Collective Consulting

  This article is for accountants & bookkeepers who use Xero

From experience, I can conclude that most small businesses do not pay attention to their bookkeeping/accounting records in the first few years of starting their businesses. They focus on sales, marketing, operations, recruitment and other business operations other than finance. They usually say, "let's make the money first, we will do the accounting later" How most SMEs handle their accounting process   What usually happens is that the proper books of accounts are usually "on hold" until the tax authorities seeks them for tax assessment/payment or a financial institution asks them for financials and forecast when they require funds to grow/expand operations. Now, the problem begins. The timeframe for submission of financial statements to the tax authorities would be short and penalties will ultimately accrue. In the event that it is a financial institution making the request, it is at that time they would be seeking out a finance professional that ...