Small Business Bookkeeping Services – Save 60% Bookkeeping Cost

Outsourcing Bookkeeping Services provides professional, affordable and timely bookkeeping services to medium, large and small business bookkeeping organizations. We believe in high standard of quality and reliability. Our goal is to offer unique bookkeeping accounting services at competitive rates. Save up to 60% on your bookkeeping cost by outsourcing your bookkeeping and accounting requirements to us.

Now a day it is very important to complete bookkeeping and accounting task. Where ever you are located at you can outsource your work to our accounting bookkeeping firm. We are handlingsmall business bookkeeping services which facilitate smooth and successful functioning of business.

Our Small Business Bookkeeping Accounting Services:
• Accounting Reconciliation
• General Ledger Maintenance
• Inventory Reconciliation
• Payroll Processing
• Cash Flow Management
• Payroll Administration
• Budgeting
• Credit Card and Bank Reconciliation
• Taxation Services
• VAT Services

We have professionally trained and skilled bookkeepers and they can fulfill your any requirements related to bookkeeping and accounting services with the latest technologies and bookkeeping software. We work with customized applications and web based bookkeeping software such as quickbooks, iris, myob etc depending on the financial data given to us by clients.

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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 the Author:

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.

Bookkeeping Outsourcing has helped many businesses to boom

If your organization is smaller and you have less accounting task then you can hire accounts clerk to make your task done by them. You will have to hire trained and talented professionals for your accounts task and will have to set up a separate department. If you do not want to go through all these procedure then you can hire bookkeeping outsourcing services. Outsourcing has become a powerful management tool that makes any businesses efficiently working in any department and so bookkeeping outsourcing is one such. It is this strategy that has helped many businesses in making big revenue and has brought huge reputation. And as a result they are widely popular in the market.Bookeeping outsourcing needs careful handling of its data as they are precious documents of an organization. Any business has its ambition to earn large revenue and fame, and so proper maintenance of accounts will save a lot of your revenue and time.

There are many vendors in the market to undertake your bookkeeping tasks. Bookkeeping outsourcing has become key strategy of many businesses due to its wide success in the businesses. At any point of time, you may come across the need of accounting data and so it important to store data properly and safely. Bookkeeping outsourcing consists of data entry bookkeeping, single entry bookkeeping, commercial bookkeeping, one-write systems, memorial stone systems and various other to serve the business in the best way. Data entry bookkeeping task is meant to record all the data of the firm while double-entry bookkeeping is the most commonly used method of bookkeeping that is liable for writing up the daybooks for your company. This daybook comprises of entire records of purchase, sales, receipts and payments.

It’s the accountability of bookkeeping outsourcing system to enter the transaction records accurately in the supplier’s ledger, customer ledger, and daybook. The transaction in a single entry system is recorded once, either as income or an expense, as an asset or liability. These entries need to be recorded on a one page which is carpet restoration a revenue and expense journal. One-write system is a copyrighted system that is set up by using carbon-backed cheques and as the name suggests it works in the same manner. Whenever an individual or a bookkeeper writes anything on a cheque, the data is automatically transferred to a record system. You can trust on the vendor and can transfer your entire work to them to them. They take utmost care of your data by providing high security to them and does your work with complete professionalism.

Source : http://www.corsavoo.com/

Five Guidelines In Selecting Your Outsourcing Bookkeeping Partner

Outsourcing refers to the practice of transferring day to day process of a business to some external service provider. It rose to prominence as a business strategy in the early 1980's when some European airline companies began transferring part of their back office function to New Delhi. The guiding force behind such a strategy then was to reduce labor costs. Outsourcing in today's context is however, necessitated not only by cost consideration but also other specific advantages like flexibility and scalability of operations etc. And as more and more companies join the fray, it is natural that there has been exceptional increase in the number of vendors undertaking such services.

It therefore becomes very important that outsource of critical functions like accounting be done with utmost care The most important point in this regard is identifying the right outsourcing partner. Policies and practices that the outsourcing partner follow, impact the companies business directly. Therefore extreme caution should be practiced by the companies while deciding on their outsourcing partners. Never should such a decision be taken in a rush.

The following pointers should be taken into consideration while selecting your partner:

1. Company's experience is direct pointer to its capabilities. Information relating to their total client base and kind of projects handled by them can give a clear idea of their real standing in the market. It is always prudent to check on the references provided by the company.
2. To have a clear idea of the people running the business it is always advisable to ask for a profile of its director, the key persons etc. Also their qualifications should be taken into consideration to judge the level of professionalism that can be expected.
3. The best way to judge the capability and genuineness of a company is by checking whether the company measure in expectations of its clients. It is thus the best way to gauge the company's credentials.
4. To get an idea of outsourcing partner's abilities in bookkeeping, it is always advisable to test him on files that have been already completed. This way their skills can be directly tested.
5. Once credibility about the competencies of the outsourcing partner has been established, assessment should be made about their capabilities, factors like proper infrastructure facility, number of staff etc that are directly involved with completion of the project should be checked. Here once again client reference plays an important role.
   

Once the credentials and capabilities of the vendor are established, it is necessary to establish that the outsourcing partner shares the same business objective as that of the company. This is important because communication becomes really easy once the objectives and strategies of the outsourcing company are shared by the outsourced vendor.

Bookkeeping is an important business function. Outsourcing such a key function is a decision that can have huge implications on the business. Both the outsourcing company and the vendor company will be venturing into a strategic relationship that affects both their businesses directly. But the element of risk lies more for the company that undertakes to outsource its books of accounts. It should therefore make the most informed decision to minimize the risk and benefit from it.

Article Source: http://EzineArticles.com/

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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Legis. Eddington accused of shoddy bookkeeping

Eddington attacked on finances

Suffolk Legis. Jack Eddington's Republican foe, Brian Egan, has gone on the attack, claiming that the lawmaker can't keep his campaign finance records straight.

Egan's campaign manager, Dean Murray, said Eddington's 32-day, pre-election filing with the Suffolk Board of Elections in Yaphank shows him with a balance of $11,116, while the report he filed with the state Board of Elections in Albany shows him $666 in the red. Egan said there were similar discrepancies in the July and January filings for Eddington (WF-Medford).

"The sad fact is that Jack Eddington wants to make our laws but he does not think he has to follow our laws," Murray said.

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Bookkeeping rates are reasonable for any business

Every business needs to maintain their financial record as this helps it in the long run. There is a close relation between the financial records of a company and its successful running. If the business is workings then it means that the financial status of the firm is properly managed. Bookkeeping is an important business tool for any size of business to help them record all the financial transaction. Bookkeeping records every single transaction irrespective of the size of the expense and other stuffs related to it. A bookkeeper is an individual also known as accountant clerk who is responsible to keep all the records of an organization. Bookkeeping is one such important task that is essential for all kinds of organizations whether it is a business, charity or a local club. It is an essential part of almost every business or an organization to run it efficiently.

Bookkeeping is a procedure that an organization considers to gather accounting information of its business. Bookkeeping is a tedious task for accounting firms as it takes long hours to maintain the accounts. Bookkeeping rates differ from one firm to another depending on the efficiency of the service provider. If a firm has its own department of bookkeeping then it can prove expensive for the organization. Keeping trained staffs and managing them is very tedious job. The cost of a trained staff is really expensive as their quite efficient to handle the accounting task. The first job of bookkeeping is to accumulate all the data. Then, there are other process which is followed accordingly.

Bookkeeping rates is the tariff that a service provider charges from its client. There are many bookkeeping methods that a business can come across to handle its accounting task. Some of these methods are data entry bookkeeping, single entry bookkeeping, commercial bookkeeping, one-write systems, computerized systems The accounting task consists of listing the payments on a page along with the deposits received from people and others. Double-entry bookkeeping system is the most commonly used method of bookkeeping. A bookkeeper is liable for writing up the daybooks for your company. The daybooks consist of entire records of purchase, sales, receipts and payments. It’s the responsibility of bookkeepers to enter the transaction records correctly in the supplier’s ledger, customer ledger, and daybook. Then, the books are brought for the trial balance phase for a financial account.

Commercial bookkeeping systems are accessed from a stationery outlet. Infact, it is a package system with instructions written and forms as well to use consequently. While, a one-write system is a copyrighted system that is set up by using carbon-backed cheques.It resembles that when an individual writes something on a cheque, the data is also transferred to a record system. In a single entry system, the transaction is recorded only once, either as income or expense, as an asset or a liability. These entries must be recorded on a one page that is called a revenue and expense journal. Double entry bookkeeping records every transaction twice. In this system, an account is credited with a particular amount and it is also debited at the same time accordingly.Today, computerized system has huge demand as every organization whether big or small needs to manage its data and records accurately.

Article Source: http://articlekarma.com

Bookkeeping basics

Introduction
Your accounts can only ever be as accurate as the books you keep. In this section we explain the books you will need - and those you won't!

Cash Book
This is your single most important "book". It records all of the payments made into and out of your business's bank account. It is crucial to set up the book appropriately at the commencement of business. Your accountant will help you with this.

Sales invoice file
It is both very helpful to your business, and reassuring to the tax man, if you issue your sales invoices in strict numerical order. You should also set up a file with file dividers for each month and file your sales invoices in strict numerical order. The only exception to this rule is that unpaid invoices should be kept in a special section at the front of the file until they have been settled, at which point you should mark the invoice "paid" and also write on it the date paid, and then file it in strict numerical order. You should also regularly review the unpaid section of the file and take steps to chase up payment as often as possible.

Purchase invoice
This is a file with a file divider for each month and a front section file for unpaid bills. On receiving an invoice, file it in the unpaid section until such time as you pay it. On paying the invoice you should write "paid" and the date on the invoice itself, and then transfer it from the unpaid section of the file to the section for the month in which you made the payment. You should also, of course, ensure that the payment is recorded in your cashbook.

Source: http://www.freelanceuk.com/

Tax Return Online Brings Convenience to your Doorstep

A business comes into existence for creating profits but it also has a responsibility towards the society. Any conscientious business owner recognizes this duty and by paying tax to the government fulfils a part of that responsibility. However tax laws of any country can be quite complicated and the complex form filing and record maintenance requires professional expertise. This is the reason why filing tax returns becomes a tedious task for every individual and organization. A certified public accountant is employed by most to help them deal with tax preparation, tax payment and filing for tax return. The technological advancements across the globe have managed to have an impact even on the divisions of every country. Filing of tax return online is now a convenience that can be enjoyed by every internet savvy person with the help of his accountant.

Tax return online has done away with the concept of voluminous paperwork, long hours in the line to acquire the forms in the first place and then submit the same to the state or local tax collection agency. The internal revenue service prepares the forms that are then collected by the tax filers, filled and submitted for tax return. As all financial documents like profit and loss statements, balance sheets, trail balances and other financial statements are required to be in perfect order for filing tax return the expertise of a competent accountant is essential for any individual or business filing tax return. Nowadays as all such details and financial records are usually prepared online with the use of specially designed accounting software.

Hence filing tax return online makes it much more convenient as all the documents required are already stored online. Also the process of filing tax return online does not require the cumbersome paperwork which was earlier an essential part of any work related to tax preparation and tax return filing. As the tax season approaches every business and individual starts preparing for the ordeal of getting all their financial records in place and try to hire the best certified public accountant available. The process of filing tax return online has made it possible to locate an accountant through the internet and send him the required documents through the internet itself. Many accounting websites provide the option of filing tax return online and one can simply visit these sites, verify the authenticity of the website and the accountants involved and simply file your tax return online.

Almost every individual and firm is in favor on the process of filing tax return online as it saves much time and effort and enables the individual to concentrate on his core business and utilize these resources in other business areas. Also every firm offering the service of filing tax return online also has the facility of calculating the exact tax amount. Also the fees charged by a firm filing tax return online on your behalf will have nominal charges as compared to the amount which would otherwise have to be paid to the in-house staff. Hence, filing tax return online works out to be a convenient solution for all involved.

Article source: http://www.articlesbase.com/taxes-articles/tax-return-online-brings-convenience-to-your-doorstep-183623.html

3 Quick Tips To Banish Those Bookkeeping Blues!

Are you one of those people who are guilty of just stuffing your receipts into a folder and thinking 'I'll sort that out when I've got time'? Do you need a more organized bookkeeping system, nothing too flash, just something that's simple and easy to manage?

Follow my tips below and you'll soon have that simple and easy-to-manage bookkeeping system that won't bring you out in a cold sweat whenever you hear the words 'tax return'. And I promise you, it works!

#1 Gather your supplies!
Get hold of a large ring binder, divider cards, A4/letter-sized paper, stapler, pen, all your business receipts and invoices, plastic folders and a large coffee (or whatever else you prefer!).

Then lock yourself away for a couple of hours.

#2 Get organized
You now need to organise your ring binder into the following sections:

Invoices - Unpaid -- this section is for your outgoing business expenses that have not yet been paid i.e. supplier invoices. Write on the top of each invoice the date it needs to be paid by and place all unpaid invoices in 'date to be paid' order with the earliest one on top.

Invoices - Paid -- this section is for your outgoing business expenses that have been paid or you've paid at the time service was rendered, i.e. that ream of paper that you bought from the office supplies store. Staple each receipt on to a blank piece of paper rather than just putting them directly into the ring binder. This just makes it easier to see at a glance all your receipts
and you can also make notes on the paper. Also write on the top of each invoice/piece of paper the method of payment.

Receipts - Unpaid -- this section is for all your invoices that you have sent to clients that have not yet been paid. Write on the top date payment is due and put them in date order so that it's easier if you have to chase overdue invoices.

Receipts - Paid -- this section is for all your invoices that have been paid. Write on the top the date it was paid and how it was paid i.e. bank transfer, check, credit card etc.

Bank Statements -- this section is self-explanatory! Just keep everything in date order.

3# Schedule It In
Now that you've got your system in place, schedule in each week/month to keep your bookkeeping binder up-to-date. In between updating place all your receipts and invoices in a plastic folder so that everything is together when you come to update your system--it would be too time-consuming to add each receipt as you get it!

What Next?
Depending on how far you want to handle your own accounts, you can either hand your very organized bookkeeping binder over to your accountant at the end of the financial year for them to prepare your final accounts, or you can maintain your own books with the use of financial accounting software.

Either way, you've now got a bookkeeping system that is simple and easy-to- manage and won't cause you to break out into a cold sweat at the very mention of the words 'tax return'.

About the author: Tracey Lawton is a certified Master Virtual Assistant with many years of experience, helping professional speakers, coaches, and authors operate an efficient, organized, and profitable business. Visit http://www.traceylawton.com/tips.htm to subscribe to her newsletter, Virtual Solutions, full of tips for operating a more productive business and receive Tracey’s ‘The 7 Key Steps to an Organized and Efficient Office’ special report absolutely free.

ACCOUNTING ADVICE: Are service sales taxes the answer?

Years ago a presidential candidate proposed a national sales tax and the elimination of the income tax. He was practically laughed out of the running and eventually withdrew from the campaign. Today, however, sales taxes are being brought up again on more of a state by state issue.

I have read much about and was reminded of in a recent professional issue update conducted by the INCPAS is the possibility of a sales tax placed on services.

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Understanding Account Reconciliation

When you confirm that the balance in your checkbook is in sync with your corresponding bank statement, it is known as account reconciliation.

Any record that you keep regarding your financial transactions with banks, credit card companies, or retail stores is known as an account. It is an arrangement between buyers and sellers in which payments are to be made in the future. The different forms of payment are checks, bills of exchange, and promissory notes. These are transferable, signed documents, which guarantee to pay the bearer a sum of money at a later date.

Purposes of Account Reconciliation
Account reconciliation makes available a suitable method for reconciling the accounts to the monthly financial reports produced by the Financial Records System (FRS). Account reconciliation helps you evaluate departmental account records in regards to the reports, which have been generated by the FRS. This helps you to better verify the accuracy of each account statement. The person in charge of each account should verify the account every month. Account reconciliation helps ensure accurate reports on the account. It helps to identify errors and inconsistencies in your accounting.

In order to perform the reconciliation most efficiently, you should be certain that the person in charge of an account maintains full and accurate records. It is your choice to maintain the records in a manual filing system or on a computer program. You can develop your own filing and record keeping system. It should be capable of providing an effective means of reconciling your accounts on a monthly basis. You can make use of the following files to make the reconciliation process easier.

Open Transaction Files: These files hold all source documents that you may have started for the account, but have not yet processed. Some common types of source documents are Distribution of Deposit forms (for cash receipts), Check Requests, Purchase Orders, Prepaid Purchase Orders, Interdepartmental Billing Forms, Merchandise Orders, and Travel Authorizations.

Pending Files: These files hold source documents that had some activities posted on the FRS report, but await further activities before they can be completed. These include Purchase Orders, Inter-departmental Billing Forms, Travel Authorizations and Travel Expense Reports.

Closed Transaction Files: These files hold the source documents that are fully processed in the FRS. You can always refer to the Records Retention Policy to establish how long documents must be maintained on file.

Monthly Reports: You receive these after the end of each month. The accounts must be reconciled to the monthly reports. The FBM090, Account Statement, and the FBM091 and Report of Transactions can be handed over to the person handling each account. You then compare the open transaction and pending files to the FBM091 and the Report of Transactions, which has a detailed list of transactions posted in a particular month. Make a comparison of the source documents with the report to find out if the encumbrance was properly established, adjusted, or canceled in the correct account and the correct object code.

Additional Help
Software is available to help you in reconciling your accounts in an automated fashion. Apart from providing you with all the help, they are reasonably priced as well.

When you confirm that the balance in your checkbook is in sync with your corresponding bank statement, it is known as account reconciliation.

Any record that you keep regarding your financial transactions with banks, credit card companies, or retail stores is known as an account. It is an arrangement between buyers and sellers in which payments are to be made in the future. The different forms of payment are checks, bills of exchange, and promissory notes. These are transferable, signed documents, which guarantee to pay the bearer a sum of money at a later date.

Purposes of Account Reconciliation
Account reconciliation makes available a suitable method for reconciling the accounts to the monthly financial reports produced by the Financial Records System (FRS). Account reconciliation helps you evaluate departmental account records in regards to the reports, which have been generated by the FRS. This helps you to better verify the accuracy of each account statement. The person in charge of each account should verify the account every month. Account reconciliation helps ensure accurate reports on the account. It helps to identify errors and inconsistencies in your accounting.

In order to perform the reconciliation most efficiently, you should be certain that the person in charge of an account maintains full and accurate records. It is your choice to maintain the records in a manual filing system or on a computer program. You can develop your own filing and record keeping system. It should be capable of providing an effective means of reconciling your accounts on a monthly basis. You can make use of the following files to make the reconciliation process easier.

Open Transaction Files: These files hold all source documents that you may have started for the account, but have not yet processed. Some common types of source documents are Distribution of Deposit forms (for cash receipts), Check Requests, Purchase Orders, Prepaid Purchase Orders, Interdepartmental Billing Forms, Merchandise Orders, and Travel Authorizations.

Pending Files: These files hold source documents that had some activities posted on the FRS report, but await further activities before they can be completed. These include Purchase Orders, Inter-departmental Billing Forms, Travel Authorizations and Travel Expense Reports.

Closed Transaction Files: These files hold the source documents that are fully processed in the FRS. You can always refer to the Records Retention Policy to establish how long documents must be maintained on file.

Monthly Reports: You receive these after the end of each month. The accounts must be reconciled to the monthly reports. The FBM090, Account Statement, and the FBM091 and Report of Transactions can be handed over to the person handling each account. You then compare the open transaction and pending files to the FBM091 and the Report of Transactions, which has a detailed list of transactions posted in a particular month. Make a comparison of the source documents with the report to find out if the encumbrance was properly established, adjusted, or canceled in the correct account and the correct object code.

Additional Help
Software is available to help you in reconciling your accounts in an automated fashion. Apart from providing you with all the help, they are reasonably priced as well.

Article Source: http://www.redsofts.com/articles/

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

Safeguarding Tax and Financial Records

The IRS recently published a newswire urging people to safeguard their records. IRS Acting Commissioner, Kevin M. Brown stated, "With forecasts calling for an active Atlantic hurricane season, the IRS encourages taxpayers to protect tax and financial documents that can be hard to replace." (Newswire dated June 1, 2007)

Actually whether or not you live in a hurricane area, there are many things that can happen to destroy important records. We all think about big natural disasters such as hurricanes, tornados, earthquakes, etc. But there are other disasters that can affect anyone no matter where you live. They include such things as fires, flooded basements, theft, accidentally throwing things away, etc.

If you happen to get audited, the IRS doesn't particularly care why you no longer have your records and they will go off the records they can gather. The IRS can provide you with W-2 information, income from interest, dividends, stock sales, 1099 information, interest paid on government student loans, and how much mortgage interest you paid to a financial institution. They don't have records of business deductions, donations, dependents, alimony paid, daycare expenses, medical expenses, etc.

There are several ways you can choose to keep your records safe.

1. Paperless Record keeping: With the wide use of computers, internet bank records, W-2 forms, and other documents can easily be downloaded to your computer. Other documents can be scanned in. This can then be saved onto a USB drive as a back up which can be store in a safety deposit box and/or sent to a relative in another city.
2. CD or DVD: Records can be scanned into the computer and burned onto a CD or DVD. Several copies can be made inexpensively and stored in several places.
3. Record Keeping Companies: There are companies that will copy and keep your records in their vaults so that in the case of a disaster they can provide you with a copy.
4. Protective Boxes and Safes: You can purchase fire proof and water proof boxes and small safes to keep valuable records in. They can work well if you don't live in a place were place where a natural disaster will likely take down the entire house.

Other items you may want to document and keep safe are personal records such as birth certificates, social security cards, passports, insurance documents, home closing documents, and investment documents. In large disasters, it is important to be able to prove who you are and that your children belong to you. If your home is destroyed you may need to prove ownership.

There once was a family of eight. One evening the whole family went to the local pool for an evening of swimming and fun. They were gone about two hours and when they arrived home, their home was on fire. The fire department was there and the neighbors had all been frantically trying to find them. The plug on their toaster had shorted out and started the fire. It was a small fire that was quickly contained, but the fire department wouldn't let the family go in until they were sure everything was safe, which took a day. They stood there with nothing but their swimsuits and towels as neighbors ran to their homes to find clothing and diapers so the family could at least get dressed.

When they were finally able to enter their home, the smoke had damaged everything. They spent a week in a hotel until the insurance could make arrangements to find temporary housing, Then came the task of listing all the things that had been destroyed and working with the insurance company to fix their home and replace the contents.

This was a relatively small disaster as disasters go. But it could happen to anyone. In any disaster it is good to have a record of your personal belongings, especially items of greater value. Photographing or video taping the contents of your home can be a great help when filing an insurance claim after a disaster.

Also, if you do not have insurance to cover losses, they can be deducted on your tax returns. Recording what you have, when you purchased it and what you paid for it can also expedite claims. The IRS has a free disaster loss workbook that can help individuals and businesses compile a detailed list of belongings. The IRS publication 584 is for individuals and the publication 584B is for businesses.

Nothing can take away the pain and trauma of a disaster, but being prepared can make the recovery process much easier. Review your emergency plan annually. Make sure records that have been safeguarded are current and up to date. Being prepared takes much of the worry out of life.

Article Source: http://onlinejer.com/

Christopher Anderson is part owner of Lone Peak Business Solutions, Inc. He wants to share his success as a business owner with others who desire to own their own business. He also believes that the economy is stronger with more business owners, and as a result, he is focused on helping business owners succeed.

Bookkeeper, Accountant, or CPA What type of Financial Professional does your Small Business need?

Choosing the right type of financial professional for your small business can be difficult. Learn the differences between bookkeepers, accountants, and CPAs.

In most successful small businesses, the owner will come to a point where he or she must choose to manage growing their business and trust another person to manage their books. Choosing the individual to help run the financial side one’s business can be confusing. Sorting through this confusion is especially important for this position since the person chosen has knowledge of and power over the business’ finances.

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How to Eliminate the Frustration from a Small Business Owner

If you are the owner of the small business company you always have heaps of work, regarding your company finances. The fact is there and still do you need to go to the professional to take the stress off your shoulders?

Visiting with your personal accountant is similar to going to your dentist. Time is money; the longer you delay your visit the more it will cost you.

First you need to know how to set up your business and to consider advantages and disadvantages of every business entity (LLC, Partnership or C Corporation, etc).

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Small Business Offshore Accounting - Myths v/s Realities

To increase the efficiency and profitability of the business small business and big business both equally off sourcing their work mostly their Accounting work. But still There are some myths about accounting business process outsourcing; particularly among small business entrepreneurs who are still not sure whether such step can really create value for their enterprise, as in their perception, only big business can benefit form these initiatives. Confusion still prevails on selection of accounting functions that can be outsourced to maximize returns. But, the fact remains that accounting business process outsourcing is absolutely viable for small businesses too and has tremendous possibilities of cost saving and value. This article explores them one by one:

Myth: Accounting Outsourcing is exclusively for Big Business Reality: Small Business equally can share their the same stage in Accounting Business The popular perception that accounting outsourcing is only for big business with abundant wealth, profound resources and multiple locations is misleading. The fact remains that small business can reap great returns too by outsourcing accounting functions. In today’s fiercely competitive global industry, every second and every dollar that you save is very important for your business. By outsourcing non-core business activities like Bookkeeping, Accounts Receivable, Accounts Payable, Accounts Reconciliation, etc, to destinations like India, China, Philippines, etc, where there is abundance of technically skilled manpower at almost one-tenth labor cost as that of US, small business organizations can save substantially on operational costs. Simultaneously, they generate more time to devote to core business issues like procuring orders, improving technology and raising resources.

Myth: Accounting BPO has no place in Offshore business
Reality: False. Accounting BPO can be outsourced
After its start a decade ago, big business houses mostly outsourced transaction processing activities using high-end technology platforms. The situation has now totally changed. Big and small companies routinely outsource Accounting, HR, Financial Services, PR and similar functions to cost-effective destinations like India. Accounting is particularly a domain that has witnessed tremendous growth over the past few years and has immense possibilities as small business entrepreneurs with strong sales often need a full-time bookkeeper to oversee the books. But, in fact, such services have little to do with the volume of sales and more to do with the level of accounting activity, such as invoicing, bill paying, payroll and the like. Companies with a full-time bookkeeper can save about $30,000 a year by using outsourced bookkeeping services to highly competent service providers in India.

Myth: Complex IT integration is needed
Reality: Just a Server and Internet Connectivity can work
It’s a misconception among small business that outsourcing requires extensive IT integration. For management of outsourced accounting portfolio of a small business, just server and Internet connectivity is sufficient to procure value-added services. The outsourced service provider can use Remote Server model to access client’s computer securely to perform services like Bookkeeping, Accounts Receivables, Accounts Payables, Tax Returns, Account reconciliation etc. In the Secure File Transfer all the accounting records are transferred securely from customer’s computer to the outsource vendor to perform the work. After performing the work the offshore vendor will upload the files back into customer’s computer securely.

The trend has risen sharply as more and more companies are increasingly outsourcing accounting and financial services and the sector is growing very strongly. An IDC study entitled US Finance and Accounting Outsourcing Market Forecast and Analysis 2003-2008 has predicted that the global market for finance and accounting outsourcing services, which reached over $30 billion in 2003, will reach $47.6 billion in 2008.

Myth: Accounting Outsourcing is not secure
Reality: False. The services are 100% Reliable
No offshore service provider would risk his business possibilities by unauthorized use of accounting data of the outsourcing company. Through secure FTP software, offshore units transfer all the documents securely into the client server. Using customer specified accounting software; the client performs all the work and export the finished accounting files back in to customer's server securely. The customers will import the accounting files into their Accounting Software. Thus there is no possibility of any breach of data security.

Most accounting packages involve general data handling like daily sales figure, preparing an outstanding statement, maintaining expense register, preparing tax returns etc. Small business outsourced accounting services do not ordinarily involve handling of business critical data. Even if they are there, a reliable service provider with proven experience and credentials can handle the assignment with trust and confidentiality to secure efficiency and cost saving for small business units.

Myth: Accounting BPO harms economy of outsourcing country by cutting jobs
Reality: False. It promotes Growth and Efficiency
Small business outsourcing accounting services is a major budget-balancing act and an option for increasing business returns and lowering process time that does not call for job losses. The efficiency gained through fast and less expensive outturn makes end-price competitive. More products at affordable prices improve consumer dynamism and ultimately, everybody; from the manufacturer to the customer to the government accrue significant benefits. This is particularly more relevant for the small business sector because by outsourcing functions like accounting, they can save costs without compromising on quality and channel this cost saving to hiring people for operational areas to increase productivity and market sales. Ultimately, there is no loss of employment opportunities. Moving away from non-core functions, jobs become available in high-end sectors and to meet the requirements of such jobs, levels of professional expertise, skills and knowledge of the human resource base of the country increase significantly. The host country is the ultimate gainer from outsourcing.

Small business outsourced accounting has immense possibilities to secure greater business efficiency and higher returns and is proven all over the world. Highly enabled service providers aided by cutting-edge technology in offshore destinations can provide extremely reliable and value-added accounting services to ensure greater returns for small business. It’s a trend that will altogether change the face of doing small business for good.

Article Directory: http://www.articlecube.com

Mani Malarvannan is cofounder of Cybelink, a company specializes in small business financial and accounting outsourcing like Bookkeeping, Tax, Accounts Payable, Accounts Receivable, etc. For more info visit www.cybelink.com

Get a better way for maximum utilization of resources with bookkeeping outsourcing

Outsourcing has become an integral part of many businesses and residual are planning to adapt it. As the popularity graph of outsourcing services is elevating, business owners are outsourcing most of their important but tedious tasks. Bookkeeping is also one of such tedious tasks that require perfection and accuracy as a slight error in entries can cause a big problem. Though business owners pay high attention to bookkeeping tasks and they tally each and every entry carefully but every time it is not possible for business owners to give proper time to check all entries thoroughly. In such circumstances risk of accruing mistake may increase and the whole organization can get affected by this. Outsourcing services help businesses in conquering such problems by offering businesses bookkeeping outsourcing facility.

Bookkeeping outsourcing is all about utilizing human resources from outside the company to take care of day to day and monthly bookkeeping records. The task of bookkeeping that the company used to perform itself with its accounting professionals becomes very easy after outsourcing. That hired bookkeeping outsourcing firm or professional performs every bookkeeping task of that company and also prepares a report on monthly or weekly basis. Bookkeeping outsourcing services involve day to day transaction, record keeping, account maintenance and tax assessment. Not only this, if you are a new business owner and want advice regarding financial activities you can also get best advice from these professionals.

The only purpose of bookkeeping outsourcing services is to benefit businesses. Whether it is daily record keeping or annual financial statement preparation, an outsourcing firm accomplishes very task carefully. In this outsourcing process client organization and service provider go through in a contractual agreement process regarding quantity of work and charges. That agreement makes everything clear to both parties so that any hurdle may not come in the way of smooth processing of bookkeeping tasks. By this you can be rest assured that nothing is going to affect your bookkeeping procedure. The biggest advantage of bookkeeping outsourcing that it is very cost effective and helps in reducing the overhead of your accounting staff salary. Some companies fail to earn estimated profit as they secure a big part of their budget on salaries of accounting professionals which leads to an annoying profit and loss account as the profit is very less in comparison to overheads. If you are worried about the high charges of bookkeeping professionals or firms then stop pestering because there are many service providers that offer reliable and cost effective bookkeeping services. Bookkeeping outsourcing is an excellent way to keep an eye on all accounting activities. It not only offers business owners reliable accounting solution but also gives businesses an ample scope to grow. The decision of outsourcing bookkeeping activities can be prolific if made only after proper research. It is better to take help of internet to make a sensible decision as you find a wide variety of service providers there from which you can select the most suitable option for you.

About the Author
Michelle Barkley is a CPA who advises people on tax preparation and tax calculation.She specializes in Bookkeeping outsourcing,Tax return preparation,back office outsourcing and Outsourced Accounting.To know more about Accounting outsourcing services and to use the services visit http://www.ifrworld.com/

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

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.

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How To Turn Bookkeeping Drudgery Into A $175/hour Part-Time Job

For most self-employed people, bookkeeping is about as much fun as a root canal. But like it or not, it must be done, otherwise you'll end up overpaying your taxes big time.

Perhaps this article will help you see this tedious task in a new light. Follow along with me and I can turn your bookkeeping nightmare into the best paying part-time job you ever had.

First, a question:

How much money do you make right now -- per hour -- at your "regular" daytime job or in your business?

Is it $15 per hour? $25 per hour? $50 per hour? Make a mental note of that amount, ok?

Now, let's say by "keeping the books" this month, you record $1,000 worth of deductible expenses.

Let's also assume you are in the 35% tax bracket (15% federal income tax plus 15% self-employment tax plus 5% state tax).

So, for every $1,000 of deductions, you save yourself about $350 in taxes ($1,000 x 35% tax rate).

One more assumption: it takes you about 2 hours to properly record and document that $1,000 of deductions.

Hmmm. You spend 2 hours and save $350 bucks.

How much money did you just make for yourself -- per hour?

$175 per hour! Whoa -- now, compare that to how much you make per hour working in your business or at an employee job. Which "job" paid you more?

Even if it takes you 4 hours -- it's like having a job that pays you $87.50 per hour. Still a pretty good hourly wage, don't you think?

How does that make you feel about bookkeeping? Not such a bad deal after all, is it?

So here's a simple six-step bookkeeping system that will put thousands of dollars of tax savings in your pocket and keep the IRS out of your life.

1. Maintain a separate bank account for your business or self-employment activity.
   
   Never use your personal bank account for business expenses. Having a separate bank account automatically creates the "shell" for the perfect documentation system.
   
   If you don't have a separate business bank account, now is the time to get one.
   
   
2. Maintain a separate credit card account for your business. Same deal as the bank account -- pick one credit card that you use exclusively for business expenses.
   
   
3. These 2 accounts (one bank account and one credit card account) should only be used for business! Never "co-mingle" business and personal financial information.
   
   The only income that goes into your business bank account is business income. The only expenses that are paid from the business bank account and business credit card account are business expenses.
   
   
4. For each major income and expense category, create a simple filing system each calendar year -- one file folder for each major category. Every time you write a check or use the credit card for a business expense, you assign that expense to the appropriate expense category and file the supporting documentation (receipt, invoice, cancelled check, or whatever) into the corresponding file folder.
   
   
5. Keep a separate file folder for all monthly bank account statements and credit card statements.
   
   
6. Use a simple bookkeeping software program to record all deposits, checks, and credit card charges. Once a week or once a month, input all transactions and assign each transaction to the appropriate income or expense category.
   
   

The importance of this "categorization" process cannot be stressed enough -- it's the key to the whole system!

There are any number of software programs out there for this purpose. I've used them all: Quicken, Quickbooks, Money, etc. Spreadsheet programs like Excel can also be used to automate business record-keeping.

But my favorite bookkeeping program for the Small Business Owner or Self-Employed Person is InternetTaxHelper -- it is by far the easiest to learn and simplest to use. If your business grows, you can always invest in a more sophisticated program later. For any small business owner, especially if you're just starting out, this is the best program I've ever seen.

Using a software program is a tremendous time-saver. Once you've input all your individual income and expense transactions, and assuming you've assigned each transaction to the appropriate category and filed the paperwork, you've already completed all the work necessary to audit-proof your income tax return!

One final comment: If you aren't "computer-savvy", that's OK. You can still use good ole pencil and paper to categorize your business expenses.

I have clients who use nothing more sophisticated than a spiral notebook. Each year they buy a new notebook and label each page with a particular income or expense category.

Every transaction gets written down in the notebook on the appropriate page. At the end of the year, they add up the totals for each page, and presto, they give me an annual recap of all major income and expense categories. Get the picture? It doesn't have to be fancy. It just has to be in writing, accurate, and supported by actual paper documents.

Whether you use your computer or not, the end result is the same: Every single transaction has been assigned to the appropriate category, and every transaction has the corresponding "paper trail" -- every receipt, invoice, cancelled check and credit card charge has been filed into the appropriate file folder. Should the IRS question any income or expense amount on your return, you'll be ready!

About the Author:

Wayne M. Davies is author of 3 tax-slashing eBooks for small business owners and the self-employed. For a free copy of Wayne's 25-page report, "How To Instantly Double Your Deductions" visit http://www.yousaveontaxes.com/

Source: http://isnare.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.

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