Tuesday, July 31, 2007

Bookkeeping help can redefine success for your business

A business whether big or small needs to pay extra attention to their financial records and day to day bookkeeping requirements. This results in additional manpower and resources being utilized by the finance division. A little bookkeeping help in the form of outsourced bookkeepers will be more than welcomed for the business. An organization can benefit from the many advantages by engaging outsourced bookkeeping that help in maintaining their financial records in a systematic and accurate manner. Accounts maintained by an expert with years of experience in the required field can change the way a corporate does its business. The availability of accurate data and compiled reports on the financial status of the company can significantly contribute towards the decisions that an organization needs to undertake.

Bookkeeping help is required by a corporate so that it can redirect the resources being spent on its bookkeeping division to other divisions, thereby optimizing the use of the available resources. Also, if bookkeeping help is hired from an outsourced vendor the answerability about the accuracy of the data and timely delivery will rest entirely with the vendor. This increases the responsibility of the vendor ensuring better quality of service. Internal staff maintaining bookkeeping records for a company usually costs more to the company in terms of salary. Hiring bookkeeping help will also help to cut down on this expense. This is a feasible option for a smaller firm who may not have been able to hire competent professionals to internally carry out the task of bookkeeping. Such a firm can now hire bookkeeping help and take advantage of the professional services offered by the vendor and his team of competent accountants.

A reliable bookkeeping help can be outsourced through reference of other firms who might have used the services of the vendor. As word of mouth and positive references bring in business for the vendor, a firm providing bookkeeping help will ensure that the customer is kept happy for future references. An organization can therefore expect the best services and quality according to industry standards if it hires bookkeeping help from a reputed firm. A firm can also hire bookkeeping help from a freelancer but in this case again; references will play a crucial role, as sensitive data regarding the company’s finances will be handled by the freelancer. As most firms maintain their bookkeeping records in a computerized manner, compiled and processed records of daily transactions can be transferred back to the parent company at a regular basis. This further minimizes the chances of a discrepancy showing up in the records maintained by the firm providing bookkeeping help.

A business has many transactions during any working day and some of them may be minor expenses or revenue that might be overlooked, or misappropriated intentionally. Such a minor discrepancy in bookkeeping records might be noticed by a business after a long time resulting in much chaos and confusion. Hiring bookkeeping help will eliminate the possibility of such a mistake as the records are scrupulously maintained and balanced on a daily basis. Any minute mistake is promptly discovered and rectified ensuring the transaction records are always accurate at any given day. So whatever be the reason it makes practical sense for a business to opt for bookkeeping help to catalyze growth.

Source: http://www.articlenetworks.com/

Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about Accounting outsourcing services,Small business accounting,Real estate accounting,Ratail accounting, BookKeeping Help visit this leading internet source: http://www.impacctusa.com/

Monday, July 30, 2007

Top 5 Bookkeeping Secrets To Get Your Books In Shape

Now that year end and tax season is over, it's time to sit down and review your books and plans for the next year. I love tax time but not for the reasons you may expect. I love it because it gives me a chance to connect with my clients (I'm a virtual bookkeeper specializing in bookkeeping for Internet Marketers) and help them implement some simple tricks and strategize to help get their books in shape.

Here are my top 5 bookkeeping secrets:

  1. Keep an audit trail: I know, fancy bookkeeping word (scary to some because of the word audit) but an audit trail is simply a record of all your invoices, checks and expenses in numeric order. Does it sound daunting? Don't worry - there are many options to choose from when it comes to bookkeeping software. My personal favorite: Quickbooks.
  2. Due date reminders: Use your Outlook calendar, Trumba, Google calendar, wall calendar... anything! Be sure to set reminders for bills that are due, tax remittance deadlines, payroll remittance deadlines. You could save thousands of dollars per year simply by paying your bills on time (not to mention keep your credit rating in check).
  3. Bank statements: With the advent of the internet, e-bills are all the rage. Sure it's eco friendly but if you ever get audited, the auditor is going to want to see physical copies of everything, not digital. So at the very least, you should request a bank statement be mailed to you.
  4. Keep good records: Too many business owners don't keep good records. Bookkeeping is the glue that keeps your business together. Without good books, you can't make financially sound decisions for your business.
  5. Computer software: The biggest mistake people make is not taking the time to set up the software correctly when they install it on their computers. If you want a financial report you can trust, you will need to be sure it is set up correctly from the start.

Incorporating these simple strategies into your bookkeeping cycle will help streamline the books and make bookkeeping more enjoyable.

About the Author
Raquel Morphy is a virtual bookkeeper specializing in bookkeeping for internet marketers. A detailed checklist on how to set up your bookkeeping software can be found in her ebook: Bookkeeping Secrets Revealed. http://www.bookkeepingsecrets.com/

Source : http://www.goarticles.com/

Sunday, July 29, 2007

Cost Benefit Analysis-Whether you should outsource your Bookkeeping to Professional Book Keeper

What is a role of a bookkeeper in your organisation :
BOOKKEEPERS keep complete, up-to-date, and accurate records of accounts and financial arrangements. Bookkeepers verify and enter information into journals and ledgers or into a computer. They periodically balance the books and compile reports and financial statements. Bookkeepers also receive, record, bank and pay out cash. They balance checkbooks with monthly bank statements. They may calculate employee wages from plant records or time cards and issue payroll checks. Some of the other work they may do includes posting accounts receivable and payable, prepare and make bank deposits, record payrolls, maintain inventory records, purchase supplies, prepare purchase orders and do expense reports. Bookkeepers may also make schedules, sort documents, and file bills. These type of jobs are found in every industry and may have various job titles, such as accounts payable clerk, accounts receivable clerk or assistant bookkeeper.

Cost of a Bookkeeper :
The pay for these jobs depends upon experience, clerical skills, the level of responsibility and the job location. Beginning salaries go from minimum wage to $ 15 per hour. Experienced Bookkeeper can make $ 20 an hour. After having worked for three years with the same firm, a Bookkeeper can earn at $ 25 per hour. A Bookkeepers usually work 40 hours a week; sometimes it may be necessary to work overtime. Some employers have fringe benefits such as paid vacations and sick leave, life and health insurance, and bonuses. Other benefits that the employer may include are participation in a credit union, or retirement and profit sharing plans.

Advantage of outsourcing Bookkeeping work to a professional bookkeeper :
There are several distinct advantages to outsourcing your bookkeeping functions. First and foremost is saving money. You get what you pay for and if you don't pay for quality than you won't have quality service. However, you can save money by outsourcing because you won't be paying for employer payroll tax expense, workman's compensation and general liability insurances, vacation time, sick time, health insurance and other benefits a good full time bookkeeper will expect from his/her employer. Just remember, however, that these costs will be built into the consultant's hourly rate and their fee will reflect these costs. Any bookkeeping consultant who has not taken these costs into consideration is not a bookkeeper you want - if they don't know enough to include these costs into their fees, then they don't know enough to be a help to your business. You should expect to pay at least three times what you would pay an experienced full charge bookkeeper.

And just how do you save money by paying three times the amount you would pay an employee? Well, let's see. There will be no recruiting, interviewing and training costs for start. And if you should find yourself unhappy with the services there will be no additional recruiting, interviewing and training to replace your bookkeeper. Also, you will not have to be concerned about law suits such as sexual harassment, unlawful firing, age discrimination, sexist, etc. Or an increase in your unemployment rates because you laid off an employee that you really wanted to fire but had no lawful cause to do so. So right away we have less time and money spent and potentially less hassle if things don't go well.

And of course you will not be paying workman's compensation and general liability insurance premiums. Also any worthy bookkeeper will expect at least two weeks vacation, coverage for sick time, health and dental insurance and even perhaps more benefits.

Most professional bookkeepers will have their own offices saving you space within your office. So you will not be buying that extra desk, calculator, computer and computer software. Your bookkeeper will be providing all of that as part of his/her fee. No software updates, computer maintenance, training costs, etc. Of course should you prefer to have your computerized bookkeeping records available to you at your office, a small investment in software installed on your computer makes this possible. Also no office supplies to be paid for. You will be amazed at just how much pens, pencils, and paper can be used by a bookkeeper. Your consultant bookkeeper will either ask you to drop off the work at their office, will pick it up at your office or some may even offer remote bookkeeping service. And by having your bookkeeping done off site, your bookkeeper will be able to work more efficiently and accurately because her/his office will most likely offer less distractions than your busy office. All of this is saving you money.

And the best reason for outsourcing is that you control the amount of money spent on bookkeeping. What I mean by this is that the person you hire to do your bookkeeping will be doing just that - not answering the phone, dealing with drop-bys, chatting to other employees, etc. Also you can start with just a few hours a month and add on when you need to and then adjust downward again should it be necessary. Can you imagine finding an employee to start with only four hours a month, then asking them to put in 20 hours a week for awhile and then back down to four hours a month again. I don't think you would keep them for very long, but a free lance bookkeeper is able to work around these variables and even more importantly expects to work with flexible schedules.

So have I convinced you yet? If so, then just remember "you will get what you pay for". Go for top quality because your financial records are the core of your business and without great bookkeeping you cannot expect to succeed no matter what type of business you have. After all don't you think you are worth it ?

Mr.Bhaskar Thakkar is a qualified Chartered Accountant and professional bookkeeper from India. He is a president of M/s. BT Associates, Chartered Accountants. The said firm provides Book keeping, Accounting, Auditing and Tax preparation services to various Chartered Accountants in UK, US and Canada. The firm is also specialized in preparation of VAT returns, Payroll Processing. Visit 1. btassociate.com,. A division of said firm provides various outsourcing solutions please visit 1. jobs2india.

Article Source: http://www.1ArticleWorld.com

Friday, July 27, 2007

Computerized Bookkeeping Is Fast, Simple, and Flexible

Every business needs to keep good records to ensure bills are paid, obligations are met and checkbook balances match up. Whether it's a home-based business, a Fortune 500 company or even the business of running a household, well-kept books can really help guide a "business" in the right direction when it comes to keeping finances in order. More and more people are turning to computerized programs for keeping money in check. The reasons for this are many.

Read More Article...

Thursday, July 26, 2007

Charting Your Course with Good Bookkeeping

When the exact longitude and latitude of the ship are known it's possible for the captain to chart an accurate course across rough seas. The general manager of a business is like a ship's captain. Knowing your location and direction is fundamental for charting the right course in sailing and in business.

The charts for a business are its income statement and balance sheet. A good general manager uses these to know exactly where the business is and where it is headed. Armed with this information, better business decisions are more likely. A competent bookkeeper provides these reports accurately and in a timely fashion.

It is the job of the bookkeeper to accurately state the condition of the business in a real time basis. The bookkeeper records all changes in the financials of a business using a double entry accounting system based on the fact that Assets = Liabilities + Owner Equity. All business transactions are accounted for using this system.

Some basic tools of the bookkeeper are:

  • Ledgers such as accounts receivable, accounts payable, fixed assets
  • Journals for recording each financial transaction
  • Vouchers such as checks and numbered bills for services or material
  • Invoices representing sales of products or services
  • Journal entries (recurring and special)
  • Trial Balances for interim reporting
  • Financial Statements beginning with the income statement and balance sheet

Four important features of competent bookkeeping are:

  1. Timeliness:
    It's generally important to record transactions on a timely basis. This means that invoices and bills are posted by the next business day. However, on some instances similar transactions are processed in batches.
  2. Account Reconciliations:
    It's also critically important for accounts to be reconciled monthly to assure accuracy. For the cash to be right, for example, check books must be reconciled to the bank statements and outstanding checks must be identified.
  3. Analyzing Accounts:
    For payables and receivables, it's important to know the age of the bills and invoices. How much is “current” and “overdue” is basic to staying on top of your credit rating and vendor relations. For receivables it's important to know how you are doing in collecting funds from each of your customers.
  4. Matching:
    Revenues in a fiscal period must be matched to expenses incurred in that same period. When items don't match in the same period, inaccurate income statements are the result. This leads the general manger to miscalculate the direction of the business.

Good bookkeeping is the foundation of good accounting. It is also fundamental to help the general manager steer the business through rough seas and into calm waters.

To find a bookkeeping service for your business visit the Accounting Aisle.

Source: http://www.articlealley.com/article_124609_15.html

Wednesday, July 25, 2007

When Choosing Bookkeeping Programs

My organization recently decided to update its bookkeeping programs. Though it will probably improve efficiency in the long term, but presently, it puts me, as the office manager in an uncomfortable position.

Over the years, the firm have tried several bookkeeping programs, but finally settled on Quickbooks, which frankly speaking, I am very indifferent to, but have gotten so used to it in the last few years. We probably won't know the fellow that took the decision to adopt a new bookkeeping program; nevertheless it was a wrong decision.

There was nothing wrong in the existing bookkeeping program, and setting up a new one was created new problems, that has was never envisaged. First, everything had to be recorded to the new bookkeeping programs, and for this task, the boss hired a computer expert, who also happened to be his son.

The task involved writing a macro that will convert all of the files from the old bookkeeping programs into the new one, and unfortunately, the project failed- just like everything the boss and his family do, on top of this is the problem of lack of compatibility between the QuickBooks and the new bookkeeping programs, which was a kind of general public access thing that was obviously produced by Linux nerds in their spare time. Though it is very stable and well coded, it is just not a user friendly interface.

Of course I bore the brunt of the whole thing, so I had to learn how to operate this graphics free, all text interface, before entering the old bookkeeping program data. Of course the new program is more stable, and perhaps faster, but the point is it is boring and takes a longer period to learn.

Even now that I have a full grasp of it, I still prefer one of the bookkeeping programs where I can click on a few icons and not bother about keyboard shortcuts.

I resent this new program because I will have to use it all day, so I think I deserve something pleasant to work and interact with.

But it seems no one is interested in that, as long as it is free, fast, and occupies less hard disk space, then it will do just fine.

About the Author:

Kyle Greatbatch Bookkeeping Programs

Article Source: www.iSnare.com

Tuesday, July 24, 2007

Bookkeeping : Safe And Suggest

The right way to keep your finances in order

Bookkeeping is a term that often causes confusion. Many associate it with libraries and bookshops, while in reality it is concerned with financial records. The task of bookkeeping is more important than ever before because many businesses are diversifying and going global. This means more financial records to keep. In fact, many companies in the United States are outsourcing bookkeeping functions to firms within the country and abroad.

Bookkeeping involves documenting all the financial transactions of firms or individuals. Individuals who require bookkeeping services include celebrities and small entrepreneurs. Organizations can range from clubs to MNCs. Bookkeeping may be single or double entry. In the former system, only payments are listed. In the latter case, records of sales, purchases, payments, and receipts are maintained by clerks in the daybooks. They are also responsible for entering data in the respective ledgers, ie, customer, supplier, or general. Bookkeepers use these data to prepare trial balance. This is in turn are used by financial accounts to prepare the balance sheet and the profit and loss statement.

Bookkeeping functions

- Entry of accounts receivables and payables
- General Ledger entries
- Document management
- Keeping a tab on VAT
- Maintaining record of bank and credit card statements
- Writing financial reports or summaries
- Balancing or trial balancing of books

Apart from the above, bookkeepers make bank deposits for their employers by obtaining transaction data from cashiers, verifying the receipts, and sending money to the bank in the form of cash, check, or DD. Computerization has added to the responsibilities of many bookkeepers, who are now required to handle procurement and billing. Bookkeeping clerks earlier required education and training related to accounts only, but today good communication skills are essential for this job. This is because many clerks need to interact with customers and clients through letters, e-mail, and phone calls. This becomes all the more important in the case of outsourced bookkeeping. Firms offering outsourced bookkeeping services provide 24/7 service, weekly/monthly data updates, and quick redress of queries. They also tend to be more cost effective if your company needs large volumes of data to be documented for future use.

In the past, bookkeepers entered and maintained data on paper and stored them as files and ledgers. Today, computers and special accounting software have made their task easier. It is possible to quickly enter loads of data, keep back ups, and retrieve data with the click of a mouse.

Jason Uvios writes about on Bookkeeping to visit :- bookkeeping, bookkeeping supplies

Source : http://www.articleblotter.com/

Monday, July 23, 2007

Managing finances is key to successful business

Good financial management is key to running a successful business. The company needs to be on top of its accounts to ensure they are not spending money they don’t have, and to keep an eye on specific areas that are costing them money so that any problems, potential or realized, can be rectified. Bookkeeping is a way of recording the transactions of a business, and accounting is the overall analysis of the company’s performance.

Every single transaction the business makes should be recorded in a cash book, however seemingly insignificant the amount. Problems can and will occur where records are inaccurate or entirely missing. Businesses need to be able to account for every single penny that passes through their hands, both for their own benefit and that of the law – a yearly government audit will soon highlight any irregularities and the company could be heavily penalized. Cash should be forecasted on a weekly and monthly basis, to help the company set a realistic budget that they should stick to. If they record projected spending/earnings, it is becomes easier to see the areas which aren’t performing up to standard, and to target the reasons why. Business need to plan for any short or long term cash requirements for their various growth projects, rather than planning for the profit figures they hope to achieve.

Deposit accounts can be used by businesses to gain interest over a set amount of time on money that is not needed for the day to day running of a business. For example, a business could put away a lump sum for a year, and gain a higher rate of interest on it than they would in a regular account. There are restrictions on a deposit account, however, such as withdrawal conditions, which will be set when the money is deposited. This means money can only be taken from the account as specified intervals, so this could be risk if the money is likely to be needed in any emergency situations. However, they are seen as a fairly safe place to keep money, as interest rates are often guaranteed not to fluctuate over the duration of the deposit.

Trade finance is the another form of lending other than the traditional banking facilities offered, whereby trade financers will help fund the payments need to pay suppliers for their raw materials, finished goods, etc. Trade finance is considered a cheaper method of lending than typical overdrafts/loans, as the interest rate (payback) is lower than that of the banks. On top of this, it can be notoriously difficult to persuade banks to increase overdraft amounts, which can really leave a business struggling if they have no other way to raise the necessary capital to fund their project. Often business will receive large, potentially very lucrative orders, which on completion will generate a large profit; however they struggle to raise the initial money to be able to actually complete the order, which is where trade financers can step in to help, providing the initial funds needed without demanding an extortionate amount for the profits in return.

Article Alley is one of the UK's top article sites, best for Money Articles.

Sunday, July 22, 2007

Utilizing Online Book Keeping Services

New business start ups mean increased need for book keeping services, since accounting is mandatory. Small businesses do not want to waste the time and energy spent on extensive and complicated paper work so they seek the services of book keeping agencies.

Book Keeping Services Online
Some of the services offered by book keeping services online are, reviewing existing bookkeeping systems to recommend the customer's needs, inputting new information, running financial management statements monthly, quarterly or yearly, and preparing payroll records of state and federal withholding reports. It also includes management report creation, assisting tax preparation, invoice or other office data management tasks assistance, word processing, data entry and bulk mailing, paying salaries, coordinating and handling accounts receivable and payable, balancing ledgers and check books, and organizing financial information required for business plans, loan proposals, and cash flow statements.

Book keeping services online are popular, since businesses can offload all the arduous tasks of managing and maintaining financial records, yet not lose access to important details. Traditional bookkeepers require that the records be submitted to them. This is not so with online book keeping services. Their web based filing systems allow access 24 hours a day. You just send the bills, the invoices and the expenses and everything is filed and maintained by them. They will maintain the records, keeping them up to date for convenient viewing.

Some book keeping services online also help in administering taxes. They even calculate the tax due on the invoices, track the VAT owing to Customs, excise on your web site, and complete the quarterly VAT return where applicable. As the financial records are constantly updated informed financial decisions can be made with ease. These web sites are secure using SSL encryption, which makes them safe.

Many businesses prefer bookkeeping services online for several reasons. There is no need to install bookkeeping software, train personnel to use them, and waste money in maintaining them. Another problem with the book keeping software is that you need to keep updating it yearly. Records are always available and it eliminates paying an accountant hourly rates to do your book keeping, as these services charge a fixed monthly fee. All you need is a computer with access to the Internet and a fax machine.

Book keeping services online are fast compared to traditional bookkeepers and reliable. You can monitor and know exactly how much work is being done on a daily basis and since you get to see all records maintained well, you may not get any rude shocks which are inevitable should you use a book keeper to maintain your books at the last minute. These services are hassle free and convenient and they save time, money and energy, which can be used to help the business achieve success.

Additional Help
There are firms that offer professional help and products to help new businesses succeed.

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site www.smallbusinessconsulting.com/

Thursday, July 19, 2007

More to a Specialized Accounting Degree Than Mere Bookkeeping

Bookkeeping is a term that is thrown about carelessly in business circles, though the primary responsibility of a bookkeeper is balance the company ledger. In the modern business world, doing so can require a lot more than simply deciding between single entry and double entry accounting methods. For example, tax liabilities for even the smallest of retail and wholesale companies can be substantially reduced or offset to provide maximum cash flow depending on how inventory is recorded and managed.

Some educational institutions have, in recent years, recognized the need for more finite and niche oriented accounting programs at the bachelor level. Where once accounting majors had to enroll in a postgraduate degree program in order to specialize, many are now able to do so in the first for years of postsecondary education. The positives of this shift lie in the ability to prepare for industry specific accounting jobs, while the consequent negatives are in reduced employment opportunities across the broad spectrum of business. Still, it is the graduates from these types of degree programs that are highly sought by businesses in many different industries, and for good reason.

Bookkeeping is an essential function of any business’ accounting department, which is why bookkeepers will always be in demand. No matter what type of business one is involved in, there are protocol commonalities that are shared with every other company in existence, from the smallest family owned local company to the largest corporations in the world. For those businesses who require specialized accounting knowledge to maintain their daily operations at maximum efficiency and limit their tax liability in the process, accounting degree holders with an understanding of the processes unique to the industry in question are required as well.

Regulation of industries in terms of accounting methods isn’t universal across the board. What is considered best practices in the manufacturing industry may be unsuitable for service based companies. When it comes to an accounting education, students who take the time to consider the possibilities of specializing are more likely to be rewarded, provided they can find employment in their area of interest. For students who choose a generalized account degree, there is always the option of specializing through a master’s level program or postgraduate certification.

Article Source: http://www.articlenetworks.com/

For more information about online and campus based degree programs and educational resources, visit 866MyMajor.com. For more on online bookkeeping courses, visit our bookkeeping diploma section. For more information on online accounting courses and programs, visit our accounting degree section.

Wednesday, July 18, 2007


Book keeping as a night mare had become the potential problem of big concerns in general and small concerns in general and small concerns at certain occasions. The plutonic topics, even as initiated from a precarious data collection to the most Herculean one like accounting formats require a methodic book keeping. A properly analyzed and arranged book keeping serves to reduce the trickle-time endeavors of a business man. Though book keeping is a skilful tantra that provides the abundant topics in a capsule it has its own drawbacks. It might become a nightmare and would tend to mislead the entreprenem if he turns a careless eye even to a little flaw.

To illustrate he might have placed a book on sundry expenses and miscellaneous expenditure in one format. But on the preface he might wake a mistake by accounting it as a revenue one. This might jeopardize his whole act of previous excels and the much toiled preparations. He could easily resort to card-keeping that would help jueuenile businessman in his initial endeavors. But book keeping as a night mare creeps in this aspect also wherein a careless misplaced card could lead to varied complications. To avoid these setbacks and to transform the sensation of nightmare to that of a pleasant dream one should resort to be sharp and watchful.

It is a way businessman who always makes trivial mistakes that might pane way for more sobre ones. Book keeping is a nightmare only to such a man. A brisk and energetic business man always gets his share of cheese if he properly stick to his side of discipline, that is to ensure he keeps a strict watch over the proper arrangement of the topics one need not be an excellent nook keeper in the strict sense but he should have a basic and the required knowledge that would enable him to verify the arranged topics would enable him to verify the arranged topics and most significantly to make a weekly or quarterly survey of the topics in the Jargon.

“Bookkeeping an essential form
of art is the one with no pre-requisite”- Lewis Caroll.

Aravind Kumar is an executive at Integra Global Solutions Corp, a company which leads in Bookkeeping and Medical Transcription for the past 6 years and has its business spread across 3 continents with a client base of more than 1000 small and large companies in USA, UK, Australia and India. You can freely publish this article in your website with a link back to www.globalintegra.com/bookkeeping/bookkeeping.html/

Tuesday, July 17, 2007

Do you hate bookkeeping?

If you hate bookkeeping, you are not on your own. For most small business owners 'bookkeeping' is a major pain; a real chore. If you have to choose between selling your products and services or keeping your books in order - the books lose every time?

But it would be good to

* know your cash position

* and know the bank balance before the statement arrives

* Have reports and guidance on your profitability?

* You want to be able to explain where your figures come from to the tax man if he should ask.

Would you play football, cricket or golf and not bother to keep the score? Of course not, we all want to be in control of our businesses, but for the small business owner this has never been easy.

Give serious thought to 'outsourcing' your bookkeeping to an expert, either an online bookkeeping service or a traditional bookkeeper.

Isn't it best if my spouse does the bookkeeping?

In many small businesses the owners spouse will keep the books. Of course, they want to help each other, and to keep costs to a minimum. However, this can sometimes be a bad move.

If they are competent and enjoy doing it - then good. But remember your business is your livelihood, it is important that the books are written up on a timely and accurate basis.

If the job is done by someone competent

A Accounting costs should be minimised, good books = an easier job

B You should be provided with useful information throughout the year. Such as:

The balance on your current account, taking into account cheques you have written which the bank don't yet know about.

Your profit for the month, compared to the same month last year.

or Profit for the year to date, compared to the same period last year.

An aged debtors list.

The cost of paying someone competent to provide this information, perhaps just a few hours each month, can be a very rewarding investment.

Will buying Sage or Quickbooks or similar solve my bookkeeping problems?

Firstly, these and the other similar packages are marvelous tools for small business owners. However the purchase of the tool does not implement the system. If you are going to use the system 'in house' make sure you set off on the right track. Get someone experienced to help set up the 'chart of accounts' and the opening balances. Make sure you are confident on making entries and reconciling the bank account.

Be aware of the saying "rubbish in, rubbish out", bad books means more work at the year end. At the extreme, your accountant may have to cast the books aside, and re-write the whole years figures - expensive.

We don't really need to reconcile the bank?

"Reconciling the bank" just means making sure that the books are in agreement with the bank statements. The bank rarely make mistakes, so it usually means making sure you haven't missed anything in the bookkeeping.

And YES it absolutely has to be done. If you don't do it, your figures won't be reliable, and your accountant will have to do it, and he/she will charge for it.

What 'accounts' do we need in our 'chart of accounts'?

The software normally sets up the essential balance sheet accounts, such as a bank current account, a VAT account and debtors and creditors. Often it is necessary to add a bank savings or second account. Also a cash account might need to be set up. If it isn't clear how to do this, just set up a new bank account, and call it 'cash'.

The profit and loss accounts can be tailored to your business. Don't have too many accounts, 20 to 30 is usually enough, 50 or more is probably too many.

Bev Davies has twenty years experience in bookkeeping and providing advice to small businesses. Bev runs the website http://www.book-keeping.org.uk/ which provides information on bookkeeping and payroll to small business owners and to bookkeepers.

Source: http://www.articlealley.com/article_145056_15.html/

Monday, July 16, 2007

The Tax Benefits of Corporations

There are three standard types of legal business entities. The proprietorship, the partnership, and the corporation. Each entity has pros and cons. The tax benefits of corporations are one advantage to incorporating.

Corporations are taxed differently than the other business entities. Proprietorships and partnerships are taxes after the earnings pass through to the business owners, thus appearing on the owner personal taxes. Where as a corporation is treated as its own entity and thus is it files its own tax return and pays its own income taxes based on profits.

Under the law a corporation is a separate legal entity separate from its owners who are the shareholders. The company is responsible for taxes and files it’s taxes like it were a person. It is responsible for taxes on the net profit after all business deductions have been taken from the gross income.

A corporation can legally reduce the amount it owes in taxes by taking valid business expense deductions. A valid business expense is any expense that a corporation incurs in the pursuit of making a profit. Some examples of business expenses are wages, rent, mortgage, utilities, vehicle expenses, and the cost of product to name just a few.

A corporation is required to file a corporate tax return and pay taxes at the corporate tax rate. Corporations are required to estimate what they will owe for the year and make their payments quarterly in advance of when the taxes are actually due.

Salaries and bonuses of all employees is a valid business expense that can be deducted form the gross income. If you are the owner and you work for the company your salary is also a legitimate deduction because you will pay the tax due on this income when filing your personal income tax.

If a corporation pays dividends to its shareholders the corporation must pay taxes on this money and so must the shareholder when they claim it on their income tax. What this means is that dividends are actually taxed twice.

Reporting and paying taxes on a corporation is time consuming but the benefits far outweigh the additional time it takes for the bookkeeping. We’ll look at a few of the common benefits but there are several and you should consult a tax expert to ensure you are getting all the deductions you are entitled to.

Many times a corporation want to retain some of its profits in the business at the end of the year so that they have the working capital for future growth. When a corporation does this it is taxed at the lower corporate tax rates which saves a great deal of money. If the business was a proprietorship or partnership even though the money was left in the business the owners would be taxed at the regular personal income tax rate on this money as if they had personally drawn it out.

Another benefit is that the owners or shareholders of a corporation are sheltered from any liability the corporation might incur. Because the corporation is seen legally as it’s own entity shareholders and owners can not be held responsible for debt incurred, unless they sign a personal security bond. This means your personal assets such as your home, vehicles, or bank account are not at risk should your business fail.

There are many tax benefits of corporations. The tax benefits you will qualify for will depend on many factors and it is always a wise idea to discuss deductions with your accountant to make sure you are getting the maximum benefit and are only taking deductions you are entitled to.

Deon Melchior is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit ArticleClick.com. Article Click is a free content article directory. This means that as a publisher you may reprint the articles that are included in our site, as long as the article is unedited and the author box is included with it's live hyperlinks.

Small business accounting simplifies handling of business

It is not about the size of the business, rather it is about the efficiency with which you manage your business that counts in the end. Now if one starts a business venture whether it is a small sized business, mid sized business or a large scale business undertaking you want to earn profit and earn lots of it. The crucial element that determines the success of any business is the manner in which the accounting and other financial transaction of the business are dealt with. So if you are running a small business, you need to handle the accounting work of your business efficiently. Small business accounting may seem to be easy to handle initially, but gradually you will realize that the task is not so easy. Ultimately you will have to resort to either hiring a professional accountant to handle your small business accounting work or buy software that make the whole process easy.

Any business irrespective of their size has different requirement and all business strategy are designed on those lines. Small business accounting must also be tailor made to suit your business needs and if you happen to be one of those business owners who have perfect knowledge of accounting and bookkeeping, rest easy your business can grow by leaps and bounds. Running a small business can become overwhelming at times and this is why it will be better for you in the long run if you get small business accounting software installed to ease up the whole process. However we also know that most of the small business owners or for that matter any other business owner are not qualified accountants, and that is why they need to hire the services of a professional to handle this.

There are accounting professionals and CPAs who specialize in providing small business accounting services to clients. The only thing you need to do here is find out a CPA or an accounting firm that provides this service to clients and hire their services for your business. The accountant will handle the small business accounting work of your business; just make sure that from time to time you oversee things. As the business owner, you will like to be informed about all the work that is being done with regard to accounting and bookkeeping of your business, so that you know where your business is heading and if you are making any profits or not.

The importance of having well maintained accounts increases all the more when you approach the tax paying season. Everyone has to pay taxes and you must make sure that you have all the calculations done properly before the season approaches. Surely you do not want to hurry things in the last moment and in the process end up doing major blunders. The whole purpose of having a professional handle the small business accounting of your business is to make things easier for you, so that you pay your tax on time. Besides taxes, the accountant also keeps a transparent record of all the financial transactions that has been undertaken for your business, so that you can implement newer business strategies.

Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about Accounting outsourcing services,Small business accounting,Real estate accounting,Retail accounting, Small business accounting

Source : http://www.goarticles.com/

Friday, July 13, 2007

Bookkeeping From Home - An Outstanding Way To Earn Money Working At Home

Bookkeeping Basics

Bookkeeping as a full time career or part time job is a perfect way for people to earn money working at home. You can take up a bookkeeping career from home without having to buy any expensive equipment or worry about planning consents or increased insurance for your premises. Bookkeeping is not hard to do, anyone with the ability to do simple arithmetic will be able to learn to be a bookkeeper. If you are tidy and methodical and enjoy bringing order to chaos, a career as a bookkeeper could be ideal for you. If you are prepared to study, you can obtain a bookkeeping qualification studying from home or taking a part time course at a local college.

Many people who have no formal bookkeeping training do bookkeeping work from home quite successfully. Indeed, many small business owners who are sole traders do their own bookkeeping at home for their annual tax returns. To do bookkeeping for a small business, it is necessary to know and be able to apply the various rules of taxation etc. and keeping a clear accurate record of all income and expenses of the business. Doing basic bookkeeping for others as your own small home based business can be financially rewarding but, if you are ambitious and want a well-paid career from home as a freelance bookkeeper, you should first study to gain a bookkeeping qualification.

Bookkeeping Law And Tax

Every business, large and small, is required by law to keep books of accounts. This involves the recording of all financial transactions of a business. This can be done manually using ledgers, or by entering the figures into spreadsheets on a computer or by using dedicated bookkeeping software.

As well as the legal requirement for a business to keep books, the bookkeeping records are needed by the business owners for them to know exactly how profitable the business is and if there are areas that need financial adjustments. A vital element of bookkeeping is ensuring that the correct amount of tax is paid at the appropriate time in order to avoid financial penalties.

Bookkeeping In A Shoe Box

There are millions of small business owners (sole traders in particular) who rely on manual bookkeeping. For a large number of these traders, bookkeeping means saving invoices, estimates, receipts, utility bills and odd scraps of paper in a shoe box. When tax time comes around, the shoe box is handed over to a bookkeeper who will (as if by a miracle) transform the mess into a neat record of the business's financial dealings. Many small business owners prefer to wokr at their business instead of spending time preparing their own accounting records to go with their collection of receipts.

If a small business owner hands the shoe box straight to an accountant, the basic bookkeeping tasks will be charged at the accountant's hourly rate. For this reason a good bookkeeper, who will charge a more modest hourly rate, will always be in demand to write up the books and collate the paperwork (even by owners of limited companies who need the services of a qualified accountant to file their annual accounts).

Bookkeeping Software

Many businesses (even quite small concerns) use bookkeeping software to keep their books because the software is inexpensive and easy to use. The use of bookkeeping software does not replace the need for a bookkeeper, it merely makes the bookkeeper's job easier: The software cannot do the job of a human brain. Bookkeeping software needs human intervention to work properly, a software program won't know for itself things like what items can legitimately be offset against tax.

Bookkeeper As A Career

People of any age and background can become bookkeepers and work from home as freelancers. Many are mothers wanting a well-paid career running a bookkeeping business from home whilst bringing up their family. Some are seniors who want to keep active or need extra income to supplement their pensions. For young persons looking for a good career, a bookkeeping professional qualification can be the first step to becoming a qualified accountant and this opens doors to all sorts of well-paid career opportunities.

Bookkeeping Classes

Bookkeeping classes are available at most local colleges or you can choose to follow a distance learning program. Taking a bookkeeping course online is a very convenient way to study alongside other commitments. If you are already employed or are looking after a family, the flexibility of taking a bookkeeping course online is an ideal way of obtaining a valuable qualification. You can study during any hours that suit you and, provided you meet the deadlines, you can complete the assignments when you like.

Bookkeeping Certification

In the USA information regarding certification can be obtained through the American Institute Of Professional Bookkeepers and in the UK through the Institute Of Certified Bookkeepers.

You will find ideas about earning money at home, useful home business resources and time management tips at Elaine Currie's Work At Home Directory For articles about article writing visit Writing Tips.

Source: http://www.articlealley.com/article_148257_15.html/

Thursday, July 12, 2007

Online Bookkeeping System comes with remote support.

Designed for professional bookkeepers and accounting firms, Real Time Bookkeeping (RTB) System automates QuickBooks® bookkeeping process. It includes DoubleSight® dual screen monitors, duplex scanners, and OS and business applications. Featuring Remote QuickBooks access GUI, e-Dashboard software accesses financial administrative resources and integrated paperless document system for storage/retrieval/distribution of complete library of documentation relating to each client.

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Control Your Accounting and Bookkeeping Costs

When you first started your business, you probably did your own accounting; and that worked out fine. You were short on spendable capital and doing most of the necessary chores yourself was the only way to get started. But eventually, you got to a point where you really needed to concentrate on the income-producing aspects of your business and hire others to tend to the details.

Recognizing when this point occurs is the first major challenge for the entrepreneur. Many will pass it right by, believing the only way to keep track of their company is by doing all the accounting for it themselves. This is an easy trap to which almost everyone is susceptible. Don’t feel bad if it happened to you, just rectify it!

Think about what your time is worth. For example, as a lawyer, you could command in excess of $300 per hour. Does it really make sense for you to do your own accounting, when it could be done just as well, maybe even better, by someone you could pay $25 per hour? Of course not! You can still keep a close eye on your business accounting without doing it yourself. It just takes discipline and a good idea of what reports you need to see and how often. Then assign the detail work to someone else!


So once you’ve come to this decision, you need to decide between hiring an employee to keep the books or outsourcing the job to an accounting or bookkeeping firm. Let’s look first at what you expect the accounting assistant to do. This may include some or all of the following:

  1. Keep up-to-date and accurate record of all the company’s financial transactions into physical journals and ledgers or a computer-based system.
  2. Periodically, usually monthly, they balance the books and create financial statements and other management reports.
  3. Receive record, deposit cash and pay the company’s bills. They balance bank statements regularly, investigating and correcting any discrepancies.
  4. Calculate payroll and issue payroll checks. They may oversee this function with an outsource payroll company.
  5. Keep inventory records and calculate product costs.
  6. Purchase supplies
  7. Prepare purchase orders
You may also want someone who will make schedules, file bills, sort documents, fill in at the switchboard and other duties that would require someone in-house. You need to take this into consideration.


The kind of job described above can be called different things in different companies. Some typical titles are bookkeeper, accounts payable or receivable clerk or billing clerk. To maintain consistency, we’ll call it an accounting assistant.

To hire a competent accounting assistant for your firm you can expect to pay between $15 and $25 per hour, depending on experience. Add to this the additional costs of employees – paid vacations, sick leave, insurance, bonuses, retirement, profit sharing plans, etc. You’ll probably find someone who wants to work 40 hours per week more easily than a part-timer, but that’s not impossible. At any rate, you’ll be locked in to paying for a certain minimum amount of hours no matter how much work there actually is.

The advantages, though, are also quite convincing. An employee will be more loyal to your company. He will also be more likely to take a permanent interest and perhaps make a career with you. He will learn more about your business and therefore be better able to make profitable recommendations for your company.


On the other hand, you can outsource your daily accounting duties. There are several cost savings advantages to taking this route.

You won’t be paying for employer payroll tax expense, employee benefits and liability insurance. These costs will, of course, be built into the consultant’s fee, so it’s a wash at best. But you still save money, because you have no recruiting and interviewing costs and no training costs. And should you be unsatisfied with the service, there will be no additional recruiting, interviewing and training costs to replace your accounting assistant.

You will not have to worry about employee lawsuits. You can release an outsourced accounting assistant without raising your unemployment rates.

Most professional accounting assistants will have their own office space and will not need their own office or cubicle at your office, saving you the space and cost of desk, computer, software, office supplies, etc. If you require the convenience of having your computerized accounting records onsite for your review, a small cost can connect your system to theirs.

And one of the best parts is that you completely control the amount of money you spend on your bookkeeping. The amount you are charged by the outsourcing firm will be for the amount of time they worked on your accounting records. It will not include answering the phone, dealing with drop-ins, chatting with other employees, etc. You can adjust the amount of hours they work for you month by month. Some months you may wish to give them additional work, some months let them work bare bones hours. You can’t do this with an employee. You’re tied in.


Always remember, “You get what you pay for”. Whether you decide to hire or outsource, the accounting records are the core of your business. Without excellent bookkeeping, your business will have a hard time succeeding.

Michael Russell Your Independent guide to Accounting

Article Source: http://EzineArticles.com/?expert=Michael_Russell

    Tuesday, July 10, 2007

    Get the best outsourced bookkeeping services now

    In case you need efficient bookkeeping services for your business, we have the right solution for you. We provide reliable bookkeeping service for small to medium-sized CPA firms and small business. Certainly, your firm deserves the highest level of bookkeeping expertise. Our certified bookkeepers, available 24/7, will make sure that you get precisely what you need.

    We truly believe that any routine bookkeeping function needs specific and expert treatment. This is why we choose to do it in a more efficient, productive and economical way. We understand that our customers are looking to enhance the performance of their businesses. Our bookkeepers are available full-time and part-time so that you get the best service that can make your business grow and become more profitable. Our clients have already confirmed the benefits that we offer.

    We provide a whole range of bookkeeping services meant to make things easier for you when managing your business. We even do payroll and tax preparation for business and individuals alike. You have the chance to see our quality for yourself because we provide this kind of bookkeeping services free of charge, for a trial period. If you find that the results of our work are satisfactory, you can get the service we offer at very economical rates. In this manner, you will start paying for our services only if you know that we have managed to provide good quality bookkeeping service. We do not ask for credit card details, which makes it even more convenient, so there is no risk. Moreover, it is very easy to get started.

    Our services provide better results and cost less, because bookkeeping is our only business and our staff have the skills to accomplish the tasks. This outsourced bookkeeping service is provided by professional bookkeepers who are available via e-mail, chat or phone, so that you can reach our staff any time you have a question or you need clarifications. Another advantage offered by our bookkeeping services is that your data will be secure so that other people will not be able to access it. Unlike conventional bookkeeping – where records may sit unlocked on someone’s desk – we guarantee that only you can access your most important data. An accountant will be able to access your data only with your express permission. In this manner, he or she will review or change your data files without you running back up diskettes to him or her. This will help save you a lot of time and money.

    We are offering you a one-week free trial and we will charge you after you decide to continue using our service. In case you do not want to do this, which is very unlikely because we trust the quality of our bookkeeping services, you will not have to pay anything. Therefore, if you find any reason why you should not choose to use our services, you will not owe us a cent for the trial period. Furthermore, you will not have to spend money for additional equipment because the computer you use for your regular work will do just fine. Now, it is easy to have your work done because we make the entire process really very simple.

    All small and medium business can benefit from our bookkeeping service if transactions range between 200 and 20000 per month. The best solutions come to those who understand the difficulties of running a small business. This is why only experts who know how to deal with small business and entrepreneurs provide you these services. Our staff is here for you any time of the day, we are easy to access and we offer safe solutions for the bookkeeping you need.

    Those interested in obtaining high quality bookkeeping services for their business can find more information about our services on our website. You can also learn about how the online bookkeeping service process works.

    Source: http://www.articlealley.com/article_150250_15.html/

    Single Entry Bookkeeping Accounting System

    The usual subsidiary books maintained under the double entry system of book-keeping are also maintained under the single entry system, but the postings are made from these subsidiary books of those entries which affect personal accounts. Real and nominal accounts are not maintained under this system. Since only one aspect of every transaction is usually recorded under this system, therefore, the system 1s called 'single entry system'. It should be noted that single entry system is not any particular system of book-keeping, but rather the double entry system in an incomplete and disjointed form.

    Disadvantages of single entry system

    1. Since the two-fold aspect of every transaction is not recorded in the books of accounts, therefore, the arithmetical accuracy of the books of accounts cannot be ascertained by means of a trial balance.
    2. It is not possible to obtain accurate information regarding the results of business operations, as under single entry system, nominal accounts relating to losses, expenses, gains and incomes have not been maintained. In the absence. of these accounts, necessary classified information required for preparing pr9fit and loss account is not available. Hence profit and loss account cannot be prepared.
    3. Information relating to assets and liabilities cannot be reliable because respective accounts have not been maintained. Thus, even balance sheet cannot be prepared. Consequently, true financial position of the business cannot be ascertained.
    4. In the absence of various checks, fraud is more easily committed and it is very difficult to detect.

    Ascertaining profit under the single entry system

    Under the single entry system of book-keeping, it is not possible to prepare a regular trading and profit & loss account, because no record is kept of the nominal accounts, therefore, the exact profit or loss for a particular period cannot be ascertained. The net profit for a particular period can be ascertained in a rough manner by comparing the financial position of the business at the commencement of the period with the financial position at the end of the period. This requires the preparation of two statements of affairs, one in the beginning and the other at the end.

    Opening and closing balances of capitals can be the ascertained by preparing statement of affairs, and comparison of the capitals at the two dates will reveal either profit or loss.

    Preparation of a statement of affairs

    A statement of affairs (for this purpose is a document in the form of a balance sheet, showing on right hand side the amounts (estimated) of the various assets and on the left hand side the estimated amounts of liabilities. The difference of the two sides represents capital of the owner i.e. net worth. .

    First a statement of affairs as at the beginning of the period should be prepared. For this, particulars of assets and liabilities as on the date should be collected with the assistance of the owner. The value of the fixed assets (plant, building, machinery, fixtures etc.) should be arrived at as follows-Proprietor will probably remember their original cost and the date of acquisitions from which (cost) appropriate amount of depreciation should be deducted, this will give 'written down value' of such assets which should be included in the statement of affairs. Stock taking should be done physically; lists be prepared and valuation to be done adopting cost or market price whichever is lower. Bank balance can be ascertained from the pass book or statement of account supplied by the bank. Cash can be physically counted. Debtors and creditors can be ascertained from the personal ledger.

    As already stated, excess of assets over liabilities represents capital. After preparing statement of affairs, both at the beginning of the period and at the close of the period the profit or loss (for the period) is ascertained by comparing the capital at the end of the period with that at the beginning. Adjust the capital at the end by adding drawings there to and deducting there from fresh capital introduced.

    The author is an engineering graduate, B.E.(Hons), and is managing his own software development firm, HiTech Computer Services, that mainly deals in accounting, billing and inventory control software for traders, industries, business houses, hotels, hospitals, medical stores, newspapers, magazines, petrol pumps, automobile dealers, commodity brokers and other business segments, website and web application deveopment for business.Visit HiTech Computer Services at http://www.hitech-on-web.com/

    Source : http://EzineArticles.com/?expert=Anil_Kumar_Gupta/

    Monday, July 9, 2007

    Bookkeeping Rates can help you fix the amount that you have to spend

    It is that time of the year again when you have to pay your taxes and this must be giving you sleepless nights. So, now you must be hunting for an accounting firm that will do all the tiresome work for you and help you in paying your taxes in time. There are certain things that you must check out regarding the services provided by the firm that you hire to do your tax calculating and accounting works. Bookkeeping rates are very competitive and so you must be very careful while you choose a firm to do your accounting and bookkeeping work. No doubt this is a very important aspect of your tax payment process, so you need be very cautious about this.

    You must keep in mind the fact that most tax calculating and bookkeeping calculation firms outsource their work from a third party. This is because the workload becomes really heavy for these firms during the hectic tax paying season in the United States. If your accounting firm is outsourcing the work, this means that the bookkeeping rates are bound to be affordable and will be within the budget for everyone. In fact, there are several bookkeeping and tax calculating accounting firms that do the work at a lower rate and you can actually save money on this.

    Bookkeeping rates can vary depending on the firm from which you are hiring the services. So the best thing for you to do before you hire the services of any accounting firm is to check out the rates that are provided by different firms. Most of us have very busy and tight daily schedules, and finding out about the bookkeeping rates can be a time consuming and tiresome job for you. The internet is one good option that you can explore for finding out good bookkeeping rates offered by different accounting firms.

    Michelle Barkley is a CPA working for Ifrworld.She specializes in Bookkeeping outsourcing,bookkeeping rates and Tax returns outsourcing .

    Bookkeeping and tax calculating becomes very simple if you preserve the records of all the major expenses incurred within the financial year. So make sure that whatever financial transactions you have made, you maintain a record of this. In the last stages of your tax return and bookkeeping calculation, this may pose huge problems for you. So make all provisions beforehand to take care of all these aspects.

    Bookkeeping rates can be charged by accounting firms based on several aspects. The rates can be fixed rates or hourly rates. Before you give them the work to do, it will be of big help if you find out the kind of bookkeeping rates that the accounting firm charges from their clients. Paying taxes is no doubt a very important thing, but what is even more important is paying your taxes at the right time. If you are not timely on this aspect, you can land up in problems. Pay your taxes in time and become tax free as soon as possible. Paying taxes on time can become all the more easier for you, if you are aware of the latest and the best bookkeeping rates that are offered by accounting firms. http:www.ifrworld.com/

    Friday, July 6, 2007

    Bookkeeping outsourcing: Hassle free process of business growth!

    Bookkeeping is the methodical procedure of recording the economic and monetary business of an organization. The entire process of this methodical procedure involves the usage of a great deal of money, labor, time and resources. Bookkeeping outsourcing is one method through which the entire process can be made very simple and cost effective as well. Bookkeeping outsourcing is a growing filed and there are many companies which provide these services to its clients.

    Bookkeeping outsourcing is one way through which you can earn more profit for your company. In fact bookkeeping outsourcing has become an important business management process for many companies who aim at maximizing profit for their organization. There are many big, medium sized and small companies who have outsourced the entire process to a third party. This third party can be both within and also outside the country as well.

    Traditionally bookkeeping has been looked after by accountants and accounting firms. The outsourcing process has gone a long way in relieving the accountants and their firms of the time consuming work of bookkeeping. This has given the companies more time, money and resource to focus their attention to other functions related to the growth of their companies. We live in the age of increasing competition. To meet this increasing competition you must have your accounts in proper order.

    The entire process of outsourcing is very beneficial for the company as well as the customer. When the process of bookkeeping is outsourced it means that the firm and its customers will get benefits of the highest quality. This is due to the fact that the companies hire the services of people who are specialized in handling bookkeeping. The firm and the customers as well get the benefit of specialized services at a minimum cost. So the next time you have to pay your tax during the tax season all you need to do take a look at your bookkeeping records and pay your taxes.

    Bookkeeping is an important aspect of any business undertaking. It is very important for you to have your bookkeeping working properly and efficiently. Outsourcing the bookkeeping process helps you in taking care of different aspects of bookkeeping and accounting. Some of the different aspects of bookkeeping are production of balance sheet, maintenance and transactions of general ledger besides many other aspects. This will enable you to take your business ahead without any hassles.

    Outsourcing bookkeeping is a sure shot way of taking your business ahead by leaps and bounds. The benefits of outsourcing bookkeeping are immense and once you come to know about its different aspects, you will realize how beneficial it has been for your business process. All you need to do is just sit back and reap the benefits from your business process.

    Ashley holds a masters degree in Business Taxation from the Leventhal School of Accounting, University of Southern California.visit http://www.ifrworld.com/

    Source : http://www.articlealley.com/

    Thursday, July 5, 2007

    Small Business Bookkeeping

    Bookkeeping is the process of maintaining records of various transactions of a business. The records include total revenue, gain, loss, expenses, dates of transactions, and many other details. Bookkeeping is the basis of accounting process and it is very important, no matter what business you are in.

    There are several advantages of maintaining proper bookkeeping for small businesses. Basically, bookkeeping is legally required for every business. It helps business owners know the exact position of their business anytime they want. Details like gain or loss, the amount due to creditors, dates of transactions, and the amount due from debtors are critical in assessing financial position and bookkeeping helps a great deal in these things. Small businesses have to maintain bookkeeping to be legally and financially sound.

    Regular bookkeeping with details regarding transactions, turn over, and profit and loss generations helps small business owners a great deal in getting loans from various public and private financial sources. It is always important to have professionals to maintain books. You can have full-charge bookkeepers who take care of the entire transaction process of the company and/or accounting clerks who can handle specific accounts.

    Regularity is one thing which is essential when it comes to bookkeeping. Regular updating is essential in bookkeeping. Maintenance and updating of books should be done on a regular basis - daily or once a week. If updating is not done regularly, one will never know the business' true status. Bank statements which indicate the flow of funds are essential for small businesses.

    For many small businesses, transactions are done through invoices and receipts and payments are received or paid through checks or card payments. Bookkeeping can be done manually or can be computerized, depending on the size of the business and transaction volumes. This is usually done by maintaining a monthly spreadsheet of the expenses incurred daily and another to show the sales, purchase, gross, and net profit.

    In cash businesses, it is important to keep track of the earnings and expenses for tax purposes. Proper and regular maintenance of books helps the business to a great extent and saves the owner many unwanted troubles.

    Bookkeeping provides detailed information on bookkeeping, bookkeeping services, bookkeeping jobs, bookkeeping software and more. Bookkeeping is affiliated with Business Administration Degrees.

    Article Source: http://EzineArticles.com/?expert=Ken_Marlborough/

    Benefits of Bookkeeping Outsourcing Online for Accounting Firms

    Bookkeeping is a monotonous task for accounting firms. It takes long and tedious hours to maintain the accounts properly. On the other note, this can be a very expensive matter as it involves giving high amount of salaries with add-ons to your accountants. A variety of companies have trained accountant for bookkeeping. But their cost to the company is so high that it becomes impossible for the firm to continue with them. For small business ventures, hiring a proper staff for bookkeeping can be an option that will fit perfectly within the budget.

    An increasing amount charged by hired bookkeeping employees has forced the companies to outsource them. These companies have been giving a part or the entire bookkeeping work to the outsourcing company. The companies benefit a lot with outsourcing their bookkeeping work. They are able to give time to other sections of their business to earn profits and expand their business. Apart from this, there are lots of benefits of bookkeeping outsourcing online. Online services save your valuable time, which would have been otherwise wasted in roaming around the offices of professional bookkeeping firm.

    Benefits of bookkeeping outsourcing online includes cutting down of the actual cost of keeping a trained bookkeeping staff in your company. It is because the company has to invest a huge amount of money in hiring an accountant. It will help you to lower your capital expenditure and run the business within the budget. This is not just the culmination point of the benefits involved. The unleashing of benefits has just started. Saving money will enable you to invest in some other important areas of your business. This will give a tremendous boost to your business.

    Improved efficiency of work is also a part of the list of benefits of Bookkeeping Outsourcing Online. Usually, it happens that a person or a company is not able to give its best in the time of emergency. The reason behind this can be overload of work on them. In this case, your business is bound to suffer loss. So, it is always better and safer to outsource your bookkeeping work to other accounting firms. The professionals at the outsourcing bookkeeping firms lay great emphasis in doing any work professionally. Many of the accounting firms have specialized softwares for managing your accounting transactions.

    Outsourcing bookkeeping work is beneficial for many companies, especially small scale business ventures. It is because they have to take each and every step very carefully, without spending any extra penny. They already invest so much in other areas and outsourcing will be a cooling effect on their heated expenses. Putting some of your workload on others will help you to perform efficiently in other areas of your business. Moreover, you will save the maintenance cost of the accountant, the insurance benefits, general liability insurance and many more.

    Saving on computer maintenance cost, training cost and stationary costs also form an integral part of the benefits of bookkeeping outsourcing online. Many of the bookkeeping outsourcing companies, especially online ones, charge nominal rates for providing efficient services. In fact, they do the work in much less time than your hired accountants. It is because the professionals at specialized outsourcing bookkeeping firms can concentrate only on maintaining your accounts. Outsourcing bookkeeping work is always a money-saving option for all types of business ventures.

    Michelle Barkley is a CPA working for IFRworld.She specializes in Accounting Outsourcing ,Bookkeeping Outsourcing Online and tax returns preparation outsourcing. http://www.ifrworld.com

    Tuesday, July 3, 2007

    How Modern Bookkeeping Software Easily Integrates With Internet Credit Card Processing

    In the recent past many advances have made to bookkeeping software so that it can seamlessly integrate with internet credit card transaction processing. This modern bookkeeping software enables businesses like yours to manage all aspects of your business finances, with integrated internet processing of credit card payment transactions.

    The core feature of this software is that you have all the information at your fingertips; you can access your data easily with the new and intuitive user interface. The new bookkeeping software lets you view all the key information within one screen, including receivables, payables and bank account balances.

    The key features and benefits of this software include the following:

    Easy configurability of the company information, import product, customer, and vendor data, the ability to find transactions quickly and easily, along with company provided password protection.

    Previously merchants would take an order from a customer and process the transaction using a manual credit card terminal. The merchant’s bookkeeping software system was separate and did not integrate with the credit card processing records so all had to be reconciled across systems for accurate bookkeeping to be maintained. This required the merchant to spend extra accounting labor, time, and money reconciling credit card transactions against customer data and profit and loss between different record keeping systems.

    With modern bookkeeping software, online credit card transactions can be processed from within the bookkeeping software itself from a merchant’s a desktop computer without the separation or duplication of effort thus saving valuable time and money.

    Commerce and technology when combined as a one package describes online credit card transaction processing. With the advent of the internet, knowledge and communication barriers were broken. Also, with internet came the wonderful concept of e-shops or virtual shops which now exist only on the internet. You could shop at these shops by making use of their online credit card payment-acceptance facility. Once the online credit card payments were verified and approved, the goods got delivered at your door. This is definitely customer convenience at its best.

    With more and more e-shops getting setup everyday, modern bookkeeping software has also advanced to handle all the online credit card transactions seamlessly. This integrated book keeping software is becoming ever more popular as some companies offer it for free. The possibility of receiving online credit card payments has been given a totally new dimension to shopping. Now, you can not only shop from the comfort of your home, but you can even get discounts on these products. No need to bother about the weather or is there any need to worry about the traffic jams or any other thing. If you were to go to an e-shop, select a product, make use of their online credit card payment acceptance facility to make the payment and be ready to receive the goods at your doorstep. With the online credit card processing facility integrated into bookkeeping software, starting a business has become just a walk in the park.

    By: FDIS Credit Card Processing Founded in 1988, FDIS is an established leader in the transaction processing industry. FDIS has one of the highest merchant approval rates in the industry.

    Monday, July 2, 2007

    Proper Bookkeeping Helps An Organisation To Increase Profits, Reduce Taxes And Improve Cash Flow.

    Accounting is the process of analyzing, classifying, recording, summarizing, and interpreting business transactions in financial or monetary terms. In order to summarize the results of a business activity, each financial transaction must be recorded in a bookkeeping system.

    Basics of Accounting :
    The owner’s right or claim to assets is expressed by the word equity, or investment. Other terms that may be used include capital, net worth, or proprietorship. Liabilities represent debts and obligations of the business. The business may have a liability to the owner, however, creditors’ claims to the assets have priority over the claims of the owner.

    An equation expressing the relationship of these elements is called the fundamental accounting equation.

    Assets = Liabilities + Owner’s Equity

    Revenues are the amounts of assets that a business or other economic unit gains as a result of its operations. For example, revenues represent earnings derived from fees earned for the performing of services, sales involving the exchange of goods, rent income for providing the use of property, and interest income for the lending of money.

    Expenses are the amounts of assets that a business or other economic unit uses up as a result of its operations. For example, expenses represent the amount of cash paid for services received, such as wages expense rent expense, interest expense and supplies expense.

    Revenues and expenses directly affect owner’s equity. If a business earns revenue, there is an increase in owner’s equity. If a business incurs or pays expenses, there is a decrease in owners equity. So, we place revenue and expenses under the “umbrella” of owner’s equity.

    Assets = Liabilities + Owner’s Equity Capital + Revenue - Expenses

    Steps to be followed for good Bookkeeping Systems :
    Many methods may be used. At a minimum, certain procedures should be done on a monthly or other periodic basis to make sure that your accounting records are accurate. Some of these steps are as follows:

    * All checks written and deposits made should be entered into a check register.

    * A monthly bank reconciliation should be done to make sure that all transactions have been recorded (including bank originated charges) and that the ending cash balances to the adjusted bank balance.

    * All expenses should be classified into business expense categories to record the various expenditures.

    * All deposits made to the account should be identified and classified (e.g., boarding income, interest income and owner contributions).

    * A financial statement should be prepared on a periodic basis to understand the results of your operation.

    it is extremely important to identify all the sources of deposits to make sure that actual income from operations is not confused with contributions of working capital from the owner.

    Advantage of Computerised bookkeeping :
    Computerized accounting systems allow you entry of transactions into an automated system to provide a variety of information. Simple accounting packages can be very powerful tools to assist in understanding the results of business operations. After the entry of the basic transactions, the data is available in a number of reports (e.g., cash disbursements register, income statement, balance sheet.) These systems help “non-accountants” automatically produce standard financial statements without much technical accounting background. Good habits in computer processing procedures must be used to make sure that all the transactions are recorded. Otherwise, the financial information presented may not be accurate.

    Mr.Bhaskar Thakkar is a qualified Chartered Accountant and professional bookkeeper from India. He is a president of M/s. BT Associates, Chartered Accountants. http://www.btassociate.com

    Source : http://www.articleclick.com/

    Sunday, July 1, 2007

    Try Outsourcing Your Bookkeeping Services

    Unless you have the required skill to maintain proper bookkeeping and accounting services, you should think of outsourcing it to specialized bookkeeping firms.

    The specialized bookkeeping firms have the know-how and the infrastructure to handle such outsourced jobs. They offer the best available technology solutions and accounting packages that deliver desired results within the stipulated timelines. In short, you get quality service at reasonable cost.

    Bookkeeping services refer to all tasks of maintaining different records of financial transactions. Whether your business is big or small, you need quality accounting services to maintain records.
    Small businesses stand to gain a lot from outsourced bookkeeping services since they face an acute shortage of professional bookkeepers. They get several advantages by using certified bookkeepers such as more accurate bookkeeping and less year-end headaches at the time of tax preparation.

    There is no denying the fact that bookkeeping services are really cumbersome and time consuming. Nonetheless, you cannot afford to take it lightly because it is crucial for your business. It reflects the exact financial position of any business. You would need to keep a proper financial record of all income and expenditure related to your business. All the records need to be updated regularly by a bookkeeper.

    You can opt for manual nookkeeping if your business is small even though it will be difficult and tedious. Moreover, if your bookkeeper leaves you without properly updating your books, it will be very difficult for you to update it compared to an online bookkeeping system.Computerized bookkeeping services make the whole process of recording very easy. They are the best option for a mid sized or large business.

    The various kinds of software available in the market are designed to specifically suit your business needs. You may not be able to handle different kinds of software, so it is best to opt for bookkeeping firms and save yourself a lot of bother.

    Outsourcing of bookkeeping services is a very commonly used option used by many companies. This helps them manage their accounts in an organized manner as well as curb unnecessary costs. Once you outsource the service to a third party, you can free up your existing employees and use their services more productively. Also, since the bookkeeping service providers use professional bookkeepers only, they provide a better quality of job and high customer satisfaction.

    Outsourcing of services will help you reduce cost of labor, give you more flexibility, and better quality of work. As a small businessman you can take advantage of cheap labor and reduced overhead costs if you opt for outsourcing bookkeeping services in your firm.

    By outsourcing the accounting services, you can also streamline your existing processes. You don’t have to concentrate too much on non-core activities and the responsibility of completing the job on time is not yours. Outsourcing can result in streamlined processes like CRM, billing, and data warehousing, apart from the fact that you can use the potential of the in-house bookkeeper to the hilt.

    For optimum utilization of resources, outsourcing services is the best option. It allows you to concentrate on core and major issues instead of minor line activities. It increases productivity and save a lot of money, too.

    About the Author
    Author Amitaabh K Saboo is a professional bookkeeper and a leading bookkeeper.

    Article Source: http://www.OrganizedArticles.com

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