Small Business Bookkeeping - Bookkeeping Services - Online Bookkeeping

For restaurant owners, profit margins are very thin and even a few mistakes in books of accounts can have a direct impact on their profitability. Analytix Solutions, with its customized bookkeeping services now caters to the accounting and bookkeeping requirements of restaurants specifically. With the help of expert professionals for restaurant bookkeeping services, Analytix eliminates any possibility of an error. As an expert back office service provider of bookkeeping services, Analytix Solutions is known for its error-free, qualitative work and has catered to the small business bookkeeping requirements of many restaurants till date.

Providing an affordable alternative to hiring in-house bookkeeping staff, Analytix's online bookkeeping services ensure that restaurant businesses save up on resources which can then be utilized in the business. Small business bookkeeping packages from Analytix can save a restaurant owner up to 40% costs compared to hiring in-house resources. With only expert bookkeeping professionals working on all projects, Analytix clients can rest assured that their books of accounts are being taken care of by the best in the industry.

Existing bookkeeping services clients of Analytix trust the impeccable service of the company and it hence boasts of a 95% client retention rate since its inception. Analytix's online bookkeeping services are also being recommended to others by its existing clients, which is again, a proof of its qualitative services. The company is owned by an IT expert and a CPA, both of whom have a combined experience of more than 40 years in the industry. Analytix has established itself as one of the most prominent service providers of small business bookkeeping in the state of Massachusetts.

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Online Bookkeeping Course FAQ

Can I Complete a Distance Learning Class in Bookkeeping While Working a Full Time Job?

Classes from accredited universities offer a great deal of flexibility for people who lead busy lives. Many people complete distance education classes while working full time or raising a family.

Will My Employer Pay for Me to Complete an Online Bookkeeping Course?

Many companies will pay for classes or provide tuition reimbursement to employees who complete distance learning classes. Tuition reimbursement usually takes place after completion of an online bookkeeping course. Many companies require that employees maintain good grades in their distance education program to be eligible for reimbursement. Check with your employer to find out the specific terms of their tuition reimbursement program.

How Often Are New Bookkeeping Courses Online Offered?
Distance education classes take place on an ongoing basis. Job skill training often starts directly following student registration. Check with the individual accredited colleges of interest to find out more about class times and schedules.

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Bookkeeping Tips for Freelance Writers

In case you haven't already heard, freelance writers are self-employed individuals who must keep track of their own income and expenses. Bookkeeping comes naturally to some people, while others -- such as myself -- must work at it. Unless you are an extremely profitable freelance writer, you don't have your own accounting department that handles all of your bookkeeping for you, so you must learn how to do it yourself.

You don't need a fancy accounting degree or expensive financial software in order to keep track of your income and expenses. All you really need to know is the first simple rule of bookkeeping: Write everything down! Keep records both in hard copy and on your computer and you virtually can do no wrong because there will always be a way to double-check your figures and to produce financial information when need be.

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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

An Overview of Web-based Bookkeeping Solutions

Web-based accounting first came on the scene in the late 1990s as an alternative to desktop accounting. Today there are myriad solutions to help you manage your books online, including Bizfinity, eLedger, NetLedger, QuickBooks for the Web and ePeachtree.

When you use an online application (sometimes called a hosted solution), you contract with a service provider to securely store and back up your financial information. You access your financial records online by entering a password, and the service provider is responsible for providing software updates, security and data storage.

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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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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 Tax Deductions

Are you a small business owner who is planning on preparing your own taxes this year? If you are, you may want to know about the business deductions that you can claim. You may be happy to know that there are a number of deductions that you may be eligible for. Just a few of those deductions are touched on below.

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Bookkeeping and Accounting Basics

Bookkeeping and accounting share two basic goals:

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

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

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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

Bookkeeper accused of embezzlement

A cautionary tale in the Internet advertisement Rohnert Park resident Nilla Billa uses to promote her in-home business warns about accountants "cooking" a client's books.

Now authorities say Billa is suspected of wrongdoing in her job as bookkeeper with a Novato-based company specializing in employment screening and background checks.

Novato police believe Billa misappropriated at least $700,000 from Employment Screening Resources during the past two or three years, Sgt. Dave Jeffries said.

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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.

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Telecommuting Idea – Bookkeeping

If you have experience in accounting or have worked as a bookkeeper before, bookkeeping can be a great way to work from home. Small businesses are continuously looking for ways to outsource some of their workload and most of them do not need a full-time in-house bookkeeper. You can approach several businesses in your area and offer to keep their books.

Of course there are some tools you need. You should have some of the basic accounting software like quicken and quick books. If the company you work for uses a different piece of software, they may purchase a copy for you to use at home, or make one of their current licenses available to you. In the beginning I suggest you focus on companies that use software you are already familiar with since you will be working from home and don’t have the opportunity to ask a colleague across your desk for help.

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Keeping Up With The Family Finances

Staying on top of the family finances does not have to be difficult. With a little planning, your finances can be kept up to date with ease. Believe me, having a handle on your family finances goes a long way in creating family harmony.

The first step is to set up a bookkeeping system. We’ve used Quicken software for years. It has helped to keep track of our expenses, and we have been very happy with the program. It takes a little bit of time to set up initially. The second part of your bookkeeping system involves setting up a place to save your receipts. We use a small cardboard divider file with a special slot devoted to “receipts that need to be posted”. The key idea here is to have a place where you store all receipts from expenses (including ATM withdrawals) so that they are readily available when you go to enter them into your bookkeeping software.

Once you have the system set up, then you simply enter your receipts, whether income or expenses. As you enter each item, you select a category for it to go into. Reconciling your account is done online. One of the greatest advantages in using an automated system like this is the ability to see your expenses by category. With the click of a button, you can find out what you spent on groceries, entertainment or any other category for any time period, like last week, last month, or the last quarter. Many other reports are available such as a cash flow report and an itemized categories report. Using this system has streamlined our ability to keep our account updated. Bills are easily paid on time.

Once you’ve established your bookkeeping system, then you must set aside time on a regular basis to update it. For our family, we’ve found that a weekly update works well. My husband and I alternate weekly turns on posting receipts and then reconciling our account. It never takes us more than 30 minutes at a time and our account is always balanced.

If you are behind in your finances, start by doing just 15 minutes at a time. You’ll catch up eventually. Then, be sure to make time on a regular basis to keep up with your account. Having your finances in order is a real stress reliever and can be attained by anyone!

About Author:
For money saving tips and money management ideas, be sure to visit http://www.NotMadeOfMoney.com

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

The 3 Critical Financial Statements

There are three vital statements for understanding the condition of a business or entity: (1) the Profit and Loss Statement, (2) the Balance Sheet and (3) the Sources and Uses Statement. Each of them provides a different perspective of how an entity is operating. Combined, they show examiners the health of the business. Each statement reflects a different perspective on the business’ financial operations.

The first statement, the Profit and Loss, can also be called the Income Statement. It documents the amount of money coming into the entity (the income) and the money going out of the entity (the expenses). The difference between what comes in and what goes out is the Net Income, if there is more money coming in than going out. If not, there is a Net Loss. The statement covers a specific period, which is shown in the heading of the statement. Note that it tells us nothing about what has happened for any date that is not included by the statement dates. Think of it as a snapshot for the specific time period. Some common snapshot periods are monthly, quarterly and yearly ones.

The second statement, the Balance Sheet, covers the condition of the business from the time it began until the ending date on the statement. The Balance Sheet reveals three important business characteristics: (1) it summarizes the assets owned by the entity (e.g., buildings, bank accounts, inventory, etc.); (2) the entity liabilities (e.g., loans, outstanding bills, etc.); and (3) the business owners’ equity. The statement is arranged in what is called the ‘accounting equation’, which indicates total Assets will equal the sum of Liabilities and Equity. Balance Sheets are commonly issued at the same frequency as the Profit and Loss and usually reflect the business on the last day of the Profit and Loss period.

Finally, the Sources and Uses Statement reveals how the business received and used funds during the statement period. It shows how much money was provided by business operations and how much was provided by loans or capital received by the entity. The statement also summarizes how the funds were used by the entity. It demonstrates if the company is healthy, headed for trouble, or just bouncing along. Like the Profit and Loss, this statement covers only the period shown in the statement heading. It says nothing about any period not included in the statement. Again, the statement usually covers the same period as the Profit and Loss.

Taking these three statements together, there is a present picture of the business. From the Profit and Loss, comes how well it did during the period, a short-term perspective. From the Balance Sheet it is seen how the entity is accumulating assets or liabilities, from a long-term perspective. Finally, the Sources and Uses statement demonstrates where and how efficiently the entity resources were used during the period. All three perspectives are important to the entity overview.

To an investor or owner the statements answer three questions about the entity. Did the entity make a profit? Did the entity increase the owners’ equity? And finally, were entity assets used efficiently? From the overviews in these three statements, further questions might be formulated in specific areas.

Michael Russell

Your Independent guide to Accounting

The 3 Critical Financial Statements

There are three vital statements for understanding the condition of a business or entity: (1) the Profit and Loss Statement, (2) the Balance Sheet and (3) the Sources and Uses Statement. Each of them provides a different perspective of how an entity is operating. Combined, they show examiners the health of the business. Each statement reflects a different perspective on the business’ financial operations.

The first statement, the Profit and Loss, can also be called the Income Statement. It documents the amount of money coming into the entity (the income) and the money going out of the entity (the expenses). The difference between what comes in and what goes out is the Net Income, if there is more money coming in than going out. If not, there is a Net Loss. The statement covers a specific period, which is shown in the heading of the statement. Note that it tells us nothing about what has happened for any date that is not included by the statement dates. Think of it as a snapshot for the specific time period. Some common snapshot periods are monthly, quarterly and yearly ones.

The second statement, the Balance Sheet, covers the condition of the business from the time it began until the ending date on the statement. The Balance Sheet reveals three important business characteristics: (1) it summarizes the assets owned by the entity (e.g., buildings, bank accounts, inventory, etc.); (2) the entity liabilities (e.g., loans, outstanding bills, etc.); and (3) the business owners’ equity. The statement is arranged in what is called the ‘accounting equation’, which indicates total Assets will equal the sum of Liabilities and Equity. Balance Sheets are commonly issued at the same frequency as the Profit and Loss and usually reflect the business on the last day of the Profit and Loss period.

Finally, the Sources and Uses Statement reveals how the business received and used funds during the statement period. It shows how much money was provided by business operations and how much was provided by loans or capital received by the entity. The statement also summarizes how the funds were used by the entity. It demonstrates if the company is healthy, headed for trouble, or just bouncing along. Like the Profit and Loss, this statement covers only the period shown in the statement heading. It says nothing about any period not included in the statement. Again, the statement usually covers the same period as the Profit and Loss.

Taking these three statements together, there is a present picture of the business. From the Profit and Loss, comes how well it did during the period, a short-term perspective. From the Balance Sheet it is seen how the entity is accumulating assets or liabilities, from a long-term perspective. Finally, the Sources and Uses statement demonstrates where and how efficiently the entity resources were used during the period. All three perspectives are important to the entity overview.

To an investor or owner the statements answer three questions about the entity. Did the entity make a profit? Did the entity increase the owners’ equity? And finally, were entity assets used efficiently? From the overviews in these three statements, further questions might be formulated in specific areas.

Michael Russell

Your Independent guide to Accounting

Twenty-five Steps for Evaluating & Selecting the Right Accounting Software Package

Selecting the wrong accounting software can be a complete disaster. You could even lose your job or your business by making a poor choice – it has certainly happened many times before. Exactly where can you go to get the information you need to make the right decision? There are trade shows, seminars, and magazine articles on selecting accounting software, but they typically just tell you the good stuff. The accounting software publishers at conferences and other similar shows will provide you with a fancy brochure and show you what they have to offer, but the truth is that it is almost impossible to tell what’s missing or what’s wrong with the product. The Value-Added Resellers (VARs) will come to your office to demonstrate the product, but they usually skip over the negative points and weaknesses as well. The magazine articles all seem to gloss over the bad stuff in fear of chasing away advertising dollars.

Too often it takes a complete installation of the system and at least a month of operations to tell if the product will meet your needs – and by then, it is too late. There seems to be no independent place to go to get good help with avoiding the wrong package. This is a problem that everyone faces when selecting accounting software. The good news is that almost all accounting software packages have gotten better over the past decade, and it is now easier to end up with a fairly good product than it used to be. But still, here are some important steps you should follow when selecting accounting software:

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Why Outsource Your Bookkeeping to a Part-Time Bookkeeper?

There are many good reasons to hire a part-time bookkeeper. A good bookkeeper will:

Save You Money:

Efficient bookkeeping. A knowledgeable bookkeeper will get your bookkeeping done quickly and efficiently, meaning less time spent on bookkeeping.

Decreased employee costs. You only pay a part-time bookkeeper when they are actually doing bookkeeping. You don't pay benefits to your part-time bookkeeper and you don't incur payroll taxes or the costs of training and turnover.

Decreased accounting costs. By increasing the accuracy of your books, an experienced bookkeeper will save you money at tax time.

Allow you to Focus on Your Business:

By turning over your bookkeeping to a qualified bookkeeper, you can focus on your expertise: running your business.

Provide Useful Feedback:

A skilled bookkeeper will know how to structure your books in such a way as to provide the maximum feedback on your business results.

Need a Bookkeeper? Search Samarak's Directory of Bookkeepers and/or list the position on Samarak's Bookkeeping Jobs page.

Source: http://www.samarak.com/bookkeepingservices.htm/

10 Bookkeeping Mistakes Made by Small Businesses

I ran across this article at AllBusiness.com and thought it was interesting. It highlights some of the top bookkeeping mistakes made by Small Businesses.

From one-person entities to major corporations, bookkeeping is a significant part of any business endeavor. While it is typically not one of the more glamorous jobs, bookkeeping is at the heart of a company’s success, and errors can cost the company significantly. Below are 10 of the most common errors that you want to avoid.

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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 Bhaskar Thakkar

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 btassociate.com,. A division of said firm provides various outsourcing solutions please visit jobs2india.com., to get more details.

Source: http://www.theleadingarticles.com/