Bookkeeping a nightmare for Grants MainStreet

GRANTS — The Grants MainStreet Project is more than just the annual Fire and Ice Rally. The organization is part of a national movement to revitalize neglected downtown areas and bring fresh commerce and public space to older towns.

The project is sanctioned by the National Historic Trust’s Main Street program and one of many members of the New Mexico Main Street program, who gives guidance to local groups. It does not provide funding.

The Grants MainStreet Project suffered problems with organization in the past, being put on probation two years ago by the New Mexico Economic Development Department, who covers Main Street groups. Grants City Councilor Fred Rodarte said the organization lost city support for eight months around the same time.

In late 2006 the organization pulled itself back together and got off probation.

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Local accounting firm races to lose weight

Have you filed your income taxes yet?

If you think you're stressed about tax day, think about accountants. They're trying to meet with clients and keep themselves healthy.

Kirk, Kelli, and Cari are not accountants, but they are at the end of Week 10 in WSBT’s Why Weight challenge.

They have a little over two weeks left in their 12-week medical weight loss program. That's about the same amount of time left in a health challenge for the employees at one local accounting firm.

They're using their busiest time of the year to get healthy.

Accountants are working around the clock at the Kruggel, Lawton & Co. accounting firm in downtown South Bend.

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Tips to avoid the dreaded tax audit

The odds of any individual taxpayer being audited are low, but who wants to go through explaining to the Internal Revenue Service why you took this particular deduction or you didn't report that particular bit of income?

Tax experts say there are things taxpayers should do -- or not do -- to stay out of trouble with the nation's top tax collection agency as the April 15 tax deadline looms.

"Basically, if you've included all your income, have documentation for your deductions and your computations are correct, you should be fine," said Edward Smith, a Boston, Massachusetts-based tax partner with BDO Seidman LLP.

That said, Smith points out that there are some groups more likely to get caught up in IRS audits than others, such as self-employed business people who may have extensive expense write-offs or wealthy families with complex investments.

The IRS said that in 2007, it audited nearly 1.4 million individual tax returns, or about 1 in 100 of total returns. But wealthier taxpayers, specifically those with $1 million or more in income, had a 1-in-11 chance of being audited, and audits of businesses and partnerships have been increased, it said.

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India to adopt global accounting standards by 2011: ICAI

NEW DELHI: India will adopt the globally accepted International Financial Reporting Standards (IFRS) by 2011, a move that will integrate the accounting system with the rest of the world.

"A common accounting standard is in the interest of the investors who are exploring investment opportunities in other geographical areas as well," Institute of Chartered Accountants of India (ICAI) President Ved Jain told reporters on Wednesday.

More than 109 countries, including China, have adopted IFRS and many more like Japan, Canada and South Korea are expected to follow suit.

The issue of adoption of IFRS by Indian companies was discussed at a meeting between the International Accounting Standards Board (IASB) Chairman David Tweedie and officials of the Ministry of Corporate Affairs.

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'Tax Freedom Day' comes early this year

New Yorkers will celebrate Tax Freedom Day earlier this year--on May 5, according to the Tax Foundation's annual calculation.

That's five days earlier than last year -- because of the checks the federal government is doling as an economic stimulus package.

But nationally, Tax Freedom Day is April 23. Only two other states celebrate Tax Freedom Day later--New Jersey, on May 7, and Connecticut, on May 8. Alaska gets to pop the cork the earliest, March 29.

The day is defined as a milestone when taxpayers start working for themselves instead of various levels of government. The calculation measures every tax dollar collected by Uncle Sam, the states, cities and counties and the Tax Foundation, a research and public education organization in Washington, D.C., compares it to data dating back to circa 1900.

For example, five major categories of tax dominate the tax burden: Individual income taxes, both federal and state, require 42 days' work. Payroll taxes take another 28 days, state and local sales and excise taxes take 16 days, corporate income taxes take 13 days, and property taxes take away 12 days.

New Yorkers will work 125 days paying taxes this year.

Source : http://www.bizjournals.com/

Online trend for accounting software

Business technology entrepreneur Duane Jackson says this year is shaping up to be particularly interesting for accounting software providers as more vendors realise the future is online.

Jackson’s company Kashflow has always offered an online solution but he says a number of his competitors are waking up to the fact many small businesses want online software.

“Our main USP has been ease of use and we’re also online,” he says. “A lot of other companies are getting into the same space as us. We now have to work a lot harder on adding features, keeping prices aggressive and customers happy.”

One way of keeping customers happy that Kashflow already employs is offering a free two month trial period on the software. “We don’t want anyone to pay money for something they don’t need,” Jackson says. “Most clients tend to like it and pay later.”

Source : http://www.realbusiness.co.uk/

Bookkeeping basics every business owner must know

Few people get into business so they can do paperwork. Spending time adding up receipts or pushing invoices around a desk is nobody’s idea of fun (unless you’re starting up as a bookkeeper or accountant!).

Unfortunately it’s a necessary evil and something you need to stay on top of in your new business. Being disorganised and putting off paperwork just isn’t an option. Her Majesty’s Revenue & Customs (HMRC) will fine you if you’re late getting essential information to them. And the longer you leave it, typically the worse the problem gets.

Being on top of your bookkeeping will also help you maintain a healthy cash flow within your business, and be able to spot trends early on. That kind of information is invaluable as you grow your venture.

Here’s a Bytestart guide to the bookkeeping basics every business owner must know. They’re relevant whether you’re a sole trader or running a limited company.

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There is an urgent need to converge accounting standards

During a conversation a decade ago with a senior regulator on the prevalence and acceptance of qualified audit reports in India, the regulator remarked “Why would a qualified audit report be considered undesirable? I would have thought a ‘qualified’ audit report would mean that the audit report or the auditee had some additional attributes, just like we speak of a ‘qualified person’. This one incident etched in my mind all that bedevils India when it comes to stakeholder’s understanding of an audit report or placing confidence thereon.

Globally, audit reports are unqualified, meaning that the auditor would without any reservation express his confidence on fairness of the financial statements. Issuance of a qualified opinion, globally, is in the rarest of rare scenarios only. However, in India, convention, practice, and business usages have combined in a manner in which a ‘qualified audit opinion’ is an extremely common occurrence.

A number of these qualifications arise because the auditor wants to play safe since the past history of regulatory action does not provide confidence of regulators appreciating the ‘materiality’ aspects of reporting. While Audit works on a framework of designing processes and finally reporting results based on materiality thresholds which are linked to the size of the entity and its results, regulators and external reviewers in India tend to stray far from such a materiality driven approach.

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Report : U.K. Has Two Carbon Accounting Systems

London, England (AHN) - A report from National Audit Office disclosed the U.K. has two carbon accounting systems in place. One is the report it submits to the United Nations and shows to the public, the other is the true picture.

The difference is a 12 percent higher emission level, hidden by the British government. The NAP report said the first system gave a 656 million ton of carbon dioxide emission in 2005, claiming an improvement in 1990 pollution levels. But the real national environmental accounts showed that CO2 emission was 733 million tons in 2005.

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Tax collection from capital markets declining

Despite the massive growth in foreign investment and share trading at the biggest capital market of the country, Karachi Stock Exchange (KSE), the tax collections have been dwindling during the current fiscal year 2007-08.

According to the figures revealed to Daily Times, the tax collection on share trading has declined by 77 percent to stand at Rs 1.2 million during the eight months of the fiscal year as compare to Rs 5.6 million during the same period last fiscal year. Federal Board of Revenue (FBR) levies 0.01 percent tax on share trading under section 233A (1), while it also levies 0.01 percent tax on sale and purchase of shares under the same section. The direct tax collection on sale and purchase of shares from KSE have also declined by 33 percent to stand at Rs 26.3 million during July to February as compare to Rs 39.8 million tax received during the same period of last fiscal year.

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Don't count accounting out

Traditional field takes on new responsibilities

If you hear the word CPA and think of bookkeepers, brown suits, pocket protectors, and gnawed off pencils, then you are way behind the times. While accounting has long conjured images of number crunching and bookkeeping, today's accountants are also at the forefront of dramatic changes in the business world.

"Accounting has always been a crucial part of running a business. You simply can't run an efficient or profitable company if you aren't keeping an eye on your books," says Heidi Godbold, academic program director at Everest College in Colorado Springs, Colo. She explains that with computers and other technological advances eliminating the most tedious parts of accounting, accountants are taking on new roles in business. "The role of an accountant is being transformed from simply helping a business run to helping a business envision its future."

For example, accountants are now involved in estimating and evaluating risk management. "Businesses need accountants to identify and manage risk. They are increasingly part of the team that helps a CEO decide which investments are worth the risk," says Godbold. In fact, a degree in accounting has always been a great way to get into the business world.

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Outsourcing bookkeeping helps business owners focus on job

NEW YORK -- Ron Finklestein found a good reason for not compiling his business tax return: $1,600.

That's how much Finklestein says he would have overpaid the government if he had submitted a return he had completed as an experiment. When he ran it past his accountant, he discovered he hadn't claimed all the deductions to which he was entitled.

Many small-business owners try to compile their companies' returns, and they also try to keep the books, too. Many, like Finklestein, discover it's better to turn the financial part of the business over to someone with a head for finances -- the work will be done faster and better. Moreover, outsourcing finances allows owners to focus on building their companies.

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Tax Deadline a Month Away

Believe it or not, the deadline to file your tax returns is just a month away. Tax preparers around the La Crosse area are hitting their peak time.

They say if you haven't already filed your taxes, it's a good idea to get everything organized now and not wait until the last minute to see your tax preparer. "One of the misconceptions out there is that, 'Well, I'm going to owe money so I want to wait until April 15.' With electronic filing we can go ahead and process the taxes, get them sent off electronically. The IRS and the state will have the tax returns. Even if you owe an amount in, you don't have to mail that in until April 15," says Jerald Roeckers, from Becker Tax & Bookkeeping.

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Many small businesses benefit from outsourcing their tax preparation and bookkeeping chores

NEW YORK - Ron Finklestein found a good reason for not compiling his business tax return: $1,600.

That's how much Finklestein says he would have overpaid the government if he had gone ahead and submitted a return he had completed as an experiment. When he ran it past his accountant, he discovered he hadn't claimed all the deductions he was entitled to.

Many small business owners try to compile their companies' returns, and they also try to keep the books too. Many, like Finklestein, discover it's better to turn the financial part of the business over to someone with a head for finances - the work will be done faster and better. Moreover, outsourcing finances allows owners to focus on building their companies.

Finklestein, an author and business consultant in Akron, Ohio, only recently handed over the task of keeping the company's books to his accountant, a step he needed to take to have a better handle on how the business was doing. He wasn't consistently updating the books, and so he didn't know what the state of his cash flow. With his accountant in charge of his finances, he's able to make more informed decisions.

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Many small businesses benefit from outsourcing their tax preparation and bookkeeping chores

NEW YORK - Ron Finklestein found a good reason for not compiling his business tax return: $1,600.

That's how much Finklestein says he would have overpaid the government if he had gone ahead and submitted a return he had completed as an experiment. When he ran it past his accountant, he discovered he hadn't claimed all the deductions he was entitled to.

Many small business owners try to compile their companies' returns, and they also try to keep the books too. Many, like Finklestein, discover it's better to turn the financial part of the business over to someone with a head for finances - the work will be done faster and better. Moreover, outsourcing finances allows owners to focus on building their companies.

Finklestein, an author and business consultant in Akron, Ohio, only recently handed over the task of keeping the company's books to his accountant, a step he needed to take to have a better handle on how the business was doing. He wasn't consistently updating the books, and so he didn't know what the state of his cash flow. With his accountant in charge of his finances, he's able to make more informed decisions.

Moreover, "it's allowed me to focus my time on where my strengths are, in the sales and marketing side of the house," Finklestein said, estimating that he's gotten back 10 hours a month from not trying to do the books himself.

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Internet accounting's second coming

In recent weeks, several new suppliers have launched into the UK market with online accounting systems designed to provide a common processing platform for businesses and their advisers. John Stokdyk hears about what the new systems have to offer from practitioners who have used them.

Since the turn of the year, we've reported on bunch of new, web-hosted accounting solutions from the likes of Xero, e-conomic and Mamut/IAAITC.

The concept of internet accounting isn't actually new, but the sudden surge of more sophisticated, accountant-friendly systems suggests that attitudes within the profession are becoming more receptive to hosted systems.

As a director of Easycounting, Vantis partner Richard Messik has first-hand experience of internet accounting since before the dotcom boom pretty much wiped out the first wave of pioneers. Easycounting still exists and is used within Vantis to support clients who want a relatively simple online accounting solution. But the firm did not have the resources to develop Easycounting or market it more widely.

Last year, e-conomic approached Messik to talk about its system. Not only was he interested in using it, he offered to help the Danish developer break into the UK.

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Tax boost for small business

Small businesses are set to receive tax relief from finance minister Trevor Manuel.

Announcing several tax proposals in his 2008 budget speech, Manuel revealed government would take further steps to reduce the tax compliance burden on small businesses.

The budget review explains these measures are aimed at supporting small businesses, reducing compliance costs and encouraging the formalisation of informal businesses.

These initiatives will see small businesses within the revenue threshold accessing presumptive tax systems, as well as tax incentives for venture capital investors looking at qualifying small enterprises and start-ups.

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Tax preparation businesses keep up with the latest tax rules

For area tax professionals like Mike Martin, experience may be the best teacher when it comes to understanding the lively practice of tax preparation.

Martin launched Independence-based Mike Martin & Associates Inc. after working nearly two decades as an executive for H&R Block Inc.

Despite competition from new tax preparers and do-it-yourself software, Martin and his staff typically realize a steady increase in the number of new faces that come in every year for tax services.

“We usually experience an 18 to 20 percent increase in new clients, which replaces the number that pass away or move away,” Martin said. “This year, we’re already seeing a 22 to 23 percent clip in new business.”

Numerous Kansas City accounting firms and bookkeeping services posted significant increases in the number of individual and business returns they completed in 2007, compared with the previous year.

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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.

About the Author:

To find a bookkeeping service visit the Accounting Aisle, http://www.accountingaisle.com

Source : http://www.isnare.com/

E-Learning Course: Bank Branch Management - Bookkeeping and Accounting’

‘E-Learning Course: Bank Branch Management - Bookkeeping and Accounting’ Is an Essential Course to Help Users Understand the Principles of Bookkeeping

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets
(http://www.researchandmarkets.com/reports/c84811) has announced the addition of E-Learning Course: Bank Branch Management - Bookkeeping and Accounting to their offering.

This e-learning course on 'BBM Bookkeeping and Accounting' is designed to help users understand the principles of bookkeeping. Further, the course discusses in detail the practice followed by banks in bookkeeping. The course also discusses about final statements of accounts of banks.

Themes of this product:

• Understand the principles of bookkeeping
• Discuss the practice of bookkeeping in banks
• Discuss the final statements of accounts of banks
  

Course Level: Basic to Intermediate

Library of 3 Courses

Duration of each course- 1.0 Hour

On completion of this course, you will be conversant with:

• Principles of bookkeeping
• Key rules of debit and credit
• Various types of books of accounts
• Practice of bookkeeping in banks
• Financial statements of banks
  

Target Audience: Those who are interested in understanding the principles and practice of bookkeeping in banks.

Tutorials and Topics:

1. Principles of Bookkeeping
   
   
   • The main principles of Book-keeping for Deposits with banks
     
   • The key rules for credit and debit transactions to deposit accounts
   
   
2. Practice of Bookkeeping in Banks
   
   
   • Meaning of bookkeeping
   • The importance of books of accounts
   • The various types of books of accounts
   • Balancing of day's cash transactions and cash book
   • The subsidiary books maintained
   • The bank transfer scroll
   • Balancing of day's transfer transactions
     
   
   
3. Final Statements of Accounts of Banks
   
   
   • Different categories of financial transactions and accounts
   • Definition of trial balance and its contents
   • Form of an income statement
   • Form of a balance sheet
   • Order and format of final statements of accounts of banks
   • Requirements and disclosures related to banking companies
   • Different schedules of Banking Regulation Act, 1949
     

For more information visit
http://www.researchandmarkets.com/reports/c84811

Accounting regulator ‘consults too much’

The accounting regulator should cut back on its consultations, a senior accountant has said, warning that the volume of papers and proposals is creating an extra burden for firms.

Richard Dyson, president of the ICAEW, the largest of the UK’s accounting institutes, on Tuesday night urged the Financial Reporting Council to focus on fewer areas.

“I think we would all like to see [the FRC] consult a little less. While many of the issues on the table are important ... the sheer volume of consultation documents creates additional burden for many,” he said in a speech at the institute’s annual dinner.

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Bookkeeping blues

Once again, Fort Worth City Hall is having bookkeeping problems. There's no money missing and no criminal wrongdoing suspected, but the bean-counting bungles are still troubling to taxpayers concerned about whether their hard-earned dollars are being accounted for properly.

City staffers, while working on past-due annual financial reports for 2006 and 2007 and examining whether the city can afford proposed midyear employee pay raises, discovered that changes were needed to ensure conformance with Government Accounting Standards Board rules.

As a result, the city has had to reduce the amount of money identified as unencumbered funds. That in turn significantly reduced the city's "rainy day" reserve fund for emergency and unexpected expenditures.

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Bookkeeping program works for peanuts

Small-business owners can pay hundreds of dollars for bookkeeping software. In fact, you can pay hundreds of dollars a day for bookkeepers to run your expensive bookkeeping software. Nothing wrong with those scenarios if you're Bill Gates.

For most of you who run small businesses, there's an easy-to-use, business-friendly program for Windows PC with a name that's a snap to remember: Bookkeeper 2007. Compared with other bookkeeping programs, it's a bargain.

When you open the box, you'll find two seemingly identical CDs. The one that says "Vista" is the Vista-compatible program; the other disc is for earlier versions of Windows. Once you've chosen the correct version, you can customize the program for your business, whether you're running an advertising agency, a beauty salon, farm, construction firm, property management company or just about any other small business.

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