Mastering bookkeeping is a foundational skill for any business aiming to achieve financial reporting accuracy, regulatory compliance, and timely manner. The below outlines practical steps to build strong bookkeeping habits.
1- Accounting System Setup
– Company should create bank accounts/facilities account which are under control of Business owner/management rather than personal account.
– Accounting manager should select accounting policies and accounting system which are suitable to company’s activity and customized the system fit to its chart accounts correctly.
– Electronic invoice management also recommend to use for customer billing and supplier payment to avoid human error, if possible.
– Accounting manager/bookkeeper should keep company documents such as licenses, MAA, Patent, VAT before first tax filling.
– Top Management should set segregation of duties on daily tasks for example who is data entry, spending authorization, reviewing financial reporting and approval on adjustment journal.
2-Weekly Tasks
– Accountant/bookkeeper enter data of company’s transaction such sale, purchase, payroll, advance, accrual and others on timely manner.
– Accountant/bookkeeper keep and upload supporting documents into system regularly.
– Accountant/bookkeeper control account receivable aging and follow up the late customer.
– Accountant/bookkeeper manage the supplier account and make payment on time to get special discount and no any duplicated payment.
– Accountant/bookkeeper always reconciles cash and bank balance to actual cash and bank statement.
3- Monthly Tasks
– Accounting Manager should review all bank reconciliation, cash count, AR balance, and supplier/bank borrowing facilities promptly.
– Accounting Manager should frequently examine profit and loss, balance sheet, and cash flow reports which are prepared by bookkeeper/accountant.
– Accounting Manager should spot check the key accounts such as revenue, cost of goods sold, payroll, and others for accurately and consistently which are posted by bookkeeper.
– Accounting Manager should review cash flow projections with budget line promptly.
– Accounting Manger should precaution in relation to tax liability, staff salary and others significant commitment and obligations correctly.
4- Year-end Tasks
– Accounting manager should reconcile the PPE, Inventory, Impairment, depreciation, bank/cash balance and any material liabilities accounts correctly.
– Accounting manager should review financial reporting carefully by reconciling with supporting documents before top management approval.
– Accounting manager should well review the annual tax working paper whether each account balances match with financial reporting before tax deadline.
– All data should be back up completely and accounting supporting documents should be kept in safe place for 10 years in according with accounting rule in Cambodia.
5- Basic accounting controls
– Top management should set up authorization limits for purchase and reimbursements.
– Top management should spot check on audit trail in the system for big transaction, adjustment made and override control cases.
– Top management should pay attention in Data storage while security is also considered as a key risk for sensitive financial information.
– Top management may consider using professional auditor to review financial statements annually.
How We Can Help
We will continue to closely monitor developments and provide the latest information promptly from the Ministry of Economy and Finance (MEF), the Ministry of Commerce (MoC), the General Department of Taxation (GDT), and the Ministry of Labour and Vocational Training (MLVT), the Ministry of Industrial and Handicrafts (MIH), the Ministry of Mines and Energy (MME), and the Council for the Development of Cambodia (CDC).
Accounting or Bookkeeping Outsource Services to be implemented by Cam Accounting & Tax Service Co., Ltd., a member firm of Kreston Global, holding a GDT tax agent license, Accounting, Auditing, and liquidator licenses from ACAR, and accredited by the National Bank of Cambodia (NBC) and Trust Regulator (TR).
Our Accounting, Tax & Audit Expert
Ms. Haing Sivtieng, MIPA, MBA
Accounting & Tax Partner
Chinese Line: +855 89 777 589
English line: +855 93 33 5158
Mr. Keat Heng, ACCA, CPA, FCCA
Partner
Mobile: +855 12 753 257
E-mail : info@krestoncambodia.com
Website: www.krestoncambodia.com
