China Setup Accounting System Service
An enterprise accounting system is a management system that generates accounting information and prepares company reports within the enterprise internally, and is an operational system that can reflect, monitor, control, and coordinate business and financial activities according to financial objectives.
The accounting system summarizes and analyzes in detail the financial status of the enterprise and the utilization of various funds, which plays a vital role in promoting business operations, especially for start-up companies. All companies are committed to improving the quality of accounting information and using it as an important reference for decision-making in order to develop market-compliant solutions and effectively monitor the company’s financial management. With this in mind, it is vital for companies to have an accurate and responsive accounting system in place.
3E Accounting’s China accounting system setup service is performed by experienced accountants who can customize an accurate and efficient accounting system according to your needs.
The Importance of Setting Up An Accounting System
A well-developed accounting system is a very important part of any business. Accurate accounting management ensures that financial information is timely and reliable, helping you to keep track of your business and make decisions accordingly.
The benefits of setting up an accounting system include:
- Efficiency
A digitalized financial information system can process data faster and more efficiently, reducing human omissions. With the aid of hardware such as scanners, accounting information can be automatically generated and work can be completed immediately. If you need to access it, you don’t need to waste time searching for the text while you can quickly pull out the relevant information. - Cost-effective
Accounting systems perform most of the tasks that require multiple employees and are more accurate than manual execution. The accounting software can record and prepare trial balances, cash journals, current accounts, general ledgers, journal entries, etc., all stored in a computer database. If needed, the software can also perform functions such as calculating budgets and preparing payroll, significantly reducing the need for accounting staff and thus the cost of hiring-related personnel.
How to Set Up the Accounting System
- Collect financial documents
- Keep all documents related to the business, including invoices, bills, bank statements, receipts, official documents, and appraisal reports.
- If in doubt about a specific company’s documents, keep them and ask your accountant (or someone else who can help).
- Stamp to indicate the day of collection.
- Systematically file the documents
- Store different types of financial documents in different colored folders and tabs to make them easy to find.
- File the documents regularly to avoid hectic situations at the end of the year.
- Invoices, documents for uncollected balances, and other documents that need to be followed up are stored separately in individual folders.
- Confirm that the accounting scope meets the needs
- Check for transaction volume, business complexity, money budget, and time constraints.
- Depending on the need, either hire a bookkeeper (full-time or part-time) or outsource.
- Generally, it is recommended to hire a professional accountant who can assist you in setting up your accounting system, dealing with ongoing issues, and doing bookkeeping, analysis, and tax filing.
- Choose accounting software
- Identifying your accounting needs, whether you want to hire a bookkeeper or do your own bookkeeping, will determine whether accounting software is necessary.
- Free software can be used, although it has limited functionality.
- Entering accounts into accounting software
- Enter each business transaction, including customer invoices, vendor bills, deposits, and checks, in a timely manner.
- Check balances against bank statements each month to reduce potential errors.
- Make adjustments at the end of the month, such as depreciation, exchange rates, accruals, etc., to help improve the accuracy and reliability of the accounts, which can also be done by an accountant at the end of the year.
- Generating and analyzing reports
- The accounting software will generate reports based on the data entered. You can view accounts receivable and payable, inventory balances, etc.
- Financial statements can be generated monthly to view the profit and loss statement as well as the balance sheet.
- Financial statement analysis helps increase sales, reduce expenses, and ensure that your company collects and pays off loans in a timely manner.
Let 3E Accounting help you set up the right accounting system for your needs and avoid unnecessary accounting expenses later, Contact us now!