Advantages Of Payroll Services

If your company has employees other than you, payroll is one of the most critical areas of your financial record keeping. It's also the area most commonly botched by small business owners, so get professional advice on how to properly set up and maintain your payroll system.

You might consider using a payroll service to save yourself a lot of administrative time and hassle. A payroll service ensures your government reporting and payroll tax remittances are always accurate and up-to-date. This benefit alone can be well worth the cost of the service, as late-payment penalties for payroll remittances tend to be some of the biggest and most severe penalties that the government levies.

Other advantages of using a payroll service:

The payroll service is always up to date on the tax code, whether it be changes in Canada Pension Plan rules, revised Employment Insurance guidelines or new tax rates.
The payroll service automatically handles the creation of accurate T4 slips for your employees at year-end.
With a payroll service, you can offer your employees direct deposit of their paycheque. This is a perk that most employees appreciate.

While there are many good reasons to use a payroll service, you should also be aware that such a service takes all associated government remittances out of your company account each payday, even if those remittances are not actually due for another few weeks. This can create a cash flow problem unless you are prepared for it.

Fern Gordon is the owner of The Profit Line. Making sound business decisions means having a clear picture of your financial situation in front of you at all times - yet the daily demands of running a small enterprise can be overwhelming. As a result, financial record keeping and reporting often don't get the attention they truly deserve.

The Profit Line changes all that. We are your bookkeeping partner, helping you stay on top of your finances so you can make better, more informed business decisions.

In addition to taking paperwork off your plate, we also pinpoint the key numbers critical to the performance of your specific enterprise, and make sure you have them in hand whenever you need them.

Source : The Profit Line

VAnetworking Presents Seminar on Virtual Bookkeeping

VAnetworking Presents Seminar on Virtual Bookkeeping: Leveraging Today’s Technology to Grow Your Business.

On Wednesday, 7/2/2008, 2008 at 6:00 p.m. EST, Kristin Callan will present Virtual Bookkeeping: Leveraging Today’s Technology to Grow Your Business.

Kristin Callan is the Director of Sales and Client services for Swizznet Online Accounting Solutions and is an expert in developing and implementing online accounting systems and strategies. Kristin has more than seven years experience in the accounting and finance industry and has helped accountants and bookkeepers implement strategic systems to increase productivity and grow their business. Kristin works with accountants and bookkeepers to conceptualize and implement innovative solutions to maximize return on investment and help grow their businesses. Kristin can help streamline the accounting process and can make offering virtual accounting services easy. Visit Kristin’s website, www.swizznet.com, for more information on the Swizznet Online Accounting System. Contact Kristin Callan at 206.408.7774 or kcallan@swizznet.com.This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

- Implement a virtual bookkeeping system that is easy for you and your clients - Market your services and attract new bookkeeping business - Add value and improve customer service for your existing clients. Get practical tips and easy to Implement solutions that leverage free and low-cost technology to save time and grow your virtual accounting business.

Please join them at VAnetworking.com on Wednesday, 7/2/2008 at 6:00 p.m. (EST). In this eSeminar you will learn how to take advantage of today’s technology.

VAnetworking is the largest business network for aspiring and successful Virtual Assistants and Virtual Achievers to share, learn, and succeed. At VAnetworking, industry experts and Virtual Assistant newbies mix it up to uncover all things new and exciting in the world of Virtual Assistance, while supporting one another and striving to promote the Virtual Assistant industry.

So join the fun and stop by the VAnetworking Forum today at http://www.vanetworking.com or just go ahead and upgrade to this exciting new VAinsider membership at http://www.vanetworking.com/vainsider/index.htm. You’ll see just how much better your business can become and also have a great time doing it. And for those looking for a VA, you won’t be able to beat the professionals you’ll find here.

Tax managers focus more on compliance than planning

Chennai: Tax managers of corporates, who are supposed to look at strategic tax planning, are spending more of their time looking after the tacatical issues of tax compliance. The taxman has perhaps made these people behave differently?

One can look at the situation from two sides. Either, compliance standards have been put very high which require more resources, or corporates have been ignoring compliance issues. There is a third side too, the role of authorities enforcing compliance. What’s the solution? “A customised tax compliance solution to organisations based in India,” says Mr Bharat Parmar, Vice President (Business Development), BMR Managed Services, New Delhi.

But isn’t financial management and accounting in most large organisations managed though the specific modules of ERP systems, Business Line asked. Mr Parmar explained the shortcomings of the system. “Typically these systems are also leveraged by the organisations to help the tax team compute the tax liabilities and extract relevant information but since these applications are primarily financial and accounting solutions, they are not intrinsically capable and aligned when it pertains to the Indian tax compliance requirements.” To incorporate all of the requirements becomes complicated and cost-ineffective in the present systems, he added.

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Using Excel for Accounts and Bookkeeping

The great thing about MS Excel (and others say it’s greatest downfall) is that it is so adaptable and because it normally comes bundled with the PC you bought for your business, it’s cheaper than buying accounting software.

For start ups and possibly for the sole trader or small limited company, it’s a very easy way of keeping track of essential accounting information, especially if you have no intention of getting involved in double-entry bookkeeping (which will be the subject of a future post).

Excel also has very powerful capabilities, a whole range of financial and statistical functions, the ability to chart your data and analyse it in all manner of ways. For that reason, accountants (depending on their sector and job function) make very extensive use of excel.

Of course, Excel is also used where other applications would be better. As a business grows, it will (hopefully) outgrow the use of Excel for bookkeeping. Depending on the business, this could happen quite early on. Also, if your primary requirements are data storage, Access, being a database, handles data storage and retrieval much better than Excel.

Source : http://happyaccountant.wordpress.com/

Italy energy firms banned from passing on new tax

ROME, June 25 (Reuters) - The Italian government has banned energy firms from passing on a new tax to their customers, the text of the law showed on Wednesday.

Economy Minister Giulio Tremonti has dubbed his hiking of the main tax on company profits (IRES) to 33 percent from 27.5 percent as a "Robin Hood" tax as the extra revenues will be taken from wealthy companies and spent on the needy.

Energy companies initially protested but have since played down the impact of the tax. Fulvio Conti, chief executive of power utility Enel (ENEI.MI: Quote, Profile, Research) said the tax would be "easily absorbed" by his group.

Media had speculated that the tax on oil, gas and electricity companies, would mean an extra burden to consumers already facing higher costs due to rising oil prices.

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Regulators should conform to new global accounting standards

International Financial Reporting Standards (IFRS) is gathering storm and most countries barring the US and a few others have either adopted IFRS or their national generally accepted accounting principles (GAAP) are converging to IFRS.

Australia, New Zealand, China, Singapore, Japan, Middle East, Africa & European Union have either adopted or are converging to IFRS. The eminent status to IFRS came about after EU made it mandatory for all its listed companies starting 2005. Consequently, more than 8,000 EU-listed companies adopted IFRS in one go. US capital markets are losing their attractiveness as a result of what many view as excessive regulation. As a consequence, many believe that the predominance of US GAAP as a standard may be coming to an end. This could make large companies look at other capital markets, and in many of those capital markets IFRS are accepted.

More than 1,100 Chinese companies have recently switched over to new accounting standards bringing their books in line with international norms. India follows Indian GAAP, which is inspired by International Accounting Standards (IAS).

However, Indian GAAP has not kept pace with the changes that followed IAS’ metamorphosis to IFRS. The most important change in IFRS is the application of fair valuation principles. Key standards based on fair valuation principles that have not yet been rolled out under Indian GAAP relate to business combinations, financial instruments and investment properties. There are also several areas where there are critical differences between Indian GAAP and IFRS.

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Accountability or accounting?

When Nicolas Sarkozy’s government spokesperson announced that each minister’s performance would be assessed according to criteria set by a private auditing firm, he probably did not expect to elicit a fierce response. But he should have

When Nicolas Sarkozy’s government spokesperson announced that each minister’s performance would be assessed according to criteria set by a private auditing firm, he probably did not expect to elicit a fierce response. But he should have. The opposition quickly attacked the move as a “dangerous gimmick” and a “smokescreen.” One pundit asked, “Will the time soon come when ministers are hired by head-hunters?” And a young MP declared that “France cannot be managed like a bolt factory.”

But what is so absurd about establishing standards by which to assess the fulfilment of Sarkozy’s campaign promises? As soon as they were appointed in June 2007, Sarkozy’s ministers were given a clear set of objectives in the form of a letter of intent. Isn’t it normal to create some means of holding ministers accountable?

A culture of “results” has become central to economic modernisation in France, so shouldn’t the same be true of French governments, with their entrenched inclination toward passivity and aloofness? And the issue of setting measurable standards for government operations is not confined to France. British Prime Minister Gordon Brown has made such quantifiable goals a hallmark of his leadership ever since he was Chancellor of the Exchequer.

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Accountability or accounting?

When Nicolas Sarkozy’s government spokesperson announced that each minister’s performance would be assessed according to criteria set by a private auditing firm, he probably did not expect to elicit a fierce response. But he should have

When Nicolas Sarkozy’s government spokesperson announced that each minister’s performance would be assessed according to criteria set by a private auditing firm, he probably did not expect to elicit a fierce response. But he should have. The opposition quickly attacked the move as a “dangerous gimmick” and a “smokescreen.” One pundit asked, “Will the time soon come when ministers are hired by head-hunters?” And a young MP declared that “France cannot be managed like a bolt factory.”

But what is so absurd about establishing standards by which to assess the fulfilment of Sarkozy’s campaign promises? As soon as they were appointed in June 2007, Sarkozy’s ministers were given a clear set of objectives in the form of a letter of intent. Isn’t it normal to create some means of holding ministers accountable?

A culture of “results” has become central to economic modernisation in France, so shouldn’t the same be true of French governments, with their entrenched inclination toward passivity and aloofness? And the issue of setting measurable standards for government operations is not confined to France. British Prime Minister Gordon Brown has made such quantifiable goals a hallmark of his leadership ever since he was Chancellor of the Exchequer.

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India Inc's effective tax compliance rate rises to 26% in 2007-08

If increasing subsidy bill is giving headache to P Chidambaram, he has found succour in higher direct tax collections. Direct tax receipts from companies and personal income have reportedly, increased 71.3% (ET June 19) in the first two months of the current year compared to the same period last year.

This may be too early to predict the collections for the full year, but if one goes by past records the finance minister has every reason to be optimistic. After all, rationalisation of tax structure has been giving good dividends. Despite a fall in tax rate, collections of corporate tax have increased steadily.

An ET survey of 200 large companies finds that their aggregate tax provisions have increased 28.3% in 2007-08 over the previous year.

The bigger question, however, is: Does a rise in tax collections automatically imply success of the restructuring process of corporate taxation? After all, higher tax collections last year could be the result of higher profits. As demand picked up following improvement in macro fundamentals, India Inc witnessed an all-round prosperity.

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'India Inc not ready for global accounting'

NEW DELHI: Corporate India is not fully prepared to handle the new accounting regime that comes in force from April 2011 with the adoption of International Financial Reporting Standards (IFRS), an accounting process recognized by over 100 countries that would replace the Indian GAAP (Generally Accepted Accounting Standards), global consultancy major KPMG said.

Richard Rekhy, COO for KPMG in India, told TOI that Indian accounting professionals are yet to be exposed to the intricacies and methods that would come along with new standards, which recognize fair value accounting against the existing historic accounting model.

"It is an alarming situation that we still do not have enough trained people on IFRS. And with no previous experience with new standards, most of the current lot of accounting professionals will be redundant with important changes in IFRS," Rekhy said.

While corporate India currently follows the standards proposed by the Institute of Chartered Accountants of India (ICAI) and enforced by National Advisory Committee on Accounting Standards (NACAS), from April 2011 they need to switch over to IFRS, issued by the International Accounting Standard Board, a London-based independent body. Firms like KPMG and Ernst & Young have pitched for advisory and consultancy services as the transition means big business opportunity for them.

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Bookkeeping and Accounting Basics

Bookkeeping and accounting share two basic goals:

• to keep track of your income and expenses, thereby improving your chances of making a profit
• to collect the necessary financial information about your business to file your various tax returns and local tax registration papers
  

Sounds pretty simple, doesn't it? And it can be, especially if you remind yourself of these two goals whenever you feel overwhelmed by the details of keeping your financial records. Hopefully you will also be reassured to know that there is no requirement that your records be kept in any particular way. (There is a requirement, however, that some businesses use a certain method of crediting their accounts. See " Cash vs. Accrual Accounting.") In other words, there's no official "right" way to organize your books. As long as your records accurately reflect your business's income and expenses, the IRS will find them acceptable.

The actual process of keeping your books is easy to understand when broken down into three steps.

1. Keep receipts or other acceptable records of every payment to and every expenditure from your business.
2. Summarize your income and expenditure records on some periodic basis (generally daily, weekly, or monthly).
3. Use your summaries to create financial reports that will tell you specific information about your business, such as how much monthly profit you're making or how much your business is worth at a specific point in time.
   

Whether you do your accounting by hand on ledger sheets or use accounting software, these principles are exactly the same.

Step 1: Keeping Your Receipts
Comprehensive summaries of your business's income and expenses are the heart of the accounting process. But they can't legally be created in a vacuum. Each of your business's sales and purchases must be backed by some type of record containing the amount, the date, and other relevant information about that sale. This is true whether your accounting is done by computer or on hand-posted ledgers.

From a legal point of view, your method of keeping receipts can range from slips kept in a cigar box to a sophisticated cash register hooked into a computer system. Practically, you'll want to choose a system that fits your business needs. For example, a small service business that handles only relatively few jobs may get by with a bare-bones approach. But the more sales and expenditures your business makes, the better your receipt filing system needs to be. The bottom line is to choose or adapt one to suit your needs.

Step 2: Setting Up and Posting Ledgers
A completed ledger is really nothing more than a summary of revenues, expenditures, and whatever else you're keeping track of (entered from your receipts according to category and date). Later, you'll use these summaries to answer specific financial questions about your business such as whether you're making a profit, and if so, how much.

You'll start with a blank ledger page (a sheet with lines) or, more often these days, a computer file of empty rows and columns. On some regular basis like every day, once a week, or at least once a month, you should transfer the amounts from your receipts for sales and purchases into your ledger. Called "posting," how often you do this depends on how many sales and expenditures your business makes and how detailed you want your books to be.

Generally speaking, the more sales you do, the more often you should post to your ledger. A retail store, for instance, that does hundreds of sales amounting to thousands or tens of thousands of dollars every day should probably post daily. With that volume of sales, it's important to see what's happening every day and not to fall behind with the paperwork. To do this, the busy retailer should use a cash register that totals and posts the day's sales to a computerized bookkeeping system at the push of a button. A slower business, however, or one with just a few large transactions per month, such as a small Web site design shop, dog-sitting service, or swimming pool repair company, would probably be fine if it posted weekly or even monthly.

To get started on a hand-entry system, get ledger pads from any office supply store. Alternatively, you can purchase an accounting software program that will generate its own ledgers as you enter your information. All but the tiniest new businesses are well advised to use an accounting software package to help keep their books (and micro-businesses can get by with personal finance software such as Quicken). That's because once you've entered your daily, weekly, or monthly numbers, accounting software makes preparing monthly and yearly financial reports incredibly easy.

Step 3: Creating Basic Financial Reports
Financial reports are important because they bring together several key pieces of financial information about your business. Think of it this way -- while your income ledger may tell you that your business brought in a lot of money during the year, you may have no way of knowing whether you turned a profit without measuring your income against your total expenses. And even comparing your monthly totals of income and expenses won't tell you whether your credit customers are paying fast enough to keep adequate cash flowing through your business to pay your bills on time. That's why you need financial reports: to combine data from your ledgers and sculpt it into a shape that shows you the big picture of your business.

Source : http://www.inc.com/

Basic Accounting Principles

Which accounting method is best for your business?

Most businesses typically use one of two basic accounting methods in their bookkeeping systems: cash basis and accrual basis. While most businesses use the accrual basis, the most appropriate method for your company depends on your sales volume, whether or not you sell on credit, and your business structure. The cash method is the most simple in that the books are kept based on the actual flow of cash in and out of the business. Income is recorded when it is received, and expenses are reported when they are actually paid. The cash method is used by many sole proprietors and businesses with no inventory.

From a tax standpoint, it is sometimes advantageous for a new business to use the cash method of accounting. That way, recording income can be put off until the next tax year, while expenses are counted right away.

With the accrual method, income and expenses are recorded as they occur, regardless of whether or not cash has actually changed hands. An excellent example is a sale on credit. The sale is entered into the books when the invoice is generated rather than when the cash is collected. Likewise, an expense occurs when materials are ordered or when a workday has been logged in by an employee, not when the check is actually written. The downside of this method is that you pay income taxes on revenue before you've actually received it.

Should you use the cash or accrual method? The accrual method is required if your annual sales exceed $5 million and your venture is structured as a corporation. In addition, businesses with inventory must also use this method. It also is highly recommended for any business that sells on credit, as it more accurately matches income and expenses during a given time period. The cash method may be appropriate for a small, cash-based business or a small service company. You should consult your accountant when deciding on an accounting method.

Source : http://www.entrepreneur.com/

How can i learn bookkeeping ? - Some Basic Tips

Good bookkeeping practices are essential to keeping your business running smoothly.

Regardless of the size of your company, good bookkeeping practices are essential to keeping your business running smoothly. Accurately kept books do more than make it easy to file your annual tax returns. Banks may require you to submit a profit and loss statement or balance sheet so they can determine your credit-worthiness. A quick review of your books can show where you need to spend more or less money; who gives you the most business and who takes the longest to pay you; how much you're paying out in commissions compared to how much you're selling.

Here are some general terms that are helpful to know.

ASSETS are things that you own or are owed to you: bank accounts, inventory, loans made to other companies or individuals, company cars, etc.

LIABILITIES are things that you owe: loans, accounts payable, payroll taxes, etc.

EQUITY is net income (sales less expenses), capital stock, and owners/officers distributions.

EXPENSES are things you pay for: business meals, gas for company cars, professional services, postage, etc.

REVENUE is money you earn from the sale of services or product, or from interest earned on a bank account, investment, or a lease or loan of your equipment or property.

COST OF SALES is any expense directly related to earning revenue: product purchases, freight or delivery, sales tax expense, etc.

One of the most valuable resources you can have for a small business is a public accountant. Even if you only take your books in at tax time, having someone to give you specific advice and answer your bookkeeping questions is important. Find an accountant whom you like and trust. If you're having difficulty finding one on your own, talk to other people with similar businesses for recommendations.

Here are some helpful hints that should make good bookkeeping an easy task.

1. Get organized! Good organization is essential to good bookkeeping. In fact, when you come right down to it, bookkeeping is organizing. There are only four general categories of records you need to keep: bills (accounts payable or A/P), customer invoices (accounts receivable or A/R), payroll (time sheets and pay records), and human resources (employee information not directly related to payroll). File all records for these categories neatly in a system that works for you. Done well and consistently, even shoe boxes work! Even better are expandable, alphabetic file folders. Keep one folder for A/P and one for A/R. If your business is too large for that, invest in file cabinets - anything from small portable cases to floor-to-ceiling lateral files. Get something that fits your volume and your budget. Use a different color file folder for each category of record, and it will be that much easier to keep things organized.
   
   
2. Get an accounting software program, if you can fit it in your budget. This is one place where having an accountant can be very helpful. Ask your accountant to help you select the best program for your needs. An accounting program will collate information you input and present it in helpful reports almost instantly, so you don't have to hunt through your check register or deposit log for the information. Some of these reports can help you pinpoint problem areas, like deadbeat customers or inventory that's not moving, or will help to show employee shrinkage or overtime policy abuse. With a good program, you can get customized reports that will tell you almost anything you want to know. If software is out of the question, you can keep track of everything in a computer spreadsheet or good old traditional ledger books. Even if you have monthly services from your accountant, it's a good idea to keep track of everything on your own. That way, if you need some information in the middle of the month, you'll have it at your fingertips, instead of having to spend a lot of time searching. Keep one spreadsheet/ledger for A/P and one for A/R. If you pay all of your bills every month, your ledger for A/P can simply be your check register, as long as you . . .
   
   
3. keep detailed records of all payments and deposits. As soon as you write a check, write down when it was written, to whom, for what, and how much it was for. Most accounting programs have a check writing feature, and all of this information will automatically be recorded. If you don't have software that will do this, invest in a business desk set checkbook. The checks have large stubs on which you can write down all of the important information. Record as much detail as possible for your deposits, including if they were cash or credit card, and what kind of credit card.
   
   
4. Keep your check register reconciled to your latest bank statement. If a check or deposit doesn't clear the bank within a couple of months, contact the bank or the payee to find out why. If necessary, stop payment, void and re-issue uncleared checks.
   
   
5. Schedule a day of the week for paying bills and for reviewing unpaid customer invoices. Paying bills on time saves you money by avoiding late charges, and some vendors may give you a discount if you pay by a certain time. Don't let your customers lag too far behind in paying their bills. Send out monthly reminders, and set up a policy for when you will send a bill to a collection agency.
   
   
6. If you are a retail seller subject to sales tax, keep detailed records of sales so that you don't collect or pay sales tax on non-taxable items. In many states, labor and freight are non-taxable. If you sell to a tax-exempt entity, make sure that you get a copy of their exemption certificate. Keep those in a separate file, preferably with a list showing each customer's name and exemption number.
   
   
7. Make sure you are in compliance with record-keeping standards. There are some things that you only need to keep for three years, like individual copies of time sheets. Others need to be kept for much longer. For example, all records pertaining to a worker's compensation claim need to be kept forever. Regulations and recommendations change periodically, so (everyone together now) ask your accountant.
   
   
8. There are several companies out there that give continuing education seminars on a range of business topics, from human resource management, to communication skills, to effective accounts payable practice . . . just about anything you can imagine. Go to some seminars. Think about what you want to learn ahead of time, and ask questions that are relevant to your business. Oddly enough, meeting other people who also have lots of questions can be a real confidence builder. You'll know you aren't alone.
   
   
9. Take advantage of the many resources that are available. On-line forums exist for almost any topic. The business section of your local bookstore should have plenty of books for small businesses, or you can check materials out from the library. The Internal Revenue Service has a variety of publications for the small business owner, free of charge, available on their website. Also, the United States Small Business Administration can point you to a wealth of information. There is probably a national association for your type of business. The annual dues may seem high, but the industry specific information that you can get from them may well be worth it. This list could go on and on, but it would still end with this: when in doubt (one more time!), ask your accountant.
   

As you get more accustomed to keeping your books organized and accurate, you'll be better able to determine what information is really important, e.g. what receipts to keep, and how much detail to enter in your ledgers. You'll save time and money because you'll be getting your bills paid on time, and you'll be able to collect more money from your clients because you'll know how much they owe you, all without having to dig through all of the paperwork on your desk.

Source : http://www.essortment.com/

The Future of Accounting and Finance: New Skills for a New World

Founded in 1948, Robert Half International is the world's leader in specialized consulting and staffing services. The company's financial staffing divisions include Robert Half® Finance & Accounting, Accountemps® and Robert Half® Management Resources, for full-time, temporary and senior-level project professionals, respectively.

The growth of international business has resulted in numerous changes and challenges for accounting and finance professionals. The increasingly global nature of business is accelerating the convergence of professional practices and norms, such as principles-based accounting and International Financial Reporting Standards (IFRS). In addition, workforces are becoming more diverse, making communication more complex.

Changes such as these have driven up the demand for individuals with well-rounded skill sets, including excellent communication and analytical abilities, as well as a global understanding of a firm's corporate culture, values and ethical standards when interacting with colleagues and clients around the world.

Possessing a global perspective will help position you for a wider variety of future career opportunities. Following are ways in which accounting and finance professionals can enhance their skill sets and improve their marketability in today's international business environment:

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Announcing: The “Best of the Best” Business Opportunity!

What is the “Best of the Best”? You might be surprised to learn that of all the possible business opportunities available today, a Bookkeeping and Accounting practice is considered by some to be one of the best. In fact, Paul and Sarah Edwards, authors of “The Best Home Businesses for the 21st Century,” rate a bookkeeping service as the “Best of the Best” home-based businesses. Below is a list of things that I think make an accounting and tax service such a great opportunity.

1. It’s Mandated By Government — Every business needs some form of bookkeeping — whether it’s a one-person operation or the business has thousands of employees.
2. A Great Income — A person can expect to earn more than $30 per hour — sometimes as high as $75 per hour. The average client billing will be $300 per month and require six to eight hours a month to complete.
3. Inexpensive to start— For less than $1,000 a person can purchase everything they will need to get the business underway. Those that already have a computer have the biggest part of the investment taken care of.
4. No Special Equipment Needed — Other than a computer, printer, inexpensive calculator, and fax machine, there’s no special equipment that’s necessary.
5. Work Anywhere — Using today’s technology you can have clients anywhere in the world.
6. It’s Easy — Accounting/Bookkeeping software has become easier to use. The most popular software on the market today is QuickBooks Pro (less than $250).
7. No Outside Office Required — You need only a small area of your home for your office. It can even be in the corner of a bedroom.
8. No Zoning Hassles — There’s no traffic in and out of your home, so zoning laws are never a consideration.
9. Keep Your Present Job — You can build a part-time business while working full-time at another job.
10. Work When You Want — You can perform the work during the day or night. It’s a great business to work around a busy schedule.
11. No Inventory — You don’t have to purchase or maintain inventory.
    

Maybe you feel like you’ve gone as far as you can go in your current career. Perhaps you’re a homemaker who wants to build a business out of her home. For thousands, an Accounting and Tax service could be the perfect business for you. How can I say this? There are thousands of people just like you who have found personal and professional satisfaction by owning a bookkeeping and accounting practice.

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'File your tax returns in time or face action'

NEW DELHI: Brace up for a call from the Income Tax (I-T) department if you are not filing your returns every year. This time, taxmen have an express instruction from the government to drag you to courts, if the need so arises, to ensure compliance.

With Finance Minister P Chidambaram hopeful of collecting an ambitious Rs 4 lakh crore in direct taxes in the current financial year, the authorities have been instructed to take up as many surveys as possible besides conducting raids on suspect big evaders to meet the target. Soon after inaugurating the two-day conference of chief commissioners and directors-general of Income Tax on June 9, Chidambaram had said that the department had already taken up 15 cases of 'non-filer' (those who have never filed a return) and 'stop-filer' (those who have stopped filing returns) for prosecution.

Hinting at stern action against wilful evaders, the FM had announced that a general direction had been given to taxmen that if during a survey or a search a person is found that he had never filed a return (non-filer) or has stopped filing return (stop-filer) in the last three years, steps must be taken for his prosecution. According to existing provisions of the I-T Act, failure to file returns may land a person in prison for a term extending up to seven years in case he is found to have evaded tax of more than Rs 1 lakh, or a penalty of Rs 5,000 for those on whom tax dues are found but returns are not filed.

Though the law on filing mandatory returns has been in existence for a long time, the very reiteration of the fact indicates the government's intention to invoke its provisions to catch wilful evaders.

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Understanding Accounting Vocabulary

When you learn something new like accounting concepts and terms, it helps to create links between what you know and what you are trying to learn. In some ways, it is like learning a second language and decoding the new word is part of the learning process. For example, trying to translate the Spanish word necesario you might brainstorm with necessary - and you would be right. How about blanco? Blanco is like blank which is like white. So, blanco is Spanish for the color white.

Try to make some logical connections about the accounting vocabulary. Take the word - accounting - and think about it. Really, the accounting system is a basic counting of what goes on in your business.

Let's move on to transactions. Transactions are the business activities, or actions, that build day by day and become your expenses and income. Try to think about the term - transactions. Actions are business activities, and trans means across or thru. These are the basic building blocks of an accounting system. Transactions are to accounting like what raw materials are to a factory, or gasoline is to your engine - the transactions are real and how your accounting system handles them impacts your business.

You must keep a record of your transactions to know how much money your business earned and how much money your business spent. Sounds obvious, right? Ask your bookkeeper or accountant how obvious some transactions are. It can get tricky quickly if you are not clear about what happened in the transaction and how you want it recorded.

For example, if you were a carpenter you might pay cash for a bucket of nails to assemble hand made wooden deck chairs. The nail purchase is a transaction and will have to be counted as a business expense. In your workshop, you then assemble the chair using a pneumatic nail gun, sand paper, stain and varnish. The next day you deliver the chair to a customer in a neighboring town. You hand the customer a sales slip and they then write you a check. That, too, is a transaction. It is easy to see the transactions when money is spent or received. Did you, however, see the other transactions?

The stain and varnish, nail gun use and chair parts were also part of the transaction. What about the gasoline and truck used to deliver the chair? Did you have any left over nails or did you use them all? Maybe there is a little life left in the sand paper but it is not new anymore, is it? If we do not account for those costs we are missing a piece of the picture-an important piece-that could affect how much money you have at the end of the year.

In all your business activities, try to think in terms of transactions because once you can identify what transactions occur in your business, you will be able to organize them into a meaningful manner. Right now, take a minute to list what transactions occur in your business each day, week and year. Always thinking in terms of transactions might seem miserly, but it is important to be cost-conscious and honest with yourself about all your transactions. Your success in business depends upon it.

Some transactions are initiated by customers and suppliers. Other transactions can take place inside your business or back office. The bookkeeping department creates transactions when they adjust your books for year-end considerations like machinery depreciation or inventory shrinkage.

What is depreciation? Let's say you bought a brand new car, a 2006 Professor Now Coupe, and you spend $27,500 on this new car. Next year the car has some dings on the doors, wear on the tires, stains on the seats and 20,000 miles on the engine. You know your car is not worth $27,500 anymore. This means your car has lost value or depreciated.

When it comes to business owned equipment, you can deduct this lost value as a business expense. Sure, you did not spend cash on the lost value but with depreciation, this is a transaction your bookkeeper or accountant will force through at the end of the year. On your taxes, it helps you by increasing your expenses like all other cash transactions. Of course, the other side of depreciation means your equipment is not worth as much anymore.

In order for you to get a really clear picture of how your business is operating, you need to be diligent and thoughtful about what your real expenses are. Depreciation is a real expense even though it is not a cash transaction.

Learning to see transactions for what they are takes practice and contemplation. Transactions affect so many areas of your business that you must analyze the daily details so you can piece together the big picture.

Source : http://www.articles2k.com

ProfessorNow.com offers free educational courses in an easy to follow format in various subjects. To view a free online course covering the subject of this article, please visit ProfessorNow.com.

Understanding Accounting Vocabulary

When you learn something new like accounting concepts and terms, it helps to create links between what you know and what you are trying to learn. In some ways, it is like learning a second language and decoding the new word is part of the learning process. For example, trying to translate the Spanish word necesario you might brainstorm with necessary - and you would be right. How about blanco? Blanco is like blank which is like white. So, blanco is Spanish for the color white.

Try to make some logical connections about the accounting vocabulary. Take the word - accounting - and think about it. Really, the accounting system is a basic counting of what goes on in your business.

Let's move on to transactions. Transactions are the business activities, or actions, that build day by day and become your expenses and income. Try to think about the term - transactions. Actions are business activities, and trans means across or thru. These are the basic building blocks of an accounting system. Transactions are to accounting like what raw materials are to a factory, or gasoline is to your engine - the transactions are real and how your accounting system handles them impacts your business.

You must keep a record of your transactions to know how much money your business earned and how much money your business spent. Sounds obvious, right? Ask your bookkeeper or accountant how obvious some transactions are. It can get tricky quickly if you are not clear about what happened in the transaction and how you want it recorded.

For example, if you were a carpenter you might pay cash for a bucket of nails to assemble hand made wooden deck chairs. The nail purchase is a transaction and will have to be counted as a business expense. In your workshop, you then assemble the chair using a pneumatic nail gun, sand paper, stain and varnish. The next day you deliver the chair to a customer in a neighboring town. You hand the customer a sales slip and they then write you a check. That, too, is a transaction. It is easy to see the transactions when money is spent or received. Did you, however, see the other transactions?

The stain and varnish, nail gun use and chair parts were also part of the transaction. What about the gasoline and truck used to deliver the chair? Did you have any left over nails or did you use them all? Maybe there is a little life left in the sand paper but it is not new anymore, is it? If we do not account for those costs we are missing a piece of the picture-an important piece-that could affect how much money you have at the end of the year.

In all your business activities, try to think in terms of transactions because once you can identify what transactions occur in your business, you will be able to organize them into a meaningful manner. Right now, take a minute to list what transactions occur in your business each day, week and year. Always thinking in terms of transactions might seem miserly, but it is important to be cost-conscious and honest with yourself about all your transactions. Your success in business depends upon it.

Some transactions are initiated by customers and suppliers. Other transactions can take place inside your business or back office. The bookkeeping department creates transactions when they adjust your books for year-end considerations like machinery depreciation or inventory shrinkage.

What is depreciation? Let's say you bought a brand new car, a 2006 Professor Now Coupe, and you spend $27,500 on this new car. Next year the car has some dings on the doors, wear on the tires, stains on the seats and 20,000 miles on the engine. You know your car is not worth $27,500 anymore. This means your car has lost value or depreciated.

When it comes to business owned equipment, you can deduct this lost value as a business expense. Sure, you did not spend cash on the lost value but with depreciation, this is a transaction your bookkeeper or accountant will force through at the end of the year. On your taxes, it helps you by increasing your expenses like all other cash transactions. Of course, the other side of depreciation means your equipment is not worth as much anymore.

In order for you to get a really clear picture of how your business is operating, you need to be diligent and thoughtful about what your real expenses are. Depreciation is a real expense even though it is not a cash transaction.

Learning to see transactions for what they are takes practice and contemplation. Transactions affect so many areas of your business that you must analyze the daily details so you can piece together the big picture.

Source : http://www.articles2k.com

ProfessorNow.com offers free educational courses in an easy to follow format in various subjects. To view a free online course covering the subject of this article, please visit ProfessorNow.com.

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 ?

About Autor :

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.com., to get more details.

Source : http://mesotheliomakiller.com/

Expert: SaaS Will Alter Future Landscape of Accounting Software

The meteoric rise of Software as a Service, or on-demand hosted software, has prompted a paradigm shift that poses challenges not just to a firm's traditional IT infrastructure but also to vendors who must now counter the trend with low-cost, high-performance solutions to retain their user bases.

"In the next few years most accounting software will migrate into this space," predicted Michael Bodnar of Quantum Information Technologies. "Customers are literally one click away from leaving [their current software package], so it's up to the vendors to improve their functions and performance."

Bodnar, who led a session at the AICPA Information Technology Conference here on the market dynamics of SaaS, pointed to the rapid proliferation of SaaS CRM and business software providers such as Salesforce.com, which now has a base of 2 million users, as well as the offerings of Google Apps.

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Bookkeeping Express partners with Intelligent Office

Bookkeeping Express has teamed with Intelligent Office to provide accounting services to small businesses in the D.C. area.

This is the first partnership in the area for the McLean-based bookkeeping company, which was acquired last year by Merritt Green, Bob Stocker and Greg Jones.

The owners moved the 20-year-old bookkeeping company's headquarters from California, and aligned the company with the American Institute of Professional Bookkeepers in Rockville. They plan to launch a national franchise system later this month.

Intelligent Office, a virtual office base that offers remote receptionist services, will provide bookkeeping services to its 800 small business clients in the D.C. area through the new partnership. Services include accounts payable and receivable, monthly reporting, and bank reconciliation.

Read More Article...

Bookkeeping Express partners with Intelligent Office

Bookkeeping Express has teamed with Intelligent Office to provide accounting services to small businesses in the D.C. area.

This is the first partnership in the area for the McLean-based bookkeeping company, which was acquired last year by Merritt Green, Bob Stocker and Greg Jones.

The owners moved the 20-year-old bookkeeping company's headquarters from California, and aligned the company with the American Institute of Professional Bookkeepers in Rockville. They plan to launch a national franchise system later this month.

Intelligent Office, a virtual office base that offers remote receptionist services, will provide bookkeeping services to its 800 small business clients in the D.C. area through the new partnership. Services include accounts payable and receivable, monthly reporting, and bank reconciliation.

Read More Article...

No tax deduction at source on service tax?

You have been advising that payment to a service provider, which is inclusive of service tax, would require tax deduction at source on the entire amount, inclusive of service tax. In view of the Board’s Circular No. 4 of 2008 dated April 28, 2008, your answer would require revision. The Circular may be publicised for the benefit of readers.

The Central Board of Direct Taxes in Circular No. 4 of 2008 dated April 28, 2008, has responded to a request for clarification as to whether service tax should be included in rent for tax deduction at source under Sec. 194-I in the following words:

“3. Service tax paid by the tenant does not partake of the nature of “income” of the landlord. The landlord only acts as a collecting agency for the Government for collection of service tax.

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A new franchise opportunity has been launched in the US

US bookkeeping franchise Bookkeeping Express is planning to expand nationwide. The company, which was recently purchased by three entrepreneurs in Virginia, provides a range of bookkeeping services and plans to launch a national franchising system this month.

Greg Jones, CEO of Bookkeeping Express, said: "Bookkeeping Express plans to revolutionise bookkeeping in America. In a business world where payroll is dominated by national companies like Paychex, and tax preparation is synonymous with H&R Block, we see our company becoming the recognised provider for business bookkeeping services.

"Our franchise will provide businesses throughout the US with a reliable, affordable source for excellent bookkeeping services. We will focus on in-house financials, operating as an authorised QuickBooks affiliate. We will charge by the transaction so that our customers can have a complete understanding of what work has been completed and at what price."

Source : http://www.franchise-international.net/

Canada: Accounting industry grows

The country's accounting industry continued its strong growth in 2006, Statistics Canada said yesterday. The federal agency said accounting operating revenues grew 12.1 per cent to $11.1 billion in 2006. That followed 13.7- per-cent growth the previous year. Most of the revenues in 2006 came from traditional accounting services such as auditing and assurance (30 per cent), taxation (25 per cent), and bookkeeping and payroll (11 per cent).

Source : http://www.canada.com/

How Can Software Improve the Efficiency of My Retail Operation?

Retail point-of-sale (POS) systems facilitate many aspects of retail trade: tracking sales and pricing on all of your products; maintaining proper inventory levels and vendor and customer data; reducing billing and shipping times; and facilitating bookkeeping and payroll management. The solution you choose will depend on your needs, comfort level with computer programs, and, ultimately, your budget. Retail-specific software solutions can range from $2,000 to upward of $50,000.

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2008 Review of Small Business Accounting Systems

Helping SMBs Achieve Success: Programs Enhance Accountant Controls & Data Integrity Features

Accountants who provide services to small businesses frequently find themselves in the role of diagnostician, trying to find out why a particular client is hemorrhaging cash and what the short- and long-term chances of survival are for the company. They also assist in determining what strategies will best brace the entity and help develop financial processes that are sound and grounded in solid accounting practices. This is a critical role because when challenges are recognized early enough, problems can be averted or minimized.

But still, a 2007 study by the Bureau of Labor Statistics cites that more than half of small businesses (56 percent) fail before lasting four years. Among the most failure-likely industries are hospitality (particularly restaurants and bars), transportation and apparel. While these sectors may stand out as the most vulnerable, all small businesses are at risk since they face a myriad of challenges such as cash flow, budgeting and strategic planning. And they frequently rely upon individuals with limited financial and business management experience.

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