
Collecting your receipts is vital. You can print out bank and credit card statements and start tracking your transactions from there. If you keep physical copies of cash transactions, the better. Recall your transactions from the previous months and compare them with what you got.
Gathering your copies of invoices is also important. This will help you track your income. You could also gather clues from bank statements of receipts credited to your account. Moreover, if you haven’t been diligently sending invoices for every revenue transaction, start doing it now. Also, follow up on customers who haven’t been diligent in paying their dues. Don’t hesitate in sending them reminders.
Payroll records are easy to regenerate if you have copies of your staff’s attendance on attendance registers. You can also verify this on your payout records by looking it up on your bank statement.
Purchase Orders and Vendor’s Invoice
You also have to track your purchase transactions for the months you didn’t record. Purchase Orders and Vendor’s Invoice are your go-to documents for this. If you’re missing a few documents, you can call your vendors, or send them emails to confirm. You can also review your bank statements for payments to vendors.
Start Bookkeeping on a Fresh System
If you had started bookkeeping before and inconsistently continued recording transactions, it’s recommended that you start fresh. This way, you don’t get stressed cleaning up after a messy job.
For faster and more convenient bookkeeping, you could try using cloud accounting solutions. You can upload your source documents here for digital storing. You only have to enter journal entries. Afterward, you can automatically post these transactions into ledgers. Trial balance and report generation are also few clicks away.
Don’t Be Afraid to Ask for Help
Managing business operations is one thing but accounting is an entirely alien task for some. Be honest with yourself, and think of why you’re falling behind. If you are finding it hard to do accounting on your own, maybe it’s time to consider seeking professional services.
There are many different options available to you. You can ask for a consultation, you can hire a freelance bookkeeper, you can learn cloud accounting solutions, or outsource these services entirely. You can explore your choices and research about them.
What’s Next? Start Keeping It in Good Shape!
Once you’re all caught up, the nightmare is finally over. But beware! This stress could all happen all over again if you lax with your record-keeping again. Start managing your books consistently. It’s always better to be prudent than running late on deadlines. You can do it!
3E Accounting Philippines is Here to Help!
Are you in immediate need to get caught up with your books and compliance? 3E Accounting is a prominent Philippines accounting service provider. Consult us today and get your issues solved by accounting experts.