Posts Tagged ‘Accounting’
THE IMPORTANCE OF FINANCIAL ACCOUNTING IN A LATIN COUNTRY ENVIRONMENT
Financial Accounting, as it is commonly described, focuses on organizing the financial information of an entity into financial statements to help the decision making of people outside the organization, such as stockholders or suppliers, among others. Its objective is to historically record the economic life of an entity so that its operational development can be analyzed and interpreted by third parties. This is the international accepted definition of Financial Accounting, but one thing is its definition, and another very different one how it is applied to different economic environments.
In some countries with non-stable economies, such as the majority of Latin countries, Financial Accounting becomes essential for a company’s survival and is the most important aspect of business decisions. In the country of Colombia, for example, business decisions (supplying, investing, borrowing, lending) are made after analyzing the financial statements of the companies involved. In a country where assets are guarded thoroughly, organizations take extreme precautions before making any decisions that will affect those assets in any way.
Financial Statements become the most important source of information about companies involved in a business deal. Since they are of public use by law, they’re the first documents requested in any type of negotiation. To become a new supplier for another entity, for example, a company would have to present documents such as bank and clients or suppliers recommendation letters, but the most essential ones would be the Balance Sheet and the Income Statement of the fiscal year immediately prior to the date. Without these two documents, the entity would not be accepted as a supplier, even if the recommendation letters show it to be a very profitable and stable organization.
The main reason for financial statements to be so valued in the business environments of these types of economy countries is because they provide a very trustworthy source of information about an entity’s financial performance. It may not be a very different reason for why they are valued in every other economy, but especially in these ones, where investing has so many risks, and where procedures may take double the time of an average international company, resulting in time expenses, it helps make decisions easier.
Having the financial statements ready in time is also a priority of every President or General Manager of a company. Even though they’re not the ones directly involved in the process of elaborating these documents, they have a close supervision of the task. They’re responsible for making sure the Accounting Department is doing its work correctly and with the honesty and ethics required to be able to present accurate and true financial information. In Colombia, Financial Statements need to be signed by the Legal Representative of the company, who in the majority of the cases is the same General Manager or President or CEO; by the Statutory Auditor (or Company Auditor), and by the Comptroller. By signing them, they are confirming that the financial information recorded in the Balance Sheet and in the Income Statement, as well as the explanatory notes, is true and real and hasn’t been tampered with in any way.
Being a country where corruption sometimes messes up the flow of businesses, having the assurance that the financial information of a company is backed up by these three significant signatures, makes it easier to be able to trust an organization when business decisions need to be made. It also helps the company maintain its place in the industry and be recognized as profitable and stable.
Since Financial Statements play such an important role in the decision making of every type of organization, almost every administrative employee understands the basics of financial accounting, and know how to interpret a Balance Sheet. Even if they may not understand what every account means, they are instructed in what a good and acceptable Balance Sheet should look like and the importance of its information, related to their line of work. They also know how an Income Statement is important when preparing future budgets.
Even though the general importance of Financial Accounting is the same in every country, it plays a very significant and primordial role in Latin economic environments. That is why serious measures are taken to make sure that Financial Statements are done in the most ethical and transparent way, allowing Financial Accounting in non stable economies, to continue being a source of reliability and trust in the process of business decision making.
Financial accountancy is a domain of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders. Financial accountants are required to measure and monitor agents’ performance and reporting the results to decision makers.
Financial Accountants prepare accounting information for people outside the organization or not involved in the day to day running of the company; whereas, management accounting provides accounting information to help managers decide how to manage the business.
Financial Accounting can be defined as a process of summarizing financial data taken from an organization’s accounting records and publishing in the form of annual reports for the benefit of people outside the organization. This stream of accountancy is governed by both local and international accounting standards.
Management accounting and financial accounting are the two main branches of accounting in general. Any data related to events, transactions and activities within an organization form the common and principal source of information for management and financial accounting.
Some of the differences between Financial Accounting and Management accounting are:
Financial Accounting presents the financial position of an organization and provides information related to revenue generation or profits to stakeholders. The focus is mainly on external information users such as primarily regulators, government and owners. On the other hand, Management accounting focuses on internal financial information, with reports prepared for internal managers, who use it to aid and facilitate planning, decision-making and control.
Management accounting is used by an organization’s managers. External stakeholders do not even view management accounts. The reason being, there is no legal requirement for any organization to prepare management accounts.
Financial reports are for external users so financial reports must adhere to International Financial Reporting Standards and International Accounting Standards. So, the financial reports are standardized while management accounting formats and systems vary among and within organizations.
Management accounting has narrower focus than financial accounting. The focus is much more specific, as it deals with particular activities, sections or departments. Moreover, financial reports usually deals only with financial information whereas management accounts incorporate both monetary and non-monetary measures, i. e. financial and non-financial information.
These are some of the differences between financial accounting and management accounting.
Finance Accounting Tips – Accounting Advice – Finance Blog
The important issue is a sensitive issue is that of anyone. There are people out there surprisingly reluctant to gossip about their finances, especially when you encounter financial problems. There are several ways to get science on how to manage your finances and advice on how to make more money. More http://financialaccountingtips. blogspot. com /
There are magazines and books available that can give advice on various aspects of the treasury. The Internet is reliable and practical choice, which has become a portal for information on various subjects. You also have the advantage of being the central contact other users.
This commitment is made by the body in the form of a blog. You can share hot shit on a particular subject and support the enthusiasm of new stream of others. A record of a mesh platform to say it and blame the exceptional people on a particular issue. You can create a personal blog that allows you to brush your ideas with other like minded individuals, while earning much money. The information on these sites is considered to be more obstinate than masterly. So, before embarking on the review of the letter to ensure that you have completed counseling.
However, this does not mean that the information here is not to increase the value. You must learn to use the weblog of finance from an inventory of basic instructions have some experience. You can also use a blog to make significant money on advertising because it is a popular topic that many people want to give links and comments. In addition, the information here is to boost fair and accurate because they are capable of many people who shared their experiences and personal stories.
Accounting Financial Consulting – Consulting Accounting – Finance BlogThis help all those experiencing financial difficulties for the solutions. It is a great and easy to come to nothing if you consider yourself qualified.
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Financial accounting is an important element for all types of businesses such as small, medium and large businesses. Financial accounting is the field of accounting related to the preparation of financial statements for those responsible for ruling, as shareholders, suppliers, banks, employers, government agencies, landowners and other stakeholders. method of financial accounting may be the single most critical data your business requires. Financial accounting is designed to generate two major reports financial closure with the result audited. A predictable system software uses a register Classification financial activities of the company itself. Financial accounting is used to organize accounting information for people outside the organization who are interested in the daily operations of the company. provides accounting management accounting information to help managers make decisions to manage the business. In short, financial accounting is the process of abbreviation financial data on the use of corporate accounting and publication as a monthly or annual reports quarterly for those outside the organization. Accounting Information for employees who play a key responsibility must be managed properly so that in the end of the year reports can be generated without effort, without hassle. It is very essential to establish appropriate strategies for financial services that can be followed to ensure that the company can finally implement the program. These tips will help the various cash flows in the precise form and help you understand the necessity of the exact layout of the various companies can be financial accounts in respect of:
Here are some principles that account provider of accounting, or other should implement outsourcing services to manage the business fairly and meet the financial needs of the organization. A methodical accounting process helps the company to develop and therefore the performance of estimated benefits.
Accounting is a must for proper business. business here, a company accredited by the appropriate office at a certain place. Accounts of the company gives a big hand in managing their expenses and income. You need to keep track of your income and expenses so that you can determine if your company has suffered a loss or profit. In other words, it is a process of collecting and analyzing their financial data. To perform all these tasks, you need a qualified accountant. The hiring of an expert, the high cost and requires that you must always keep meeting with your accountant to get the latest update. Do not worry, because it is an alternative to this, the accounting software.
You must ask yourself what services accounting software that enable them to compete with an accountant. You would think that it is impossible for a computer to do the accounting and that people can do. Yes, you are right. But they can add numbers to a very rapid pace. This option allows you to enter numbers into the system once and appear in all books, journals, balance and other financial reports immediately. However, you must decide where to enter information and the proper place to insert the transaction. With the software, you can save the labor costs in the accounting profession.
Moreover, people tend to mistake, especially when the stone accumulate. Although only a simple calculation like addition, subtraction, multiplication and division, mistakes are inevitable with the estimates of abundance. The accounting software provides the most accurate in this regard. Regardless of the number of entry is inserted, the computer will never be a miscalculation, because they are programmed. In addition, this update software provides the opening balances in your accounting system. Finally, the most interesting services is an accounting software that provides troubleshooting and problem solving solutions whenever he encountered problems.
Accounting software is a combination of a number of modules like accounts receivable, accounts payable, ledger, billing and software inventory aspects.
Accounting software has become need of the hour for every business. Without it, no organisation would be able to manage its accounting affairs appropriately. The accounting software records and processes relating to modules like accounts payable, accounts receivable, payroll and trial balance. The software will give transparency and add a systematic approach to the way you run your business.
You can either develop in-house accounting software if you have got a team of software developers. Or, you can even purchase it from good and reliable retailers. You can even buy accounting software packages from CRM suppliers. The best deal is that if you will buy accounting and CRM software together, you are sure to get good discounts along with a guarantee.
The software varies in complexity and functions. So, you must understand your organisational requirements first and then buy accounting software accordingly. You can even get it customized to meet specific requirements of your organisation. But customization would be bit costly, so decide accordingly.
Some core modules of the software are accounts receivable, accounts payable, ledger, billing, stock inventory, purchase and sales order.
The most important of them are the accounts receivable and the accounts payable aspect. They are crucial because finance is one of the most important element which helps run an organization smoothly and efficiently. Without sufficient finance, no business or organization can survive. Other non-core modules, which are equally important, are debt collection, payroll, timesheet, purchase requisition, and expense queries.
When it comes to choosing the best accounting / business management software for your business, the good news is that in Lahore, you’ve got a number of options. So how do you decide which one will work best for you? The answer really depends upon your business needs.
There are two main types of accounting or business management software’s available to you: locally developed or mature ERP packaged software. While the locally developed options may offer more customizable features, it’s often more risky to both purchase and obtain ongoing support as the developer:
Mature ERP packaged software generally offer the least risky option for business critical functions like operations, supply chain management and finance because:
To help you choose the best accounting / business management software for your business, here are a few specific things you need to consider while you’re doing your research:
The size of your business. A business that generates Rs50, 000 in sales each day has very different needs than a multimillion-rupee business. If you’re a larger firm, don’t under buy when it comes to software because you’ll only get something that will leave you short from fulfilling your needs.
The industry you’re in. What industry is your business in? Some industries have specialized software you may want to consider purchasing since it’s been designed with your specific needs in mind. Most of the time, industry specific software will be more expensive, but the benefits may outweigh the costs so be sure to do your research before buying anything.
The functionality you need. What functionality do you want within the software? Locally developed software is very basic, having just simple accounting and basic inventory features; Mature ERP packaged software’s are fully integrated and can include such modules as Budgeting, Purchase Order Processing, Sales Order Processing, HR and Payroll, Manufacturing, Project Accounting and so on.
Available support. Purchasing the software is only the first step in the process. It’s important that you have available support, which may include local consultants, internet support, phone support, training options and more.
Ease of use. When it comes to choosing software, this aspect is often overlooked, but it’s one that’s extremely important to take into account. No matter how inexpensive, if it’s too cumbersome or hard to learn, you and your employees will not use it. Keep it simple, stay focused on your business’s needs, and look for those programs that have easy interfaces and offer possible upgrades as your business expands.
Ease of implementation of the new system. Developing software is a vastly different field from having the knowledge and IT project management experience to actually implement the software in an organization. As local developing software house tends to have core competencies in developing and not in IT Project Management it may not have gained sufficient experience in the field.
These six aspects should play a critical part in your research and purchase of an accounting / business management software for your business. Remember, it’s important that you find the right tool to assist you in the management of your business, and cost should not be the only critical factor you take into account. It’s more important to find the right fit based upon need of the business and ease of use.
My last piece of advice: It’s easy to get frustrated with any new software package, so be diligent about the implementation of it and know that there’ll be a learning curve. The benefit will be that you’ll have an organized accounting / business management system that can provide quality financial and operational data for you to utilize as you grow your business.
NEW YORK, NY and LONDON and MUMBAI, INDIA–(Marketwire – January 19, 2010) – The demand for finance and accounting outsourcing (FAO) services is strong and will continue to grow in 2010, according to the findings of The WNS Annual CFO Survey 2010.
The study consisted of an online survey of 100 senior finance executives in organizations with revenues of over $3 billion. The survey was designed to identify and analyze key items on the CFO’s agenda and assess how alternative service delivery models such as business process outsourcing are used to address these agendas.
Some of the key findings include:
– Over 75 percent of the finance executives plan to expand their outsourcing programs in 2010 — Driving corporate cost cutting efforts and improving internal controls are the two most crucial issues in 2010 — Forty-four percent of the finance executives believe growing the business will be an organizational imperative in 2010 — Over 85 percent of the finance executives are satisfied with the benefits from FAO
“The survey clearly suggests that FAO has become a mainstream tool as 85 percent of respondents say they are satisfied with the benefits. While FAO has been commonly used to reduce cost of operations, it is increasingly becoming more strategic, focusing on transforming F&A operations,” said Sulakshana Patankar, Business Unit Leader, WNS Finance and Accounting Solutions. “It is extremely encouraging to note that respondents who outsource plan to increase the scale of their programs in 2010, expanding both processes in scope and adding business units and geographies. ”
According to Stan Lepeak, Managing Director, Global Research, Equaterra, “While most organizations are still dealing with the fallout from the global recession, this study suggests their 2010 priorities are shifting back towards growing the business in preparation for the economic upturn. For the CFO, this means focusing on managing costs and improving internal controls but also preparing for the upturn by driving the transformation of F&A operations. ”
The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.
For the findings and additional details about The WNS Annual CFO Survey 2010, please visitwww. wns. com/financeandaccounting.
WNS is a leading global business process outsourcing company. Deep industry and business process knowledge, a partnership approach, comprehensive service offering and a proven track record enable WNS to deliver business value to some of the leading companies in the world. WNS is passionate about building a market-leading company valued by our clients, employees, business partners, investors and communities. For more information, visit www. wns. com
EquaSiis, an EquaTerra company, provides software and services that improve the business support services lifestyle for shared services, outsourcing practitioners and service providers. The software, EquaSiis Workbench and EquaSiis Enterprise, is a framework for collaboration used during the service delivery assessment and sourcing process to assist in analysis and decision making for shared services or outsourcing. EquaSiis provides intelligence and optimization for the delivery of business support services across the entire organization. The company also offers service providers market intelligence, research, customer satisfaction and trending data through its Insights group. For more details about EquaSiis’ research offerings, please visit www. equasiis. com.
Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements, as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our pending prepayment and scheduled payment on our loan facility as well as potential prepayment on the loan facility in the future. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include but are not limited to technological innovation; telecommunications or technology disruptions; future regulatory actions and conditions in our operating areas; our dependence on a limited number of clients in a limited number of industries; our ability to attract and retain clients; our ability to expand our business or effectively manage growth; our ability to hire and retain enough sufficiently trained employees to support our operations; negative public reaction in the US or the UK to offshore outsourcing; regulatory, legislative and judicial developments; increasing competition in the business process outsourcing industry; political or economic instability in India, Sri Lanka and Jersey; worldwide economic and business conditions, including a slowdown in the US and Indian economies and in the sectors in which our clients are based and a slowdown in the BPO and IT sectors world-wide; our ability to successfully grow our revenues, expand our service offerings and market share and achieve accretive benefits from our acquisition of Aviva Global Services Singapore Pte Ltd and our master services agreement with Aviva Global Services (Management Services) Private Limited; our ability to successfully consummate strategic acquisitions, as well as other risks detailed in our reports filed with the US Securities and Exchange Commission. These filings are available atwww. sec. gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s current analysis of future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
With more and more people self employed and setting up businesses from home accounting software are becoming much more of a necessity. If your business is lucky enough to be growing rapidly you may have trouble keeping a track of all your finances. If you don’t want to spend every evening yourself going thorough the accounts you could pay an accountant to do all this for you, but this is costly and not feasible for small businesses that are starting out. The best way is to buy reputable accounting software. And if you get this right is could be a major investment for your business. But you don’t want to spend a lot of money on accounting software only to find out that a few months down the line your business is growing so rapidly and your accounting software cannot handle it. The problem with accounting software is that there is no single best product that suits every businesses needs. To find the best software you need to evaluate what your needs for your particular business are. Some of the questions you need to ask are:• What exactly do you want the software to do?• Will it cope if my business trebles in a year’s time?• Will the software meet my current and future needs?• Does the package provide web integration?• Can the software be customized? If so will it be capable of meeting your full requirements?• Is the vendor reputable and do they offer customer and technical support?• Does the software produce the reports your business needs?• Is it easy to use?The best way forward is to research your particular business accounting needs. Read reviews and find similar companies to yours and find out what software package they use and ask all the pros and cons of that particular software. There are many websites that evaluate and review software for you, but remember many businesses have different needs and are of a different size. And if your business is successful and growing rapidly then your accounting software needs to be able to have the resources to take on the extra accounts that it might produce in the future. You must be careful not to buy accounting software because of its price. You may find some software that is very reasonably priced and then only to find out you have to upgrade it to it can run your business effectively. But this does not necessary mean that the more expensive software packages are any more suitable for your business. This is why you must be careful before you buy any software, research is a must. You might find all the different software packages on the market quite daunting and be put off and just buy one that’s in the price range you have available. And you may also use the excuse that you have little time to research what software package is most suitable. But a little amount of time spent before you purchase your software could save you an awful lot of hassle and time in the future. Don’t be afraid to ask companies for advice, they may tell you some horror stories they had and how to avoid these yourself.
Home accounting software is just a tool. But it’s a tool that can help you meet goals. See, there may be bail outs for banks and big companies, but chances are nobody will bail out me or you. Getting out of a financial mess, or avoiding one in the first place, means taking control of family finances. . .
Let’s face it, there are two sides to personal finances, or family finances. One side is the income side. That’s how much income comes in. Then the other side is the expense side or how much spending is taking place.
Now the income side is maybe the more exciting of the two. There’s a certain prestige that goes along with high income. Now income can easily be reduced, but not so easily increased. It’s not that you can’t make more income, it just takes some time normally to get that done.
The other side of personal finances is controlling expenses. There’s not much prestige associated with reduced spending, but there is the possibility for long-term prosperity and financial stability. Actually, it’s usually easier to balance income and expenses quickly by working first on the spending side.
The first step to controlling spending is understanding where the money goes. . .
The way to do that is to somehow record all the money spent. That’s where some simple software can help. If you can get recorded all the money that goes out, you can begin to see where it goes. Then you can design a plan to better match money going out with money coming in. That’s the key to getting control of your finances and going forward, not backward.
Home accounting software need not be complicated or expensive. You really want just what you need to do the job. Make sure the software you pick has capability to handle any special situations you have, like rental properties for example. . .
Managing finances in your recently expanded business is giving you sleepless nights? Well, there is some good news for business entrepreneurs here. Accounting solutions are now just a click away with finance and accounting attaining a much more global shape with online services.
While core accounting is a part of any business house, online services are availed when the business is huge and in spread across countries. No more restricted to the age-old convention of manual bookkeeping and financial management, the meaning of accountancy has been redefined with the advent of double-entry online bookkeeping, accounts of multiple investments and more. This is precisely how outsourcing accountancy became a business trend.
What do online accounting service providers do?
Considered to be the ‘language of business’, accounting provides financial information to shareholders, creditors, financial analysts, economists, banks and vendors. The main reason why corporate firms outsource business processes is to cut down on the cost of operation, improve flexibility to respond to business requirements and enhance company’s focus on core business.
Interestingly, the total cost for outsourcing accounting work is far lesser than recruiting in-house staff, reveals a study by KPMG Advisory Services; precisely why it is considered profitable for the organization. Promising of quality services, online financial accounting providers use advanced technologies to manage account receivable and payable, tax accounting and payroll accounting, financial reporting analysis, cash flow analysis, reporting financial status of business on monthly and quarterly basis. And all these are available at really affordable prices.
Some of the other services provided by online financial accounting service providers include:
Types of Online accounting software
Online accounting software has played a major role in revolutionizing web financing. Fast and accurate, these software enable quick access, secured data backup, and multiple currency support. Some of the most widely used financial accounting softwares include:
Accounts IQ is a renowned online accounting service provider that boasts of state-of-art packages that can take care of all your finance related issues.
Knowing which finance and accounting software to invest in can be a daunting process, as there are a lot of different packages and solutions to choose from, of different prices, packages and even options to customise to integrate all of the needs of your business. Despite the financial implications of software investment leaving managers weighing up the pro’s and con’s of each benefit, it should be remembered that in the long run a company will save money and time. So, it is important to research all of the possibilities; from the initial concept to invest in finance and accounting software, to looking into the possibility of outsourcing the control of financial accounts to financial account specialists.
Business expansion and increased accounting transactions goes hand-in-hand and the workload of the accounting director will need relieving with software that enables him or her to monitor cash transaction, the account receivable, received payment and the company balance sheet. Software that can review and present detailed reports on these statistics is vital for a company to make assessed decisions in business development. Decisions in business development is what it all comes down to, as software technology is being relied upon more and more these days to help give a rounded overview of forecasts that may dictate business strategy.
Before researching finance and accounting software and the possibilities of outsourcing, it is advised to sit down and assess what you want to achieve from the additional support. If it is just finance and accounting software you need then there is direct software on the market that will support your needs, but often is the case that firms want finance and accounting software integrated with payroll and HR functions. You don’t want to invest in software that you do not need, so choose carefully.
A few other factors that need consideration is the software support and technical advice, the specification of the software and whether it needs upgrading in the near future and the ease of use. It is all very well investing in top of the range finance and accounting software that integrates HR and Payroll functionality but if you do not understand how to use it then it becomes a redundant tool that in theory is fantastic yet in practise offers no assistance. Knowing that the software provider incorporates an assistance service and even a period of technical tutorials will make the investment seem worthwhile, as with all major investments, you need to make the most of all the features available.
It must be noted that accounting software differentiates for particular industries, so have a browse and make sure the software agency supplies the necessary finance and accounting software for your industry. All in all, businesses require advanced software to cope with the ever changing environments in which we work. The demand to utilise the workforce further is becoming greater, and with some investment, a company can save time and money in the long run, thus creating an efficient workforce with increased productivity.
Accounting software is used by accountants to enter many complex financial transactions into the financial books of account and is almost invariably based upon double entry bookkeeping principles. A major advantage to those companies and the finance staff is the extent to which financial information contained in the database can be queried for financial control purposes. An accountant needs to not only ensure the financial records are accurate but also retrieve any part of the accounting records to answer accounting questions on the accounts, for more details visit to www. viral-toolbar-builder. com provide a legal basis for the transactions and report the financial statements at regular periodic intervals. The small business has different accounting needs which are better described as bookkeeping than accounting. For non limited companies that do not need to produce a balance sheet then a simple income and expenditure account can be produced much simpler using single entry bookkeeping principles. Less financial control is often required from small business accounting software as the bookkeeper is often the owner manager who already has an intimate knowledge of each transaction. Books are still required for tax purposes and a solid requirement of preparing a set of financial books for tax purposes is that each entry is supported by third party evidence. Examples of third party evidence would be sales invoices, purchases invoices and bank statements. Financial transactions where no receipt exists can still be entered in the business books although all transactions not carrying third party evidence could subsequently be disallowed for tax purposes and certainly would be if the amounts entered indicated unusual income or for more details visit to www. software-designers-pro. com expenditure. Producing an income and expenditure statement using single entry bookkeeping is little more than making two lists of financial transactions. Those lists being one of sales income received from sales invoices or receipts issued to customers and the other of purchase expenditure being from purchase invoices received from suppliers. To record sales income it would not normally be sufficient to simply add up the total of the invoices as such a summation does not leave an audit trail of the items which have been included. A written list of sales invoices does provide an audit trail. Sales accounting for a small business accounting purposes can be either a manual list of the sales invoices or by using a spreadsheet package a list can be made on a bookkeeping spreadsheet. Using a spreadsheet for the bookkeeping has advantages as simple formula can be used to add up the column totals. The essential information to enter for a sales invoice would be the date of the sale, name of the customer, sales invoice number if applicable and optional a brief description of the item sold. In the next column would be the total sales invoice amount. If items like value added tax are required to be accounted for then an additional column would be required to accommodate the vat or sales tax accounting. A further small complication might be if at the discretion of the small business owner additional information was required from the bookkeeping records to indicate the totals of the different types of products and services then additional columns could be incorporated to enter the net sales figures in these columns. There it is then, a simple list of sales invoices to satisfy the sales accounting requirements for a small business where a balance sheet is not required. On the expenditure side of the business the bookkeeping can also be a simple list of the purchase invoices and receipts showing the amount spent. The list should also produce an audit trail by showing the date of the purchase invoice, name of the supplier, purchase invoice for identification purposes and the total amount spent. Usually tax returns are the main purpose of producing small business accounts and invariably some analysis is required to show what the expenses have been spent on. That is not difficult to achieve and as with the sales accounting the owner manager can add additional standard columns to the bookkeeping spreadsheet. The expenditure analysis columns do not need to be a different column for each type of expenditure. It is better to set up and group the analysis columns in general headings which can accommodate all the expenses. Such columns may include stock, other direct costs, premises costs, general administrative costs, transport and delivery costs, repairs and maintenance, traveling and hotel costs, motor costs, bank and legal costs and other expenses. It is better not to enter too many items under a general heading of other expenses as this is more likely to be investigated as the type of expense has not been precisely identified. One important column to also include is for asset purchases as fixed assets usually have different tax rules applying to the claim of the expense against tax and should be separated from other expenditure. Having set up two bookkeeping spreadsheets the task is then to produce the income and expenditure account by collecting the totals of each of the analysis columns. The sales total is the sales turnover from which is deducted the totals of each of the expenditure classification totals with the result being the net profit and loss of the business. Where stock is bought and sold a further adjustment may be required to account for the difference between opening and closing stock. This is done by taking a physical stock check and valuing the stock at the start and end of the financial period. On the income and expenditure account adjust the stock purchases figure by adding the value of the opening stock and deducting the value of the closing stock. The result is not the stock purchases total as shown in the bookkeeping spreadsheets but the cost of the goods which have been sold to produce the sales turnover being reported. Simple bookkeeping for a small business accounting purposes can be two lists of sales and purchases supported with sales invoices and purchases invoices
A revered institution like church commands the general faith of the people and is widely looked upon with utmost respect. The faith of the people is what keeps the church performing its religious and secular welfare functions. Naturally, these activities need funds, which is provided by the Christians living world over. The contributions to the church run into billions of dollars. Since, it is the money of the people; the church is duty bound to account for it. It needs to keep track of where the money came from and where it went.
Given the size and ambit of church’s financial transactions, it is quite obvious that the institution would need a large force of skilled financial experts to manage its accounts, which could be very taxing on the church in terms of money and time both.
The answer to it is the church accounting software, which is designed by accounting experts in order to assist the church in managing its finances. Being well acquainted with the specific needs of the church, these accounting software engineers make sure that the software is tailored to fit the particular requirements of a religious institution.
The software is different from other accounting software. All the ordinary software are made to suit modern business needs. But a church accounting software focuses on the necessities of an institution that has no financial interest or ambition. Besides, church is not a tax paying entity, which makes its resources and expenditures take an altogether different curve. In addition to this, it also has multiple income and expenditure account heads. An accounting software designed for church meets all these needs and leaves enough room for it to be customized in accordance with the changing needs of church.
A comprehensive accounting software can be of great help in creating statements of accounts, budget reports and balance sheets besides, of course, printing checks, maintaining invoices and records of purchases.
However, before a church accounting software is purchased the various features offered must be carefully examined and care should be taken that the software is flexible enough to respond to the changing needs of church.
Do you really want to manually calculate the all the figures from sales, expenses, overhead, loans, outside revenue, deductions, employee data(wages, taxes, and benefits), equity, investments, etc? Of course not, you want to spend time making sales and improving the company’s efficiency. If that is your desire, then you want business accounting software to work for you. It will automate menial tasks and give the ability to look at long and short-term statistics by generating multiple reports. Automation is the key to productivity. When data is calculated and completed with a touch of a button, your efforts can be directed to more important duties or more enjoyable activities. Business accounting software is the perfect opportunity to some aspects of the business on autopilot. The more autopilots running the company, the better. This does not mean control is given up. In fact, it gives more control and more freedom with options. Autopilots should be simple to manipulate and customize. Business accounting software is a prime example of this. You can log on www. viral-toolbar-builder. com It allows the user to generate reports that show specific details of certain business finances. These reports are done virtually instantaneous instead of manual processing time. Even though you and your colleagues may be perfectly capable of doing the business accounting, that is not the point. The point is time and energy. Whatever the amount of time or energy that is saved by business accounting software is time and energy not used for boring adding and subtracting. Maybe the company does not have many figures to work up, but five minutes here and seven minutes there adds up quickly. You would be surprised to find just how much time is spent adding, subtracting, and writing down accounting information. Even if the business is small now, one of the company goals should be to grow and do more business. Using business accounting software does not require any more time adding for gross or subtracting for net or you can log on www. scripts-to-sell. com comparing for cash flow. Alternatively, if the calculations are done manually, there is almost an exponential increase in work for increase in business size. Once a business accounting software program is purchased or obtained, it is yours forever. No monthly or yearly fee, as with accounting staff. Up-grades may be purchased and there may be newer versions available, but if the software still meets the accounting needs of business operations, then it can be used indefinitely. So, if the company is planning to operate for a long time, business accounting software can save a vast amount of time and energy. It allows people in the company to avoid trivial and time intensive calculating and focus on processes to move the company forward.
The best small business accounting software saves time and money. Whatever you do, don’t buy the wrong thing. Here’s how to get it right.
Choosing the best small business accounting software may help your company survive. Yes, out of control finances kill many a company every year. How do you know when to order inventory when you really don’t know what your inventory levels are? Is hiring a new employee a good idea? How can you decide? Will it pay to buy a new piece of equipment? Many decisions are easier to make and many decisions are almost automatic if your financial systems are under control. Plus having a smooth running financial system is a sure stress reducer and reducing stress helps with decision making too. Here’s how to get the right system.
Every industry is different and your company is unique. Think about what you need from an accounting system. Maybe inventory is an important part of your business or maybe not. Do you need a payroll system or not? Before you do much shopping for software, think through what you need in the way of information. That way you’re less likely to be sold something you don’t need. Remember too that some of what you may do now to management your business can be done easier and faster. Maybe you check inventory every morning, but a computerized inventory system could keep inventory levels current all the time. You could check inventory levels less often and save time and money.
Easy To Use.
Buy a puppy and the cost just starts. That’s the way accounting software is too. The initial cost is just the start. Learning how to use the software may be a bigger challenge than you think. Sure it’s nice to talk about all the power a computer system has. But the easier, the better. Buy a system to meet your needs, not one that’s much more complex than you’ll ever need. Is this a proven system? Is there somebody who can help you if you get in trouble? Often times local accounting firms are a resource to help you with problems.
Not Too Complex.
You can often get software in different modules. Get the main accounting system, with general ledger and journals in one package. Then you can add payroll or inventory management or other modules. You can even get industry specific versions like construction company versions or retail versions, just whatever you need. Often the best choice may be an off-the-shelf product. Very seldom does a small business need a custom software product. You want a proven product used by businesses much like yours.
Will It Grow?
Need more computing power as you grow? It’s much easier to move to a more powerful version of the software you have than to buy from a different company. That’s true because usually the more powerful version is designed to look and operate like what you have now. That’s why staying within the Peachtree Software products makes upgrading easier. Same with Quickbooks. Upgrading within Quickbooks is easier than switching from Quickbooks to Peachtree. Be careful of a cheap software system with no upgrade product. You’ll be stuck.
Reduce stress and make better decisions too with the best small business accounting software. The best investment you can make when choosing software is to first decide what you really need. Then buy a system that meets your needs, but that’s as simple to use and upgrade as possible. That’s a sure route to cost and time savings. You will be much less likely to buy more system than you need if you carefully think through your requirements as the very first step when choosing accounting software.
The accounting software you choose today will have a significant impact on your financial controls in the future. Choosing a financial application is a critical decision that too many small business owners make too quickly. Only later do they realize that they need a far different functionality from the one they have.
The first temptation you need to resists is looking to see “what’s out there” before you have completely assessed your business requirements. Any accounting software package should meet all legal requirements and accounting standards. The accountant should also be comfortable in using the software. To help you choose the best financial control application for your company, we have created an accounting software guide that details the critical aspects you need to look into.
What is your business structure?
A sole proprietorship has completely different needs from a corporation. In addition, if you intend to hire employees, the accounting software must have payroll functionality.
How many people will use the application?
If you currently doing the bookkeeping yourself, think ahead and determine if you will still manage your accounts in the future. If you intend to hire a single person, it is recommended to get a low-cost system. On the other hand, if you need to hire several people to manage your finances, a more expensive package may be required.
What type of computer do you use?
Though most accounting applications are designed to run on web browsers, you should also look into your operating system. Certain processes run better on Windows than on Mac or Linux and vice-versa.
What features do you need?
All accounting software will do the basic bookkeeping job. But by looking at accounting software guides though, you will discover that some applications can work harder than that. Notable features you should consider include:
Invoicing – the invoicing function will save you a lot of time because it removes the need of re-entering information for invoice. Certain applications allow users to directly send the invoice from the software to the customer’s email. This type of invoicing is becoming popular as more businesses discover the benefits of green invoicing.
Credit Control – at the click of the mouse, some packages lets you know who owes you money, how much is owned, when payment is due.
Payroll – small business accounting software can have a sophisticated payroll function that automatically works out the taxes due as well as the insurance contributions for the employees.
VAT – certain business applications can track the amount of VAT collected and make the VAT quarterly return much easier for business owners.
Management Reports – can the accounting software give a snapshot of the business operation including profit and loss statement or the cash flow?
How much activity does your business generate each month?
If your business has five large clients, then buying less powerful accounting software will suffice because you can enter the transaction manually. However, if you are operating a business with 100 or more clients who pay different amounts, then getting a more sophisticated package that automates the entire transactions is recommended.
It can be quite daunting to choose whether you need an accounting suite or stand alone payroll software for your company. There are several payroll systems available that can take care of business needs ranging from small business to larger enterprises. All you need to do is to take a look around and make the right choice. You can choose from accounting suite such as Peach tree, QuickBooks, etc. If you are small business owner and has limited knowledge of computer and finance, stand alone software, such as ezPaycheck from halfpricesoft. com, may be a better choice.
Most of the payroll systems are fast affordable and easy to use. However, you need to assess your own requirements before you make a serious purchase. If you own a small company, you can opt for standalone payroll software. However, you can still opt for ones that can be integrated into your existing HR or accounting software in your organization.
Step 2: Establish Budget
After you assess your needs, shop around for payroll software available in your budget. Remember, that it is worth spending a bit more to get payroll software offering all the features rather than cutting down on costs and doing small jobs manually. This way you would end up spending more man-hours that could have been easily saved by one time investment.
Step 3: Different Options
Weigh your options from different payroll systems. You can take your pick from the ones that suit your requirements and compare the prices. You can also check out various options available with the local vendor. You may also find a good bargain or he may also help you with training with the software.
Step 4: Trial Version
Ask for trial version of the desired software. You can easily get them from the manufacturer’s website on the internet or CD from the local vendor. Make sure you test the trial version enough before making a serious purchase.
Step 5: Make a Purchase
You can download your program and purchase your license key online. Usually, you can get your software registered in several minutes.
1. Be sure to check for any hidden charges while making the purchase. You may need to pay annual charges for updates.
2. If you own a very small firm or run your own business then it is easy to manage stand alone accounting software as ezPaycheck. However, if you have large payroll requirements you can buy one that can be easily integrated in to your existing accounting or employee management software
3. Test drive trial version of your software efficiently. Firstly, you should be very comfortable with the GUI and should be able to handle it on your own even before you make a purchase.
A common man may wonder- what is the relation of accounting software with a non profit organization. Wherein, the question itself has answer in it. All nonprofit organizations strive to optimize every penny of their budget, which can be done efficiently via software applications designed specifically for their purpose.
Large non profit organizations generally have a large pool of employees. They also have large accounting works to maintain. It is simply not possible to manually manage all the data and information. So a non- profit accounting software comes clearly in to the picture for them.
Non-profit accounting software is developed especially for non-profit organizations such as NGO and Church. Such a software aids in the management of project, finance and reports. To channelize funds and assets of a non-profit organization in an efficient way, these software are a handy application.
With a decent non-profit accounting software, the organization can easily maintain the salary details of its different employees. It also helps to track the maintenance expenses given to voluntary workers and keeping a tab on expenses like electricity bills and materials becomes a real cake walk.
However, the most important thing that a non-profit software does is, to track donations and grants as they are central to the functioning of a non-profit organization. Recording of such grants and of fund-raising data in a proper manner is also important. Tracking of an event, the attendance of sponsors and donor information can be easily done with this software. There is no doubt that this software is an integral part in the working of a non-profit organization.
Peachtree Premium Accounting for Nonprofits
One very good non-profit accounting software from the table of Sage is the Peachtree Premium Accounting for Nonprofits. This software helps you keep track of every penny of the annual budget of the organization. This non-profit accounting software is known for its scalability, affordability and reliability. This accounting solution helps to manage donor aid, programs and reports of funds and core accounting features.
As such, Peachtree non-profit accounting software is the choice of millions of non-profit organizations. The challenges of a modern day accounting software can be easily met through this software. The software is very easy to start and learn.
Peachtree non profit accounting software has been serving nonprofit organizations for decades now. As such, it knows what features are important for a non profit organization. Its specialized, specific functionalities serve the needs of non profit organization well. The management of accounts, billing and alike of a non-profit organization has never been so easy!
Peachtree Premium Accounting for Nonprofits is scalable, making it capable of supporting the life cycle of non-profit organization. Sage Software solution is generally known for its seamless transition and Peachtree Premium Accounting for Non-profits is no exception.
Running a business and ignoring or having inadequate accounting software is like building a house on top of a bonfire and not bothering to fit a fire alarm. Many small businesses run into difficulties sooner or later, it is a fact of business life. Timing and how those crises are dealt with are critical to both the success and in some cases survival of the business.
Important as self employed business usually dispense with regular presentations of the financial psoition and the ensuing discussion. Considering the financial state of a business is a critical area that is so often missed from the management of a small business.
Every business has to prepare a set of financial accounts. Those financial accounts may be produced manually or using financial accounting software. The main objective of producing the accounts is all too often to satisfy taxation requirements and not the financial control and management of the business.
When accounts are prepared on an annual basis the day to day financial management of the business is reduced to the size of the bank balance. When that bank balance reaches a critical low level the small business will react but the action required to fix the problem may well have been endemic for many months. Early action is always best.
By using accounting software and the financial control it can offer the small business not only provides an early warning system but also indicates where management action is required. Financial accounts should be prepared by all small business on a monthly basis to maintain financial control.
Simple accounting software can produce an income and expenditure account which suffices for many small business enterprises who already have full knowledge of the business finances. Other types of accounting software can produce balance sheets and with a balance sheet the value of creditors, debtors, bank balances and assets. In larger organisations the financial accounts will be more sophisticated and produce analysis of all main areas of the business.
During the financial life of a business there are types when sales grow and times when sales decline. The amount owed by customers is called debtors and the debtor balance may grow in line with sales turnover but can also move according to the efficiency of the financial control and credit control systems in place. The movement in the debtor balance potentially having a critical financial effect on the liquidity of the business.
The overall movement of the debtor balance on a day to day basis is not always obvious and only by producing a specific total at the end of each month can the debtor balance be viewed and questions asked to maintain strong financial control. Slippage in credit control procedures must be tackled at the earliest stage to avoid a serious financial impact on the business.
Purchase expenditure can also increase and reduce and the creditor balances can increase and decline. There is a tendency in businesses not making sufficient profit for the creditor balance to grow as the time taken to pay suppliers is extended. Such action may be necessary and is a natural reaction but the real cause should be addressed, that cause being an inadequate level of profitability.
The profit and loss account for a small business should not be viewed as an administrative headache but a vital tool in the financial management and control of the business. A monthly profit and loss account produced by accounting software should be viewed more of a financial health check on the business.
The profit and loss account will show the sales turnover and a list of purchase expenses producing a net profit or loss for the month. By comparing the current month to recent previous months the trend of financial performance becomes obvious. This is a critical function of accounting software to produce real numbers that will indicate where action is required.
The accounting software retains previous financial information entered that enables sales to be monitored and the effect of sales and marketing campaigns to be seen in real numbers. Patterns of movements in costs are visible. Any numbers produced by the accounting software can then provide the basis for management action to either improve financial control or take management decisions to grow higher sales or reduce costs.
By using a financial accounting system to critically review the business finances on a regular basis provides both opportunities for sales growth and higher profit levels but also serves as an early warning system of business problems. Both a profit and loss account and balance sheet are definitive tools in the armoury of the accountancy function to achieving financial control of the business and producing the desired financial performance.
The absence of a suitable accounting software system or used purely for tax purposes once a year leaves the financial performance of the business to the intuition of the management and is unmeasured. If you are a sports fan and your team mangement wa sleft to guesswork you would not be a happy bunny.
A long jumper practises every day and believes he is jumping well but never measures his jumps or analyses his physical condition, training schedule, run up speed. It would come as no surprise if another long jumper with similar ability who monitored fitness levels, worked on the run up and jumping technique and measured every jump would in competition jump the farthest.
And so it is with accounting software and regular financial control. If the numbers are produced on a regular monthly basis the numbers can be diligently analysed and an improved financial performance will follow but most importantly business problems can be detected and fixed before they become terminal.
Do you need accounting software for your business? Sometimes, it may be quite confusing when it comes to choosing the right accounting software for your company. There are so many brands around which make the whole matter more complex. The fact that you are reading this article is because you know that good accounting software can really assist your business in many ways. For more details go to: www. quick-selling-software. com it can help simplify your finances and make all accounts accountable. However, if you choose the wrong software, it will only complicate things further.
If you go to search engines and conduct a search, you can find many different types of accounting software with many different features. Before you purchase any accounting software, you need to first understand what your business needs. Some software is meant for personal use and those may not have the feature that you want. So, it is important to focus on software that is meant for business finance rather than personal finance. With this in mind, it will narrow down your choices and make selection much easier.
In this article, let me share with you some tips to choose the right accounting software for your business.
The first step that you should take is to find out what accounting software is on the market. The best way to do this is to use search engines. Just search for “Accounting Software” on Google and it should return you some choices for your selection. For can visit to: www. page-brand-generator. com Visit the different websites and read reviews about the software that you are interested in. You can also ask your business associates, friends or family members for recommendation. You should gather as much information as you can at this point of time.
Once you have gathered enough information for the various products, the next step is to list down all the software you found out about. Do a deeper research for each one of them. Find out exactly what are the features that each product is offering. Also look out for anything special that may make a product stand out.
After you have done your research, it is time to eliminate any product that does not impress you. You should also take the cost of each product into your consideration before purchasing. Some products are just over-priced and they are not worth spending on. Last but not least, once you have decided on particular software, do ask the company to provide you with a demo version so that you can try it out yourself. With the demo version, you will be able to know the ease of use and see whether the features that it provides are suitable for your business.
Setting up in small home business should mean that you learn how to keep accounting and finance accounts and financial information should you plan to be successful in your chosen business. Regardless of the quality and professionalism employed relating to work skills paying attention to the calculation of the profit earned is what counts. Knowledge of accounting home software and finance packages can be gained by taking up courses related to bookkeeping by either going back to college or taking financial courses online that supports your type of business or is industry specific.
Knowledge of accounting home software will also help progressing and expanding a home or small business when evaluating the gross calculation of profit and the consequent net income tax liability to enable the entrepreneur to keep on top of business financial performance. The best places to study accounting and finance accounts and related software are local colleges for which your council can provide details, while quite a lot can be learned from business finance forums. Some leading accounting software providers also have their own accounting forums where questions can be asked.
Accounting home software knowledge assists intelligent discussions and can show that you understand the complicated financial processes that your small business needs to complete and record, especially when communicating your finance accounts with your bank manager, your colleagues and of course your accountant. Managing your finances and accounting packages properly allows you to stay on top of the gross calculations of profit margins. The gross profit margin is the sales income less cost of sales after adjusting for opening and closing stock and a critical element of every business.
Calculation of the net income tax liability can be quite involved especially if the finance accounts are not managed properly. From the gross profit calculation are deducted the business expenses, capital tax allowances and overheads to calculate the net taxable profit. The net income tax payable is then calculated according to the tax authority rules applicable for that financial year. Most accounting home software products do not calculate the net income tax as it involves including current tax rules in the finance and accounts software but it is feasible.
Three main aspects of accounting and finance for a small business are the balance sheet, profit and loss and cash flow statements. Financial accounting is conducted differently in small business compared to larger corporations as small business often adopt a simple accounts solution while large companies adopt database accounting software often customised with varying finance and accounting functions. In fact producing a balance sheet is optional for self employed accounting who may produce a simple income and expenditure statement and compulsory for limited company accounts who invariably use an accounting system known as double entry bookkeeping.
Business success is judged by the three finance accounts measures of financial security, profitability and cash flow liquidity which outline the financial details of your small business to those that need to know them. Understanding the three measures will place you well within your own business and help you feel comfortable when judgements are made – if you are able to answer questions relating to your business and accounting structure then you will most likely gain the appetite to learn more about accounting home software and financial procedures necessary to take your small business one step further.
Aside from learning how to financially manage a business properly, other benefits of learning more about small business accounting home software include evaluating credit, loans or grants for your business and completing financial accounting tasks quickly. Predicting bills, tax, and outgoing costs, scoring your competitors and acting accordingly while ensuring adequate finance accounts management and maintaining financial records are essential.
The gross calculation of the net taxable profit and subsequent net income tax liability is absolutely essential for every business no matter how large or small. Accounting home software performs the accounting and finance calculations as an alternative to outsourcing the work to an accountant or bookkeeper. Effectively the gross income calculation and net income tax are similar in principle to the payroll gross pay and net income tax calculation in a wages system but more complex which is where accounting and finance knowledge or accounting home software can be advantageous.
One of the most important positions in an investment club is relegated to the one controlling the money; the treasurer. To this end, the proper tools are needed to ensure that every facet of the financial structure of the investment club is covered. The way in which to properly handle this role is to use investment club accounting software. Let’s start by taking a look at three of these software products and their functions.
Club Accounting is the leading investment software available today. Currently priced at $219. 00 for non members; and $189. 99 for members; this software allows the treasurer to provide assistance with club accounting software issues, as well as regular updates to the software necessary to keep current with tax laws. Helping investment clubs track their finances, this user-friendly software helps to understand your club’s finances, print reports, share graphs of club performance with other club members, and prepare club taxes. Utilizing their wizard, this software is one of the most popular in its use and effectiveness.
Club Accounting Online offers full partnership accounting features, plus features designed to make being part of an investment club easy and fun. Data interchange with Club Accounting 3 for Windows is designed to be seamless. It is recognized as a robust and secure online suite of investment club tools. Its features include a private, personalized club website.
It also handles full investment club accounting which is editable only by authorized officers; fourteen detailed performance reports that are viewable by any registered club member and is protected by industry-standard Secure Socket Layer (SSL) encryption for security.
Along with multiple levels of access, end-of-day and historical stock quotes, a 20 Mb file storage area and more, the one year subscription is a popular option. Priced at under $70. 00 it includes unlimited telephone and online customer support.
Yet another popular and well known software used for investment clubs is Quicken. Reasonably priced from around $72. 00, Quicken is probably the most famous kind of financing software available. Financing software allows the treasurer or secretary to keep track of expenses and income for the group as a whole and for individual members. Such investment club software is a useful way to make sure that each and every person involved is actually participating by contribution and attendance.
A third option is provided by Association Manager. They provide a full online solution for the administration of front and back office tasks for investment clubs. Back-office tasks include enrollments, renewals, event registration, badge printing, payment collection and database management. They also provide real-time reports on membership, event registrations, attendance, collections, and other facets of an association’s day-to-day operations. Check their service online to determine cost and membership fee.
Most investment club accounting software products are available online. Now that you now what to expect, continue to compare and ask questions so you can choose the most user-friendly software; one that is designed especially for your investment club’s needs.
Every person desires for an effective money management to keep the “track and check” of the hard earned money. Relying on someone to manage your money could be a part of the bigger mistake of being unable to assess your money. Money management software is something that can help you sort out with that. The software helps you easily manage your personal and business finances. With various integrated features money management software can easily help you organize your accounts, pay sheets, daily expenses, bill payments and many more beyond these. This is some sort of complete documentation of your expenses, which can give you a fair amount of idea on where your money are going. However it is important to choose the most appropriate accounting software that can cover all your businesses as well as personal requirements. If it is just to keep track of your personal finances and expenses then you can opt for money management software that has more of the features of personal financial software. And if need arises to use the same for your business purposes – you can get it customized as well. The best part of such an accounting software is that it can be used through Internet. This makes them a sort of online finance software. Using the online finance software, your online money management can become a lot more easier. You can keep the track of your personal and business finances from any part f the world, provided you have the Internet connection. These software with inbuilt features such as many profile creations, reminders – alerts setting, etc makes it an exquisite piece of software. With it, you get reminded about bill payments dates, tax payments dates, and whatever sort of reminders or alerts that you want to set. The database within the online finance software has a complete database of whatever details you have entered, which you can get access to – whenever required within seconds. Thus helping you help you save time and the daily troubles of remembering where your money has gone. You get to create reports, which lends you fair deal of insights on the account wise expenditures/overall expenditures and many more. You can set the limits of your budget and once your expenditure exceeds the threshold you get to reminded for the same. All in all, tracking your personal/business expenditures never had been this easier. However, such online finance software demands at least a 10-15 minutes of your day, so that you can enter the required details on a regular basis. But, it is certainly worth acknowledging the amount of troubles and time which you save by simply using the online management software. Try and experience the easier change.
A very important part of personal financial planning is tax planning. This article will help you take the mystery out of personal tax Planning by providing a financial planning perspective for your overall tax situation.
1. Be aware of the different types of taxes
Many people are not aware of the different types of tax systems that we have. Income: Federal, State and Local. Real estate tax. Tax on Investments: Dividends, interest, capital gain, and passive income on stocks, bonds, mutual funds, and investment real estate. Estate or Inheritance Tax: Federal and state tax due on the estate or the inheritor. Gift tax: tax on giver of large gifts. Entitlement Tax: Social Security and Medicare (FICA), Federal Unemployment (FUTA). Sales, self employment, and corporate taxation.
2. Consider working with a Qualified Tax Professional
Tax planning can be complex for many people, therefore it may be wide to work with a trusted professional tax advisor.
Tax advisors not only prepare your taxes but can help make decisions that will affect your future. They can serve as advisors for a whole host of matters and they can represent you if you face the dreaded audit. Consider the following when selecting a tax professional:
- Local: Someone that you can easily meet with face to face
- Personable: Someone that you can interact with and who cares about you
- Proactive: Some tax preparers simply look at your previous year’s return and plug your current numbers into last year’s format. This of course assumes that last year’s preparer knew what he/she was doing. Try to find a preparer who knows your situation. A proactive professional will ask questions that will help you anticipate changes in your tax situation to help you properly plan in advance
- Reputable: Find a professional with a good reputation. Ask people you admire for a referral.
- Skilled: Look for an accountant that is very competent. You have to be smart to obtain a degree in accounting or law.
Fees: Find out up front what they estimate their fees to be, what they charge to file electronically and whether they will represent you in an IRS audit. Avoid any ‘early refund’ ploys. Some well known tax preparation companies ‘provide’ this service which charges a hefty fee (with a lot of small print) and a lot of advertised hype for you to get your refund ‘early’. It is basically a high-interest loan. Just waiting for your actual refund will save you a lot of money.
3. Remember, tax preparation entails both art and science
The science involves the mathematical calculations that in most instances can be figured using calculators and software, and the infinite number of complex tax laws.
The art of tax planning comes into play with interpretation of any special circumstances. There are some areas of tax law that leave the government’s intentions unclear. No law can completely anticipate each person’s situation. You could call a dozen different IRS agents with the same question and get as many different answers. A proactive planner will research any unusual circumstances you may have and help you plan a course of action.
4. Doing Your Taxes Yourself?
I firmly believe in getting professional tax assistance. However, I realize that many people prefer to do their own taxes perhaps to save money, or perhaps you have cleaned up the mess a ‘store front’ preparer made of your taxes and vow to do your own. It has been my experience that often the professional tax preparer has saved us the amount of their fee in our taxes. The peace of mind that the taxes are done right has a value all its own.
However, people who have prepared their own taxes at least once with paper and pencil or software usually understand taxes much better. If you self-prepare your taxes, consider having a qualified accountant review them before you send them in. They may find things you or the software might have missed.
If you made less than $54,000 in 2007, you can file your taxes electronically for free through the irs. gov website www. irs. gov/efile/. If you use tax software and wish to e-file be aware of the fees so that you can budget and compare prices properly. For example, a download of Turbo Tax Home and Business Federal and State for 2006 cost just under $100 and the filing fees cost around $30. Some States allow you to ‘phone in’ your State return for free.
If you choose to mail your return, go to your local post office and send it ‘Certified Return Receipt’ mail to insure that you have a record that the IRS received your paperwork. This will cost around $10 or less and will be worth every penny should the IRS contest the receipt of your return.
5. Keep great records
If you are already very organized you may read this section just to feel great about your organization skills or skip to the next section. If, however you have heard ‘get organized’ many times before and if you are the type of person who balks at the idea of organizing that mess of receipts just remember how you felt last year as tax time approached. You could become organized in only one evening of television viewing with the right tools. Arm yourself with an accordion file with at least 16 sections. Label them according to your situation or use the following sections: Auto, Bank, Business, Credit Cards, Dental, Medical, General Receipts, Grocery, Income, Insurance, Mortgage, Utilities, School, and Taxes. Now sort your receipts into these sections. Organizing your receipts will help you “Take the mystery out of. . . ” your financial situation. Use a new accordion file every year. Not only will this help you find needed information, it will also help you find a receipt in case you need to return an item you purchased. . Your tax professional will be sending you a tax organizer the end of December or the first of January. In this organizer will be a list of information that you will need to gather. Becoming organized will help you easily gather the information you need to fill out your tax organizer.
6. Start early
Do not procrastinate on your taxes. Tax professionals are unbelievably busy January through April. Firms who prepare business returns also have a crazy March 15 business deadline. We are providing this information because we want you to get the most attention from your preparer during their craziest season. As soon as you get your organizer, begin gathering the needed papers. If you are only missing one or two pieces of information return the organizer to your accountant with a note that says what is missing. They will begin entering the information in their software. Try to get a January or February meeting with your accountant. These months are the best to meet because they will have more time to spend with you and they will be able to think proactively. If you are looking for a professional, start looking now.
Another reason to start early is allowing yourself time to look for records, ask financial institutions for copies of lost information, or calling investment companies for statements.
7. Judicious Paycheck Tax Withholding
Many people like to overpay their taxes, so that they get a nice refund in time for vacations or other wants and needs – Kind of like a forced savings. Overpaying taxes is like a giving the government an interest free loan of your money.
Good financial management involves developing savings habits so that you set aside money in an interest bearing account from each paycheck for future needs, wants and emergencies. This helps you to avoid using credit cards for those things and not having to wait until refund time. Secondly it then allows you to manage how much you can afford or are able to put into 401(k) plans at work. This accomplishes two things, first you are managing your money better and you are saving for retirement. Saving for retirement in tax deductible retirement plans like 401(k)s will also lower your taxes, enabling you to save more for retirement and everyday needs and wants.
If you want to lower the taxes that are being withheld from your paycheck, file a new W-4 form with your employer to claim an additional withholding. Make adjustment for getting married, divorced, having children and for increasing contributions to tax deductible retirement plans. Your accountant will help you estimate this.
8. Tax planning is not the tail that wags the dog
Taxes consume a large if not the largest single percentage of your income, therefore good financial planning should strive to lessen them, by whatever means possible as allowed by law.
However, tax planning is not the only core issue of good financial planning. Tax planning works in concert with your overall goals and your individual situation.
With solid job prospects projected through 2016 and with colleges and business schools offering flexible degree programs, what’s holding you back from pursuing career training in accounting and finance? Indeed, the U. S. Bureau of Labor Statistics (BLS) estimates accountants and auditors should see 18 percent job growth rate during the 2006-2016 decade. Courses for All Levels of ExpertiseWhether you’re just beginning an accounting or finance career or looking to move into management roles from your present job, online schools offer programs leading to an associate’s, bachelor’s, or master’s degree. Depending on your career goals, you can enter several career tracts, from accountant to banking, financial advisor to auditor. Those pursuing accounting degrees can take online courses in preparation for Certified Public Accountant (CPA) designations. In 2007, some 48 states required accountants to pursue 30 hours beyond undergraduate accounting training to gain their CPA designations. The certification typically leads to greater on-the-job responsibilities–and greater earnings potential. Career Prospects in Accounting and FinanceUpon graduation, you may be qualified for a broad range of career opportunities within the world of finance. Bankers, for example, can advance in rank at their financial institution by completing post-secondary career training. Personal financial advisors, according to the BLS, are professionals in one of the fastest growing career fields, with a sizzling 37 percent increase in jobs predicted between 2006 and 2016. You can get a foot in the door by completing a finance degree. However, graduates holding a bachelor’s or MBA degree may have the best opportunities in financial advising roles. Jobs for accountants are expected to rise, especially for those who hold CPA certifications. Most jobs typically require at least a bachelor’s degree, the BLS reports. Many new positions should be in the corporate world where government regulations for strict financial reporting may fuel new hires in accounting roles. Public accountants can also work as tax specialists, preparing forecasts and returns for businesses and private individuals. Doing the BooksAuditors with two and four-year degrees can find jobs in the public or private sector, as well. Companies and government agencies rely on trained professionals to handle budgets, payroll, and accounts. Taking courses in business, finance, or accounting can give you a great start on mastering key job skills, especially if you enroll in courses covering the latest iterations of accounting, taxation, payroll, and spreadsheet software. Bookkeepers, auditors, and accounting assistants may also handle invoices, billing, and inventory procedures. Online training programs can bring you up to speed in common, in-demand business skills in quick order. Approximately 21 percent of all working accountants and auditors work in wage jobs for bookkeeping, accounting, tax preparation or payroll processing companies, with another 10 percent working as self-employed professionals. In the end, completing an education is central to finding success in the financial world. Taking online accounting classes at an accredited school or university or completing a finance degree has never been easier. Online education affords you the chance to mesh school requirements with existing work or family commitments.
Anyone with experience running a business can attest to the fact that it can be incredibly difficult to avoid getting caught up in the day to day operations of your company. In larger companies, heads of departments often have the same problem – not being able to keep an eye on the big picture of operations.
One area where this can be particularly daunting and counterproductive is accounting. Thankfully, a good accounting software package can help. It is easy to get caught up in the details of the numerous accounting transactions that take place at most companies on a daily basis and lose an idea of what those numbers really mean. A good software package will have the ability to run reports at scheduled times every day that will show you, for example, how the payments you received today reduced the debts that are owed to you or how the big sale this afternoon impacted your monthly earnings.
Far too many businesses realize that changes need to be made at too late of a time because they lose sight of the “big picture. ” This leads to a reactive sytle of managing the business that can be detrimental. Armed with the right accounting software, companies will be more able to operate proactively.
For Example. . .
A big area of difficulty for a number of businesses is payroll cost and benefits. The bottom line is that it is way too easy to spend too much money on employees if you do not completely understand how these payroll costs impact your bottom line. To maximize your profits, you need to have a clear and easy to understand way of seeing where your payroll costs are going. Accounting software with these abilities will allow you to determine if your money is being spent effectively.
Some software on the market today has the ability to product charts and graphs that visually display the amount paid to each job as a percentage of total payroll costs for the entire organization. Having this easy-to-see graph allows decision makers to see where costs can be or need to be cut.
How to Find the Right Software
Finding software that will give you the big picture view that you want is not easy. The big picture view that makes sense to you may not be the same one that makes sense to another business owner. As such, some research is required to find the right software.
A great place to start is to look at accounting software reviews online to see what has worked, and what has not worked, for similar businesses. Various services exist that compile these reviews and are very good at recommending a set of software for you to choose from – essentially narrowing your search for you. As a general rule, look for software with more reporting functionality than you think you need as you’ll likely discover some new reports that are more effective and will have room to grow your business with the software.
Also keep in mind that no matter which software package you pick, chances are good that you won’t use all of the reports. Therefore, do not discount one piece of software because it can produce reports that you won’t need – you can always turn off that reporting feature.
Also prepare for the unexpected. One day you may need to prepare a highly specialized report or summary that you’ve never needed in the past. Look for software that has the ability to create custom reports based on criteria that you select.
Finally, keep in mind that accounting software is only as good as the people that use it and how accurately the data is collected and/or input. When done properly, a solid financial software package will provide an excellent return in the form of a better high level view of your businesses financial situation.
To summarize, if you are tired of operating reactively and need a way to be more proactive in your decision making, new accounting software can go a long way.