rightly audit your finances for Small and Medium Businesses

How to rightly audit finances for Small and Medium Businesses?

rightly audit your finances for Small and Medium Businesses

It is not easy to rightly audit finances for small and medium businesses. A financial audit refers to the examination of the financial records of a business. This is done through a systematic review of the transactions, financial statements, accounting books, cash holdings, internal policies, and other sensitive financial data.

Financial audits dig deep into a company’s finances and provide valuable information about a business. When done correctly, a financial audit gives clarity about how a business operates, uses its money, and assumes the risks. This understanding is crucial for the success of any business however big or small.

Financial audits also help identify errors in the books and records. These can be used to calculate operational efficiency and highlight specific areas where the business can benefit and make a profit in the long-run.

Although many businesses have routine financial audits once every year, some small businesses might conduct occasional audits to organize their financial data, find missing records, and ensure that there are no discrepancies.

In this blog, we will outline the basic steps of conducting a financial audit. These will simplify the process for you and make it easier for you to audit finances for small and medium business:

Gather documents linking to your finances

At the first step of to audit your finances, it is must to collect all financial documents namely sales receipts, invoices, bank statements, and others. It is essential to have all documents in one place as it helps in decreasing the chances of any discrepancies at a later stage.

Look at record-keeping

You must check and review your company’s record-keeping policies to ensure that all financial data is being stored properly. If you are a small business, you must keep an electronic copy of the cash register, cancelled cheques, invoices, and all other important financial documents at one place that is easily accessible at the time of any need.

Review your accounts with Focuslyte accounting system

It is essential for you to review each individual element of your company’s accounts such as debits, credits, journal entries, ledger, and financial statements. To rightly audit finances a one needs to ensure that all the necessary accounts are present and that entries for debits and credits are posted in the general ledger in a timely way. Focuslyte gives you an advantage to automatically be able to correct human mistakes and typing errors.

Review internal control policies

You must occasionally review your company’s internal policies such as separation of accounting duties between employees, locked safe to hold pending cash deposits to the bank, and password protected accounting software that is able to track and showcase which activity was performed by whom and at what time. You must check these internal policies for the level of protection that they offer from accidental incidences of theft and fraud.

How to rightly audit your finances for Small and Medium BusinessesCompare internal and external records

You must check and verify the internal records of income, expenses, and cash holdings of your business with the external records. Always ensure to compare your supplier’s purchase receipts with the internal purchase records as this will help you immediately identify errors if any. It is helpful to check these and rectify any discrepancies on a monthly basis.

Look at Tax Records

Take out time to analyse your company’s internal tax records and officially filed tax returns. It is a good practice to maintain tax records of at least the last 7 years.

Check your tax receipts from IRS and compare them against records of your tax paid and tax liabilities. It is beneficial to also review the range of credits and deductions in your tax receipts.

Internal financial audits are extremely beneficial as they also prepare you for possible external audits. Financial audits are often also helpful for small companies to obtain a business loan.

Not only this, the information from financial audits can be used to prove to the stakeholders that the company’s financial practices are good.

FocusLyte is the best cloud based accounting software. It helps you keep all your financial records in one place and eases the process of financial audit for your business. It has been designed to be GST complaint and helps file GST returns in an easy and efficient manner.

FocusLyte offers you a host of accounting solutions in a single package. It is available at an affordable monthly cost.

Learn more about how your business can benefit from FocusLyte accounting software, signup free trial and manage your business accounting with intuitive UI.

Signup Now!

Grow Your Business with Best Accounting Software Focuslyte

Grow your business with the Best Accounting Software

Needless to say, accounting software is essential for a flourishing business. In this day and age of modernization where business activities have moved online and the GST taxation system has made e-invoicing mandatory, best accounting software online with GST compliant technology support has become indispensable.

FocusLyte is a user-friendly and efficient cloud-based GST compliant accounting software. It has been intelligently designed to enable businesses to access their most up-to-date accounting details from anywhere and at any time.

Let us understand a few advantages of FocusLyte Cloud Accounting System and how you can Grow Your Business with the Best Accounting Software:

Create Invoices

FocusLyte software has been designed to simplify your invoicing process. It helps you create professional invoices and gives you the flexibility to design your custom invoice formats.

FocusLyte also offers added ease of generating sales receipts and business estimates that you can share with your prospective clients and stakeholders in just a blink of an eye.

GST, E-Way Bill and E-Invoice Support

GST filing is an essential part of running a business in India. FocusLyte simplifies this process by helping you generate GST reports. It also enables the automation of the GST filing process.

FocusLyte also offers support for e-way bill generation. You can easily generate an e-way bill JSON file from the sales document itself. It is a hassle-free process that is aimed to help you save time and effort.

Learn How and Why E-Invoicing is the next big thing in India?

FocusLyte also enables easy compliance to E-Invoicing requirements. You can generate the E-Invoice from the voucher entries. All in the click of a single button. Mailing your customer the E-Invoice is also an aided possibility in FocusLyte.

Accounting Reports

It is essential for a company to keep a track of the various parameters in order to know how the business is performing. This is exactly where FocusLyte cloud computing software is highly beneficial.

It helps you generate and download customized business reports from your account dashboard. You can use these reports to analyze the statistics and address the bottlenecks to drive business growth.

Cash Flow Management

For any business however big or small, cash flow management is a tedious task. FocusLyte software has been created by keeping in mind your requirement to record all bills and track the payment progress.

You can enter your vendor invoices in the FocusLyte system and pay them on their due dates. FocusLyte also enables you to create and schedule recurring payment instructions for invoices that are to be paid on a periodic

Inventory Management

Inventory management is another task that requires a lot of time and effort. A business with a large number of SKUs and bulk order processing requires a robust system for inventory management.

FocusLyte enables you to manage your inventory with the help of HSN codes or product names. It has an intuitive user interface with scalable features. Inventory management cannot get better than this!

FocusLyte is a SaaS-based cloud accounting software that has been certified by the GST authorities. It is highly customizable and can be easily deployed. It has been designed for different segments of taxpayers and for a variety of businesses across all industries.

FocusLyte relieves you of your accounting worries so that you can focus on your business growth! It offers all the accounting resources that you may need for your business in one place.

Register Free Trial with the best accounting software and get started today!

why e-invoicing

How and Why E-Invoicing is the next big thing in India?

In India, the e-invoicing (electronic billing) system has been recently introduced under the GST scheme. This marks a revolution in invoice management. Needless to say, e-invoicing is the present as well as the future of invoicing in India.

There are more than a handful of reasons why e-invoicing is advantageous as compared to the traditional paper bills or PDF invoices. The e-invoicing system facilitates automation of the invoicing process and offers a large number of operational and strategic benefits to businesses in the long run!

In this blog, we have listed the 5 most important benefits for organizations both small and medium to make a switch to e-invoicing systems:

Real-time Invoice Tracking

Real-time Invoice Tracking – With e-invoicing, it has become fairly easy for a supplier to share invoice details to the customers in real-time. By using FocusLyte e-invoicing software, you can easily register your invoices with IRP and share details of the same to the customer and know when an invoice was created, sent, viewed, and paid. It also enables faster availability of Input Tax Credit for GST.

Automated Reporting

An accounting cum e-invoicing software can be used to generate a variety of business reports in just a blink of an eye. These reports can then be used to automatically populate input fields for different tax forms on the GST portal.

real time reports e-invoicing focuslyte

Automation of GST Return Filling

In the current scenario, manual filling of GST returns requires a lot of time and effort. E-invoicing not only offers ease of GST filling but also gets the necessary tasks done at a faster rate and that too with better accuracy.

Minimize Mistakes

Manual GST filling is prone to errors. E-invoicing offers added convenience by reducing the chances of human mistakes and data entry typos. It also helps overcome the problem of data mismatch. The GST filling process becomes much simpler with the automated reconciliation features in out product.

Low Carbon Footprint

e-invoicing is a paperless invoicing process. It eliminates the need for paper for invoices as well as postal stamps. Creating and sending digital invoices also reduces operational costs multi-fold. It helps save a lot of time that can otherwise be utilized for more productive tasks at work.

no paperwork with e-invoicing

E-invoicing promotes work efficiency and accuracy in more ways than those listed above. As a business, you spend much less time in processing your invoices and get paid faster.

FocusLyte is a popular e-invoicing web application that simplifies the GST return filling process and offers assistance for e-way bill generation.

FocusLyte offers e-invoicing with added ease of customization thus leading to improved customer service. You do not need additional storage space to keep the hard-copy of your invoices as e-invoices can either be stored on the cloud or on your computer’s hard disk drive.

Keeping the requirements of businesses in mind, it has been designed to have an intuitive interface with scalable features.

FocusLyte also offers additional features of cash flow management and inventory management. It is a robust cloud accounting software that has been designed to help you overcome your accounting challenges thus allowing you to focus more on your business than on filling taxes and returns!

With the Government of India implementing the Goods and Services Tax (GST) in 2017, the Indian market witnessed an increasing need for an integrated accounting solution that not only helps users in navigating the GST with features such as automated return filing but also is effective in unifying and automating accounting processes.
To help Indian Taxpayers, FocusLyte is empaneled by GSTN. It is a part of the initiative in offering Accounting & Billing Software free of cost for companies whose Turnover is less than 1.5Cr with Basic features.

Experience the ease of managing your accounts with e-invoicing, request a free trial now!