While accountants and businesses scramble to put together a plan for converting their financial accounting systems and statements from Canadian Generally Accepted Accounting Principles (GAAP) to the new International Financial Reporting Standards (IFRS), the good news is that IFRS shouldn't impact your personal tax situation -- at least not directly. IFRS is basically a set of accounting rules and principles designed to provide guidance to accountants and others to prepare financial statements. "There are not that many direct implications for individuals since individuals don't have personal financial statements with respect to themselves," said Stan Maj, a tax partner in the financial services group at Ernst and Young LLP in Toronto. However, IFRS might have an impact on public companies that will have to begin following International Accounting Standard 12 (IAS 12) on Income Taxes for fiscal periods beginning Jan. 1, 2011.
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Showing posts with label Accouting Service. Show all posts
Showing posts with label Accouting Service. Show all posts
Friday, September 25, 2009
Friday, September 26, 2008
10 Tips to help you get an Accounting Degree Online
There are many excellent and growing opportunities for accountants in the corporate world at present. A degree in accounting helps brighten your future prospects in the field of accountancy. You can opt for an associate's degree, a bachelor's, master's or doctorate program.
If it is not possible for you to attend a regular university, you can still consider a career in accounting by going for an accounting degree online. The online course covers most of the aspects of accountancy and online college degrees from accredited institutes are considered to be at par with regular college degrees. There can also be the chance that the degree from a reputed institute might lead to better employment considerations by some of the organizations.
Here are 10 tips that will help you get an accounting degree online:
Source : http://www.education-advancement.com
If it is not possible for you to attend a regular university, you can still consider a career in accounting by going for an accounting degree online. The online course covers most of the aspects of accountancy and online college degrees from accredited institutes are considered to be at par with regular college degrees. There can also be the chance that the degree from a reputed institute might lead to better employment considerations by some of the organizations.
Here are 10 tips that will help you get an accounting degree online:
- Select a reputed college with accreditation. If the college isn't a completely virtual one, it should have a physical address and a phone number where you can easily reach them.
- Check out their different courses or programs available. An accounting degree online program should include courses in financial accounting, managerial accounting, taxation, and auditing.
- Find out how long it will take to complete a particular course. Some online college degrees can be completed in less time than a regular college. According to the U.S. Uniform Accountancy Act, you require at least 150 hours of coursework to be able to appear for the Certified Public Accountant (CPA) qualifying exam.
- Inquire about the online course fee structure and if there are any scholarships or financial aids available. It is also important to find out if they have a refund option available incase a student wants to discontinue the program or course taken.
- Inquire about the educational qualifications and previous teaching experience of the faculty taking the accounting degree online course.
- Find out about the number of students taking the accounting degree online course in different batches. If a significantly large proportion of people are taking the course, it may hamper the amount of time and attention that the teacher can give you.
- Inquire about class schedule and contact details. Find out if the faculty can be contacted in case you want extra help with the coursework or need any advise regarding the technology used.
- Make sure you have all the necessary technological equipment and software. For an Online College Degree, you will need to have a computer, an Internet connection, and some software necessary for online education. Some colleges provide the software as part of the course package.
- During online education the basic mode of interaction is through discussion and emails. So it is important to inquire about the timings for online group discussions. It is an effective way to know your subject and co-students better.
- It is important to be more organized when it comes to online education as you study from the convenience of your home and may lack the dedication to complete the course at times. Make sure you are regular with your study schedule and complete your assignments on time.
Source : http://www.education-advancement.com
Wednesday, July 30, 2008
Why we need symmetrical rules on accounting
Sir, The main problem with the constructive proposal by Jean-François Lepetit, Etienne Boris and Didier Marteau on "how to arrive at fair value during a crisis" (Comment, July 29) is that it is still "pro-cyclical". Offering accounting forbearance to banks when asset prices plummet, but not in the boom when roaring prices contribute to excessive lending, will strengthen the incentives for excess that lead to crises in the first place.
If adjustments to mark-to-market accounting are justified on the downside, they need to be done on the upside. To avoid succumbing to political pressure, the accounting regulator would need symmetrical rules to determine when to adjust mark-to-market accounting.
Read More Article...
If adjustments to mark-to-market accounting are justified on the downside, they need to be done on the upside. To avoid succumbing to political pressure, the accounting regulator would need symmetrical rules to determine when to adjust mark-to-market accounting.
Read More Article...
Tuesday, July 1, 2008
Basic accounting tips
Accounting is not just about knowing about cash flow and expenditure. It involves knowledge of profits losses, incomes and expenditures. Without accounting it is not possible to know how much profit or loss a business is making.
About 500 years ago a man called Fra Luca Pacioli noted that three things are essential to run a business sufficient cash, being comfortable with the numbers side of business and system of organizing financial information is called accounting.
Accounting is a part of every day life. To understand accounting we need to know the and understand the different terms used in accounting. Next we need to see how accounting fits into our every day business life. This means that every transaction made has to be entered into the business books. This includes all details of checks, deposits, sales invoices cash receipts and purchase orders. Though individually they may not seem to be important, these numbers when systematically organized produce a picture of the health of the business.
One of the basic principles is to avoid double entry debits will always tally with credits. For every transaction, there will be two entries, one for credit and the other for debit.
The Accounting equation which states that Assets equal Liabilities plus Capital has to followed always. This is just another way of putting the first rule. As assets are debit balance accounts and both liabilities and capital are credit balance accounts.
The system of accounting is divided into categories and each category is further divided into accounts. Categories are of two types balance sheet and profit and loss.
Every debit entry would mean an addition to some accounts and a reduction to other accounts.
Accounting is necessary to assess the financial position of a company and accordingly engage in future planning for finances. As each organization has different needs accounting is customized and highly adaptable.
Financial accounting is about delivering accurate financial statements and hence is considered a precise science. Managerial accounting provides information to managers. In this type the manager is responsible for, Accounts Receivable, Billing, Payroll, Accounts Payable audits of operational procedures and process. It remains indispensable for anyone involved in any type of business.
Some tips to protect businesses from losses would be beneficial. Managers have to ensure their company is protected from check fraud. To this end they can set up financial limits for checks with their bank. An inventory of bank checks must be maintained and kept secure in safes.
Similarly a careful record off all bills paid must also be maintained. They will also serve as the basis for tax records.
All financial statements also need to reviewed regularly and entries made at least once in a week and balance expenditures with income. If not it could result in errors and overlooked payments.
The bank statements also need to reconciled as early as possible. The services of a good book keeper could also be used if you do not have the time. Their services would include paying salaries, coordinating and handling accounts receivable and payable, balancing ledgers and checkbooks, and organizing financial information required for business plans, loan proposals, cash-flow statements, etc.
Financial statements should be used to review the costs and expenses. They should be used to guide you to find better suppliers, cut down expenses and increase profits. Set up a cost control system. A systematic and streamlined accounting procedure will help in minimizing mistakes and missed accounts. Accounting helps considerably for any business to grow and increase profits.
About the Author
Simon Slade is the author of this article on Simon Slade.
Find more information about Simon Slade here.
About 500 years ago a man called Fra Luca Pacioli noted that three things are essential to run a business sufficient cash, being comfortable with the numbers side of business and system of organizing financial information is called accounting.
Accounting is a part of every day life. To understand accounting we need to know the and understand the different terms used in accounting. Next we need to see how accounting fits into our every day business life. This means that every transaction made has to be entered into the business books. This includes all details of checks, deposits, sales invoices cash receipts and purchase orders. Though individually they may not seem to be important, these numbers when systematically organized produce a picture of the health of the business.
One of the basic principles is to avoid double entry debits will always tally with credits. For every transaction, there will be two entries, one for credit and the other for debit.
The Accounting equation which states that Assets equal Liabilities plus Capital has to followed always. This is just another way of putting the first rule. As assets are debit balance accounts and both liabilities and capital are credit balance accounts.
The system of accounting is divided into categories and each category is further divided into accounts. Categories are of two types balance sheet and profit and loss.
Every debit entry would mean an addition to some accounts and a reduction to other accounts.
Accounting is necessary to assess the financial position of a company and accordingly engage in future planning for finances. As each organization has different needs accounting is customized and highly adaptable.
Financial accounting is about delivering accurate financial statements and hence is considered a precise science. Managerial accounting provides information to managers. In this type the manager is responsible for, Accounts Receivable, Billing, Payroll, Accounts Payable audits of operational procedures and process. It remains indispensable for anyone involved in any type of business.
Some tips to protect businesses from losses would be beneficial. Managers have to ensure their company is protected from check fraud. To this end they can set up financial limits for checks with their bank. An inventory of bank checks must be maintained and kept secure in safes.
Similarly a careful record off all bills paid must also be maintained. They will also serve as the basis for tax records.
All financial statements also need to reviewed regularly and entries made at least once in a week and balance expenditures with income. If not it could result in errors and overlooked payments.
The bank statements also need to reconciled as early as possible. The services of a good book keeper could also be used if you do not have the time. Their services would include paying salaries, coordinating and handling accounts receivable and payable, balancing ledgers and checkbooks, and organizing financial information required for business plans, loan proposals, cash-flow statements, etc.
Financial statements should be used to review the costs and expenses. They should be used to guide you to find better suppliers, cut down expenses and increase profits. Set up a cost control system. A systematic and streamlined accounting procedure will help in minimizing mistakes and missed accounts. Accounting helps considerably for any business to grow and increase profits.
About the Author
Simon Slade is the author of this article on Simon Slade.
Find more information about Simon Slade here.
Monday, June 23, 2008
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.
Read More Article...
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.
Read More Article...
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.
Read More Article...
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.
Read More Article...
Tuesday, March 11, 2008
Internet accounting's second coming
In recent weeks, several new suppliers have launched into the UK market with online accounting systems designed to provide a common processing platform for businesses and their advisers. John Stokdyk hears about what the new systems have to offer from practitioners who have used them.
Since the turn of the year, we've reported on bunch of new, web-hosted accounting solutions from the likes of Xero, e-conomic and Mamut/IAAITC.
The concept of internet accounting isn't actually new, but the sudden surge of more sophisticated, accountant-friendly systems suggests that attitudes within the profession are becoming more receptive to hosted systems.
As a director of Easycounting, Vantis partner Richard Messik has first-hand experience of internet accounting since before the dotcom boom pretty much wiped out the first wave of pioneers. Easycounting still exists and is used within Vantis to support clients who want a relatively simple online accounting solution. But the firm did not have the resources to develop Easycounting or market it more widely.
Last year, e-conomic approached Messik to talk about its system. Not only was he interested in using it, he offered to help the Danish developer break into the UK.
Read More Article...
Since the turn of the year, we've reported on bunch of new, web-hosted accounting solutions from the likes of Xero, e-conomic and Mamut/IAAITC.
The concept of internet accounting isn't actually new, but the sudden surge of more sophisticated, accountant-friendly systems suggests that attitudes within the profession are becoming more receptive to hosted systems.
As a director of Easycounting, Vantis partner Richard Messik has first-hand experience of internet accounting since before the dotcom boom pretty much wiped out the first wave of pioneers. Easycounting still exists and is used within Vantis to support clients who want a relatively simple online accounting solution. But the firm did not have the resources to develop Easycounting or market it more widely.
Last year, e-conomic approached Messik to talk about its system. Not only was he interested in using it, he offered to help the Danish developer break into the UK.
Read More Article...
Tuesday, March 4, 2008
Accounting regulator ‘consults too much’
The accounting regulator should cut back on its consultations, a senior accountant has said, warning that the volume of papers and proposals is creating an extra burden for firms.
Richard Dyson, president of the ICAEW, the largest of the UK’s accounting institutes, on Tuesday night urged the Financial Reporting Council to focus on fewer areas.
“I think we would all like to see [the FRC] consult a little less. While many of the issues on the table are important ... the sheer volume of consultation documents creates additional burden for many,” he said in a speech at the institute’s annual dinner.
Read More Article...
Richard Dyson, president of the ICAEW, the largest of the UK’s accounting institutes, on Tuesday night urged the Financial Reporting Council to focus on fewer areas.
“I think we would all like to see [the FRC] consult a little less. While many of the issues on the table are important ... the sheer volume of consultation documents creates additional burden for many,” he said in a speech at the institute’s annual dinner.
Read More Article...
Tuesday, February 19, 2008
Free: Risk of Delegating Bank, Bookkeeping Responsibilities
With the increasing demands placed upon attorneys, it is inevitable that a greater number of tasks will routinely be delegated to others, including bank and bookkeeping responsibilities. Some firms assign this responsibility to a partner, an associate, a trusted non-lawyer employee, or possibly an independent bookkeeper or accounting service. Whether the bank and bookkeeping tasks have been delegated within the firm or outsourced, every signatory on the account ultimately has a fiduciary responsibility to oversee and review the account. Unfortunately, the trust and reliance vested in others may provide a false sense of security if those individuals do not fully appreciate the importance of preserving the integrity of client funds. As supervision decreases or disappears, the risk to the funds on deposit and to the ethical liability of those in control escalates.
Read More Article...
Read More Article...
Monday, February 18, 2008
Well-kept books will make tax time easier
NEW YORK — Income tax-filing season is often a trying time for small-business owners, but the Internal Revenue Code is usually not the culprit — tax professionals say it's procrastination and poor record-keeping that causes most of the problems.
The owners who are frantic at tax time are often ones with very small companies and few or no employees, so they do everything themselves. They may have the best of intentions, but they just don't get around to inputting income and expense data into the accounting programs in their PCs because they're so busy working with customers or coming up with new products or services. Or, they never bother to learn tax and accounting basics that are critical for keeping their companies healthy.
Read More Article...
The owners who are frantic at tax time are often ones with very small companies and few or no employees, so they do everything themselves. They may have the best of intentions, but they just don't get around to inputting income and expense data into the accounting programs in their PCs because they're so busy working with customers or coming up with new products or services. Or, they never bother to learn tax and accounting basics that are critical for keeping their companies healthy.
Read More Article...
Thursday, February 14, 2008
Accounting Software Can Be Sophisticated Or Simple But Rarely Both
Accounting software is a system of recording financial transactions on a computer across a full range of accounting options almost invariably dependent upon the size of business being catered for. Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses.
The requirements from accounting software are diverse with the most complex and comprehensive financial accounting packages incorporating financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.
Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.
Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.
The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.
In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Similarly the accounts payable function might be split between the purchasing department, accounts purchase invoice department and a legal function for overdue payments.
Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.
Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.
The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.
In addition to inputting the prime income and expenditure details the most benefit of a database accounting system is the level of financial control the information it contains can provide the company management and financial directorship. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.
Accounting software packages requiring little or no accounting knowledge are available.
Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.
Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.
There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.
Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.
Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.
About Author :
Terry Cartwright, CEO DIY Accounting, a qualified accountant designs UK Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies .
The requirements from accounting software are diverse with the most complex and comprehensive financial accounting packages incorporating financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.
Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.
Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.
The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.
In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Similarly the accounts payable function might be split between the purchasing department, accounts purchase invoice department and a legal function for overdue payments.
Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.
Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.
The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.
In addition to inputting the prime income and expenditure details the most benefit of a database accounting system is the level of financial control the information it contains can provide the company management and financial directorship. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.
Accounting software packages requiring little or no accounting knowledge are available.
Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.
Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.
There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.
Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.
Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.
About Author :
Terry Cartwright, CEO DIY Accounting, a qualified accountant designs UK Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies .
Thursday, February 7, 2008
Is Your Tax Preparer Lawful?
SACRAMENTO, Calif., Feb 07, 2008 /PRNewswire via COMTEX/ -- Every year thousands of Californians fall prey to tax scams or misinformation. The California Tax Education Council (CTEC) has the most common scenarios to help you separate fact from fiction.
Scenario #1: The preparer can only offer years of experience, client references or a college degree as his/her professional qualifications
Read More Article...
Scenario #1: The preparer can only offer years of experience, client references or a college degree as his/her professional qualifications
Read More Article...
Tuesday, January 29, 2008
Newsday circulation case may get accounting expert
A federal prosecutor yesterday said the government may hire an accounting expert to independently assess how much money advertisers in Newsday and its former sister Spanish-language publication, Hoy, lost as a result of the newspapers' circulation scandal.
Eastern District Assistant U.S. Attorney Cynthia Monaco disclosed the possibility at a hearing in U.S. District Court in Brooklyn.
Yesterday's hearing was part of a planned series before U.S. Magistrate Steven Gold to determine how much money the nine people convicted of fraud in the scandal would be required to pay as restitution to advertisers when they are sentenced.
Read More Article...
Eastern District Assistant U.S. Attorney Cynthia Monaco disclosed the possibility at a hearing in U.S. District Court in Brooklyn.
Yesterday's hearing was part of a planned series before U.S. Magistrate Steven Gold to determine how much money the nine people convicted of fraud in the scandal would be required to pay as restitution to advertisers when they are sentenced.
Read More Article...
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