Accountant Marketing: Let Your Accounting Services be Visible

Professional accountants are in great demand today. If you are a qualified accountant or tax professional and do not have enough customers, there might be something wrong. You might not be using the right kind of accountant marketing.

Today, people use the internet to find everything they need, from pizzas to plane tickets. There is no reason why they wouldn’t use the internet to find tax or accounting professionals to fit their needs. This gives you a quick idea as to where to start accountant marketing – the internet.

Industry specific directories are the first place where people look to find the business they are looking for. You too have used online directories of various kinds to find everything from a local florist to hotel rooms in Europe, while you still were in the United States. Accountants can benefit from their presence in directories that list accountants and accounting services. Thus, the first step in accountant marketing on the internet is getting listed in a respected industry directory.

If your business is listed in a reputed directory, it is easy for potential customers to reach you. Being listed on reputable websites also may show that you have high levels of credibility.

Other means of accountant marketing online can include pay-per-click advertising through major search engines and by buying advertisement spots from various websites. Both of these options are a tough task for a professional, whose main knowledge is of accounting, tax planning, and bookkeeping. Other options you have include advertising in industry magazines or in the classified sections of newspapers. Without a doubt, you know these are costly affairs.

However, when you list your services on an industry leading online directory, you get all of the benefits of advertising, at much a lower price and with little headaches. The directories do the work to reach the maximum number of potential customers through all the different means of advertising.

Not every directory is made the same and it is not wise to spend time and money on directories that have an unprofessional or less than perfect user interface. The best thing you can do for accountant marketing is to find a directory that is listed with search engines, has a good user interface, and is free for the users. The directory also must have an easy interface to help users easily locate the CPA, Enrolled Agent, Bookkeeper, Tax Planner, or any professional of their choice.

Overlooking this one aspect of your career can be costly, in terms of lost opportunity. In fact, accountant marketing is not a one-time expenditure. It is an ongoing process, to keep new clients and to retain existing clients. Your marketing efforts can also increase your exposure. Make sure you choose the right channels for accountant marketing and make sure you have a high ROI.

Source: http://www.articles.seo-solution.net

Accountant Marketing - Accountant marketing can easily be one of the first overlooked areas in the career of an accountant.

7 Accounting Tips for Beginning Businesses

We have the smartest and the most clever accountant in the world. So we asked him to write an article about starting a business and the accounting setup needed. Here's what he wrote, it's solid advice from an accountant that saves us tons of money.

1. KISS. Keep it simple starting out. The simplest form of entity for running your first business is called a sole proprietorship. This form of ownership requires NO special communication or filings to the Internal Revenue Service until you start paying employees.

2. As a sole proprietor you are the owner/entity which might require only to acquire an occupational license if your county or municipality mandates one. As the owner, you are also liable to remit all state or city tax collections on retail or wholesale sales your business collects. Service businesses and most cross state sales are exempt from state tax collections.

3. If you are concerned about personal liability as a sole proprietorship then do the cheapest and simplest thing which is to buy a personal liability umbrella policy. The best way to avoid liability is to learn your trade well and keep accurate records on Less Accounting .

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Accounting rule change could favour Apple and iPod touch owners

The body responsible for setting US accounting standards is considering a rule change that would allow Apple to report higher earnings during periods of growth. It could also see an end to charging for iPod touch software updates.

Apple's insistence on charging iPod touch owners for software updates that iPhone users get for free has long been a cause of irritation.

The company takes the position that the relevant accounting rules say giving away updates that deliver significant new functionality is incompatible with recognising the revenue from the sale upfront.

(But what about this: if anything delivers significant new functionality to an iPod touch, it's Remote - an application from Apple that turns it into a remote control for iTunes or Apple TV. But Remote is free, whether it is for the iPhone or an iPod touch. Figure that one out!)

Since Apple doesn't want to defer the recognition of that revenue as it makes its financial results look worse, it charges for iPod touch updates. Another example of this rule coming into play occurred when Apple released a software update to enable 802.11n wireless networking on certain Macs that had been advertised as offering 11g Wi-Fi but which actually contained an 11n-capable chip.

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Set Up A Simplified Accounting System For Your Home Business

A lot of home businesses fail because they lack the necessary financial system to track down the flow of their money. More often than not, home based business owners are not really very keen at keeping their books of accounts, thinking that as long as money keeps coming in, they will be all right. Unfortunately, things are not really that simply when you are engaged in business. If you want to stay in business for a long time, you will need to keep track of your financial flow for your own use and for taxation purposes. Note that if you do not keep track of your income, sooner or later the IRS will be unto you and you will get into big trouble.

Setting up your own simplified bookkeeping system is not really very complicated. If you like to keep your records in your computer, you might want to buy accounting software or just simply use whatever programs that will allow you to make a spreadsheet in your computer to record your daily transactions. However, you have some money to spare for an accounting program, it would be better to have one. There is a number of easy to use accounting software being sold in the market today. The good thing about these accounting programs is that you do not need to worry about balancing your books of accounts. You simply input all your data in one page and the program will run on its own. Most accounting programs will automatically perform the different accounting process and will immediately update your statements of accounts. Retrieving data from an accounting program is also easy. All you need to do is to go to it archives and select which ones you want to see. For instance, if you want to know how much your net income is for the month, you simply pull-out the income statement page and you will see your income instantly. Another advantage of using a computer accounting program is that you get rid of all the papers and ledgers in your workplace.

Now, in case you are not comfortable using your computer to balance your books, then you just has to you things the old-fashioned way. What if you do not know anything about accounting processes? Never mind if you are not good in accounting and balancing statements of accounts, just keep simplified records of your transactions. A three-column worksheet will do nicely. You can easily find this type of worksheet in the bookstore. When dividing your worksheet, you can have one column for all the money you received in connection with the business, another column for all the money that you spend for your business and the third column will be for your running balance.

About Author: Scott Young Is A Plug In Profit Site member As Well As An Authority On Developing Online Affiliate Marketing Internet Businesses. Get more Information On How To Build Your Own Online Affiliate Marketing Business. For Internet Business Ideas To Make Money Online, Visit: Online Affiliate Marketing Business Ideas and Opportunities.

Source: http://www.articleammo.com/

Tips For Accounting Training Programs

No matter what the state of the economy is, there is always room in the business industry for students who finished accounting degrees.

It is actually one of the oldest professions in the world and if you are considering a career in this field, there are 5 best accounting degrees that you can choose from:

• Public Accounting
• Management Accounting
• Internal Auditing
• Forensic Accounting
• Government Accounting
  

Tips when Looking for an Accounting Training Program

Now, if you are considering establishing a career in the field of accounting, the first thing that you need to do is choose from one of the top schools that you can enroll at.

Some of the factors that you need to consider when choosing which school to go to includes its proximity to where you live, the availability of the accounting programs and majors that you wish to take and the type of accounting degrees that the school awards to students.

However, aside from focusing on the accounting majors that you are taking up, there are other skills that you should work on if you want to stand out among the rest once you go job hunting. First, make sure to brush up on your computer skills. No matter how good you are at the basics of this field, it will not be enough if you don't know how to use a software or an accounting program that will make your auditing and accounting job easier.

Prior to the actual job hunting, get an internship so that the experience can be added on to your resume. Lastly, after deciding which of the many majors it is that you wish to focus on, you need to brush up on your skills regarding the fields outside of accounting to widen your scope as a professional.

Start your career in Accounting!! Search for the top accounting schools in your preferred location you can enroll at and also get complete insight on top accounting programs, degrees and majors at AccountingProgramsU.com.

Source: http://EzineArticles.com/

Bookkeeping Software or Services?

Every business is required to keep bookkeeping records to produce at the end of the year (Calendar or Financial) a set of accounts to show the business expenses, sales income and the net profit for tax purposes. New businesses in particular, self employed businesses have a choice in how the financial accounts are prepared and produced. Many of these businesses for financial reasons tend to either keep a manual record of financial transactions or purchase an off the shelf software program from their local retailer and then on their own develop a charter of accounts and complete the data entry.

There are several advantages and disadvantages to whichever course of action a small business may take to produce the financial. But, at the end of the day, the condition of financial accounts and the financial control that are put in place will dictate how well or badly the business is performing compared to the success in the business environment. The underlying necessity is that if the business does not take a decision on its financial accounting then at the very least it must accumulate documents of prime significance such as sales invoices, purchase invoices and possibly bank records during the financial year and assemble these into some sort of order after the end of the financial year for tax purposes. Failing to keep financial records often results in a succession of administrative burdens and often also leads to financial penalties if taxation
deadlines are not met.

If the small business owner chooses not to go down the route of using bookkeeping software or outsourcing the financial function to a bookkeeper or accountant then manual financial records must be kept. Producing an income and expenditure account for the business using the prime financial documents of business is not rocket science and most businessmen capable of running and managing a business have the skills required to producing the bookkeeping records. The major disadvantage of a small business keeping manual records is that documents get lost which may result in profits and taxes being over declared, fines and penalties through inaccuracies and often when accounting is produced in this way it is done at the end of the financial year purely for tax purposes rather than as an essential tool of the business and that reduces financial control within the business during the financial year to a minimum and often zero.

If a manual bookkeeping system is adopted then disciplined recording of the financial information on a regular basis should be enforced and regarded as an essential function and not an administrative burden. The main purpose of regular accounts being to both see and understand the financial position of the business and take positive action as required at the earliest opportunity to achieve a satisfactory financial result.

Other alternatives include utilizing bookkeeping software which is effectively often a manual system in itself but within definite parameters to produce the essential information. Using bookkeeping software has many advantages. First of all any small business that has purchased bookkeeping software is more likely to keep regular up to date accounts than one that has not. And secondly the bookkeeping software is likely to provide a fixed set of disciplines and produce the type of records a small business requires for both the preparation of regular financial statements and the end of year tax returns. Another major advantage of bookkeeping software is that records tend to be less likely to be lost or mislaid; the packages can be backed up as required but essential financial performance can be improved by greater financial control. All businesses work towards producing a satisfactory bottom line and only by producing regular financial statements can the business obtain the earliest information to achieve that satisfactory performance.

Bookkeeping software comes in many different formats from simple spreadsheets to more complex data based accounting software. For a small business the bookkeeping software of choice is often a simple system requiring limited accounting knowledge but must also be a package that produces the desired end result. The worst bookkeeping software is a complex program requiring prior accounting knowledge that the small business either does not fully understand, cannot be bothered or does not have the time to learn and having tried the system then abandons it. Such a process just causes frustration and time to start again with a different solution. Bookkeeping software in effect automates the manual keeping of financial records. To get the most benefit from a bookkeeping software package each small business should prepare regular financial records to enhance and improve financial control, take financial decisions and achieve the desired bottom line result.

Bookkeeping can be outsourced to an accountant or bookkeeper and there advantages in doing so. The financial records are generally maintained in good order and regular financial reports produced. If the small business has a volume of paperwork that becomes a burden to process and keep on top of then a bookkeeper is the best solution. Employing a bookkeeper becomes essential when the paperwork burden reaches a stage when it distracts the small business owner from getting on with the main task of operating the business. A bookkeeper has to be paid and that cost should be viewed as the cost not of producing the financial records but as the amount to be paid to release the time of the small business owner and also to produce the financial statements on which action can be taken to improve profitability.

In conclusion each small business should evaluate their options and time commitment. A manual bookkeeping system may suffice but the business may be better served using bookkeeping software & services to increase financial control and performance.

15 years of Fortune 1000 Consulting in IT and Business Process Outsourcing.

Source: http://www.articlesbase.com/

Intuit Offers $10,000 Grants to Accounting Firms

Intuit has launched a program offering $10,000 cash grants and up to $10,000 in products and services to 10 accounting firms.

The Power to Get More Done program aims to help firms deal with the economy by giving them money to hire extra staff and invest in their business, along with products and services to increase their productivity.

Accounting professionals can download the entry form at http://accountant.intuit.com/GetMoreDone and prepare a brief business plan that explains how they will use the money to stimulate growth. Entries are due by 9:30 p.m. Pacific time on April 30. Judges include a panel of Intuit and accounting profession executives, with winners chosen each month from May through July.

In addition, Intuit is offering a 50 percent discount on a bundle of QuickBooks Premier Accountant 2009 and QuickBooks Pro 2009 products to accountants. Accounting professionals can also pass along free software and more than $2,000 in savings on select Intuit financial and business management products and services to their clients.

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Do You Need Accounting Software?

If your bookkeeper spends Saturdays in the office trying to keep up with paychecks and taxes and tax code updates and outstanding invoices, you know what?—you need accounting software.

If someone came to your office and asked to see your accounting system, what would you show them?

If you haven't been using accounting software, it would probably be going something like this: You'd turn to your PC and fire up some Excel spreadsheets and Word documents. Pull open a drawer and grab some invoices and purchase orders that need processing. You might nod your head toward a calculator and a label printer, and point out your checkbook and envelopes. There are sticky notes on your monitor, one from an employee who wants to change her income tax withholding, another from a vendor wanting to check on a payment, and another from a customer checking on an order.

If you have coworkers, that same scene more than likely would be duplicated at their desks.

What if your visitor asked you for a current list of your customers? Quick—how many widgets did you sell last month? How many are left in inventory? Which of your employees are on a health-care plan? What was your profit or loss from last quarter? Whom do you buy widgets from, and what are your credit terms?

In the time it's bound to have taken you to accomplish all of this, you could have set up and started using small business accounting software. Because it sounds as if you need it.

A Place for Everything
There are three major areas of benefit in using accounting software if you have a small business, and lots of little ones. Taken together, they mean you're sure to save time and even money—and gain time to concentrate on growing your business.

Customers. That list of customers you're trying to maintain as a Word document or in Outlook or a Rolodex or—say it ain't so—on paper? That list needs to be in a database designed for finances. Accounting software contains record formats that let you type in—or sometimes import—relevant details, things like contact information, credit terms and limits, credit card numbers, and price levels. You can usually set up custom fields to track any additional information you'd like to. And sometimes customer records can also contain descriptions of jobs you're working on for that company; they may even display a history of your transactions with them.

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The Importance of Accounting

Accounting can seem a dreadfully boring subject to some, but it gets its moment in the sun whenever there is a financial crisis . . . remember Enron? This time around is no exception. During the panic of September, some people were calling for a suspension of mark-to-market accounting, and while they did not get what they wanted, they succeeded in inserting a provision in the first big bailout bill to study the relationship between mark-to-market accounting and the financial crisis.

A brief, high-level explanation of the dispute: Under mark-to-market accounting, assets on your balance sheet have to be valued at their current market values. So if you have $10 million worth of stock in Microsoft, but that stock falls to $5 million, you have to write it down on your balance sheet and take a $5 million loss on your income statement. The criticism was that mark-to-market was forcing financial institutions to take severe writedowns on assets whose market values had fallen precipitously, not because of their inherent value, but because nobody was buying these assets - think CDOs - and that banks were becoming insolvent because of an accounting technicality. Under this view, banks should be able to keep these assets at their “true” long-term values, instead of having to take writedowns due to short-term market fluctuations.

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Accounting Informational Systems

Just several years before, people, whose work consisted in conducting the financial account of organization, were engaged in much more tedious work than now. Now, these workers are helped by machines – computers, the computer programs are specially created for the conducting of such kind of work. Some people can say that before also existed such «machines», but do you remember how much nerves it cost for you just to reprint this miserable payment because of casual jamming of the keys?! Before, work which was conducting during the whole day by several workers, computer makes immediately, you just need to enter information and all is done. So what does it mean actually«It is the golden age for small and middle-size business»? It means that for the conducting of business, businessmen don’t necessary need to hire a lot of skilled employees, they can simply purchase good computer with specialized, for their type of business software. In this way owners of the business will save money (decreasing amount of money spending on salaries and production) and produce more free time in oder to do something else for earning more money.

Now, I would like to turn your attention to an accounting information system and explain what it is. So, accounting information system is database which emits bookkeeper to meet his engagements. Bookkeeper’s engagements means record keeping in accordance with the legislation. Legislation, unfortunately, compels Ukrainian bookkeeper to conduct accounts of two types: tax, book-keeping.

For the conducting of book-keeping and tax accounts a book-keeper needs information. Namely: agreements, date of conclusion, sum, terms of payment, date of fulfilling a commitment.

It is principally significant that an accountant will make actions only having on hands an agreement or writing active document about transferring of the money to a supplier or the extract of an account to a buyer. For posting, i.e. reflectioning in an account, on the accounts of record-keeping, for example - receiving materials, an accountant can with help of a computer network get information from a storage which is, maybe, hundreds or thousands kilometers away, that materials are acted on a storage. So for accountant, regard to Accounting IS, for him it is not necessary to wait till papers will be brought.

Development of computer technologies influenced very much on the whole world not speaking just about separate part - accountings information systems. With development of computers, develops software under each type of computers. For example about 5 years before accountants prepared the annual accounting in OS - DOS that was an innovation for many and a little bit difficult because far not all people could afford a computer, and work in DOS required from a user certain skills of work in it. Nowadays appeared more powerful computers as a result appeared other operating systems, accordingly other programs. Today, practically everybody is able to use a modern computer, and the use of accounting’s programs became simple and clear for the people who work in this sphere.

Creation of machines able to get and pass the enormous volume of information influenced in sharp reduction of time for treatment of information and terms of making a decision, reduction of amount of people working for an enterprise.

Before on storages worked a lot of people which wrote down the name, amount, cost of got and given out materials in the paper cards of account. Then they made themselves «Financial report after several month several year». In this gaps were put information about arrival and expense of materials.

In conclusion it is obvious to point out that today, each business conducts all this work with help of programs: informational, accounting and etc. Technique development allowed to create such structures of bookkeeping programs which allow to take into account everything to the little things in the mode of the real times. If some years before for treatment of accounting payments people required a month, than now, if you have all required documents, acts, payments it is matter of two days. Only regard to development of technique’s «opportunities» - we can take into account and process more large amounts of information. Development of technique results in possibility of creation of more difficult (I mean detailer) informational systems, including book-keeping, complicating (going into a details) the structure of the informative systems of accountant, and simplifying book-keeper’s life.

Source: http://www.carolinaarticles.com

Robert Smith has spent more than 15 years working as a professor at New York University. He is interested in assisting students and people who need assistance in writing. Now he spends most of his time with his family and shares his Univesity experience where to buy research paper. He is a right person to ask about how to do my research paper online.

Accounting for software companies: Time to bring about uniformity and consistency

With the revolution in Information Technology, software companies have seen unprecedented growth in the last twenty years with companies offering IT-based solutions in diverse areas of business activities. Software companies are providing customized solutions for companies world over, automating the business operations and making the processes efficient, user-friendly, cost-effective, time saving bringing about a complete metamorphosis in the way business is conducted.

Accounting for software companies bringing about this change is a new domain for most of the economies across the globe, throwing challenges before the accounting standards supervisory bodies to formulate policies and guidelines for these companies so as to correctly reflect the overall health of these firms from different perspectives.

Software companies are involved in various activities in the process of providing solutions for their clients. There are business transactions of different nature carried out by these firms at different stages, and a policy statement prescribing sound accounting for software companies requires taking care of all these business transactions that the companies are involved in at every stage of the project development and execution is very essential. The most important issue concerning Accounting for software companies is the way these software companies book income from software products developed by them and the various IT services supplied to customers.

There are also problems of inconsistencies in accounting standards related to these companies if they are operating at a global level. For instance, as per US rules, revenue can be included in a company’s accounts only after software and services have been supplied in full, whereas a UK company can book revenues for supplying services even before the work is finished. This implies that a company based in Britain, but listed in US Exchange and filing its accounts under the US rules, will be substantially overstating its UK gross margin or revenue. Multinational companies may find it very hard to comply with dual standards. Sometimes, these inconsistencies are so sharp that a company may have to break the basic spirit of one accounting standard to comply with the other.

There are a number of issues that are interpreted differently by the companies to report their profits or losses on accounting books. There are some companies that capitalize their software development costs and there are others who expense these development costs. Moreover, aprt from the Research and Development costs, which are always reported separately in financial statements, most other intangible investments go unreported, such as employees training, brand enhancement, information technology investments, etc. Thus, there is a complete lack of transparency in case of most intangible investments, and this is true not only in United States, but in different degrees worldwide. Accounting for software companies must take care of this issue to bring about more transparency in the system.

Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about accounting outsourcing, retail accounting, Accounting for software companies, small business accounting and accounting help visit www.impacctusa.com

Source : http://www.bestsyndication.com/

Take your business places with accounting outsourcing in India

Accounting outsourcing in India adopts various cost effective methods that actually reduces time, money and personnel resources for its clients. Moreover, several multinationals are relying on these services because accountancy in western countries cost a lot and provides them with an opportunity to grow their businesses. In fact, outsourcing has also contributed a lot in the economic growth of India as the unemployment has reduced by a large margin. Well, you can say that besides economic reasons, it is also a matter of convenience for many of the countries to opt for these services in India. The objective behind hiring services for accounting outsourcing is that it reduces their losses and at the same time maximizes the profits without any hassle. In fact, accounting outsourcing also reduces their expenses by huge margins, as hiring accountants in Europe or America costs a lot and needs huge investments. However, with the help of accounting outsourcing in India, the multinationals are able to reduce such costs.

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Outsourcing Bookkeeping Frees Up Time to Grow Your Business

The onslaught of avant-garde technology today has found many scrambling to internet based services. From medical help to mortgage refinance and now outsourcing of bookkeeping and financial services are available online. This way business finds it cost effective and very efficient.

A detailed representation of the business accounting functions is painstakingly done by the professional accountants of the outsourcing firm. Virtually what the client has to do is merely fax or scan his documents and submit and bookkeeping is made simple. The professional help automatically takes out most of the hard work out of bookkeeping.

Bookkeeping could be server based. If the client does require that his accounts books be maintained in his own computer, the outsourcing bookkeeping connects to the client’s computer through the internet. This is done with the use of remote desktop access services. Then in the morning the client will find his books updated and simplified in his computer. This means that the client gets financial statements, reports, checks, sales invoices, and others on his own computer ready to print. This he can conveniently do without having to log in to any website and be bothered by the hassles that go with it.

Bookkeeping, by its inherent nature, necessitates a lot of paper work. It seems like the work is almost always never done on time. Accounting data entry, payroll preparation, cash flow, bank and credit card reconciliation, trial balance, accounts payable management and other bookkeeping tasks which need updates every month can be reorganized and restructured in few very easy steps. Completion of the project is within the time frame given and the cost does not go over the budget.

Outsourcing bookkeeping has different processes options to update your books. There is a wide array of options available where you can choose according to your requirements as to what is best for working conditions. The client also gets to choose the process option that he finds most efficient and the compatibility of resources in his environment.

The processes the client could choose from for outsourcing bookkeeping are Remote Access Based, Hosted Software Based, Server Based and Online Options. These are some of the processes that would suit your necessities and your convenience.

Another option is for the client to send the documents either by having them scanned or through fax. The bookkeeper logs on using an online service overnight. With the help of the software, she starts to update your books, and when done logs out. While you can take a look at your books the next morning and everything is already done!

The degree of security and protection in place is the highest available today. Information is treated as confidential and sensitive. Privacy is considered of utmost importance. That is why the best of encrypted technology is employed to make sure that there is no infringement committed on your data. Only authorized bookkeepers and accountants have access to client’s documents and books.

Outsource your bookkeeping today; and focus on those functions of their businesses that really matters for its growth.

Source : http://www.streetdirectory.com/

Bookkeeping and Accounting - Basic For Your Help

Learn the basics of accounting and bookkeeping for your small business.

Many new business owners are daunted by the mere idea of bookkeeping and accounting. But in reality, both are pretty simple. Keep in mind that bookkeeping and accounting share two basic goals:

• To keep track of your income and expenses, which improves your chances of making a profit, and
• To collect the financial information necessary for filing your various tax returns.
  

There is no requirement that your records be kept in any particular way. As long as your records accurately reflect your business's income and expenses, the IRS will find them acceptable. (There is a requirement, however, that some businesses use a certain method of crediting their accounts: the cash method or accrual method. For more information, see Cash vs. Accrual Accounting. )

Depending on the size of your business and amount of sales, you can create your own ledgers and reports, or rely on accounting software.

Three Steps to Keeping Your Books

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

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

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

Step One: Keeping Your Receipts

Each of your business's sales and purchases must be backed by some type of record containing the amount, the date, and other relevant information about that sale. You'll use these to create summaries of your transactions.

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

Step Two: Setting Up and Posting to Ledgers

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

Post receipts on a regular basis. On some regular basis -- like every day, once a week, or at least once a month -- you should transfer the amounts from your receipts for sales and purchases into your ledger. This is called posting. How often you do this depends on how many sales and expenditures your business makes, and how detailed you want your books to be.

Your posting schedule depends on your sales numbers. Generally speaking, the more sales you do, the more often you should post to your ledger. A retail store, for instance, that does hundreds of sales amounting to thousands of dollars every day should post daily. With that volume of sales, it's important to see what's happening every day and not to fall behind with the paperwork. To do this, the busy retailer should use a cash register that totals and posts the day's sales to a computerized bookkeeping system at the push of a button.

A slower business, however, or one with just a few large transactions per month, such as a small website design shop, dog-sitting service, or swimming pool repair company, would probably be fine if it posted weekly or even monthly.

If possible, use accounting software. You can purchase an accounting software program that will generate its own ledgers as you enter your information (and then automatically generate the necessary financial reports from the same information). All but the tiniest new business are well advised to use an accounting software package to help keep their books. Micro-businesses can get by with personal finance software such as Quicken.

Step Three: Creating Basic Financial Reports

Should I report expense reimbursements as income?

Financial reports are important because they bring together several key pieces of financial information about your business. Think of it this way: while your income ledger may tell you that your business brought in a lot of money during the year, you won't know if you turned a profit without measuring your income against your total expenses. And even comparing your monthly totals of income and expenses won't tell you whether your credit customers are paying fast enough to keep adequate cash flowing through your business to pay your bills on time.

That's why you need financial reports: to combine data from your ledgers and sculpt it into a shape that shows you the big picture of your business. The key reports you need to create regularly are a cash flow analysis, a profit and loss forecast, and a balance sheet.

Source : http://www.nolo.com/

Ten Tips for a Smoother, More Profitable Tax Season

At the beginning of every tax season, I have the best intentions. I exercise, eat right, and get enough sleep. Then it happens. Two-thirds of the way through the busiest months, something really big goes wrong, and my balanced life snowballs into chaos. Does this happen to you?

Even if something doesn't go wrong, you might be the type of person who reaches the edge of burnout every year at the end of tax season. You might hate the high-pressure, deadline-riddled, fast-paced environment. How can you find your balance amid the chaos? Here are ten tips to help you survive this season.

1. Remember why you're there in the first place. Our business is an excruciatingly detail-oriented affair, and it's easy to get caught up in the minutiae of the moment. When you realize you're drowning in details, stop, take a deep breath, and take in the big picture. Think about what your overarching business and personal goals are. Remind yourself of your friends and family. This exercise will help you reframe what's really important to you and will help you put the daily details back into the right perspective.
   
   
2. Communicate your appreciation. Without a team to help you get your work done, tax season would be much harder. Show your gratitude to your team (and your family) with frequent positive comments, ranging from the general "I really appreciate the work you do" to the specific "Your spreadsheet covering the Cassidy project was very well thought out."
   
   Do this more often than you think you need to. People can't get enough personal feedback in this digitally detached world. Praise keeps the stress level down in the office. It will give you a lift too: gratitude is one of the fastest ways to change your mood for the positive.
   
   
3. Systematize your processes. Lost productivity and mistakes often stem from misunderstood responsibility and authority. A smooth tax season starts when everyone knows the flow of work, what their jobs are, and how much authority they have to make decisions. Make all of these items clear by designing systems, processes, and procedures that your team can follow.
   
   
4. Train, train, train. Inevitably, one of your team members will get sick, pregnant, or resign at exactly the wrong time. Cross-training your team to be able to do each others' jobs will save you time and reduce your stress. It's hard to stop and make time for training, but there are rewards to taking the extra time. Your employee feels more empowered and becomes more valuable once the new skill has been mastered. The next time the skill is required, you can delegate the task and free up your time.
   
   
5. Just say "no." Saying "no" can be difficult for some people. But I promise you will get at least one client who will try to monopolize your schedule at the last minute, will not have all the input you need so that you have to start and stop five times on the work, and will insist on a bargain price!
   
   Set deadlines for client input. Be able to say "no" to unreasonable requests. You'll be able to help five clients in the time one unruly client takes up, and your profitability will soar.
   
   
6. Commute calmly. On your way to and from work, listen to an upbeat music CD, a comedy act, or a motivational tape. You'll be in a better mood no matter what the traffic was like. Buy CDs for your staff, too.
   
   
7. Perk up your staff. A great way to de-stress your office is to add some perks, and I don't just mean bringing in a few sugar-laden sweet rolls in the morning. In the middle of your busiest time, consider some of the following ideas:
   
   
   • Bring in a masseuse who can do ten-minute neck and shoulder massages during lunch.
   • Hire a personal assistant who can be shared among your employees to help them with errands like dry cleaning pickups, grocery runs, and gift shopping.
   • Send employees' spouses a wonderful appreciation gift.
   • Supply healthy in-office snacks and meals that build energy rather than drain it.
     
     
8. Prioritize. If you begin to feel overwhelmed, get organized. Prioritize your to-do list, and work it, one at a time. When you cross a task off, do a little dance or shout a "Woohoo!" Make sure your staff is clear on their priorities, too.
   
   
9. Take the high road. In a high-pressure environment, we're often tightly wound. It doesn't take more than a small slight from another to set us off into a rampage. If you're prone to reactive behavior, it will help to understand a quick fact about how your brain is wired. We have two pathways in our brain:
   
   1. The low road (the fast pathway) to reaction that is wired directly from our senses to our emotion center. This is what keeps us alive when we swerve quickly to avoid a car accident or when we notice a snake on the ground. It also gets activated when we might feel a bit threatened at work.
      
   2. The high road (the slower pathway) that is wired to the reasoning center in our brain. Here we can take the time to analyze, process, and react accordingly to what's happening in our environment.
      
   
   If someone says something to you that activates your "low road," become aware of it, take a breath, and if there is no immediate danger of dying, let your "high road" catch up before you say or do anything.
   
   
10. Model leadership. Emotions are contagious. So is stress. If you are in a negative mood, everyone in your office won't be far behind. But if you come in every morning in a calm and cheerful mood and with your sense of humor intact, you can influence the whole office to follow your lead. It's a lot more fun for everyone to work in a cheerful office.
    

When you and your employees are happier and de-stressed, you'll be more productive, do better work, make fewer mistakes, and be healthier, too. I wish you a joyful and profitable tax season.

Source : http://accountant.intuit.com/

Heritage to be 'valued' under new bookkeeping

NEW DELHI: Fancy buying the Taj Mahal or the Qutab Minar for Re 1? Well, that could be the price the gov government may assign to most heritage structures when it switches to a more transparent system of accounting its assets and liabilities over the next two-three years.

The government is finalizing a road map to move to a system of “accrual-based accounting” from the current cash-based accounting system to better reflect the nation’s assets and liabilities in its annual financial statement. The new system is meant to capture some of the government’s liabilities and assets that now find no mention in the annual budget.

One key aspect of the proposed accrual based accounting system is to include national assets through a process called “heritage accounting” . Under this system, historic monuments , museums and paintings will find mention in the government’s statement, but its treatment may be different from other commercial assets.

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Accounting Outsourcing Tips

Businesses of all sizes need to ensure that accounting is paid due attention, since accounting it is at the core of any business process. In recent times more and more small and medium size businesses are considering accounting outsourcing. The decision to outsource accounting and bookkeeping allows a company to concentrate in their area of specialization and not worry about the accounting aspect of the business. Outsourcing has several advantages and these include the following:

• The services of experts are available at a fraction of what would have been paid to hire them on a full time or part-time basis.
• Outsourcing relieves the company of the tedious and yet crucial process of accounting bookkeeping.
• When a company considers outsourcing not only does it not bother with recruitment of accounting professionals but also saves on office space and related expenditure.
• An offshore accounting outsourcing service provider provides reliable and competent services that are an asset to the company and simplify its working.
  

When outsourcing small business accounting and finance it is important to keep certain tips in mind in order to make informed decisions:

1. Be clear about what you expect of the accounting company that you are outsourcing to. It is vital that you specify the needs of the job and what you expect from the outsourcing service provider. This will ensure that both companies have a clear understanding of what is expected and what is being delivered.
   
   
2. Is the accounting outsourcing company reliable and dependable?Do not make a decision blindly, but in fact take the time and effort to check on the references provided by the outsourcing company. Accounting needs to be done by certified public accountants and in case of offshore outsourcing you need to confirm that the accountants are qualified to handle and provide accounting solutions.
   
   
3. Don't shy away from asking the vendor about similar accounting management projects that they have worked on. You don’t want a trial and error technique used on your small business accounting. It would be a good idea to ask the accountants to provide material that indicates their skill and knowledge of accounting, auditing and bookkeeping.
   
   
4. Reviewing previous projects that the vendor has done will give you a fair idea of the level and quality of accounting that they can deliver. You could also ask the accountants as to how they would like to handle the accounting information, so that you can judge their line of thinking and working. It is also recommended that you initially start with a pilot project that will assure you of the services that you have been promised.
   
   
5. While the total cost may be a guiding factor when you are selecting an accounting company, it should not be the only factor. The lowest bidder need not always be the best bet. Accounting and any deficiencies in the process can create serious legal problems for the business and you would not want to risk that. A large percentage of small and medium businesses that have turned to accounting outsourcing have done so not just because of the low costs but also due to the quality of work that they are assured.
   
   
6. It is important that you have a contract drawn up that clearly specifies what is expected of the project and how and when it will be completed. Such an understanding facilitates transparency in the dealings with the outsourcing accounting service provider.
   
   
7. Start with a small project and take it from there. To begin with provide a small amount of work and allow the outsourcing accounting company to prove its caliber.
   
   
8. Creating milestones in the project will help create a smooth flow of work to its completion. Also this ensures that both parties are clear on the deadlines and required work. Furthermore it allows the company to make payments in installments as and when the work is completed.
   
   
9. Security issues need to be discussed upfront and you need to be clear on the security measures taken by the accounting outsourcing company to protect crucial accounting data. Accounting information is crucial to the success of every business and any leak of such information can have drastic consequences. You would need to discuss how accounting, auditing and bookkeeping files will be transferred securely to the outsourcing company and also issues such as how accountants will have access to these files.
   
   
10. Communication with the accounting outsourcing firm is of utmost importance and you should be able to interact and communicate freely. Thus the service provider ought to have communication facilities that are satisfactory and should be easily contacted.
    
    Accounting outsourcing should ideally be an asset for any small or medium business. And keeping these tips in mind can make that a reality.
    

Source : http://www.cybelink.com/

Selecting a new accounting system

When selecting a new accounting system, a Clever Company will use a structured process to ensure the new software will work in its business. If you fail to do this, the result may be an association with a software vendor that is not only time consuming and frustrating – but also potentially very costly.

You’ll need to be able to identify any one of a number of 'indicator' signs that your system may need to be replaced.

These include:

• The length of time your current system has been used. As a general rule (assuming you’ve had no upgrades), software needs to be replaced about every seven years. Because computer technology advances rapidly, systems older than seven years are often built to an old design that may prevent your business operating efficiently in today’s market.
• The use of spreadsheets or databases to produce information. Many companies overcome software deficiencies by using other packages to format or produce the information they require to manage their business.
• Linked to the point above, the inability to produce timely information.
• Frequent requests, from users, for additional information.
• A large number of customizations in the software.
• Changes to the size, structure or operations of the business since the current system was implemented.
  

A key decision when considering replacement software is to weigh up the functionality, you’d like to see in the software, with your budget and sophistication of your organization.

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Basic bookkeeping & Accounting Principles For Business

A good knowledge of basic accounting principles is essential to any business: Dragon’s Den contestants can rarely be questioned for their passion and enthusiasm, however, when it comes to the finances many a contestant has been publicly slain for a lack of basic financial acumen.

Failing to keep good financial records and making business decisions based on inadequate information can be fatal for smaller companies and often proves the downfall of even the best entrepreneur.

It is important for any business to remember that a company’s books and financial statements show how the organisation is progressing, as well as enabling the company to predict when and why things may be going wrong.

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Accounting is Critical to the Success of Every Business

There are three primary reasons accounting is critical to the success of every business:

• Tax Planning
• Cash Flow Management
• Management Information
  

Lets go through each of them in the order above.

Tax Planning

How would you like to be the coach of a basketball team, but were not allowed to see the score, nor the statistics until the end of the game? Does it surprise you that many small business owners run their businesses this way?

Many small business owners just collect all their financial information in a box during the year. After the year is over, they will drop these on a tax preparer's desk, and hope the tax person can figure the assortment of papers out. The tax preparer then does his/her best to sort through the materials, and arrive at the information the IRS is looking for. Then a phone call to the wearied business owner will notify him/her of the damages.

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