DIY Accountant
Hi friends,

You all must be aware of the term DIY – Do it yourself, most of us have been following this DIY rule in most of our technical/non-technical/professional work especially during pandemic.
The current pandemic has affected our lives in a very different way. On one front where it has made us realise the care of resources and has changed our earning and spending patterns, on the other front it has made us realise the importance of DIY.
We all are more careful about the reason and source of earning and spending.
Like any other industry, the industry which has seen a sudden growth spurt in followers of DIY is
Accounting industry.
Specially for small business owners and start-ups, where they are pressed for money, the easiest expense for cost reduction is service fee of an accountant.
BUT,
The question to ask yourself is ARE YOU A CAPABLE DIY ACCOUNTANT?
To answer this question, we have a small test for you, a self -assessment to see if you are doing your accounts in a correct way.
Please rate yourself on a scale of 1-10 on five simple questions below:
1. Are you fully aware of the Accounting Principles and Reporting standards to prepare proper financials and do proper filing?If not, there can be a heavy penalty which can go upto 10000 SGD and imprisonment for misstatements of profits.
2. Are you fully aware of the correct categorisation of revenue and expenses?For eg. a laptop purchased for your business should be an asset and not an expense to your business, So are you making the mistake of incorrect categorisation?
3. How particular are you in differentiating the exp between business and personal?Are you claiming them correctly in your accounts?
4. Are you maintaining proper records for your business?
As per ACRA and IRAS guidelines a business needs to prepare and keep proper records of your financials for inspection if any, for a period of 5 years failing which can attract heavy penalties.
5. Are you economically digitised?
Do you have the correct accounting software suiting your business needs andyou are neither overspending nor under- utilising the full potential of your accounting software?
Score Analysis
1. Score is less than 25 – YOU NEED HELP, you are not a DIY accountant. Your Accounting system needs complete analysis and correction.
2. Score is between 25-40 - You are managing OK but, your Accounting system has errors which require correction
3. Score is between 40-49 – Congratulations! you are doing very well, but if you seek perfection you can hire a professional for analysis.
It is imperative to have a clean and correct accounting system. You may be the best person to run your business but maybe not the best DIY Accountant.
So, evaluate and analyse your business accounting needs carefully. Channelize your efforts to your main business for growth and leave the accounting to an accountant. It is an essential expense for your business.
A professional accountant is like a doctor who has the correct procedures and medicines for your ailing/incorrect financials to give a healthy business growth to your business.
Remember -Error Free Accounting is a gateway to your business growth and success.
Jagariti Mathur
Principal Accountant
R Accounting Solutions
(Your Accounting Doctor)
(We are best suited for businesses who want error free accounting in small budget).
+65-84683751
info@raccountingsolutions.com.sg
https://www.raccountingsolutions.com.sg/