The Budget for 2011-12 is widely seen as cautious approach of the Finance Minister, Dr. Pranab Mukherjee towards balancing this critical phase of Indian economy. We are facing complex issues relating to soaring inflation, high growth rate, employment problems, rising oil prices, increasing deficit on current and capital account, corruption, black money, internal law and order disturbances and many more. In these circumstances our Finance Minister can definitely be excused for remaining in hibernation and playing safe in his position.
We wish financial establishment gets more proactive towards the needs of the time and react muscularly keeping in mind the aspirations of the public. In view of the media generated publicity about wastages and misappropriations of public money by some selected class of individuals the whole governance has been put on public trial. In these circumstances Regulatory Bodies are required to get into action swiftly and clear the misgivings otherwise help the government to discipline the perpetrators.
However, if the government feels that, the regulatory mechanism and policing can not be the solution to the problems like black money and foreign bank accounts etc. than it should audaciously look for alternative means and measures in the larger interest of the nation without being conscientious of opposition party's political criticism. Finance Minister should realise that, enormous Indian wealth is lying in other countries which he can attract discreetly and not by any kind of intimidation or coercion. In the interest of infrastructure development the government can come out with some scheme which permits this money to return back to India and strictly get invested in sector like education, health, roads, housing etc. A very simple scheme can do wonders to the entire nation and make our finance minister's name and congress leadership immortal in the fiscal and financial history of India.
KEY FEATURES OF FINANCE MINISTER'S BUDGET 2011-2012
Overview of the Economy
Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in2010-11 in real terms. Economy has shown remarkable resilience. Continued high food prices have been principal concern this year. Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year. Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.
Tax Reforms
Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012. GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.
Expenditure Reform
Committee has been set up by Planning Commission to suggest government expenditure ( capital, revenue, plan and non plan) reforms.
Subsidies
Government actively considering extension of the Nutrient Based Subsidy regime to cover urea. Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers.
PSU's
Rs. 40,000 crore to be raised through disinvestment in 2011-12. Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.
Investment Environment
Government to further liberalise the FDI policy. SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes. To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.
Banking and Micro Finance
Additional banking licences will be issued to private sector players. Rs. 6,000 crore will be provided to public sector banks for maintaining minimum of Tier I CRAR of 8 per cent. Rs. 500 crore will be provided to Regional Rural Banks for maintaining CRAR of at least 9 per cent as on March 31, 2012. India Microfinance Equity Fund of Rs. 100 crore to be created with SIDBI. New authority will vouch interest of small borrowers. Women's SHG's Development Fund to be created with a corpus of Rs. 500 crore. Target of providing banking facilities to all 73,000 habitations having a population of over 2,000 to be completed during 2011-2012.
Micro Small and Medium Enterprises
Rs. 5,000 crore will be provided to SIDBI for refinancing incremental lending by banks to these enterprises. Rs. 3,000 crore will be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress. Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest.
Housing Sector Finance
Existing scheme of interest subvention of 1 per cent on housing loan further liberalised. Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending. Provision under Rural Housing Fund enhanced to Rs. 3,000 crore. To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund to be created under Rajiv Awas Yojana. Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011.
Legislative Reforms
Financial Sector Legislative Reforms Commission set up to rewrite and streamline the financial sector laws, rules and regulations. Companies Bill to be introduced in the Lok Sabha during current session.
Food & Agriculture
Allocation under Rashtriya Krishi Vikas Yojana increased from Rs. 6,755 crore to Rs. 7,860 crore. To improve rice based cropping system in eastern region, allocation of Rs. 400 crore has been made. Allocation of Rs. 300 crore to promote production of 60,000 tons of pulses in rainfed areas. Allocation of Rs. 300 crore to bring 60,000 hectares under oil palm plantations. Initiative to yield about 3 lakh Metric tonnes of palm oil annually in five years. Allocation of Rs. 300 crore for implementation of vegetable initiative to provide quality vegetable. Allocation of Rs. 300 crore to promote higher production of Bajra, Jowar, Ragi and other millets, which are highly nutritious and have several medicinal properties. Allocation of Rs. 300 crore to promote animal based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries. Allocation of Rs. 300 crore for Accelerated Fodder Development Programme to benefit farmers in 25,000 villages.
Agriculture Credit
Credit flow for farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 crore in 2011-12. Interest subvention proposed to be enhanced from 2 per cent to 3 per cent for providing short-term crop loans to farmers who repay their crop loan on time. In view of enhanced target for flow of agriculture credit, capital base of NABARD to be strengthened by Rs. 3,000 crore in phased manner. Rs. 10,000 crore to be contributed to NABARD's Short-term Rural Credit fund for 2011-12. Approval being given to set up 15 more Mega Food Parks during 2011-12.
Infrastructure and Industry
Allocation of Rs. 2,14,000 crore for infrastructure in 2011-12. This is an increase of 23.3 per cent over 2010-11. This also amounts to 48.5 per cent of total plan allocation. Government to come up with a comprehensive policy for further developing PPP projects. IIFCL to achieve cummulative disbursement target of Rs. 20,000 crore by March 31, 2011 and Rs. 25,000 crore by March 31, 2012. Under take out financing scheme, seven projects sanctioned with debt of Rs. 1,500 crore. Another Rs. 5,000 crore will be sanctioned during 2011-12. To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued by Government undertakings during 2011-12.
National Manufacturing Policy
Share of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will come out with a manufacturing Policy. National Mission for hybrid and electric vehicle to be launched. Financial Assistance to be made available for metro projects in Delhi, Mumbai, Bengaluru, Kolkata and Chennai. Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector.
Exports
Self assessment to be introduced in Customs to modernize the Customs administration. Proposal to introduce scheme for refund of taxes paid on services used for export of goods. Mega Cluster Scheme to be extended for leather products. Seven mega leather clusters to be set up during 2011-12. Jodhpur to be included for the development of a handicraft mega cluster.
Black Money
Five fold strategy to be put into operation to deal with the problem of generation and circulation of black money. Government joining various international forums which are engaged in anti money laundering, Economic development, Exchange of information for tax purposes. Various Tax Information Exchange Agreements and Double Taxation Avoidance Agreements being concluded. Foreign Tax Division of CBDT has been strengthened to effectively handle increase in tax information exchange and transfer pricing issues. Enforcement Directorate strengthened three fold to handle increased number of cases registered under amended Money Laundering Legislation. Finance Ministry has commissioned study on unaccounted income and wealth held within and outside the country. Comprehensive national policy to be announced in near future to strengthen controls over prevention of trafficking on narcotic drugs.
Bharat Nirman
Allocation for Bharat Nirman programme proposed to be increased by Rs. 10,000 crore from the current year to Rs. 58,000 crore in 2011-12. Plan to provide Rural Broadband Connectivity to all 2,50,000 Panchayats in the country in three years.
MGNREGA
In pursuance of last years budget announcement to provide a real wage of Rs. 100 per day, the Government has decided to index the wage rates notified under the MGNREGA to the Consumer Price Index for Agricultural Labour. The enhanced wage rates have been notified by the Ministry of Rural Development on January 14, 2011. From 1st April, 2011, remuneration of Anganwadi workers increased from Rs. 1,500 per month to Rs. 3,000 per month and for Anganwadi helpers from Rs. 750 per month to Rs. 1,500 per month.
Education
Allocation for education increased by 24 per cent over current year. Rs. 21,000 crore allocated, which is 40 per cent higher than Budget for 2010-11. Pre-matric scholarship scheme to be introduced for needy SC/ST students studying in classes IX and X. Connectivity to all 1,500 institutions of Higher Learning and Research through optical fiber backbone to be provided by March, 2012. Additional Rs. 500 crore proposed to be provided for National Skill Development Fund during the next year.
Health
Plan allocations for health stepped-up by 20 per cent. Scope of Rashtriya Swasthya Bima Yojana to be expanded to widen the coverage.
Financial Inclusion
Exiting norms under co-contributory pension scheme "Swavalamban" to be relaxed. Benefit of Government contribution to be extended from three to five years for all subscribers who enroll during 2010-11 and 2011-12. Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 years of age to 60 years. Those above 80 years of age will get pension of Rs. 500 per month instead of Rs. 200 at present.
Environment and Climate Change
Rs. 200 crore proposed to be allocated for Green India Mission from National Clean Energy Fund. Rs. 200 crore proposed to be allocated for launching Environmental Remediation Programmes from National Clean Energy Fund. Special allocation of Rs. 200 crore proposed to be provided for clean-up of some more important lakes and rivers other than Ganga.
Other Provisions and Defence Expenses
To boost development in North Eastern Region and Special Category States, allocation for Special Assistance doubled. Rs. 8,000 crore provided in current year for development needs of Jammu and Kashmir. Allocation made in 2011-12 to meet the infrastructure needs for Ladakh Rs. 100 crore and Jammu region Rs. 150 crore). Allocation under Backward Regions Grant Fund increased by over 35 per cent. Funds allocated under Integrated Action Plan for addressing problems related to Left Wing extremism affected districts. 60 selected Tribal and backward districts provided with 100 per cent block grant of Rs. 25 crore and Rs. 30 crore per district during 2010-11 and 2011-12 respectively A lump-sum ex-gratia compensation of Rs. 9 lakh for 100 per cent disability to be granted for personnel of Defence and Para Military forces discharged from service on medical ground on account of disability attributable to government service. To build judicial infrastructure, plan provision for Department of Justice increased by three fold to Rs. 1,000 crore. Provision of Rs. 1,64,415 crore, including Rs. 69,199 crore for capital expenditure to be made for Defence Services in 2011-12.
Other Initiative by IT Dept.
These include e-filing and e-payment of taxes, adoption of ‘Sevottam' concept by CBEC and CBDT, web based facility for tax payers to track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity. Under Mission mode projects, funds released to 31 projects received from States/ UTs for computerisation of Commercial taxes. This will allow States to align with roll out of GST. Bill to amend the Indian Stamp Act proposed to be introduced shortly. A new scheme with an outlay of Rs. 300 crore to be launched to provide assistance to States to modernise their stamp and registration administration and roll out e-stamping in all the districts in the next three years. New simplified form ‘Sugam' to be introduced to reduce the compliance burden of small tax payers falling within presumptive taxation. Three more benches of Settlement Commission to be set up to fast track the disposal of cases.
Budget Estimates 2011-12
Gross Tax receipts are estimated at Rs. 9, 32,440 crore. Non-tax revenue receipts estimated at Rs. 1, 25,435 crore. Total expenditure proposed at Rs. 12, 57,729 crore. Increase of 18.3 per cent in total Plan allocation. Increase of 10.9 per cent in the Non-plan expenditure. XI Plan expenditure more than 100 per cent in nominal terms than envisaged for the Plan period. Increase of 23 per cent in Plan and Non-plan transfer to States and UTs. Fiscal Deficit brought down from 5.5 per cent in BE 2010-11 to 5.1 per cent of GDP in RE 2010-11. Fiscal Deficit kept at 4.6 per cent of GDP for 2011-12. 10. Fiscal Deficit to be progressively reduced to 3.5 per cent by 2013-14. "Effective Revenue Deficit" estimated at 2.3 per cent of GDP in the Revised Estimates for 2010-11 and 1.8 per cent for 2011-12. All subsidy related liabilities brought into fiscal accounting. Net market borrowing of the Government through dated securities in 2011-12 would be Rs. 3.43 lakh crore. Central Government debt estimated at 44.2 per cent of GDP for 2011-12 as against 52.5 per cent recommended by the 13th Finance Commission.
Tax Proposals - Direct Taxes
1 Exemption limit for the individual taxpayers enhanced from Rs. 1, 60,000 to Rs. 1, 80,000 giving uniform tax relief of Rs. 2,000.
2. Exemption limit enhanced to Rs. 2, 50,000 and qualifying age reduced for senior citizens from 65 to 60 year. Higher exemption limit of Rs. 5, 00,000 Citizens over 80 years.
3 Surcharge of 7.5 per cent on domestic companies reduced to 5 per cent.
4. Minimum Alternative Tax increased from 18 per cent to 18.5 per cent.
5. Tax incentives extended to attract foreign funds for financing of infrastructure.
6. Deduction of Rs. 20,000 for investment in long-term infrastructure bonds extended for one more year.
7. Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary.
8. Investment linked deduction extended to fertiliser industry and developing affordable housing.
9. Deduction on payments made to National Laboratories, Universities and Institutes of Technology enhanced to 200 per cent.
Tax Proposals - Indirect Taxes
1. Stay on course for transition to GST. Central Excise Duty to be maintained at standard rate of 10 per cent. Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net. Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.
2. Branded garments subject to 10 per cent excise duty.
3 Equipments needed for storage and warehouse facilities on agricultural produce exempted from excise duty. Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent. Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent. De-oiled rice bran cake to be fully exempted from basic Custom Duty. Export Duty of 10 per cent to be levied on its export.
4. Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets. Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent. Cash dispensers fully exempt from basic Customs Duty. Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles. Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology. Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles. Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles. Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted. Basic Customs Duty on solar lantern reduced from 10 to 5 per cent. Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap. Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning.
5. Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects. Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.
6. Exemption from Import Duty for spares and capital goods required for ship repair units extended to import by ship owners. Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment. Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty. Out right concession to factory-built ambulances from Excise Duty. Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.
Service Tax
Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor. Hotel accommodation in excess of Rs. 1,000 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax. Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning. Service Tax on air travel both domestic and international raised. Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net. All individual and sole proprietor tax payers with a turn over upto Rs. 60 lakh freed from the formalities of audit.
Net Position
Proposals relating to Customs and Central Excise estimated to result in a net revenue gain of Rs. 7,300 crore. Proposals relating to Service Tax estimated to result in net revenue gain of Rs. 4,000 crore. Proposals relating to Direct Taxes estimated to result in a revenue loss of Rs. 11, 500 crore and those related to Indirect Taxes estimated to result in net revenue gain of Rs. 11,300 crore.
Queries & Discussions Welcome
Note: The purpose of this note is to provide a brief overview of the key announcements pertaining to the Union Budget 2011. It does not seek to critically examine the various provisions nor is it meant to a complete elaboration of all its provisions. It is possible that some provisions of the Union Budget 2011 could be altered in some respect at the time of enactment of the final legislation. We recommend that advice be sought before taking any action on specific issues.
Tuesday, March 29, 2011
Dealing With Accounting Menace - Accounting
It would really be a hectic task for anybody, even with a business of small capitalization, to garner on the job resources for every extensible area of profession that needs to be applied over to accomplish diversified responsibilities of a business establishment.
With ever pouncing needs of compelling organizational structures and endurable substance in handling dynamic market and finance propositions it has become even tougher for businesses and individuals to keep up with the scales of maturity of books and paperwork of business affairs and other accounting transactions that are of intrinsic value to any organization.
In the professional practice, area of accounts is very vast and is directly or indirectly interconnected to various facets of any business activity. One has to deal with different factors of industrial and government norms aligned with various programs, necessities and obligations of a business setup in order to be compliant with the environment in which it is operating.
Orientations and ends of every framework are different and so are the accounting needs and it becomes all the more typical for businesses to appoint a streamlined and ever pertinent format of its books that could cater to the propelling dynamics of business environment that keeps changing.
Excelling in ones department and sharing other's expertise in one has become the need of the present business environment and being operated wisely by many of the entrepreneurs and managers to get the best output to their resourcing needs of business.
To comply with the times and terms various processes of business and operations have been streamlined and integrated with functional departments of which accounting is marked most important and pervasive.
Financial accounting, management accounting and payrolls are the core area on which any organizational framework revolves and seeks compliance. These are predominantly the functional areas of accounting.
To bring in solutions that fulfill the requirements of all these fundamental functions in the varied segments of propositions validating services of accounting firms are of much need and thoroughly being sought by corporate houses.
Accountancy firms are the professional solution providers of the accountancy solutions and accounting services which hold expertise in payroll accounting which meticulously deal with keeping a record of wages, tax accounting and other deductions to be dealt by business.
These firms possess not only the interface of dealing with the rules and norms but also have proper infrastructure and prominent resources in form of management, chartered and tax accountants and streamlined crew of functional departments of accountancy to deal with accounting menace, unique problems and intricacies in different situations and needs of business accounting.
From recording business transactions and producing the account to calculating and establishing cost of production and preparing the management account all is served by accountancy firms in the most professional manner for varying organizational needs across the domains and applications to meet the core requisites of commerce and business.
With ever pouncing needs of compelling organizational structures and endurable substance in handling dynamic market and finance propositions it has become even tougher for businesses and individuals to keep up with the scales of maturity of books and paperwork of business affairs and other accounting transactions that are of intrinsic value to any organization.
In the professional practice, area of accounts is very vast and is directly or indirectly interconnected to various facets of any business activity. One has to deal with different factors of industrial and government norms aligned with various programs, necessities and obligations of a business setup in order to be compliant with the environment in which it is operating.
Orientations and ends of every framework are different and so are the accounting needs and it becomes all the more typical for businesses to appoint a streamlined and ever pertinent format of its books that could cater to the propelling dynamics of business environment that keeps changing.
Excelling in ones department and sharing other's expertise in one has become the need of the present business environment and being operated wisely by many of the entrepreneurs and managers to get the best output to their resourcing needs of business.
To comply with the times and terms various processes of business and operations have been streamlined and integrated with functional departments of which accounting is marked most important and pervasive.
Financial accounting, management accounting and payrolls are the core area on which any organizational framework revolves and seeks compliance. These are predominantly the functional areas of accounting.
To bring in solutions that fulfill the requirements of all these fundamental functions in the varied segments of propositions validating services of accounting firms are of much need and thoroughly being sought by corporate houses.
Accountancy firms are the professional solution providers of the accountancy solutions and accounting services which hold expertise in payroll accounting which meticulously deal with keeping a record of wages, tax accounting and other deductions to be dealt by business.
These firms possess not only the interface of dealing with the rules and norms but also have proper infrastructure and prominent resources in form of management, chartered and tax accountants and streamlined crew of functional departments of accountancy to deal with accounting menace, unique problems and intricacies in different situations and needs of business accounting.
From recording business transactions and producing the account to calculating and establishing cost of production and preparing the management account all is served by accountancy firms in the most professional manner for varying organizational needs across the domains and applications to meet the core requisites of commerce and business.
Business capital, its environment and accountancy - Accounting
We always try to beat what we have already been getting in terms of benefits and solutions to our needs. Around the mark of our acquired benefactors revolves the ever bigger charm and we have all our attention to bring along that thing into the circle of our possession.
We all has this tendency for we all are human beings and we are supposed to reflect that nature in our living propositions, our communication, deals and most fervently in our business deliberations.
A business always has two things as the most fundamental part of its affairs, one is the capital and another is the environment it is dealing in. al other are just the proponents of the entire framework, including the entrepreneur itself.
Well what is being tried be an entrepreneur in a business establishment is the ownership of all the favorable entities which include money, customers, efficient resources and the position. Well all these are much subjective in terms of their utility and application in the process of business but all of them and every proponent of business are all normalized in the value of numbers and scores.
The system of putting a value of figures and calculating, tracking and contemplating the entire business is all number crunching game and it is about accounting. No matter what tools and strategies one employs in a business and streamlines it to get the access to more units of growth, all it finds their prominence with the values derived by accountancy.
Accountancy is the activity, and most significantly a business phenomenon of putting the organization and its affairs over the sheet with supporting events and calculations which are intrinsic to the process of business.
Accountancy is needed in business to service files, maintain logs, transactions, registering deals, keeping notes of important business data and bills. Functionally it is the idea of supporting the business with more promising framework and more assertive display of its affairs in the environment it is dealing.
Employees, customers, vendors, government, stakeholders, investors, dealers, financers, and the businessman himself need the right accounts for their business to do well in all the directions and dimensions.
Accountancy firms are the redeemers of business houses in this entire setup of financial accounting services. They provide the organization with business tax advice, payroll management, bookkeeping, personal taxation, managing their corporate taxations and various other accounting services that are of fundamental need to any business.
Accounting solution are best is shape and structure when a professional tax accountant serves it with the streamlined practice and expertise in the area. The professional advice of accountancy firms helps the business to deal with the most challenging affairs of business and its two fundamentals; capital which is employed and fabricated in the business and environment in which it operates.
We all has this tendency for we all are human beings and we are supposed to reflect that nature in our living propositions, our communication, deals and most fervently in our business deliberations.
A business always has two things as the most fundamental part of its affairs, one is the capital and another is the environment it is dealing in. al other are just the proponents of the entire framework, including the entrepreneur itself.
Well what is being tried be an entrepreneur in a business establishment is the ownership of all the favorable entities which include money, customers, efficient resources and the position. Well all these are much subjective in terms of their utility and application in the process of business but all of them and every proponent of business are all normalized in the value of numbers and scores.
The system of putting a value of figures and calculating, tracking and contemplating the entire business is all number crunching game and it is about accounting. No matter what tools and strategies one employs in a business and streamlines it to get the access to more units of growth, all it finds their prominence with the values derived by accountancy.
Accountancy is the activity, and most significantly a business phenomenon of putting the organization and its affairs over the sheet with supporting events and calculations which are intrinsic to the process of business.
Accountancy is needed in business to service files, maintain logs, transactions, registering deals, keeping notes of important business data and bills. Functionally it is the idea of supporting the business with more promising framework and more assertive display of its affairs in the environment it is dealing.
Employees, customers, vendors, government, stakeholders, investors, dealers, financers, and the businessman himself need the right accounts for their business to do well in all the directions and dimensions.
Accountancy firms are the redeemers of business houses in this entire setup of financial accounting services. They provide the organization with business tax advice, payroll management, bookkeeping, personal taxation, managing their corporate taxations and various other accounting services that are of fundamental need to any business.
Accounting solution are best is shape and structure when a professional tax accountant serves it with the streamlined practice and expertise in the area. The professional advice of accountancy firms helps the business to deal with the most challenging affairs of business and its two fundamentals; capital which is employed and fabricated in the business and environment in which it operates.
Monday, March 28, 2011
Know About Various Payroll And Accounting Softwares- accounting
No matter what is the size of the company, accounting and payroll software such as Peachtree Accounting software, QuickBooks software, Sage Software are essential requirements to streamline the accounting and administrative issues in any organization. These softwares are among the most important tools to operate an organization smoothly. However, market is flooded with wide range of software and it becomes a bit confusing for the users to choose one to best suit their requirements. Since every software company designing these products tries to sell its products, it is your responsibility to gather enough information about these products and buy the most effective software.
Quickbooks Software
Quickbooks software is one of the most popular accounting software around. This is preferred owing to its comprehensive features, sophisticated and user-friendly interface and other features including very efficient functionality, customizable reporting and affordable pricing. It has largest number of features than any other software of this category. This software will allow you to perform the basic accounting, payroll subscription, invoicing, credit card transactions, prepaid, financial reporting, customer statements and more. It also offers some drill down functionality also at a click of a button. In addition, QuickBooks is self-explanatory with ease of use, simple interface, easy to understand menus and more. One important fact that makes it global choice is its easy availability and support in many parts of the world. You can easily find Quickbooks consultants to help you with any problem you are facing with this software.
Peachtree accounting software
Peachtree Accounting software is an excellent product for small and medium businesses. Once you installed it, you can sit back and relax, as it will take care of all your accounting and payroll activities. Designed and offered by Sage, Peachtree also includes most of the features offered by Quickbooks. It comes with user-friendly and less serious looking interface (unlike grey interface in Quickbooks). With clean layout and interface, it also offers different templates that can be customized to give a personalized look. It offers al the basic accounting functionality including good journal layout, invoicing, credit cards, Pos, SOs and more. Since it is quite cost-effective, you can opt for it if you are starting a small business. However, Peachtree is only US compliant.
Sage Software
Sage software is known for award winning accounting software. Apart from all other usual features, Sage Software offers customizable features that allow you to operate efficiently for the advantage of your organization. Its products are designed to offer high performance, advanced functionality and great flexibility. This software offers you with what you need today in terms of features, technology and deployment options. There are three different versions of Sage 50 Accounts 2011 are there to solve all your accounts related jobs. Apart from providing all basic accounting functionalities, it allows to handle tasks related to small or medium businesses such as cash flow, VAT returns, management of budgets, control and management of stocks, sales and order processing and more. There are some reputed software companies such as a2rsolutions providing wide range of accounting software at reasonable prices.
Quickbooks Software
Quickbooks software is one of the most popular accounting software around. This is preferred owing to its comprehensive features, sophisticated and user-friendly interface and other features including very efficient functionality, customizable reporting and affordable pricing. It has largest number of features than any other software of this category. This software will allow you to perform the basic accounting, payroll subscription, invoicing, credit card transactions, prepaid, financial reporting, customer statements and more. It also offers some drill down functionality also at a click of a button. In addition, QuickBooks is self-explanatory with ease of use, simple interface, easy to understand menus and more. One important fact that makes it global choice is its easy availability and support in many parts of the world. You can easily find Quickbooks consultants to help you with any problem you are facing with this software.
Peachtree accounting software
Peachtree Accounting software is an excellent product for small and medium businesses. Once you installed it, you can sit back and relax, as it will take care of all your accounting and payroll activities. Designed and offered by Sage, Peachtree also includes most of the features offered by Quickbooks. It comes with user-friendly and less serious looking interface (unlike grey interface in Quickbooks). With clean layout and interface, it also offers different templates that can be customized to give a personalized look. It offers al the basic accounting functionality including good journal layout, invoicing, credit cards, Pos, SOs and more. Since it is quite cost-effective, you can opt for it if you are starting a small business. However, Peachtree is only US compliant.
Sage Software
Sage software is known for award winning accounting software. Apart from all other usual features, Sage Software offers customizable features that allow you to operate efficiently for the advantage of your organization. Its products are designed to offer high performance, advanced functionality and great flexibility. This software offers you with what you need today in terms of features, technology and deployment options. There are three different versions of Sage 50 Accounts 2011 are there to solve all your accounts related jobs. Apart from providing all basic accounting functionalities, it allows to handle tasks related to small or medium businesses such as cash flow, VAT returns, management of budgets, control and management of stocks, sales and order processing and more. There are some reputed software companies such as a2rsolutions providing wide range of accounting software at reasonable prices.
Saturday, March 26, 2011
The Need For Accountants Or A CPA - accounting
Every business is in need of a financial expert who can handle complex bookkeeping affairs. Whether it's a multinational company or a local business, accounting is a task best left up to a professional. Do you need an accountant? CPA? Carson City, NV has quite a few firms who can give you exactly what you're looking for. Before hiring such an individual you need to be aware of one thing: to what capacity are you going to allow this professional to be involved in your business. Do you need someone just for the normal accounting tasks? Do you require somebody who does that and also advises you on other financial matters?
Once you have carefully considered these questions, your next task is to find the right person for the job. A bookkeeper will keep your books up to date and his/her main responsibilities involve: determining accounts payable, calculating receivable accounts, filing for tax returns, and a few more. A reliable accountant will perform these tasks on a regular basis so that your company's financial situation is recorded at all times. However, there are certain limitations that an accountant faces. This is where a CPA or a Certified Public Accountant has an important role to play.
At a fundamental level, a CPA's job functions are the same as that of an accountant. Though a CPA has to look after the financial situation of a company, he/she has a bigger say in the monetary matters. A Certified Public Accountant has to meet a number of requirements laid down by AICPA (American Institute of Certified Public Accountants). Even after that, in order to be certified, one has to sit for stringent exams. A to-be CPA also has to have a particular amount of working hours under his/her belt before they can start practicing individually. This 'live internship' has to be carried out under the guidance of an experienced CPA. To say that a Certified Public Accountant is an expert would be an understatement.
All said and done, as a business owner you need to make sure that somebody keeps track of the finances of your company and keep it organized. By hiring a professional to do the job, you can devote time to other important matters as well.
Accountant? CPA? Carson city, Nevada has a number of reliable accounting firms who can take care of your money matters; whether you need just an accountant or something more.
Once you have carefully considered these questions, your next task is to find the right person for the job. A bookkeeper will keep your books up to date and his/her main responsibilities involve: determining accounts payable, calculating receivable accounts, filing for tax returns, and a few more. A reliable accountant will perform these tasks on a regular basis so that your company's financial situation is recorded at all times. However, there are certain limitations that an accountant faces. This is where a CPA or a Certified Public Accountant has an important role to play.
At a fundamental level, a CPA's job functions are the same as that of an accountant. Though a CPA has to look after the financial situation of a company, he/she has a bigger say in the monetary matters. A Certified Public Accountant has to meet a number of requirements laid down by AICPA (American Institute of Certified Public Accountants). Even after that, in order to be certified, one has to sit for stringent exams. A to-be CPA also has to have a particular amount of working hours under his/her belt before they can start practicing individually. This 'live internship' has to be carried out under the guidance of an experienced CPA. To say that a Certified Public Accountant is an expert would be an understatement.
All said and done, as a business owner you need to make sure that somebody keeps track of the finances of your company and keep it organized. By hiring a professional to do the job, you can devote time to other important matters as well.
Accountant? CPA? Carson city, Nevada has a number of reliable accounting firms who can take care of your money matters; whether you need just an accountant or something more.
Ontario CPA are highly qualified - Accounting
CPAs popularly known as Certified Public Accountant. They are highly qualified as well as certified and are subjected to various quality tests such as entrance exam and all and have successfully achieved the best possible rank in it. That is why they are called Certified Public Accountant.
Many times only those CPAs who are licensed, only they can practice freely and do the jobs for the public interest such as public attestation, auditing, judging financial statements. They are hardworking as well as committed to their work. The Ontario CPA can help in all such conditions related to accounts.
Ontario CPA is responsible for varieties of duty assigned to him. The duties include assurance of the public accounting. It also includes auditing as well. They can also attest various documents for the public as they have got the authority for that. Financial documents are also attested by them. When they are hired by various public sectors then they are not allowed to interact with the public directly. If someone is found to do that then at that particular time he or she is fired for violating the rules and regulations of that particular company or organisation. They are not allowed to do the same. It can spoil their reputation as well as the work environment.
In some companies they are also facilitated with the designation of Chief Financial Officer and are liable for companies growth and development and all the financial transactions as well as records. The consultant CPAs are not allowed for auditing jobs.
Ontario CPAs are also hired in the income tax departments of many small and medium sizes industries where a lot of tax related work is done. There are different sets of work that are provided or done by the CPAs. It can be through the private sectors or even individually. They can also work virtually in more or less all the areas of finance. There are many websites which provide detailed information regarding the list of the CPAs available in the town, with all their details as well as their fees sometimes. But be careful while making the decision to hire them.
Many times only those CPAs who are licensed, only they can practice freely and do the jobs for the public interest such as public attestation, auditing, judging financial statements. They are hardworking as well as committed to their work. The Ontario CPA can help in all such conditions related to accounts.
Ontario CPA is responsible for varieties of duty assigned to him. The duties include assurance of the public accounting. It also includes auditing as well. They can also attest various documents for the public as they have got the authority for that. Financial documents are also attested by them. When they are hired by various public sectors then they are not allowed to interact with the public directly. If someone is found to do that then at that particular time he or she is fired for violating the rules and regulations of that particular company or organisation. They are not allowed to do the same. It can spoil their reputation as well as the work environment.
In some companies they are also facilitated with the designation of Chief Financial Officer and are liable for companies growth and development and all the financial transactions as well as records. The consultant CPAs are not allowed for auditing jobs.
Ontario CPAs are also hired in the income tax departments of many small and medium sizes industries where a lot of tax related work is done. There are different sets of work that are provided or done by the CPAs. It can be through the private sectors or even individually. They can also work virtually in more or less all the areas of finance. There are many websites which provide detailed information regarding the list of the CPAs available in the town, with all their details as well as their fees sometimes. But be careful while making the decision to hire them.
Friday, March 25, 2011
How Your Business Can Benefit From Accounting Services - Accounting
There are many things that should be taken into consideration when running a business. Aside from marketing, sales, and production, there are still more that you should also give attention to keep your business alive. One thing that should not be ignored in any business, whether it is just a starting company or already established, is accounting. This is because accounting gives you clear figures about the financial status of your company and gives you a clear picture of the future of your company. The good news is that today, there are a lot of firms offering accounting services and whom you can delegate these important matters to.
Most especially if you are not an experienced accountant or you do not know much about this matter, seeking help from an accounting firm will definitely benefit your business. Accounting services give you an idea about your company's financial status, as well as help you enhance your business potential. This is why many businesses, small or large, opt to hire an accountant to do accurate accounting for them.
One of the reasons why hiring a professional is beneficial is that it lets you save time. An accounting firm can help you do pivotal tasks which if you do yourself would eat up a huge chunk of your time. One of the most important accounting services that you or your business can benefit from is tax preparation. Although you can do this yourself, it is still best to hire an expert in this matter to avoid mistakes that may lead to legal consequences. In addition to accuracy of work, accountants can also advice you on how you can enjoy maximum tax benefits. They not only file tax for you but also help you record your accounts payable and receivable, loan details as well as invoices so you know each of your company's financial transaction.
Hiring accounting professionals also assures you that the financial aspect of your business is taken care of. And because they are expert in this matter, they also protect you from mistakes. Most accounting services providers today use accuracy tools, like software, so as to avoid manual errors.
Because hiring accounting professional handle the books and keep record of your business performance, then you have more time on how to make better sales and how to boost your profits.
Moreover, accounting firms know what numbers mean, thus they can give you a clearer picture of where your company is heading to. Accounting professionals can give you accurate statements and can advice you and help you make an informed decision whether in terms of investment opportunities or infrastructural expansion.
Hiring accounting professionals provide you solid figures in the financial aspect of the business, including profits and expenditures. This also allows you to determine which part of your business you should focus on to boost your income or avoid losses.
These are just some of the benefits of using accounting services and these are just some of the reasons why even small companies today hire accounting professionals. Fortunately, anyone can now avail such services by doing a search online.
Most especially if you are not an experienced accountant or you do not know much about this matter, seeking help from an accounting firm will definitely benefit your business. Accounting services give you an idea about your company's financial status, as well as help you enhance your business potential. This is why many businesses, small or large, opt to hire an accountant to do accurate accounting for them.
One of the reasons why hiring a professional is beneficial is that it lets you save time. An accounting firm can help you do pivotal tasks which if you do yourself would eat up a huge chunk of your time. One of the most important accounting services that you or your business can benefit from is tax preparation. Although you can do this yourself, it is still best to hire an expert in this matter to avoid mistakes that may lead to legal consequences. In addition to accuracy of work, accountants can also advice you on how you can enjoy maximum tax benefits. They not only file tax for you but also help you record your accounts payable and receivable, loan details as well as invoices so you know each of your company's financial transaction.
Hiring accounting professionals also assures you that the financial aspect of your business is taken care of. And because they are expert in this matter, they also protect you from mistakes. Most accounting services providers today use accuracy tools, like software, so as to avoid manual errors.
Because hiring accounting professional handle the books and keep record of your business performance, then you have more time on how to make better sales and how to boost your profits.
Moreover, accounting firms know what numbers mean, thus they can give you a clearer picture of where your company is heading to. Accounting professionals can give you accurate statements and can advice you and help you make an informed decision whether in terms of investment opportunities or infrastructural expansion.
Hiring accounting professionals provide you solid figures in the financial aspect of the business, including profits and expenditures. This also allows you to determine which part of your business you should focus on to boost your income or avoid losses.
These are just some of the benefits of using accounting services and these are just some of the reasons why even small companies today hire accounting professionals. Fortunately, anyone can now avail such services by doing a search online.
Do You Need to Use Hedge Fund Accounting Software - Accounting
There are many ways in which you can ask assistance on how to earn more money under today's hectic and ever-changing economic conditions. In fact, many people have made money great deals by using an online tool. However, dealing with money as part of your profession also requires deep responsibilities especially in handling your clients.
Of course, you may be hesitant about what to do on managing unique and important accounts of your clients. In fact, this can be especially hard in today's world where there is a lot of competition and you will need to update your client's account regardless of the developments that are taking place in the financial markets. One way that you can manage this would be by using hedge fund accounting software.
In essence, this kind of tool will handle all important details base on your client's accounts from A to Z. No matter how complex these accounting solutions may be, you can easily manage them yourself, if you use a professional hedge fund accounting software. With this, you will be able to keep track of all the things that are taking place instantly and to help you organize various details in a very simple manner. There is no need to rush and make things more complicated.
Moreover, you will be able to give correct, updated information to your clients at all times, and that can be priceless for a successful investment fund management. In order to find the best tool for financial deals and accounting, be sure to have access on the internet. This way, you can find tens of different companies, which offer various financial fund tools that are specifically suited for different types of applications. However, you will need to be wary of the fact that there are several hedge fund softwares that are very expensive and don't even necessarily mean that all can provide good quality results.
In fact, sometimes expensive software may be hard to operate or they may be too static to handle your needs. Hence, you need to make sure that you look at their references before you make a selection. If possible, talk to their previous customers to get an idea. Moreover, try to schedule a demo with the company so that you can try it out for a short period of time. Make sure that you are comfortable in using that particular hedge fund accounting software for best results.
Hedge fund accounting software is an accounting works for those intend to know the overall fund a person has. This is done basically using software or computer. By using this technology, computing fund is much easier.
Of course, you may be hesitant about what to do on managing unique and important accounts of your clients. In fact, this can be especially hard in today's world where there is a lot of competition and you will need to update your client's account regardless of the developments that are taking place in the financial markets. One way that you can manage this would be by using hedge fund accounting software.
In essence, this kind of tool will handle all important details base on your client's accounts from A to Z. No matter how complex these accounting solutions may be, you can easily manage them yourself, if you use a professional hedge fund accounting software. With this, you will be able to keep track of all the things that are taking place instantly and to help you organize various details in a very simple manner. There is no need to rush and make things more complicated.
Moreover, you will be able to give correct, updated information to your clients at all times, and that can be priceless for a successful investment fund management. In order to find the best tool for financial deals and accounting, be sure to have access on the internet. This way, you can find tens of different companies, which offer various financial fund tools that are specifically suited for different types of applications. However, you will need to be wary of the fact that there are several hedge fund softwares that are very expensive and don't even necessarily mean that all can provide good quality results.
In fact, sometimes expensive software may be hard to operate or they may be too static to handle your needs. Hence, you need to make sure that you look at their references before you make a selection. If possible, talk to their previous customers to get an idea. Moreover, try to schedule a demo with the company so that you can try it out for a short period of time. Make sure that you are comfortable in using that particular hedge fund accounting software for best results.
Hedge fund accounting software is an accounting works for those intend to know the overall fund a person has. This is done basically using software or computer. By using this technology, computing fund is much easier.
Thursday, March 24, 2011
The 7 Basic Accountancy Concepts - accounting
In almost any language you'll find some rules or principles that are definite and several others are undefined. The latter is usually a matter of viewpoint or style. Accountants have various opinions, just are grammarians have various ideas. Accounting principles evolve to form the underlying basis for great accounting practice.
The following section of an online blog post points out the scenario and narrative in much more detail. Here is an clip:
"In any language there are some rules or principles that are definite and some others are indefinite. The latter are a matter of opinion or style. Accountants have different opinions, just are grammarians have different opinions. Accounting principles evolve to form the underlying basis for good accounting practice. In this article, I will try to describe the elements of good accounting practice, the fundamental accounting concepts.
Here is a list of the seven fundamental accounting concepts. What is the meaning of each?
(1) Dual Aspect Concept
(2) Money Measurement Concept
(3) Business Entity Concept
(4) Going-concern Concept
(5) Cost Concept
(6) Accrual Concept
(7) Realization Concept
Dual Aspect Concept
The fact that the total assets of a company always equal the total equities underlies what is called the dual aspect concept. Obviously, the two aspects that this concept refers to are assets and equities. The concept states that these two aspects are always equal to each other.
The dual aspect concept is the first of the seven fundamental accounting concepts. The equation that states the dual aspect concept: assets = equities or equities = liabilities + owners’ equities, therefore, another form of the dual aspect principle is: Assets = liabilities + owners’ equities.
Money Measurement Concept
Accounting records show only facts that can be expressed in monetary terms. By reducing disparate facts to monetary terms we can deal with them arithmetically.
In adding together homogenous names as different cars, bed linens, supplies, shoes, etc., it is necessary to express them in homogenous unit. For this reason, it is necessary that each of the items enumerated is measured in monetary terms or in dollars."
Accountancy practise data along with providers in the UK. Book-keeping expert services, book-keeping, income tax processing, income tax professional opinions, chartered accountancy practise together with a lot more. For comprehensive neighborhood accountancy firm professional services take a look at chartered accountant london for alot more information. Also review UK Accountancy Services
The following section of an online blog post points out the scenario and narrative in much more detail. Here is an clip:
"In any language there are some rules or principles that are definite and some others are indefinite. The latter are a matter of opinion or style. Accountants have different opinions, just are grammarians have different opinions. Accounting principles evolve to form the underlying basis for good accounting practice. In this article, I will try to describe the elements of good accounting practice, the fundamental accounting concepts.
Here is a list of the seven fundamental accounting concepts. What is the meaning of each?
(1) Dual Aspect Concept
(2) Money Measurement Concept
(3) Business Entity Concept
(4) Going-concern Concept
(5) Cost Concept
(6) Accrual Concept
(7) Realization Concept
Dual Aspect Concept
The fact that the total assets of a company always equal the total equities underlies what is called the dual aspect concept. Obviously, the two aspects that this concept refers to are assets and equities. The concept states that these two aspects are always equal to each other.
The dual aspect concept is the first of the seven fundamental accounting concepts. The equation that states the dual aspect concept: assets = equities or equities = liabilities + owners’ equities, therefore, another form of the dual aspect principle is: Assets = liabilities + owners’ equities.
Money Measurement Concept
Accounting records show only facts that can be expressed in monetary terms. By reducing disparate facts to monetary terms we can deal with them arithmetically.
In adding together homogenous names as different cars, bed linens, supplies, shoes, etc., it is necessary to express them in homogenous unit. For this reason, it is necessary that each of the items enumerated is measured in monetary terms or in dollars."
Accountancy practise data along with providers in the UK. Book-keeping expert services, book-keeping, income tax processing, income tax professional opinions, chartered accountancy practise together with a lot more. For comprehensive neighborhood accountancy firm professional services take a look at chartered accountant london for alot more information. Also review UK Accountancy Services
Why you need to choose best Naperville accounting firm - accounting
In case you want a professional company handling your accounts then you should contact Naperville accounting firm. But you can not simply hire the services of any accounting company and risk all your confidential accounting details for forgery. Whether you want the service for personal convenience or for your business you have to take in to account certain essential facts and then only sign contract with an accounting company. You will need an accountant for many different tasks, very first being the overhead of handling your investments, preparing and then filing tax returns at the end of every fiscal year. There are certain questions which you must put forward and find their answers as with that you will find an accounting company which will handle all your tasks with great precision.
Check the level of qualification of Naperville accounting firm. You should make an inquiry that all the working professionals of company are at least having education up to graduation level and accounts being the specialization. Also find out the working experience of the staff. You need to have people who are not only expert and experienced with accounts domain but they should be responsible enough to handle your money in righteous manner. Do check with any negative element in company's work profile, you can find out any instances of tax screwing. Another essential factor is to see that are they registered with competent business bureau, this will give you their status in the market. If it is possible that you can get in touch with their previous clients then it is a very good way to find out how expert is the Naperville accounting firm in its job and what is the level of Proficiency Company professionals have.
In case you are having any specific accounting need then you have to find firms accordingly, this will assist you to decide whether the company's accounting knowledge is matching with your need or not. lastly you should see what is the fees they are charging, when you contact more than one Naperville accounting firm at a time then you will see that each of these firm are not only different in working but they have different fees which they charge from their clients. The fees depend on the level of complexity of work, experience and proficiency of the person handling your accounts and for the duration you want the service.
These are some of the most vital concepts about Naperville accounting firm and if you concentrate on them then your accounts will be always clear and error free.
Check the level of qualification of Naperville accounting firm. You should make an inquiry that all the working professionals of company are at least having education up to graduation level and accounts being the specialization. Also find out the working experience of the staff. You need to have people who are not only expert and experienced with accounts domain but they should be responsible enough to handle your money in righteous manner. Do check with any negative element in company's work profile, you can find out any instances of tax screwing. Another essential factor is to see that are they registered with competent business bureau, this will give you their status in the market. If it is possible that you can get in touch with their previous clients then it is a very good way to find out how expert is the Naperville accounting firm in its job and what is the level of Proficiency Company professionals have.
In case you are having any specific accounting need then you have to find firms accordingly, this will assist you to decide whether the company's accounting knowledge is matching with your need or not. lastly you should see what is the fees they are charging, when you contact more than one Naperville accounting firm at a time then you will see that each of these firm are not only different in working but they have different fees which they charge from their clients. The fees depend on the level of complexity of work, experience and proficiency of the person handling your accounts and for the duration you want the service.
These are some of the most vital concepts about Naperville accounting firm and if you concentrate on them then your accounts will be always clear and error free.
Monday, March 21, 2011
Accounting Program - Control Is the Name of the Game Using Business Accounting Software - Accounting
This year start afresh with an accounting program that you can understand, that saves you time and therefore that saves you money and gets rid of all that frustration! Take control and get those figures onto a decent accounting software program where you can really see what is happening in your business. Make a concerted effort to turn the corner and start to really make use of the amazing time-saving technology that is out there.
Where to begin? Good question! You will need to do a little research before you take the plunge and invest in an accounting program. Remember that there will likely be a slight learning curve at the beginning with any software you choose. So no worries if you find it a little confusing at the beginning. In fact this is a great time to check out the support available - and if you get help whilst you're trialling an accounting program then that might be a great indicator about the sort of help you can expect once you are a customer.
In a good accounting program you simply start by entering data. Simple transactions From one account and To another are entered one by one. This way you can see exactly the flow of money into, through and out of your business. As you enter data you would do well to choose an accounting program that immediately updates those transactions to your chart of accounts so you can see a live Trial Balance at any time and assess exactly the state of your business now. Your finger is on the pulse of your business. This is probably the key point that you will benefit from by going the software route.
A great accounting program will be relatively straightforward to use and will start at a good price too so you can afford to take that step and get going on your new, organised way of arranging your affairs. Some companies offer a one-off payment so that you can use the software for life at no further cost!
However you should also check that if your business does start to really grow (as you hope it will) you should make sure you choose an accounting program that will grow with your business. For instance is there an upgrade path should you ever need it? What help is available, especially in the early days when it's all new to you?
Where to begin? Good question! You will need to do a little research before you take the plunge and invest in an accounting program. Remember that there will likely be a slight learning curve at the beginning with any software you choose. So no worries if you find it a little confusing at the beginning. In fact this is a great time to check out the support available - and if you get help whilst you're trialling an accounting program then that might be a great indicator about the sort of help you can expect once you are a customer.
In a good accounting program you simply start by entering data. Simple transactions From one account and To another are entered one by one. This way you can see exactly the flow of money into, through and out of your business. As you enter data you would do well to choose an accounting program that immediately updates those transactions to your chart of accounts so you can see a live Trial Balance at any time and assess exactly the state of your business now. Your finger is on the pulse of your business. This is probably the key point that you will benefit from by going the software route.
A great accounting program will be relatively straightforward to use and will start at a good price too so you can afford to take that step and get going on your new, organised way of arranging your affairs. Some companies offer a one-off payment so that you can use the software for life at no further cost!
However you should also check that if your business does start to really grow (as you hope it will) you should make sure you choose an accounting program that will grow with your business. For instance is there an upgrade path should you ever need it? What help is available, especially in the early days when it's all new to you?
A Career in Accounting - Accounting
Accountants play a decisive role in a society of many financial aspects. In general, they balance the books, the display of costs and benefits, payroll, wages, pay taxes and bills, and publish financial statements for external organizations. Although it may seem simple tasks, auditors are required to be familiar with the protocol and administrative provisions necessary to the scandal of costly fines and reputation to avoid spurious results. However, the sector to draw a breath of fresh air after the exchange of paper and calculator pin ledger sheets for advanced accounting software. Accounting career can now wear the hat tips, minus the number of time calculations and more time as financial vernacular translators for the government sector.
This new hat also comes with a new outfit. Employers look for candidates now accountants who not only mathematics and attention to detail but possess analytical skills, thinking they overlook the square and solve problems. Nevertheless, the best solutions are worthless if they are not a member, put it that could be disclosed. Therefore, strong communication skills written and oral, are important qualities for the post modern accounting. A bachelor’s degree in finance, economics or management information systems (GIS) is required by employers as appropriate training for technical and analytical skills and communication are necessary to succeed in entry-level positions are. The American Institute of Certified Public Accountants, however, requires 150 hours education university, the 30 hours longer than a typical four-year degree before being eligible to take the CPA exam. For those who embark on internal audit and control career path, there is the internal audit or the Institute of Management Accountants, the certifications required by some employers question. Qualifications for accounting jobs are much looser and graduate positions, aggregate supply hold a diploma or a diploma in another field. . Remarkably, these positions are often difficult and provide compensation under optimistic view, there is a career in accounting in various industries, highlighting a wide range of interests and training of accountants: public accounting, internal accounting, internal auditors, management accountants, Government Accountants, bookkeepers and auditing clerks and independent. Public accountants to prepare the statements of a company and external auditors, the financial statements to be made available to the government and the public. These accountants enjoy the flexibility of their work because their skills through small and large companies are also required. manage in-house Accountants set budgets, and manage payroll, track payments and other financial matters. Internal auditors and management accountants play in an internal accounting systems for clerical error, the application of regulations, processes, advising on critical decisions and strategic planning. Government Accountants are financial discipline that collect revenue and see that it is conducted in accordance with the law. Accounting and auditing clerk the task of entering data into the system of holding company financial records. However, if you earned your CPA, the fascination of becoming an entrepreneur gains strength, as many companies are willing to be open to consultation meetings and reporting earnings on a contract basis. Regardless of the position, a career in accounting offers many opportunities to move past the foot in the door, and right now the door is open. After a series of scandals, industry, companies are actively seeking candidates judicial ethics occupy their customers to restore confidence. Public accounting has many vacancies in the auditing and taxation. This accounting career opportunities are mainly in the industries of health care and manufacturing, but the “Big Four” accounting firms (Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PricewaterhouseCoopers) are always looking for ‘shining eyes of youth to junior positions in exchange for filling situated for great names of printing on a resume. The provision of four large accounting firms far from pathetic starting salary in the middle 000s, 000 for personal accounting entry that quickly back toward the center, 000 is too high , 000 to achieve the status of seniority. Management accountants earn 000 to center, 000 per year and make them partners in general, more than 0.000. While small firms may offer slightly lower wages, wages in general continues to grow in the industry over the next few years.
This new hat also comes with a new outfit. Employers look for candidates now accountants who not only mathematics and attention to detail but possess analytical skills, thinking they overlook the square and solve problems. Nevertheless, the best solutions are worthless if they are not a member, put it that could be disclosed. Therefore, strong communication skills written and oral, are important qualities for the post modern accounting. A bachelor’s degree in finance, economics or management information systems (GIS) is required by employers as appropriate training for technical and analytical skills and communication are necessary to succeed in entry-level positions are. The American Institute of Certified Public Accountants, however, requires 150 hours education university, the 30 hours longer than a typical four-year degree before being eligible to take the CPA exam. For those who embark on internal audit and control career path, there is the internal audit or the Institute of Management Accountants, the certifications required by some employers question. Qualifications for accounting jobs are much looser and graduate positions, aggregate supply hold a diploma or a diploma in another field. . Remarkably, these positions are often difficult and provide compensation under optimistic view, there is a career in accounting in various industries, highlighting a wide range of interests and training of accountants: public accounting, internal accounting, internal auditors, management accountants, Government Accountants, bookkeepers and auditing clerks and independent. Public accountants to prepare the statements of a company and external auditors, the financial statements to be made available to the government and the public. These accountants enjoy the flexibility of their work because their skills through small and large companies are also required. manage in-house Accountants set budgets, and manage payroll, track payments and other financial matters. Internal auditors and management accountants play in an internal accounting systems for clerical error, the application of regulations, processes, advising on critical decisions and strategic planning. Government Accountants are financial discipline that collect revenue and see that it is conducted in accordance with the law. Accounting and auditing clerk the task of entering data into the system of holding company financial records. However, if you earned your CPA, the fascination of becoming an entrepreneur gains strength, as many companies are willing to be open to consultation meetings and reporting earnings on a contract basis. Regardless of the position, a career in accounting offers many opportunities to move past the foot in the door, and right now the door is open. After a series of scandals, industry, companies are actively seeking candidates judicial ethics occupy their customers to restore confidence. Public accounting has many vacancies in the auditing and taxation. This accounting career opportunities are mainly in the industries of health care and manufacturing, but the “Big Four” accounting firms (Deloitte Touche Tohmatsu, Ernst & Young, KPMG and PricewaterhouseCoopers) are always looking for ‘shining eyes of youth to junior positions in exchange for filling situated for great names of printing on a resume. The provision of four large accounting firms far from pathetic starting salary in the middle 000s, 000 for personal accounting entry that quickly back toward the center, 000 is too high , 000 to achieve the status of seniority. Management accountants earn 000 to center, 000 per year and make them partners in general, more than 0.000. While small firms may offer slightly lower wages, wages in general continues to grow in the industry over the next few years.
Thursday, March 17, 2011
Significance of Having Outsourced or Automated Accounts Payable Services - Accounting
Buying and selling is a daily activity for any business despite the industry it functions in. In the process of buying and selling of raw materials and goods, there are several dues that companies and suppliers have with each other. Accounts payables are basically the dues that an organization has towards its suppliers. Often these dues are paid off over a course of time and hence they need to be organized in an efficient manner so as to avoid any payment delays and loss of invoices. In simple terms these payables are a debt that the organization has towards a vendor. Accounts payable management requires considerable amount of care and vigilance in order to maintain efficiency in the entire process. All organizations have their preferred way of maintaining their payables. While some prefer to maintain it in the original paper based format, others prefer automation.
It is common practice to outsource these processes to an agency that is solely dedicated to providing services related to maintaining payables for companies. Gone are the days when trade payables had to be maintained in a paper format. With the help of automated accounts payable processing organizations can ensure that the process is a lot more streamlined and maintains regularity and efficiency. The primary advantage of having automated AP management is that it enables you to maintain a database of all your invoices no matter how old. While looking for an older invoice individuals can easily find them by simply searching for it in the program. Also this method improves efficiency amongst employees as it saves time and effort on manual maintenance.
Outsourcing of AP management provides a plethora of benefits such as timely payment of the dues that are held by the organization, regular reports of the payables on either Monthly, quarterly or yearly basis and reduction in work load amongst employees of the organization.
With the growth of technology there are software's that can manage the accounts payable processing and can further reduce manual effort. The biggest advantage of software is that it is programmed to recognize any discrepancies in the invoices and alert the company in case of any loss or overdue invoice. While looking for an external organization to maintain payables it is important to conduct thorough research before selecting one. Since this organization will be responsible for all your invoices it is necessary that the organization is trustworthy and renowned for providing efficient service.
Headquartered in Washington, D.C., Anybill has been a leader in providing innovative, effective accounts payable services and software since 1997. For more than a decade, accounts payable is what we do and all we do. Anybill provides accounts payable services and software to the small- to medium-enterprise market (SME), as well as some of the world's largest corporations and institutions. More than 300 organizations, including Office Depot and the American Diabetes Association, have chosen Anybill for our proven solutions and superior customer service. We also maintain a broad range of strategic relationships with local and national CPA firms such as Raffa, BDO Seidman, and KPMG.
It is common practice to outsource these processes to an agency that is solely dedicated to providing services related to maintaining payables for companies. Gone are the days when trade payables had to be maintained in a paper format. With the help of automated accounts payable processing organizations can ensure that the process is a lot more streamlined and maintains regularity and efficiency. The primary advantage of having automated AP management is that it enables you to maintain a database of all your invoices no matter how old. While looking for an older invoice individuals can easily find them by simply searching for it in the program. Also this method improves efficiency amongst employees as it saves time and effort on manual maintenance.
Outsourcing of AP management provides a plethora of benefits such as timely payment of the dues that are held by the organization, regular reports of the payables on either Monthly, quarterly or yearly basis and reduction in work load amongst employees of the organization.
With the growth of technology there are software's that can manage the accounts payable processing and can further reduce manual effort. The biggest advantage of software is that it is programmed to recognize any discrepancies in the invoices and alert the company in case of any loss or overdue invoice. While looking for an external organization to maintain payables it is important to conduct thorough research before selecting one. Since this organization will be responsible for all your invoices it is necessary that the organization is trustworthy and renowned for providing efficient service.
Headquartered in Washington, D.C., Anybill has been a leader in providing innovative, effective accounts payable services and software since 1997. For more than a decade, accounts payable is what we do and all we do. Anybill provides accounts payable services and software to the small- to medium-enterprise market (SME), as well as some of the world's largest corporations and institutions. More than 300 organizations, including Office Depot and the American Diabetes Association, have chosen Anybill for our proven solutions and superior customer service. We also maintain a broad range of strategic relationships with local and national CPA firms such as Raffa, BDO Seidman, and KPMG.
Accounting davenport An Accountant in Exeter discusses -- Accounting
Whether or not you are one person or an organisational body, one of your main consideration in reference to monetary matters is how to guard wealth or assets while paying all applicable taxes. In today's difficult financial environment, it may be quite unwise to handle it all by yourself. Even though a lot of people persevere in doing this, the result is most likely to cost a sizeable amount in extra taxes, fees and also penalties. An accountant may a helpful ally whose intimate knowledge of tax laws and practise is certain to have a really optimistic effect on your personal or company investments. Here's some info regarding an important facet of accounting, taken from an Exeter Accountant, the notion of "generally accepted accounting principles" (GAAP).
What is Meant by GAAP?
It is vitally imperative for an accountant to collect and document on financial matter objectively. To accomplish this, accountants uphold a set of ethics that make it possible for them to evade generating influenced or incoherent reports. These standards and procedures are accumulated based on the aegis of "generally accepted account principles," abbreviated GAAP. Understanding GAAP will help you pick the proper accountant or accounting organization for your specific requirements. Purely declared, GAAP is a group of traditional values that govern accounting practises.
Principles of Regularity, Consistency and also Sincerity
The principle of regularity necessitates an accountant comply with all relevant laws and policies. The principle of consistency has to do with ways in which an accountant handles the procedure under which pecuniary items are reported. Once a product is taken care of in a specific approach, all similar products must be dealt with in just the same manner. Under the principle of sincerity, the accountant is asked to produce a candid and good faith record of a lone person's or agency's accurate financial position.
Principles of Permanence of Methods, Non-Compensation as well as Prudence
Permanence of methods is a significantly important principle since it mandates an accountant to provide a consistent record of the true pecuniary condition of a person or agency, above all in reference to the methods applied to create that document. The principle of non-compensation necessitates an accountant to cease from misrepresenting a financial document by endeavouring to reimburse an expenditure with a source of profits or a liability with an asset. This suggests that an accountant needs to choose the procedures or resolutions that are least likely to overemphasise income and possessions. The principle of prudence implies that an accountant needs to exhibit the genuine financial standing in its present condition and not endeavour to overplay or down play it.
Principles of Continuity, Periodicity, Full Disclosure along with Utmost Good Faith
The principle of continuity suggests that an accountant needs to assess resources not at their disposable worth but at their celebrated assessment. Under the periodicity principle, every entry is allotted to a certain period and not counted fully on the date of the deal. In full disclosure, all essential values and details concerning a person's or business's financial status should be displayed in the reports. Conclusively, the principle of utmost good faith suggests that in circumstances where insurance is concerned, all necessary info is made known to the insurance agency.
A good working awareness of GAAP will enable you to create a constructive and profitable rapport with your accountant.
What is Meant by GAAP?
It is vitally imperative for an accountant to collect and document on financial matter objectively. To accomplish this, accountants uphold a set of ethics that make it possible for them to evade generating influenced or incoherent reports. These standards and procedures are accumulated based on the aegis of "generally accepted account principles," abbreviated GAAP. Understanding GAAP will help you pick the proper accountant or accounting organization for your specific requirements. Purely declared, GAAP is a group of traditional values that govern accounting practises.
Principles of Regularity, Consistency and also Sincerity
The principle of regularity necessitates an accountant comply with all relevant laws and policies. The principle of consistency has to do with ways in which an accountant handles the procedure under which pecuniary items are reported. Once a product is taken care of in a specific approach, all similar products must be dealt with in just the same manner. Under the principle of sincerity, the accountant is asked to produce a candid and good faith record of a lone person's or agency's accurate financial position.
Principles of Permanence of Methods, Non-Compensation as well as Prudence
Permanence of methods is a significantly important principle since it mandates an accountant to provide a consistent record of the true pecuniary condition of a person or agency, above all in reference to the methods applied to create that document. The principle of non-compensation necessitates an accountant to cease from misrepresenting a financial document by endeavouring to reimburse an expenditure with a source of profits or a liability with an asset. This suggests that an accountant needs to choose the procedures or resolutions that are least likely to overemphasise income and possessions. The principle of prudence implies that an accountant needs to exhibit the genuine financial standing in its present condition and not endeavour to overplay or down play it.
Principles of Continuity, Periodicity, Full Disclosure along with Utmost Good Faith
The principle of continuity suggests that an accountant needs to assess resources not at their disposable worth but at their celebrated assessment. Under the periodicity principle, every entry is allotted to a certain period and not counted fully on the date of the deal. In full disclosure, all essential values and details concerning a person's or business's financial status should be displayed in the reports. Conclusively, the principle of utmost good faith suggests that in circumstances where insurance is concerned, all necessary info is made known to the insurance agency.
A good working awareness of GAAP will enable you to create a constructive and profitable rapport with your accountant.
Quebec accountant are very famous - Accounting
These accountants are really very much efficient in their particular field of work. They are generally the professional accountants.
Quebec accountant are well known for their excellent accounting skill. Quebec is a city in the Canada. This is generally a very populous city. In this city the people generally speak French language. The people of Quebec generally used to speak this language. It can be called as the official language of the city Quebec. This city is generally the central province of the state Canada. It is also the second largest administrative building of the place Canada. The population of this area is so much because of the migration. The people in large number used to be migrated into this place. They generally come from the remote villages and towns. These people used to come to this place in search of their jobs.
The accountants of the Quebec City are very efficient. CPA is generally a statutory body. This statutory body consists of the accountants. These accountants have to pass an exam that is called the accountancy exam. This accountancy exam is very much important for these accountants. After passing this exam they have to gone through a training segment. This training segment is obligatory for these Quebec accountant. Through this training they can get an experience about their work. It is a kind of online job training.
These accountants are really very highly qualified. These qualified accountants are very much efficient in their mode of work. But to apply for this post the person has to pass an exam that is very much important for this type of profession. Generally the CPA accountants are only restricted to the particular state. The service of the CPA is indirect.
Quebec accountant provide assurance to the people. Their mode of giving service to the people is somewhat different as it provides their service in the indirect mode. These accountants have to pass an exam that is called the accountancy exam. This accountancy exam is very much important for these accountants. After passing this exam they have to gone through a training segment. Their services are very much useful for the business and the finance.
Quebec accountant are well known for their excellent accounting skill. Quebec is a city in the Canada. This is generally a very populous city. In this city the people generally speak French language. The people of Quebec generally used to speak this language. It can be called as the official language of the city Quebec. This city is generally the central province of the state Canada. It is also the second largest administrative building of the place Canada. The population of this area is so much because of the migration. The people in large number used to be migrated into this place. They generally come from the remote villages and towns. These people used to come to this place in search of their jobs.
The accountants of the Quebec City are very efficient. CPA is generally a statutory body. This statutory body consists of the accountants. These accountants have to pass an exam that is called the accountancy exam. This accountancy exam is very much important for these accountants. After passing this exam they have to gone through a training segment. This training segment is obligatory for these Quebec accountant. Through this training they can get an experience about their work. It is a kind of online job training.
These accountants are really very highly qualified. These qualified accountants are very much efficient in their mode of work. But to apply for this post the person has to pass an exam that is very much important for this type of profession. Generally the CPA accountants are only restricted to the particular state. The service of the CPA is indirect.
Quebec accountant provide assurance to the people. Their mode of giving service to the people is somewhat different as it provides their service in the indirect mode. These accountants have to pass an exam that is called the accountancy exam. This accountancy exam is very much important for these accountants. After passing this exam they have to gone through a training segment. Their services are very much useful for the business and the finance.
Wednesday, March 16, 2011
Capital Allowance Reviews - How to Get Money for Nothing - Accounting
Free money - it almost sounds too good to be true, but if you're within the large proportion of commercial property owners not claiming their full allowances, then this is exactly what you're passing up. Depending on the sector in which you operate, you should expect to be able to discover between 15% and 45% of the purchase or construction cost of the property in previously unclaimed capital allowances. Not a figure to be sniffed at!
Companies can claim these capital allowances on plant and machinery, buildings - including converting space above commercial premises into flats for renting - and research and development. Even better, these claims against freehold property payments can be made retrospectively, which means you can include assets bought up to 15 years ago. If the purchase took place more than 15 years ago, it is usually not worth pursuing owing to problems with obtaining the necessary documentation, but there may be subsequent additions to the property that would qualify.
In addition, if you intend to invest in your commercial property - including a new build, extension or refurbishment - then you can work directly with the architect or quantity surveyor in order to maximise the claim and complete the summary report as promptly as possible. If you're planning remedial or re-fitting work, make sure to notify your accountant in plenty of time before the project start date, so that they can make records before and after, to ensure an accurate report is sent to HMRC.
Your accountant should be able to put together a comprehensive capital allowance review which identifies items that qualify for enhanced tax savings. This is suitable for any tax-paying person, company, LLP or partnership which owns commercial freehold property. Often the charge for this service is a percentage of the tax saved, so if no viable capital allowances can be found, then there will be no cost involved.
However, changes to this legislation have meant that time is now running out for certain claims, so it will quite literally pay to act quickly. Industrial Building Allowances are being phased out, and are to be abolished by April 2011, while writing down allowance rates have been reduced following the March 2007 Budget. But there are still enhanced capital allowances available at 100% for first year allowances on energy efficient plant and machinery, and cars emitting 110g/km of carbon dioxide or less, plus an enhanced rate of 40% first year allowances for expenditure in the 2009/10 tax year.
If you're still not persuaded, have a look at this example. One of our clients had constructed a new head office building measuring 1,351 sq m, consisting of both warehousing and office space, at a cost of £1.7m. We identified £484,523 worth of unclaimed capital allowances which represented potential tax savings of £135,666. Even taking into account our fee (which would not have even been charged if no savings could be made), this represents a significant saving.
So what have you got to lose? Contact your accountant to find out how much you could save.
Companies can claim these capital allowances on plant and machinery, buildings - including converting space above commercial premises into flats for renting - and research and development. Even better, these claims against freehold property payments can be made retrospectively, which means you can include assets bought up to 15 years ago. If the purchase took place more than 15 years ago, it is usually not worth pursuing owing to problems with obtaining the necessary documentation, but there may be subsequent additions to the property that would qualify.
In addition, if you intend to invest in your commercial property - including a new build, extension or refurbishment - then you can work directly with the architect or quantity surveyor in order to maximise the claim and complete the summary report as promptly as possible. If you're planning remedial or re-fitting work, make sure to notify your accountant in plenty of time before the project start date, so that they can make records before and after, to ensure an accurate report is sent to HMRC.
Your accountant should be able to put together a comprehensive capital allowance review which identifies items that qualify for enhanced tax savings. This is suitable for any tax-paying person, company, LLP or partnership which owns commercial freehold property. Often the charge for this service is a percentage of the tax saved, so if no viable capital allowances can be found, then there will be no cost involved.
However, changes to this legislation have meant that time is now running out for certain claims, so it will quite literally pay to act quickly. Industrial Building Allowances are being phased out, and are to be abolished by April 2011, while writing down allowance rates have been reduced following the March 2007 Budget. But there are still enhanced capital allowances available at 100% for first year allowances on energy efficient plant and machinery, and cars emitting 110g/km of carbon dioxide or less, plus an enhanced rate of 40% first year allowances for expenditure in the 2009/10 tax year.
If you're still not persuaded, have a look at this example. One of our clients had constructed a new head office building measuring 1,351 sq m, consisting of both warehousing and office space, at a cost of £1.7m. We identified £484,523 worth of unclaimed capital allowances which represented potential tax savings of £135,666. Even taking into account our fee (which would not have even been charged if no savings could be made), this represents a significant saving.
So what have you got to lose? Contact your accountant to find out how much you could save.
Saturday, March 12, 2011
Accounting for Non-Profit Organizations - Accounting
Accounting is an important process for any business organization. Many people think that accounting is only for profit-oriented businesses, since these companies often have larger financial resources to manage and keep track of. Contrary to popular belief, accounting is a regular task for nonprofit organizations such as research facilities, religious foundations, and social service organizations. Accounting helps these organizations organize financial matters such as grants, donations, budget, and payroll.
To handle accounting responsibilities, businesses and nonprofit organizations usually employ the services of in-house accounting departments. Accounting teams are responsible for generating reports and documents about the business entity's financial status. These reports are used by the business management to assess the condition of the company or organization, as well as determine any imbalances or discrepancies in the company's finances.
Accounting teams are often comprised of qualified professionals such as certified public accountants (CPA). These CPAs occupy top positions in the accounting department and oversee all tasks and responsibilities handled by the team. Head CPAs regularly meet with the company management for the updating of financial reports. The team may also have clerks or assistants who are in charge of bookkeeping and auditing, both of which are important accounting processes.
The accounting needs of a business or organization may be demanding, especially if the said entity engages in large-scale operations. Accounting for nonprofit organizations may be even harder since these groups have more financial details to keep track of. Accounting departments of nonprofit organizations often put in long hours creating reports on the donations and grants the organization receives on a regular basis.
In addition, tax-exempt, nonprofit organizations are required to submit revenue and income statements, functional and individual expenses reports, balance sheets, and a schedule of the organization's sources of revenue to the state. Teams that handle the accounting nonprofit organizations needs are responsible for submitting these documents when required. When these documents are not provided, the organization may face consequences from the US Internal Revenue Service.
Accounting for nonprofit organizations, especially those with tax-exempt status, entails complicated processes that must be done with accuracy. Through efficient accounting, non-profit organizations can ensure that every cent of funding they receive is put to good use.
To handle accounting responsibilities, businesses and nonprofit organizations usually employ the services of in-house accounting departments. Accounting teams are responsible for generating reports and documents about the business entity's financial status. These reports are used by the business management to assess the condition of the company or organization, as well as determine any imbalances or discrepancies in the company's finances.
Accounting teams are often comprised of qualified professionals such as certified public accountants (CPA). These CPAs occupy top positions in the accounting department and oversee all tasks and responsibilities handled by the team. Head CPAs regularly meet with the company management for the updating of financial reports. The team may also have clerks or assistants who are in charge of bookkeeping and auditing, both of which are important accounting processes.
The accounting needs of a business or organization may be demanding, especially if the said entity engages in large-scale operations. Accounting for nonprofit organizations may be even harder since these groups have more financial details to keep track of. Accounting departments of nonprofit organizations often put in long hours creating reports on the donations and grants the organization receives on a regular basis.
In addition, tax-exempt, nonprofit organizations are required to submit revenue and income statements, functional and individual expenses reports, balance sheets, and a schedule of the organization's sources of revenue to the state. Teams that handle the accounting nonprofit organizations needs are responsible for submitting these documents when required. When these documents are not provided, the organization may face consequences from the US Internal Revenue Service.
Accounting for nonprofit organizations, especially those with tax-exempt status, entails complicated processes that must be done with accuracy. Through efficient accounting, non-profit organizations can ensure that every cent of funding they receive is put to good use.
Record Retention Guidelines for the Well-Run Business - Accounting
Whether you own a business or you're running a non-profit, there are many types of business records that you are legally obligated to retain, including bank statements, real estate and equipment leases, invoices, tax returns and W-2 forms. Record retention is not only the law, it's smart business. If you're not retaining the right records for the right length of time, you could run into serious hassles. For example, you might find yourself unable to clarify a billing issue with a vendor. You might encounter tax headaches. If there's some type of insurance issue, you may find yourself unable to prove that your business has suffered a loss of some kind. And on and on.
Record retention guidelines (how long you need to maintain each type of record) vary by record type. Here are just a few examples:
Bank Statements -- 7 years
Budgets -- 3 years
Check Registers -- 10 years
Corporate Contracts -- 20 years after termination
Depreciation Schedules -- 7 years after disposal of the underlying asset
Expense Reports -- 5 years
Petty Cash -- 3 years
Sales Invoices -- 7 years
Sales Slips (Cash and Charge) -- 7 years
Tax Returns (Estate, Gift, Income) -- Permanently
W-2 -- 7 years
Remember, this is just a partial list. If you're not perfectly clear about which records to retain and/or how long you need to retain them, you should consult with your accounting firm.
Record Retention Pitfalls to Avoid
A common mistake is assuming that an individual or group within your company is retaining certain records when in fact, they're not. This problem becomes more prevalent in large organizations with multiple business units and/or locations. Another common mistake is assuming that outside parties, such as vendors, are retaining certain records when in fact they're not. A third common mistake is to keep all records in one location that is susceptible to any kind of loss, including fire damage, water damage or theft. Simply keeping all critical business records in a file cabinet in the main office is not a good idea. There should be duplicate copies of every record. And it is advisable to keep critical records in a secure location, such as a professional document storage company.
Putting A Master Records Retention Plan in Place
Once you know which records to retain and how long to retain them, it's advisable to invest some time in establishing a formal record retention plan, including:
- A master list of records and retention periods
- Parties responsible for record retention
- Protocols for creating and maintaining duplicate copies when appropriate
- Protocols for secure record destruction
The best practice is not only to develop a Master Record Retention Plan, but to review the plan with your accounting firm at least once a year, make any necessary adjustments, and re-distribute the plan to all involved parties. The benefits of sound record retention are clear. With a proper record retention plan in place, you'll be in better able to work though an IRS audit or deal with a lawsuit should either of those situations arise. You'll be less exposed to the harm that could result from an undesirable event such as fire or water damage. And you and your employees will simply spend less time looking for documents.
Record retention doesn't have to be complicated, time consuming or expensive. A good first step is to speak with your accounting firm. They have most likely developed record retention plans for numerous clients and can help you build your record retention plan right the first time, thereby helping you avoid headaches and expense down the road.
Record retention guidelines (how long you need to maintain each type of record) vary by record type. Here are just a few examples:
Bank Statements -- 7 years
Budgets -- 3 years
Check Registers -- 10 years
Corporate Contracts -- 20 years after termination
Depreciation Schedules -- 7 years after disposal of the underlying asset
Expense Reports -- 5 years
Petty Cash -- 3 years
Sales Invoices -- 7 years
Sales Slips (Cash and Charge) -- 7 years
Tax Returns (Estate, Gift, Income) -- Permanently
W-2 -- 7 years
Remember, this is just a partial list. If you're not perfectly clear about which records to retain and/or how long you need to retain them, you should consult with your accounting firm.
Record Retention Pitfalls to Avoid
A common mistake is assuming that an individual or group within your company is retaining certain records when in fact, they're not. This problem becomes more prevalent in large organizations with multiple business units and/or locations. Another common mistake is assuming that outside parties, such as vendors, are retaining certain records when in fact they're not. A third common mistake is to keep all records in one location that is susceptible to any kind of loss, including fire damage, water damage or theft. Simply keeping all critical business records in a file cabinet in the main office is not a good idea. There should be duplicate copies of every record. And it is advisable to keep critical records in a secure location, such as a professional document storage company.
Putting A Master Records Retention Plan in Place
Once you know which records to retain and how long to retain them, it's advisable to invest some time in establishing a formal record retention plan, including:
- A master list of records and retention periods
- Parties responsible for record retention
- Protocols for creating and maintaining duplicate copies when appropriate
- Protocols for secure record destruction
The best practice is not only to develop a Master Record Retention Plan, but to review the plan with your accounting firm at least once a year, make any necessary adjustments, and re-distribute the plan to all involved parties. The benefits of sound record retention are clear. With a proper record retention plan in place, you'll be in better able to work though an IRS audit or deal with a lawsuit should either of those situations arise. You'll be less exposed to the harm that could result from an undesirable event such as fire or water damage. And you and your employees will simply spend less time looking for documents.
Record retention doesn't have to be complicated, time consuming or expensive. A good first step is to speak with your accounting firm. They have most likely developed record retention plans for numerous clients and can help you build your record retention plan right the first time, thereby helping you avoid headaches and expense down the road.
Friday, March 11, 2011
Accounting For Business - Learn Its Importance - Accounting
All companies need accounting in order to run their business efficiently and effectively. A certified accountant can manage all of their expenditure and cash flow. Accountants are extremely beneficial in almost any business. This only means every business needs one. Accounting involves recording, summarizing and classifying all transactions of a certain company in a financial manner.
Accountants settle all the financial transactions of a certain company. A highly skilled accountant can produce a financial report that can serve as the basis of the CEO in decision-making. It is a must for clients and the management staff to look into those financial reports before they could come up with a sound decision, otherwise; they might not create the best decision for the company. If the management create a wise decision because of the help of the accountant, everyone in the company will benefit from the good effects of the decision made.
Leading companies' secret to their success is a combination of production, sales and accounting. Managers give high value to a graphic design company because they can give their business a top web design. It is also compared to an entrepreneur who hires a certified accountant who can put the company into the next level. The presence of an accountant is beneficial in all companies because the financial reports that they create are necessary for decision-making.
Before even the manager can hire the service of a credible graphic design company, he still needs the financial report of the accountant to see whether the company can afford to hire one or not. In some instances wherein the company needs to have one, they usually compare web design prices as well as web hosting reviews in order for them to determine which company they should hire. Successful companies were able to reach their current standing in business because of the three principal reasons mentioned above. Massive production staff plus a strong sales team partnered with the best accountant who can manage all financial issues is the best formula for a successful company.
Small business should hire a professional accountant because they can help in controlling the finances of the company. Even the most successful companies today can also lose their funds at a blink of the eye. All business operations deal with money, whatever decision or investment the management has to make, a substantial financial report should always be the basis of their decisions, thus, the need for a highly qualified accountant. There are many certified accountants today who can help us in the own business.
Accountants settle all the financial transactions of a certain company. A highly skilled accountant can produce a financial report that can serve as the basis of the CEO in decision-making. It is a must for clients and the management staff to look into those financial reports before they could come up with a sound decision, otherwise; they might not create the best decision for the company. If the management create a wise decision because of the help of the accountant, everyone in the company will benefit from the good effects of the decision made.
Leading companies' secret to their success is a combination of production, sales and accounting. Managers give high value to a graphic design company because they can give their business a top web design. It is also compared to an entrepreneur who hires a certified accountant who can put the company into the next level. The presence of an accountant is beneficial in all companies because the financial reports that they create are necessary for decision-making.
Before even the manager can hire the service of a credible graphic design company, he still needs the financial report of the accountant to see whether the company can afford to hire one or not. In some instances wherein the company needs to have one, they usually compare web design prices as well as web hosting reviews in order for them to determine which company they should hire. Successful companies were able to reach their current standing in business because of the three principal reasons mentioned above. Massive production staff plus a strong sales team partnered with the best accountant who can manage all financial issues is the best formula for a successful company.
Small business should hire a professional accountant because they can help in controlling the finances of the company. Even the most successful companies today can also lose their funds at a blink of the eye. All business operations deal with money, whatever decision or investment the management has to make, a substantial financial report should always be the basis of their decisions, thus, the need for a highly qualified accountant. There are many certified accountants today who can help us in the own business.
Extra Profits: The Magic of Purchase Discounts - Accounting
Utilizing purchase discounts is a recipe for success in any economy. Mixing a scoop of "good business practices," a pinch of "strengthening supplier relations," and a dollop of "profits" creates a dish that is sure to fatten your bottom line. If your company is not doing so already, paying supplier bills early enough to take advantage of purchase discounts is a quick and easy way to move to the next level.
WHAT IS A PURCHASE DISCOUNT?
A purchase discount is money taken off a supplier's bill when paying within a certain time frame. Discounts are normally expressed as a percentage, with 1% being the most commonly used and rates of 0.5%, 1.5% and 2% all seen in standard practice. Thus, a bill for $100 would only cost your firm $99 if the supplier offered a 1% discount and your accounting department paid the bill during the discount period. Most suppliers that offer credit terms allow a bill to be paid within 30 days, expressed in business lingo as "Net 30." If a supplier offers a 1% discount for their clients to pay within 10 days, this would be expressed as "1% 10 Net 30." So, "1.5% 15 Net 45" means that the bill is due within 45 days, but the supplier will allow you to take 1.5% off the bill if you pay within 15 days.
Another deviation is to express the credit terms as dates on the calendar. Thus, "2% 5th Net 25th" means the bill is due on the 25th of the month but a 2% discount is offered as long as the bill is paid by the 5th of the month.
WOULD YOU INVEST YOUR COMPANY'S MONEY FOR AN 18% RETURN?
The typical argument against taking advantage of purchase discounts is the value of cash on hand. You may argue that keeping the cash in your company longer far outweighs the skimpy 1% that a purchase discount generates. The math shows otherwise. Take, for example, the most common credit terms of 1% 10 Net 30. Remember, this gives you a 1% discount for paying 20 days earlier in the cycle. Notice, however, that banks state their returns based on an Annual Percentage Yield (APY) rate, not on a 20 day rate. The math to put the 20 day investment in terms of an APY starts with dividing into a 360 day period (known as a banker's year). Simple division of 360 / 20 equals 18, showing that the actual discount is "worth" 18 times more than its face value. So, a discount rate of 1% produces the equivalent of 18% APY.
HOW CAN YOUR COMPANY AFFORD IT?
The beauty of taking advantage of purchase discounts, if you're not doing so already, is how easy it is to get started. Think of how you do business now. Most likely, the accounting department pays your suppliers every month. Don't change that! Pay them every 30 days - just start paying during the discount period. As an example: if your supplier offers credit terms of 1.5% 7th Net 27th, you would normally pay by the 27th of each month, assuming you run a respectable business. Payment would then again be submitted in 30 more days on the 27th and so on, month after month. Use the purchase discount by paying on the 7th day each month instead of paying on the 27th day each month. The first time will be a little difficult since you will have to pay on the 27th this month then again about 10 days later on the 7th of the next month. But, this is a one-time procedural change. After this short-term pain, you have realized long-term gains for your firm. What's more, your company is back on a monthly pay schedule, now paying on the 7th of each month instead of the 27th.
Although borrowing from a credit line or credit card should only be used as a last resort, you must ask yourself if it is worth paying 4.75% APR (average credit line rate) or 12% APR (average credit card rate) to save 18% APY.
ARE CREDIT TERMS NEGOTIABLE?
Credit terms are absolutely negotiable! Based on your volume and loyalty to a supplier, you may be able to negotiate a special discount rate for your company. A 3% discount is incredibly rare. A 2% discount, however, is not out of the question for extremely loyal clients. You won't know until you ask!
WHY DO SUPPLIERS OFFER DISCOUNTS?
Cash is king in every business, not just yours. Suppliers are businesses, too. They need cash to make payroll, pay the water bill, and to keep the lights on. Their cash flow model is further complicated by the number of companies going out of business, declaring bankruptcy, or simply not paying on time. They are, therefore, willing to offer your company an incentive to insure cash is flowing into their bank accounts so they can pay their bills.
HOW DO PURCHASE DISCOUNTS GENERATE PROFIT?
Under the rules of accounting (known as: Generally Accepted Accounting Principles, or "GAAP") purchase discounts are a 'top line' number and are treated as Revenue. Unlike other income, however, every penny of purchase discount revenue flows directly to the 'bottom line', known as Net Profit. It doesn't take an accounting degree to understand this phenomenon.
In very simple terms, from your company's current Income Statement (AKA Profit and Loss Statement), the dollar flow is as follows. Revenues are received from your clients ('top line'). Direct Expenses, such as labor and materials, are subtracted from Revenue to derive Gross Profit ('Middle Line'). Indirect Expenses, such as cell phones, lights, insurance, office staff, etc., are subtracted for Gross Profits to calculate Net Profit ('bottom line').
With the above in mind, add the additional revenue stream of purchase discounts to the Income Statement as Revenue. There are not additional Direct Expenses generated by paying suppliers early; so, this flows through the Direct Expenses portion of the statement to Gross Profit. Similarly, there are not additional Indirect Expenses incurred by paying early; so, the purchase discount amount flows straight to the Net Profit line.
HOW MUCH PROFIT?
Even small companies can measure their added profits in the thousands of dollars with this simple change in payment policy. It is not uncommon for a small firm of 10-20 employees to have annual revenues of $1 million. Since materials average 40% of revenues in many industries, your company's average annual materials costs will be in the neighborhood of $400,000. Thus, a 1% purchased discount taken during the entire year yields a $4,000 return in new found profits! If your material purchases are higher or the discount rate you negotiate is better, the impact to the bottom line would be much larger. Additionally, when you consider that this "once hidden, but now found" money is generated year after year by making a one time, 20 day change in payment policy, the results are astounding. As an added bonus, your suppliers will quickly move you up a few notches on their "best clients list."
One simple improvement to exercise purchase discounts today will have your company earning extra profits, strengthening supplier relations, and utilizing a corporate best practice for years to come.
WHAT IS A PURCHASE DISCOUNT?
A purchase discount is money taken off a supplier's bill when paying within a certain time frame. Discounts are normally expressed as a percentage, with 1% being the most commonly used and rates of 0.5%, 1.5% and 2% all seen in standard practice. Thus, a bill for $100 would only cost your firm $99 if the supplier offered a 1% discount and your accounting department paid the bill during the discount period. Most suppliers that offer credit terms allow a bill to be paid within 30 days, expressed in business lingo as "Net 30." If a supplier offers a 1% discount for their clients to pay within 10 days, this would be expressed as "1% 10 Net 30." So, "1.5% 15 Net 45" means that the bill is due within 45 days, but the supplier will allow you to take 1.5% off the bill if you pay within 15 days.
Another deviation is to express the credit terms as dates on the calendar. Thus, "2% 5th Net 25th" means the bill is due on the 25th of the month but a 2% discount is offered as long as the bill is paid by the 5th of the month.
WOULD YOU INVEST YOUR COMPANY'S MONEY FOR AN 18% RETURN?
The typical argument against taking advantage of purchase discounts is the value of cash on hand. You may argue that keeping the cash in your company longer far outweighs the skimpy 1% that a purchase discount generates. The math shows otherwise. Take, for example, the most common credit terms of 1% 10 Net 30. Remember, this gives you a 1% discount for paying 20 days earlier in the cycle. Notice, however, that banks state their returns based on an Annual Percentage Yield (APY) rate, not on a 20 day rate. The math to put the 20 day investment in terms of an APY starts with dividing into a 360 day period (known as a banker's year). Simple division of 360 / 20 equals 18, showing that the actual discount is "worth" 18 times more than its face value. So, a discount rate of 1% produces the equivalent of 18% APY.
HOW CAN YOUR COMPANY AFFORD IT?
The beauty of taking advantage of purchase discounts, if you're not doing so already, is how easy it is to get started. Think of how you do business now. Most likely, the accounting department pays your suppliers every month. Don't change that! Pay them every 30 days - just start paying during the discount period. As an example: if your supplier offers credit terms of 1.5% 7th Net 27th, you would normally pay by the 27th of each month, assuming you run a respectable business. Payment would then again be submitted in 30 more days on the 27th and so on, month after month. Use the purchase discount by paying on the 7th day each month instead of paying on the 27th day each month. The first time will be a little difficult since you will have to pay on the 27th this month then again about 10 days later on the 7th of the next month. But, this is a one-time procedural change. After this short-term pain, you have realized long-term gains for your firm. What's more, your company is back on a monthly pay schedule, now paying on the 7th of each month instead of the 27th.
Although borrowing from a credit line or credit card should only be used as a last resort, you must ask yourself if it is worth paying 4.75% APR (average credit line rate) or 12% APR (average credit card rate) to save 18% APY.
ARE CREDIT TERMS NEGOTIABLE?
Credit terms are absolutely negotiable! Based on your volume and loyalty to a supplier, you may be able to negotiate a special discount rate for your company. A 3% discount is incredibly rare. A 2% discount, however, is not out of the question for extremely loyal clients. You won't know until you ask!
WHY DO SUPPLIERS OFFER DISCOUNTS?
Cash is king in every business, not just yours. Suppliers are businesses, too. They need cash to make payroll, pay the water bill, and to keep the lights on. Their cash flow model is further complicated by the number of companies going out of business, declaring bankruptcy, or simply not paying on time. They are, therefore, willing to offer your company an incentive to insure cash is flowing into their bank accounts so they can pay their bills.
HOW DO PURCHASE DISCOUNTS GENERATE PROFIT?
Under the rules of accounting (known as: Generally Accepted Accounting Principles, or "GAAP") purchase discounts are a 'top line' number and are treated as Revenue. Unlike other income, however, every penny of purchase discount revenue flows directly to the 'bottom line', known as Net Profit. It doesn't take an accounting degree to understand this phenomenon.
In very simple terms, from your company's current Income Statement (AKA Profit and Loss Statement), the dollar flow is as follows. Revenues are received from your clients ('top line'). Direct Expenses, such as labor and materials, are subtracted from Revenue to derive Gross Profit ('Middle Line'). Indirect Expenses, such as cell phones, lights, insurance, office staff, etc., are subtracted for Gross Profits to calculate Net Profit ('bottom line').
With the above in mind, add the additional revenue stream of purchase discounts to the Income Statement as Revenue. There are not additional Direct Expenses generated by paying suppliers early; so, this flows through the Direct Expenses portion of the statement to Gross Profit. Similarly, there are not additional Indirect Expenses incurred by paying early; so, the purchase discount amount flows straight to the Net Profit line.
HOW MUCH PROFIT?
Even small companies can measure their added profits in the thousands of dollars with this simple change in payment policy. It is not uncommon for a small firm of 10-20 employees to have annual revenues of $1 million. Since materials average 40% of revenues in many industries, your company's average annual materials costs will be in the neighborhood of $400,000. Thus, a 1% purchased discount taken during the entire year yields a $4,000 return in new found profits! If your material purchases are higher or the discount rate you negotiate is better, the impact to the bottom line would be much larger. Additionally, when you consider that this "once hidden, but now found" money is generated year after year by making a one time, 20 day change in payment policy, the results are astounding. As an added bonus, your suppliers will quickly move you up a few notches on their "best clients list."
One simple improvement to exercise purchase discounts today will have your company earning extra profits, strengthening supplier relations, and utilizing a corporate best practice for years to come.
Thursday, March 10, 2011
How To Find Certified Public Accountants For A Home Based Business - Accounting
The trend of home based enterprises is gaining acceptance nowadays. More folks are leaving their boring day roles to go into the exciting arena of business where nobody can boss them around and opportunities are almost endless. There are many advantages of having a home business. However these enterprises aren't as different from large firms as folk like to believe. They too need in depth planning, correct system of recording transactions and future budgeting. Most never even give correct consideration to these things and as a result many fail miserably.
In business hit and trial isn't the best methodology to follow. One must be conscious of one's fiscal standing otherwise opportunities may slip right thru the fingers. For gigantic firms Tampa CPA firms certified public accountants are vital. They perform a complete range of necessary task that an individual can not perform on his own. In small enterprise eventuality the owner does not have the funds needed for beginning an in-house accounting department. so the majority of the times he makes an attempt to manage his finances by himself. There are many choices of accountants you must be conscious of.
For example you can pay an accounting firm to get the job done for you or you can get the job done by yourself without having to sacrifice quality with a little help from accounting software. Accounting programs are superb for small enterprise entities because they've been designed in particular to meet their wants. There are many such applications available on the present market and a number of them are even free to use.
You can search for these programs on Google or any other search website. Freeware lacks some top-end functionality but is good for folks with a small budget. The things which an accounting software generally manages include invoices, accounts receivables and payables, inventory, and payrolls. The control interface is so easy to be employed in most cases. Among all accounting software apps Peach Tree is maybe the strongest. It comes in a few apartments as an example Peach Tree Pro, Peach Tree First Accounting, Peach Tree Quantum, and Peach Tree Premium. But the one which is able enough of handling all of your accounting jobs is Peach Tree Complete Accounting.
This program offers a lot that new users frequently feel completely overwhelmed. But do not worry there are many manuals available online which should make you an expert in one or two months. Support offered by the entity responsible for Peach Tree is also really useful.
With this glorious bit of software you won't need any other thing for your accounting and book keeping wishes. Accounting programs are quite superb but they need some effort from you. You need to get the software, then you have got to go through some articles to grasp it's capacities and after that you will need a little time to become skillful in its use
In business hit and trial isn't the best methodology to follow. One must be conscious of one's fiscal standing otherwise opportunities may slip right thru the fingers. For gigantic firms Tampa CPA firms certified public accountants are vital. They perform a complete range of necessary task that an individual can not perform on his own. In small enterprise eventuality the owner does not have the funds needed for beginning an in-house accounting department. so the majority of the times he makes an attempt to manage his finances by himself. There are many choices of accountants you must be conscious of.
For example you can pay an accounting firm to get the job done for you or you can get the job done by yourself without having to sacrifice quality with a little help from accounting software. Accounting programs are superb for small enterprise entities because they've been designed in particular to meet their wants. There are many such applications available on the present market and a number of them are even free to use.
You can search for these programs on Google or any other search website. Freeware lacks some top-end functionality but is good for folks with a small budget. The things which an accounting software generally manages include invoices, accounts receivables and payables, inventory, and payrolls. The control interface is so easy to be employed in most cases. Among all accounting software apps Peach Tree is maybe the strongest. It comes in a few apartments as an example Peach Tree Pro, Peach Tree First Accounting, Peach Tree Quantum, and Peach Tree Premium. But the one which is able enough of handling all of your accounting jobs is Peach Tree Complete Accounting.
This program offers a lot that new users frequently feel completely overwhelmed. But do not worry there are many manuals available online which should make you an expert in one or two months. Support offered by the entity responsible for Peach Tree is also really useful.
With this glorious bit of software you won't need any other thing for your accounting and book keeping wishes. Accounting programs are quite superb but they need some effort from you. You need to get the software, then you have got to go through some articles to grasp it's capacities and after that you will need a little time to become skillful in its use
The Importance of CPA Firms For The Self-Employed - Accounting
Most of the giant associations get the significance of hiring an accountant. In truth some affiliations have a complete accounting departments having several experienced bookkeepers and accountants.
Nonetheless small companies and self employed folk like handling their records by themselves. They do it because they think that anybody with some understanding of finance can perform the jobs that an accountant is actually capable of performing. They also think that doing so will will reduce costs. Sadly both of these hunches are wrong. Actually an accountant saves your time as well as money. Here's a catalog of reasons that explain why tiny companies and self employed executives should change this approach: Lets face it, fiscal figures are uninteresting for many folks and working with them is a genuine discomfort.
Also, recording, investigating and organizing information takes a substantial amount of time. An accountant in Tampa protects you from all this work helping your business expand. Consider it this way, you may use the additional time for more significant jobs like increasing the value of your products for example. Rather than just recording transactions and making dry calculations most accountants also provide valuable guidance to their bosses. This guidance, if acted on, helps the business in making more substantial profits.
Accountants are literally capable of predicting market trends and tastes of shoppers. Also, they can easily tell you the ideal cost structure for your products which is an imperative thing for profit maximization. Commonsense claims that paying an accountant in Tampa is a disagreeable thing for your position but the eventuality is quite the reverse. Trained pros know numerous ways to help pay as little taxes as practicable. Are you aware that it's a general practice among accountants to use 2 alternative ways utilized for depreciation of assets. One of them does the depreciation swiftly and thus is employed for tax accounting.
While the other one is employed for letting the external and internal users know about the money standing of business. (internal users include executives, auditors etc while creditors, money departments etc are called external users ) Firms need to plan in advance. Without future planing, financial emergencies crop up suddenly and spoil everything. Here I'm not talking about obscure aims and objectives, I'm talking about solid budgeting based mostly on boring calculations and mathematical research. If you're studying this piece then in all likelihood you have not made detailed future plans and during the past you may have ran into some situation where you required lots of money. If yes then you have to be aware about the fact that organizing money on a short notice is very tough.
An accountant is the person that knows the proper way to avoid such unattractive circumstances. If you're a self employed person and did not feel the prerequisite of an accountant up to now then this text should have changed your perspectives. Nowadays finding accountants is not difficult any more.
Nonetheless small companies and self employed folk like handling their records by themselves. They do it because they think that anybody with some understanding of finance can perform the jobs that an accountant is actually capable of performing. They also think that doing so will will reduce costs. Sadly both of these hunches are wrong. Actually an accountant saves your time as well as money. Here's a catalog of reasons that explain why tiny companies and self employed executives should change this approach: Lets face it, fiscal figures are uninteresting for many folks and working with them is a genuine discomfort.
Also, recording, investigating and organizing information takes a substantial amount of time. An accountant in Tampa protects you from all this work helping your business expand. Consider it this way, you may use the additional time for more significant jobs like increasing the value of your products for example. Rather than just recording transactions and making dry calculations most accountants also provide valuable guidance to their bosses. This guidance, if acted on, helps the business in making more substantial profits.
Accountants are literally capable of predicting market trends and tastes of shoppers. Also, they can easily tell you the ideal cost structure for your products which is an imperative thing for profit maximization. Commonsense claims that paying an accountant in Tampa is a disagreeable thing for your position but the eventuality is quite the reverse. Trained pros know numerous ways to help pay as little taxes as practicable. Are you aware that it's a general practice among accountants to use 2 alternative ways utilized for depreciation of assets. One of them does the depreciation swiftly and thus is employed for tax accounting.
While the other one is employed for letting the external and internal users know about the money standing of business. (internal users include executives, auditors etc while creditors, money departments etc are called external users ) Firms need to plan in advance. Without future planing, financial emergencies crop up suddenly and spoil everything. Here I'm not talking about obscure aims and objectives, I'm talking about solid budgeting based mostly on boring calculations and mathematical research. If you're studying this piece then in all likelihood you have not made detailed future plans and during the past you may have ran into some situation where you required lots of money. If yes then you have to be aware about the fact that organizing money on a short notice is very tough.
An accountant is the person that knows the proper way to avoid such unattractive circumstances. If you're a self employed person and did not feel the prerequisite of an accountant up to now then this text should have changed your perspectives. Nowadays finding accountants is not difficult any more.
CPA Marketing: Promote Your Practice With an Accounting Website and Google Local Search - Accounting
Only a few tax and accounting professionals really understand how to actually use an accounting website as a sales tool. People have a natural desire to land new customers fast and a tendency to focus on quick conversions, but when used properly a website is a long-term selling tool. Selling professional services, like accounting, requires time, forbearance, and tenacity, even on the internet.
Not Many people are in the market for a new CPA at any given time. As a rule people are happy with their accountants. They already have a bond of trust, even friendship. Hitting prospects with a hard sell will very likely alienate them.
So how do you use your accounting website to find clients in a market like this?
Technology has changed a lot recently, but the fundamental principles of marketing aren't very different than they were centuries ago. Good old fashioned networking is now and probably always will be the key to your firm's success. Take the time to get to know your prospects. Care about them and treat them as individuals. Post information to your website that will benefit them over the long run and use your email marketing system and newsletter to let them know when you post something they'll find helpful.
Networking will always be your best source of clients, but it takes time. You'll often need to work prospects for months or years before they finally sign with you. I know that sounds like a lot of work, but please don't misunderstand my message. Take the time to do it. The long term health of your firm depends on it. This article is not intended to offer a substitute for networking. I can't stress this enough. There are, however, other ways to lure new clients to your firm.
If you know where to look and how to attract their attention, there are some fast conversions to be had out there.
The nature of the web can be exploited to move traffic to, and generate leads from, your website. For the first time small business owners have an opportunity to really take advantage of what industrialists call the "economics of scale". There are a LOT of people out there, and even if most of them are happy with their accountant, a few of them aren't. Like the watering holes and wells of old most of these people are congregating in one place, but now that place is the Internet.
The old cliche of "Location, Location, Location" is still going strong, but your actual geological location isn't actually as important as your location on Google. Take some time to work on improving your accounting website's search engine "location". Your practice will benefit both over time and in the short term.
There are a few different kinds of search engine listings; paid, local, and organic; and in time you'll want to employ all of them. Each has advantages, and disadvantages, and none are really "better" than the others. In this article I'm only going to help you get started. Local search is the easiest of these listings to influence. Lets get you started there. Don't stop there, however. Once you get your local listing going keep your momentum and look into paid search programs like Google AdWords and Organic Search Engine Optimization.
So, step by step, let's get your firm listed in local search. Step one is to make sure your business is listed as a business on "Google Places". Google places drives the local search results. Your practice is probably already listed, but if it's not it's easy enough to register. What you will need to do is modify your listing. Businesses indexed by the search engines tend have very little information on them. Go through the listings and make sure they are completely filled out. You are able to upload your logo, pictures, etc. and you can add a short description of your firm, your business hours... everything.
Once this is done get people to review you.
Google uses reviews, combined with a number of other factors like the physical location of your business, to determine your ranking on the page when it returns results to a search for accounting firms in your area. The more reviews you have, the more important you look.
That's the easy part. Now it's time to roll up your sleeves a do a little real work. It's not uncommon for a local business to have two completely separate listings; one for their current location and another for an old location. This is a pretty sure sign that you have some obsolete information floating around on the web. This information needs to be corrected. You'll do this in two stages.
First do a search for your company. Search by firm name, old names that you don't use any more, old phone numbers and addresses that you don't use any more... What you're trying to do is locate every possible reference to your company on the Internet. It's important that as much of this information as possible is up-to-date. If you find obsolete or incorrect information do your level best to correct it. The search engines are constantly crawling the web, and they like it when they find a lot of consistent information about your company coming from a diverse variety of sources.
Once your existing web presence is as consistent and current as possible, you're going to want to take the next step and increase it. The more mentions the search engines find about your company scattered about the web, the more important you appear to them. The easy way to do this is to apply to every directory you can find, but directory listings don't have that much "authority" in the eyes of the search engines. Google trusts some sites more than others, and "Authority" is the measurement of how much trust the site that's talking about you has earned. Site's like AICPA, BBB, and local chambers of commerce have a lot of authority.
Now, you'll notice I haven't really mentioned Bing. Don't worry about it. If you take these steps and get listed in Google you'll get found by Bing, too. Most accounting firms are small locally owned companies with a strong focus on finding local clients. Local search is defiantly the best place to start for firms like this.
Once you get this done there's a lot more work to do. Some folks don't even look at or understand how to use local listings. "Pay per Click" advertising and organic search engine optimization are both notable lead generators and you'll need to use them both, but local search will get your accounting website off to a wonderful start.
Not Many people are in the market for a new CPA at any given time. As a rule people are happy with their accountants. They already have a bond of trust, even friendship. Hitting prospects with a hard sell will very likely alienate them.
So how do you use your accounting website to find clients in a market like this?
Technology has changed a lot recently, but the fundamental principles of marketing aren't very different than they were centuries ago. Good old fashioned networking is now and probably always will be the key to your firm's success. Take the time to get to know your prospects. Care about them and treat them as individuals. Post information to your website that will benefit them over the long run and use your email marketing system and newsletter to let them know when you post something they'll find helpful.
Networking will always be your best source of clients, but it takes time. You'll often need to work prospects for months or years before they finally sign with you. I know that sounds like a lot of work, but please don't misunderstand my message. Take the time to do it. The long term health of your firm depends on it. This article is not intended to offer a substitute for networking. I can't stress this enough. There are, however, other ways to lure new clients to your firm.
If you know where to look and how to attract their attention, there are some fast conversions to be had out there.
The nature of the web can be exploited to move traffic to, and generate leads from, your website. For the first time small business owners have an opportunity to really take advantage of what industrialists call the "economics of scale". There are a LOT of people out there, and even if most of them are happy with their accountant, a few of them aren't. Like the watering holes and wells of old most of these people are congregating in one place, but now that place is the Internet.
The old cliche of "Location, Location, Location" is still going strong, but your actual geological location isn't actually as important as your location on Google. Take some time to work on improving your accounting website's search engine "location". Your practice will benefit both over time and in the short term.
There are a few different kinds of search engine listings; paid, local, and organic; and in time you'll want to employ all of them. Each has advantages, and disadvantages, and none are really "better" than the others. In this article I'm only going to help you get started. Local search is the easiest of these listings to influence. Lets get you started there. Don't stop there, however. Once you get your local listing going keep your momentum and look into paid search programs like Google AdWords and Organic Search Engine Optimization.
So, step by step, let's get your firm listed in local search. Step one is to make sure your business is listed as a business on "Google Places". Google places drives the local search results. Your practice is probably already listed, but if it's not it's easy enough to register. What you will need to do is modify your listing. Businesses indexed by the search engines tend have very little information on them. Go through the listings and make sure they are completely filled out. You are able to upload your logo, pictures, etc. and you can add a short description of your firm, your business hours... everything.
Once this is done get people to review you.
Google uses reviews, combined with a number of other factors like the physical location of your business, to determine your ranking on the page when it returns results to a search for accounting firms in your area. The more reviews you have, the more important you look.
That's the easy part. Now it's time to roll up your sleeves a do a little real work. It's not uncommon for a local business to have two completely separate listings; one for their current location and another for an old location. This is a pretty sure sign that you have some obsolete information floating around on the web. This information needs to be corrected. You'll do this in two stages.
First do a search for your company. Search by firm name, old names that you don't use any more, old phone numbers and addresses that you don't use any more... What you're trying to do is locate every possible reference to your company on the Internet. It's important that as much of this information as possible is up-to-date. If you find obsolete or incorrect information do your level best to correct it. The search engines are constantly crawling the web, and they like it when they find a lot of consistent information about your company coming from a diverse variety of sources.
Once your existing web presence is as consistent and current as possible, you're going to want to take the next step and increase it. The more mentions the search engines find about your company scattered about the web, the more important you appear to them. The easy way to do this is to apply to every directory you can find, but directory listings don't have that much "authority" in the eyes of the search engines. Google trusts some sites more than others, and "Authority" is the measurement of how much trust the site that's talking about you has earned. Site's like AICPA, BBB, and local chambers of commerce have a lot of authority.
Now, you'll notice I haven't really mentioned Bing. Don't worry about it. If you take these steps and get listed in Google you'll get found by Bing, too. Most accounting firms are small locally owned companies with a strong focus on finding local clients. Local search is defiantly the best place to start for firms like this.
Once you get this done there's a lot more work to do. Some folks don't even look at or understand how to use local listings. "Pay per Click" advertising and organic search engine optimization are both notable lead generators and you'll need to use them both, but local search will get your accounting website off to a wonderful start.
Wednesday, March 9, 2011
Choose the right courier service for sending documents to study abroad - Accounting
If you are planning to study abroad, we suggest to follow a procedure before sending your documents. The usual process that comes to mind is to fill the admission form manually and then send it. This turns out to be time consuming and mostly unreliable. It definitely can’t be termed as one of the most secure ways of sending admission documents.
The most effective way of getting your important documents delivered on time is to send it through a courier service, which is trustworthy, secure and prompt.
You must keep in mind these factors while choosing your courier service:
• Speed of Delivery
• Reliability
• Security level of the delivery
Speed of delivery should be fast:
The courier service should not just promise but also deliver the documents fast. If it gets delayed, the applicant might lose out on the chance of getting admission. So ensure peace of mind by sending your documents with the fastest courier service.
Reliable Delivery:
The courier service should be extremely trustworthy. It should deliver all the tall claims it makes.
Security level of delivery should be good:
Anyone who uses a courier service expects it to be secure. The courier service you choose, must deliver your documents securely i.e. without causing any damage to the documents.
Among many courier services, the one that aids you in sending students applications is DHL Express Easy which takes care of the above three factors efficiently.
The most effective way of getting your important documents delivered on time is to send it through a courier service, which is trustworthy, secure and prompt.
You must keep in mind these factors while choosing your courier service:
• Speed of Delivery
• Reliability
• Security level of the delivery
Speed of delivery should be fast:
The courier service should not just promise but also deliver the documents fast. If it gets delayed, the applicant might lose out on the chance of getting admission. So ensure peace of mind by sending your documents with the fastest courier service.
Reliable Delivery:
The courier service should be extremely trustworthy. It should deliver all the tall claims it makes.
Security level of delivery should be good:
Anyone who uses a courier service expects it to be secure. The courier service you choose, must deliver your documents securely i.e. without causing any damage to the documents.
Among many courier services, the one that aids you in sending students applications is DHL Express Easy which takes care of the above three factors efficiently.
Don't Undercharge Your Accounting Services! Tips for Estimating Your Time - Accounting
I know many bookkeepers struggle with finding a way to accurately estimate the time needed to provide high quality accounting services. This can be especially true when you begin working with a new client. There are no scientific formulas for calculating this time because it's just impossible to predict the additional challenges with a new client account until you're in the middle of the clean up. It's just a fact of our profession.
In a nutshell estimating time is a combination of relying on your intuition and being practical about what is involved in completing a group of tasks.
Estimating time begins even before you ever start working with a client. You need to think about how you provide accounting services to your clients and then come up with time standards to complete these accounting services.
How much time do you (or someone on your staff) need to provide the basic processing group of services - accounts payable, accounts receivable, cash receipts, payroll and an interim bank reconciliation on a weekly basis?
Here are the things you'll need to include when estimating the time needed:
• the actual recording of the transactions
• the organization of the client's information
• the follow-up that may need to occur with vendors
• the follow-up that may need to occur with the client's client and follow-up questions to the client for missing information
• the time involved for updating your internal client status report
• the time spent updating the supervisor on the account
• the supervisor review time
It's really important that you don't skimp here. Think about everything that is involved in providing your level of quality accounting services for the client. You need to incorporate all of the nuances, not just the physical recording of the transaction. Don't be worried that you are piling too much on. It's when you omit things that you get yourself into trouble by estimating too low. You won't be properly compensated.
Some weeks your estimate will be in your favor and other weeks in favor of your client. So when you estimate time for your packages, look at the entire accounting year, not just the short term. When you estimate over a longer period of time, it gives you a smoothing effect and you are better able to handle volume highs and lows as well as be paid for them.
In a nutshell estimating time is a combination of relying on your intuition and being practical about what is involved in completing a group of tasks.
Estimating time begins even before you ever start working with a client. You need to think about how you provide accounting services to your clients and then come up with time standards to complete these accounting services.
How much time do you (or someone on your staff) need to provide the basic processing group of services - accounts payable, accounts receivable, cash receipts, payroll and an interim bank reconciliation on a weekly basis?
Here are the things you'll need to include when estimating the time needed:
• the actual recording of the transactions
• the organization of the client's information
• the follow-up that may need to occur with vendors
• the follow-up that may need to occur with the client's client and follow-up questions to the client for missing information
• the time involved for updating your internal client status report
• the time spent updating the supervisor on the account
• the supervisor review time
It's really important that you don't skimp here. Think about everything that is involved in providing your level of quality accounting services for the client. You need to incorporate all of the nuances, not just the physical recording of the transaction. Don't be worried that you are piling too much on. It's when you omit things that you get yourself into trouble by estimating too low. You won't be properly compensated.
Some weeks your estimate will be in your favor and other weeks in favor of your client. So when you estimate time for your packages, look at the entire accounting year, not just the short term. When you estimate over a longer period of time, it gives you a smoothing effect and you are better able to handle volume highs and lows as well as be paid for them.
Linda Hunt is the founder of SUMSOLUTIONS, a company devoted to teaching freelance bookkeeping professionals how to build and sustain a profitable practice that supports their body, mind and spirit. Are you ready to learn marketing strategies that work? Click here http://www.sumsolutions.com/free-webinar-lead-generating-strategies/ to join Linda on a FREE webinar for bookkeepers - "Lead Generating Strategies that KEEP Your Pipeline Full."
Why, When and How Does Voluntary Liquidation Take Place - Accounting
The term 'liquidation' often comes with negative connotations. Frequently the word is linked with bankruptcy, shady business dealings and a poor reputation. However, there is an incredible difference between voluntary and compulsory liquidation, which make confusion of the two, and their treatment as one and the same thing, quite inappropriate.
Compulsory liquidation involves a court (or other outside authority) ordering a company to liquidate its assets in order to pay creditors. In contrast, a company itself chooses to liquidate under a voluntary liquidation. A company opting to do this makes this choice in order to repay its outstanding debts and provide any remaining profits from sale to shareholders.
Why and when would a company voluntarily liquidate?
There are a great many reasons for why a business may undertake this process. These reasons may include, but not be limited to:
Faced with this reality, some companies understandably see this process as a better alternative than the declaration of bankruptcy. By opting for it, a deal with creditors can often be worked out so that the company will repay a percentage of its debt. In this way, a voluntary liquidation can be more time effective as it is commonly understood that declaring bankruptcy and negotiating and complying with court requirements can be lengthy and expensive.
How does it occur?
As a first step, a resolution needs to be passed stating that this voluntary liquidation has been agreed by company director(s) and shareholders. Following this resolution, it is quite common for a company to stop trading.
In the event of the company being profitable as the liquidation process begins (and for at least five weeks before the process began), a majority of the company's directors will make a statutory declaration of solvency. This is necessary to allow the voluntary liquidation to be processed as a Members Voluntary Liquidation with the business being wound up in a way that is appropriate for its circumstances.
However, the company may be insolvent as the process begins. And, although it is rare, it is also possible that a statutory declaration of solvency be made. In both of these cases, the voluntary liquidation will be approached as a creditor's voluntary wind up of a company.
Should a creditor's voluntary wind up be necessary, company creditors will be summoned to a meeting arranged and facilitated by an appointed liquidator. The purpose of this meeting is to discuss the business' future, how its assets will be sold and profits distributed. It may be that a consensus cannot be reached at this meeting and so a liquidation committee may form to oversee how the liquidation process should be carried out.
Liquidation comes in different forms and it is important for business owners, company directors and shareholders to understand the difference.
Compulsory liquidation involves a court (or other outside authority) ordering a company to liquidate its assets in order to pay creditors. In contrast, a company itself chooses to liquidate under a voluntary liquidation. A company opting to do this makes this choice in order to repay its outstanding debts and provide any remaining profits from sale to shareholders.
Why and when would a company voluntarily liquidate?
There are a great many reasons for why a business may undertake this process. These reasons may include, but not be limited to:
- Key members of the company moving on or passing away
- Shareholders of the company deciding that continuing operations is futile
- The possibility of more revenue coming from the sale of company assets than replacement of lost company members and/or shareholders
- To release funds for the use of the broader company. (In this circumstance, a larger 'umbrella' company may sell off the assets of one of its subordinate or member companies).
Faced with this reality, some companies understandably see this process as a better alternative than the declaration of bankruptcy. By opting for it, a deal with creditors can often be worked out so that the company will repay a percentage of its debt. In this way, a voluntary liquidation can be more time effective as it is commonly understood that declaring bankruptcy and negotiating and complying with court requirements can be lengthy and expensive.
How does it occur?
As a first step, a resolution needs to be passed stating that this voluntary liquidation has been agreed by company director(s) and shareholders. Following this resolution, it is quite common for a company to stop trading.
In the event of the company being profitable as the liquidation process begins (and for at least five weeks before the process began), a majority of the company's directors will make a statutory declaration of solvency. This is necessary to allow the voluntary liquidation to be processed as a Members Voluntary Liquidation with the business being wound up in a way that is appropriate for its circumstances.
However, the company may be insolvent as the process begins. And, although it is rare, it is also possible that a statutory declaration of solvency be made. In both of these cases, the voluntary liquidation will be approached as a creditor's voluntary wind up of a company.
Should a creditor's voluntary wind up be necessary, company creditors will be summoned to a meeting arranged and facilitated by an appointed liquidator. The purpose of this meeting is to discuss the business' future, how its assets will be sold and profits distributed. It may be that a consensus cannot be reached at this meeting and so a liquidation committee may form to oversee how the liquidation process should be carried out.
Liquidation comes in different forms and it is important for business owners, company directors and shareholders to understand the difference.
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