Updating of Backlog Accounts
Updating Of Backlog Accounts: Companies that have been in operation for few years, especially SME’s in Ghana would not have maintained their books of accounts and would be managing their transactions either in the old-school way of recording in books or excel sheets.
With different laws mandating the maintenance of books of accounts, business find it difficult to set apart time for recording the old transactions in an orderly manner.
What do you mean by Updating of Backlog Accounts?
Updating Of Backlog Accounts is the process of recording prior period transactions from the inception of the business and ensuring all transactions are captured such as to portray the true position of a company. It defines the financial position of a company, paving way to perceive the future of the business.
The benefit of Backlog Accounts Services in Ghana
Companies that are aware of the importance of recording transactions in an orderly manner would have hired staff for bookkeeping. However, the management may not be able to determine the accuracy of recording the transaction or compliance with the laws of the land. The staff may not be able to analyze the transactions and provide an opinion on the financial position of the company. As Warren Buffet mentioned, it is always advisable to review past mistakes before committing new ones.
- A permanent record of transactions:Keeping track of transactions without recording the same is difficult over a long time. Accounting the transaction would provide a permanent record using which the businessman can easily gather information.
- Analysis of the business:Once the accounts are updated, the investors can draw out reports on the efficiency of the business and analyze the business work. Market trends, the scope of diversifying, and future opportunities can be analyzed from the reports.
- Saves time:When accounts are recorded in software, the investors/employees will not have to go back and search for details of an old transaction. It will be readily available in the system and the supporting documents can be tracked using the reference number mentioned.
- Facilitates cash flow management:Proper recording of transactions will give a clear picture of the financial aspect of the company. Without recording the expense and income, the company will not be able to understand the financial position and arrange the funds when necessary.
- Supports Decision Making:Reports drawn from the accounts will help the company to make strategic decisions for the benefit of the company. With a huge cash balance, it can opt for investing in any project, or with a low cash balance, it can avail facilities to ensure that the business runs smoothly.
- Simplifies Audit Procedure:When the accounts are updated, the audit procedure will be simplified, and comparative figures can be reflected while preparing the report.
- Compliance with Legal requirements:On updating the accounts, compliance with legal requirements can be checked and necessary changes can be made to the extent possible.
The methodology adopted for Backlog Accounts Services in the Ghana
- Discussion with the management: The nature and volume of business is analyzed, and the specific requirements of the company are understood by the management.
- Collection of documents: The details of all transactions carried out so far are collected from the client. The documents collected include vouchers, transaction source documents, cheques, counterfoils, payment slips, receipts, bank statements, and other inputs necessary for updating the accounts.
- Accounting of Transactions: The accounts will be updated by our executive based on the documents and explanations provided by the client
- Report Generation: On completion of accounting the transactions, the following reports will be prepared –
a. Balance sheet (statement of financial position)
b. Profit and Loss account (statement of comprehensive income)
c. Cash flow statements
d. Ageing Report
e. Comparative report on sales performance and expenses
f. Financial Ratio Analysis - Report Discussion with the management: The prepared reports will be discussed with the management, highlighting the business performance and areas in which the company can invest.
Our Role in Updating your Backlog Accounts
Our experienced executives can help in updating your company accounts from the year of inception. We ensure that the accounts of each year are closed appropriately, ascertaining compliance with all the relevant statutory requirements.
While Updating Of Backlog Accounts, our associate will visit your office and collect the sales invoices, purchase invoices, payment vouchers, receipt vouchers, petty cash expenses, bank statements, cheque counterfoils, bank transfer copies, etc and update the accounts either at your office or at our office. Further clarification/requirements, if any, will be sought during updating the accounts.
On completion of updating Of Backlog Accounts, the compliance of relevant laws and statutory requirements will be checked and advised accordingly. The reports generated will be discussed with the management and overall business performance will be analyzed.
We will ensure, with the support and cooperation of the management, that the books are up-to-date in all respects, such that regular accounting can be carried forward henceforth.
Contact us
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