Businessmen often wonder what happens to their investment. They do keep track of money invested in the beginning but as the business grows it becomes difficult to do since investment is not necessarily the money in the bank or cash expected to be collected from customers. Here comes the role of a good accounting system as well as an accounting team.
One of our clients, who has a fairly large commodities trading Business. They buy and sell multiple commodities every day. They have to invest regularly, in order to fund the purchases as the sale proceeds are linked to the maturity of the letter of credit. They have asked us that the bank balance does not reflect the investment.
Traditionally, it is almost impossible to give an answer straight away. Yes, you might prepare cash flow statement (direct or indirect method) however that will not help because;
- Businesses owner is not technically an accountant so would not understand what increase or decrease in assets has to do with the investment, he would want to know where the money is parked?
- Data entry is not up to date, even you try but you are not able to match the amount and may come up with the wrong figure.
Solution!!
Real-time data entry. We use tools that help us to do the data entry as the transaction happens, maybe in some cases, such a report is not critical. However, it is imperative in many businesses to know where the money is parked. With the help of our solution, we were able to print the report in minutes in the form that the client can understand easily. Get in touch if you want to learn more +971 50 502 5594
