Accountants at some point in their career will find themselves having to make a decision whether their situation is ethical or not. Professional ethics is an important aspect of an accountant's job. As an accountant you have the commitment to each customer to demonstrate competence, confidentiality, integrity, and credibility. Competence is where you must show a level of professionalism as well as developing the knowledge and skills that you will need as an accountant. Confidentiality is when you as an accountant must keep information confidential unless authorized or legally required to release client information. Integrity is when you must communicate with the associates to avoid any conflict of interests. Lastly there is credibility which is when you must communicate information in a reasonable and objective manner.
An ethical issue could arise is in the firm you are working for. You could discover something that the firm or another employee is doing ethically wrong. You may encounter an unethical behavior or conflict. For example if you were working for a firm and you discover that a co-worker is withholding money from the firm. When you are faced with this you should try and follow you firm's polices to try and resolve the issue. For example a policy that a firm may have would contain something along the lines of stating that each employee has the reasonability to conduct a professional and ethical business practice with integrity, confidentially, credibility, and competence. It may also tell you in whom you may need to talk to if an unethical situation does occur. If your firm does not have a policy you should consider discussing the situation with your supervisor. If you feel that your supervisor is involved in the situation then you must go to the next level of management.
If trying to resolve an ethical issue, you as an employee must understand the firms business and strategies. If you feel that you may be at risk of the ethical conflict then you should also contact your personal attorney. This is because your personal attorney can advise you as to what is best for you to do in a particular situation. They will also have your best interest, and if you feel as though you can not continue to work for your firm any longer then you should give your firm your notice and leave. At times if the situation is pressing and concerns you then this may be your best bet.
Accountants are known and respected for their honesty; by showing their integrity and competence. This is why it is important for all accountants and their firms to show and practice a good ethical practice. Ethical and professional responsibility is something that should be show and taken seriously. There are plenty of businesses that did not show these things and are now no longer in business. A good example of this is a business by the name of Enron Corporation. This financial scandal involved their accounting firm and what happened was that there was an involvement of irregular accounting procedures and caused Enron to go bankrupt. The unethical issue in this case involves an accountant and what they did was shred document that were involved in the audit of Enron and this accountant was convicted and forced to surrender its CPA licenses. This is a prim example of what could happen if involved in an unethical situation. This is also a good example of why it is important for all accountants to follow and practice good ethical values, because you do not want to end you like the accountant in the Enron case.
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Tuesday, March 31, 2009
Thursday, March 26, 2009
Hiring a Star Accountant - Knowledge is Not Enough
If you want to add an accountant to your staff who truly creates value for your company, you must hire an accountant who knows more than the Generally Accepted Accounting Principles (GAAP) backwards and forwards. Of course, having a GAAP whiz on staff does have its advantages, but the fact is that your new hire won't just be working with numbers; it's inevitable that he or she will need to work with others outside of the accounting department too. Therefore, in addition to being a highly capable number-cruncher, any accountant you hire should have a knack for building relationships. That's to say, he or she should be a "people person."
An accountant who is a true "people person" will possess all of the following characteristics:
Service-oriented
Like it or not, an accountant must realize that the service he or she provides is about others; it's never about them. Therefore, he or she must always be willing to work in the best interest of his / her employer. As the employer, that means finding an accountant who is willing to "delve deeper" if asked to do so to help managers make smarter decisions.
Excellent Communicator
For accountants, the financial information produced through regular accounting tasks is simple to decipher. Accountants also understand the ramifications of the data. However, that's not always the case for managers who need the accounting information. While some manager may love to see every accounting calculation and spreadsheet available, others may prefer a figure-free explanation of the company's financial situation first and a summary of financial data second. This is precisely why making sure an accountant can explain financial reports in real-world, laymen's terms is an essential characteristic for a star hire.
Conservatively Creative
The rules provided by GAAP may be specific but, as with many things in this world, GAAP does leave room for interpretation. Therefore, an accountant who is creative with his or her use of GAAP but who is conservative as he / she works within the tax law is a true asset. This type of accountant, without a doubt, has the greatest ability to work in the best interest of the company / client.
Confident
Confidence is critical! An accountant must be unwavering in the reasons and methods he or she chooses to use to calculate figures the way they do. It's a sign that the accountant knows what they are doing and why they are doing it; an accountant without confidence could be a potential liability. Meanwhile, a confident accountant is also a great asset for any company because they're often able to make educated suggestions based on the financial data for the betterment of the company!
How do you make sure that a candidate has all of these characteristics? Simple. You ask questions...but not just any questions; ask questions based on real scenarios that have occurred at your company or that would be plausible occurrences. This will allow you to learn how the interviewee responds under pressure, explore their knowledge base beyond their resume, and see if the candidate has the "people person" characteristics that will make them a valuable asset to your company. Do that and you're sure to snag a star accountant!
An accountant who is a true "people person" will possess all of the following characteristics:
Service-oriented
Like it or not, an accountant must realize that the service he or she provides is about others; it's never about them. Therefore, he or she must always be willing to work in the best interest of his / her employer. As the employer, that means finding an accountant who is willing to "delve deeper" if asked to do so to help managers make smarter decisions.
Excellent Communicator
For accountants, the financial information produced through regular accounting tasks is simple to decipher. Accountants also understand the ramifications of the data. However, that's not always the case for managers who need the accounting information. While some manager may love to see every accounting calculation and spreadsheet available, others may prefer a figure-free explanation of the company's financial situation first and a summary of financial data second. This is precisely why making sure an accountant can explain financial reports in real-world, laymen's terms is an essential characteristic for a star hire.
Conservatively Creative
The rules provided by GAAP may be specific but, as with many things in this world, GAAP does leave room for interpretation. Therefore, an accountant who is creative with his or her use of GAAP but who is conservative as he / she works within the tax law is a true asset. This type of accountant, without a doubt, has the greatest ability to work in the best interest of the company / client.
Confident
Confidence is critical! An accountant must be unwavering in the reasons and methods he or she chooses to use to calculate figures the way they do. It's a sign that the accountant knows what they are doing and why they are doing it; an accountant without confidence could be a potential liability. Meanwhile, a confident accountant is also a great asset for any company because they're often able to make educated suggestions based on the financial data for the betterment of the company!
How do you make sure that a candidate has all of these characteristics? Simple. You ask questions...but not just any questions; ask questions based on real scenarios that have occurred at your company or that would be plausible occurrences. This will allow you to learn how the interviewee responds under pressure, explore their knowledge base beyond their resume, and see if the candidate has the "people person" characteristics that will make them a valuable asset to your company. Do that and you're sure to snag a star accountant!
Friday, March 20, 2009
Some Great Tips For You
Payroll outsourcing services for SME's can free up a small company to allow them to concentrate on the things they do best. Wages and salaries have become such an increasingly complicated part of running a business that it can often be plain common sense for a small company to outsource.
There was a time when a wage was a wage. Now, apart from basic PAYE, there's sick pay, pension payments, holiday payments, and a whole lot more to consider. It takes more than a few minutes spent with a calculator to work out properly. Furthermore, if an employer makes a mistake they could find themselves in a whole lot of trouble. In light of this, payroll outsourcing makes a lot of sense.
It may seem that doing the payroll in-house will cut costs. This is so financially, but there is still a rather hefty cost of time. The government change their rules of tax and pay so often that it takes a lot of time keeping up with it all. Payroll outsourcing gives back all that time and it needn't be an expensive option either.
The decision to outsource is usually triggered by time constraints. The person doing the wages and salaries in-house is often the same person who does all the other administration as well. They don't have the necessary time to keep up with new developments with the result that often costly mistakes can be made.
Using payroll outsourcing also makes sense when only one person in the company knows how to process the payroll. If that person falls ill, or goes on holiday, or even if they suddenly decide to leave the company, then a problem arises with the question of who will take over.
Outsourcing removes that problem. Your chosen partner employ staff who do nothing else but process the wages and salaries for your company. The staff are kept strictly up to date with all the latest developments involving tax and pay. In short, payroll outsourcing services are experts in their field.
Before deciding on a suitable payroll outsourcing service it's always best to shop around. You may prefer to use the services of a local outsourcing service, though it isn't essential.
However, a few considerations are worth keeping in mind. Choose someone experienced and someone familiar with your industry sector. This is not essential, but could prove to be a plus point. They should also offer as much flexibility as possible, making your company's life as easy as possible.
There was a time when a wage was a wage. Now, apart from basic PAYE, there's sick pay, pension payments, holiday payments, and a whole lot more to consider. It takes more than a few minutes spent with a calculator to work out properly. Furthermore, if an employer makes a mistake they could find themselves in a whole lot of trouble. In light of this, payroll outsourcing makes a lot of sense.
It may seem that doing the payroll in-house will cut costs. This is so financially, but there is still a rather hefty cost of time. The government change their rules of tax and pay so often that it takes a lot of time keeping up with it all. Payroll outsourcing gives back all that time and it needn't be an expensive option either.
The decision to outsource is usually triggered by time constraints. The person doing the wages and salaries in-house is often the same person who does all the other administration as well. They don't have the necessary time to keep up with new developments with the result that often costly mistakes can be made.
Using payroll outsourcing also makes sense when only one person in the company knows how to process the payroll. If that person falls ill, or goes on holiday, or even if they suddenly decide to leave the company, then a problem arises with the question of who will take over.
Outsourcing removes that problem. Your chosen partner employ staff who do nothing else but process the wages and salaries for your company. The staff are kept strictly up to date with all the latest developments involving tax and pay. In short, payroll outsourcing services are experts in their field.
Before deciding on a suitable payroll outsourcing service it's always best to shop around. You may prefer to use the services of a local outsourcing service, though it isn't essential.
However, a few considerations are worth keeping in mind. Choose someone experienced and someone familiar with your industry sector. This is not essential, but could prove to be a plus point. They should also offer as much flexibility as possible, making your company's life as easy as possible.
Monday, March 16, 2009
Account Receivables - What is It?
If you are involved in a business at all, then you no doubt have heard of account receivables. The problem for some people is that they don't know what it means. It can be explained into basic terms so you will be able to know how it factors into your business plans. It really just is a fancy accounting term that deals with providing a bill to customers who owe money for goods or services that were provided to them. This typically is done by creating invoices that go over the specific amounts owed. It also lists a timeframe as to when payment is expected.
When generating the invoice for account receivables, one of the most important parts is the payment timeframe. This typically is referred to as Net 30 because businesses usually give customers 30 days from when the invoice was created. This number can be adjusted lower or higher for particular circumstances. Along with the payment timeframe, the actual payment due also is determined. Some businesses require that all payments be made in full, so that would be listed in the invoice. However, some businesses draw up payment plans. This works by having customers pay a specific amount each month. The invoices will continue until their payment is received in full.
To understand account receivables on your company's balance sheet, it simply is any amount customers owe the company. It is considered a current asset if the amount is due within one year. The actual process of bookkeeping can get quite difficult depending on the size of your company. Many larger companies use software that will automatically update all their account receivables for them. The software of course can be used by smaller companies who would prefer not to do it by hand. This is a good way to ensure accuracy since it can get confusing by hand.
Businesses need to recognize that not all account receivables will be paid. When this happens, many companies turn to a collection agency or attorney. This individual tries to recover the money using payment plans, settlement offers and even legal action. As a business owner, it is a good idea to be aware of this process of account receivable because there always is the chance this could happen to you. You have to be prepared for when it happens so you will have a better chance of recovering some or all of your money owed. Usually this results in an agreed payment plan. If this is the case, it is the accountant's job to manually take out payments in the statement.
Account receivables are a crucial part of every business because it deals directly with collecting money owed to the business. If this is done by hand, it is a good idea to have a professional do the job, even at a small company. It can be easy to make mistakes and miss payments, so professionals are a good idea for business owners. They also can consider implementing software that will help them.
When generating the invoice for account receivables, one of the most important parts is the payment timeframe. This typically is referred to as Net 30 because businesses usually give customers 30 days from when the invoice was created. This number can be adjusted lower or higher for particular circumstances. Along with the payment timeframe, the actual payment due also is determined. Some businesses require that all payments be made in full, so that would be listed in the invoice. However, some businesses draw up payment plans. This works by having customers pay a specific amount each month. The invoices will continue until their payment is received in full.
To understand account receivables on your company's balance sheet, it simply is any amount customers owe the company. It is considered a current asset if the amount is due within one year. The actual process of bookkeeping can get quite difficult depending on the size of your company. Many larger companies use software that will automatically update all their account receivables for them. The software of course can be used by smaller companies who would prefer not to do it by hand. This is a good way to ensure accuracy since it can get confusing by hand.
Businesses need to recognize that not all account receivables will be paid. When this happens, many companies turn to a collection agency or attorney. This individual tries to recover the money using payment plans, settlement offers and even legal action. As a business owner, it is a good idea to be aware of this process of account receivable because there always is the chance this could happen to you. You have to be prepared for when it happens so you will have a better chance of recovering some or all of your money owed. Usually this results in an agreed payment plan. If this is the case, it is the accountant's job to manually take out payments in the statement.
Account receivables are a crucial part of every business because it deals directly with collecting money owed to the business. If this is done by hand, it is a good idea to have a professional do the job, even at a small company. It can be easy to make mistakes and miss payments, so professionals are a good idea for business owners. They also can consider implementing software that will help them.
Friday, March 13, 2009
How Your Clients Can Use Accounting Software to Help You
The Problem
One of the main causes of frustration for accountants is the inconsistency of clients' records. This can vary from a shoe box brimming with receipts to an incomplete set of records on an out-of-date version of Sage.
However they all need to be dealt with and this can cause problems. First of all, you may become frustrated by the amount of time needed to bring the records into good order, which can place a strain on your internal operations.
Secondly, and perhaps more importantly, if you have to take more time to do a job than envisaged you must choose your course of action. Do you just bite the bullet and complete the accounts for the agreed fee or do the work and bill by the hour?
Increasing your fees is not in itself a bad thing of course, but the knock-on effect could damage your business. If clients think they are being overcharged you could lose them.
This is the crux of the problem. The way your clients keep their records can affect your retention levels.
The solution
The solution is, effectively, to help your clients help you. This in turn allows you to meet their expectations better and not be forced into increasing fees to compensate for their poor records.
Creating a series of standardised record books would do this to a certain extent. It would be easy to put in place, and your clients could be trained to record transactions more routinely. However, apart from being somewhat old-fashioned, this would still need to be inputted onto your computer system at some stage, taking more time and incurring costs.
It would be far better to have all the data in a computerised format, where it could be transferred to your internal systems more easily. This is where accounting software is invaluable. It is easy to implement, and you are almost guaranteed to get the information in a standard format. Many software houses, including Sage and Quickbooks, already offer solutions but the programs can be complex and have to be installed on each client's computer.
Recently though, software has been developed that uses the latest web-based technologies to streamline the process. Known as 'Software As A Service' (SaaS), this sits on a webserver, and is accessed via a standard web browser.
A number of companies have recognised that this technology can be much easier for clients to use than traditional accounting software. There is no need for installation and, as you are always using the latest version, you do not need to "run and update" to fix bugs or get the latest features. Furthermore, as an accountant there are other benefits that could improve your customer service and perhaps your bottom line.
The main advantage is that, potentially, all your clients will send you their records in a standard format. Of course this applies to traditional software, but with SaaS systems you have instant access to the records. You don't have to chase the client as the information is there for you at any time, and it can be retrieved at any time.
Also, the ability to adjust the records during the year, rather than after the year end has been closed, has clear benefits.
This has an effect on the time needed to process your clients' accounts. Major time savings have been reported.
Imagine if...
Your clients' accounts were available to you without having to chase them up;
They came in a standardised format;
With the majority of the records completed fully and accurately.
In your office you would be free to perform the accountancy process without the usual time-inefficient process of obtaining and correcting the records.
Imagine if, on top of all this, you and your clients were using a constantly evolving system that required no effort for you to have the very latest version. This would mean you could get the benefit of any new time saving features instantly.
This technology sometimes sounds too good to be true, but it is here, and it will become more widespread.
Summary
In conclusion, computing technology is being directed more and more towards business, with the underlying aim of improving financial performance.
As part of this evolution, accounting software nowadays is almost universally used by practicing accountants. It is only recently though that accountants have started to realise the benefit that can arise from their clients also using good quality bookkeeping or accounting software. The standardised records produced this way can help save time in the accountant's office and also help the client feel a better service is being offered.
Previously it required a great amount of effort to encourage use of software even before the daunting task of learning how to operate it. Assuming these obstacles could be dealt with, other procedural problems, such as how to get records from clients to accountants, meant operating the procedure was never the easiest of tasks.
With the advent of web-based accounting systems using the "on-demand" model, such problems have been overcome, leaving the accountant free to enjoy the advantages, without any of the difficulties.
The latest online accounting packages have been designed with the user in mind as they provide an easy yet efficient way for the non-expert to record business finances accurately. At the same time though there is a major benefit to the users' accountants by way of increased efficiency and customer care.
One of the main causes of frustration for accountants is the inconsistency of clients' records. This can vary from a shoe box brimming with receipts to an incomplete set of records on an out-of-date version of Sage.
However they all need to be dealt with and this can cause problems. First of all, you may become frustrated by the amount of time needed to bring the records into good order, which can place a strain on your internal operations.
Secondly, and perhaps more importantly, if you have to take more time to do a job than envisaged you must choose your course of action. Do you just bite the bullet and complete the accounts for the agreed fee or do the work and bill by the hour?
Increasing your fees is not in itself a bad thing of course, but the knock-on effect could damage your business. If clients think they are being overcharged you could lose them.
This is the crux of the problem. The way your clients keep their records can affect your retention levels.
The solution
The solution is, effectively, to help your clients help you. This in turn allows you to meet their expectations better and not be forced into increasing fees to compensate for their poor records.
Creating a series of standardised record books would do this to a certain extent. It would be easy to put in place, and your clients could be trained to record transactions more routinely. However, apart from being somewhat old-fashioned, this would still need to be inputted onto your computer system at some stage, taking more time and incurring costs.
It would be far better to have all the data in a computerised format, where it could be transferred to your internal systems more easily. This is where accounting software is invaluable. It is easy to implement, and you are almost guaranteed to get the information in a standard format. Many software houses, including Sage and Quickbooks, already offer solutions but the programs can be complex and have to be installed on each client's computer.
Recently though, software has been developed that uses the latest web-based technologies to streamline the process. Known as 'Software As A Service' (SaaS), this sits on a webserver, and is accessed via a standard web browser.
A number of companies have recognised that this technology can be much easier for clients to use than traditional accounting software. There is no need for installation and, as you are always using the latest version, you do not need to "run and update" to fix bugs or get the latest features. Furthermore, as an accountant there are other benefits that could improve your customer service and perhaps your bottom line.
The main advantage is that, potentially, all your clients will send you their records in a standard format. Of course this applies to traditional software, but with SaaS systems you have instant access to the records. You don't have to chase the client as the information is there for you at any time, and it can be retrieved at any time.
Also, the ability to adjust the records during the year, rather than after the year end has been closed, has clear benefits.
This has an effect on the time needed to process your clients' accounts. Major time savings have been reported.
Imagine if...
Your clients' accounts were available to you without having to chase them up;
They came in a standardised format;
With the majority of the records completed fully and accurately.
In your office you would be free to perform the accountancy process without the usual time-inefficient process of obtaining and correcting the records.
Imagine if, on top of all this, you and your clients were using a constantly evolving system that required no effort for you to have the very latest version. This would mean you could get the benefit of any new time saving features instantly.
This technology sometimes sounds too good to be true, but it is here, and it will become more widespread.
Summary
In conclusion, computing technology is being directed more and more towards business, with the underlying aim of improving financial performance.
As part of this evolution, accounting software nowadays is almost universally used by practicing accountants. It is only recently though that accountants have started to realise the benefit that can arise from their clients also using good quality bookkeeping or accounting software. The standardised records produced this way can help save time in the accountant's office and also help the client feel a better service is being offered.
Previously it required a great amount of effort to encourage use of software even before the daunting task of learning how to operate it. Assuming these obstacles could be dealt with, other procedural problems, such as how to get records from clients to accountants, meant operating the procedure was never the easiest of tasks.
With the advent of web-based accounting systems using the "on-demand" model, such problems have been overcome, leaving the accountant free to enjoy the advantages, without any of the difficulties.
The latest online accounting packages have been designed with the user in mind as they provide an easy yet efficient way for the non-expert to record business finances accurately. At the same time though there is a major benefit to the users' accountants by way of increased efficiency and customer care.
Thursday, March 12, 2009
Business Checks - The Basics of Ordering
All businesses conduct innumerable transactions each day. Imagine how risky it would be if one had to use cash for all these transactions! Business checks are financial instruments that enable the business organizations to make payments to their suppliers, employers and creditors. The function of these checks is very similar to personal checks used by individuals.
Individuals usually obtain personal ones from banks. The banks charge a fee for issuing them. Business checks too can be acquired from banks. However, enterprises require a large quantity for their use. Ordering from banks may not be financially viable due to the steep banking charges.
An alternative is to order them in bulk from companies providing this facility. These companies can provide customized ones. Business checks come in different styles such as three-per-page checks, fifty leafs booklet, laser checks, continuous computer stationary, and payroll ones amongst others. They can be designed to incorporate the business logo, colors and the corporate address. Such stationary serve as a means to portray the company's image. A customized check with contact information can help a prospective customer, for example, the accountant of the supplier, to get in touch with the company. Thus it also helps in the subtle advertisement of the company.
Business checks can be ordered from companies through fax, phone or online. There are certain aspects that you should consider while selecting such company. These are:
Select a company that is well established and has a good reputation. Established companies generally advise and help their clients in designing the checks.
Preferably choose a company known for ensuring customer satisfaction.
Ensuring the presence of security features will help protect you from any fraud.
Find out the delivery period and whether free shipping is provided.
If you are ordering computer checks, ensure that it is compatible with your accounting software.
Individuals usually obtain personal ones from banks. The banks charge a fee for issuing them. Business checks too can be acquired from banks. However, enterprises require a large quantity for their use. Ordering from banks may not be financially viable due to the steep banking charges.
An alternative is to order them in bulk from companies providing this facility. These companies can provide customized ones. Business checks come in different styles such as three-per-page checks, fifty leafs booklet, laser checks, continuous computer stationary, and payroll ones amongst others. They can be designed to incorporate the business logo, colors and the corporate address. Such stationary serve as a means to portray the company's image. A customized check with contact information can help a prospective customer, for example, the accountant of the supplier, to get in touch with the company. Thus it also helps in the subtle advertisement of the company.
Business checks can be ordered from companies through fax, phone or online. There are certain aspects that you should consider while selecting such company. These are:
Select a company that is well established and has a good reputation. Established companies generally advise and help their clients in designing the checks.
Preferably choose a company known for ensuring customer satisfaction.
Ensuring the presence of security features will help protect you from any fraud.
Find out the delivery period and whether free shipping is provided.
If you are ordering computer checks, ensure that it is compatible with your accounting software.
Wednesday, March 11, 2009
Outsourced Accounting - Reduce the Burden of Day-To-Day Accounting Work
The accounting department is not only the most important organ of an organization but also the most important one. An accountant to an organization needs to work on countless routine and other activities such as bookkeeping, fund flows and also the financial outsourcing needs of the company. There are nowadays many private and commercial firms that are into the business of providing Outsourced Accounting facilities at very affordable prices. One must however be careful to hire the firm most suited to complete the requisite task as only an expert accountant can take care of the finance and also give you a clear picture as where does the company stands in the present competitive market. Outsourced Accounting is not only extremely cost effective but also quite reliable in terms of service and quality. If a chosen accounting firm is reliable one can be sure that his company is in safe hands. Outsourced Accounting business is flourishing day by day and companies are taking full advantage of it.
Technically speaking Outsourced Accounting is nothing but a process by virtue of which one outsources the firm's bookkeeping and accounting task to a third party. This third party can be with an individual accountant or an outsourcing firm. Such an activity is usually undertaken and outsourced to those countries which comprise of a skilled and professionally trained manpower. The primary reason for sending work to such countries is that firstly the accounting professionals in these countries usually charge relatively less than the home country and secondly their training process is tailored to meet the needs of the company concerned. Another benefit of such a process is that the accounting work is done very quickly and efficiently giving one enough leeway to easily meet deadlines and schedules.
However, a note of caution may be affiliated with such a concept. One has to be a little extra cautious while outsourcing his accounting works. It is extremely important to choose the right kind of company for one's outsourcing your work. One may find on the internet innumerable companies offering attractive offers and services. However one must be prudent enough to check out the services provided by those companies.
Another very important and crucial aspect is that of credibility. One must make sure that adequate security measures are in place by the company concerned to protect your crucial accounting data. This is important as in this age of computers and internet one's crucial and classified information may infiltrate to undesirable people who may use it against the interests of the company.
As this new concept helps cut costs to a large extent in the form of employee's salary, house or medical allowances etc. as one is only supposed to pay for the services, it can prove to be quite helpful and is bound to grow in the near future. In the same vein various SEO New York companies have started taking up Outsourced Accounting work as well keeping in view that this will help in bringing more revenues from the clients if accounting work can be managed along sides search engine optimization.
Technically speaking Outsourced Accounting is nothing but a process by virtue of which one outsources the firm's bookkeeping and accounting task to a third party. This third party can be with an individual accountant or an outsourcing firm. Such an activity is usually undertaken and outsourced to those countries which comprise of a skilled and professionally trained manpower. The primary reason for sending work to such countries is that firstly the accounting professionals in these countries usually charge relatively less than the home country and secondly their training process is tailored to meet the needs of the company concerned. Another benefit of such a process is that the accounting work is done very quickly and efficiently giving one enough leeway to easily meet deadlines and schedules.
However, a note of caution may be affiliated with such a concept. One has to be a little extra cautious while outsourcing his accounting works. It is extremely important to choose the right kind of company for one's outsourcing your work. One may find on the internet innumerable companies offering attractive offers and services. However one must be prudent enough to check out the services provided by those companies.
Another very important and crucial aspect is that of credibility. One must make sure that adequate security measures are in place by the company concerned to protect your crucial accounting data. This is important as in this age of computers and internet one's crucial and classified information may infiltrate to undesirable people who may use it against the interests of the company.
As this new concept helps cut costs to a large extent in the form of employee's salary, house or medical allowances etc. as one is only supposed to pay for the services, it can prove to be quite helpful and is bound to grow in the near future. In the same vein various SEO New York companies have started taking up Outsourced Accounting work as well keeping in view that this will help in bringing more revenues from the clients if accounting work can be managed along sides search engine optimization.
Friday, March 6, 2009
QuickBooks - An Invaluable Tool For Contractors
Let's analyze why you are in the contractor business. Most likely it is because you love it, but of course the more practical reason is to make money. Keeping track of that money and all the various places it goes is a job in and of itself. However, there is a surefire way to make sure all your finances are in order and that is to use QuickBooks in your contractor business. Any contractor who has used this program over the years can tell you what a huge difference it makes in conducting business.
QuickBooks is an easy to use powerful accounting software package that has been amazing business people for decades. It is a must have for any contractor and can really keep your finances and taxes in order. Besides being user friendly it can help manage your whole business. It has great tools for figuring out payroll taxes, sales, trends, expenses, you name it. It's like having an accountant on staff without all the hassle. All you do is enter in all your expenses against all your sales by either writing checks and assigning every penny to a certain account, or by listing everything individually. Whatever way you choose QuickBooks keeps track of everything for you. You can even do bids on QuickBooks to make sure each and every quote is profitable and track expenses along the way to make sure the project stays that way.
Every contractor will tell you keeping track of payroll and payroll taxes are a real pain and any mistake can cost dearly. QuickBooks does that for you and each time you upgrade it already knows all the appropriate laws and regulations and calculations that have changed so you never have to worry about payroll mistakes. And, it's a lot cheaper than a payroll service. It's like having a whole payroll department right on your PC.
With QuickBooks, at the end of the year you don't have to worry about putting everything together either. All you have to do is save a copy of your QuickBooks files and give it to your accountant and all the info is right there. It's easy. As a matter of fact it's real easy. For years all kinds of businesses have relied on this program including contractor businesses. It's great piece of mind knowing that something so easy to use can be such a powerful force in your business. Check out QuickBooks real soon.
QuickBooks is an easy to use powerful accounting software package that has been amazing business people for decades. It is a must have for any contractor and can really keep your finances and taxes in order. Besides being user friendly it can help manage your whole business. It has great tools for figuring out payroll taxes, sales, trends, expenses, you name it. It's like having an accountant on staff without all the hassle. All you do is enter in all your expenses against all your sales by either writing checks and assigning every penny to a certain account, or by listing everything individually. Whatever way you choose QuickBooks keeps track of everything for you. You can even do bids on QuickBooks to make sure each and every quote is profitable and track expenses along the way to make sure the project stays that way.
Every contractor will tell you keeping track of payroll and payroll taxes are a real pain and any mistake can cost dearly. QuickBooks does that for you and each time you upgrade it already knows all the appropriate laws and regulations and calculations that have changed so you never have to worry about payroll mistakes. And, it's a lot cheaper than a payroll service. It's like having a whole payroll department right on your PC.
With QuickBooks, at the end of the year you don't have to worry about putting everything together either. All you have to do is save a copy of your QuickBooks files and give it to your accountant and all the info is right there. It's easy. As a matter of fact it's real easy. For years all kinds of businesses have relied on this program including contractor businesses. It's great piece of mind knowing that something so easy to use can be such a powerful force in your business. Check out QuickBooks real soon.
Payroll Taxes - What Wages Are Subject to Alabama Withholding?
The Heart of Dixie state is one of many U.S states which impose individual income tax. State withholding tax is the money an employer is required to withhold from each employee's wages to pay the state income tax of the employee. The employer pays no part of the tax, but is responsible for collecting and remitting the tax withheld.
In general all wages earned in Alabama are subject to income tax withholding. However, there are certain types of employment that are exempt from payroll withholding such as merchant seaman, agricultural and domestic employees, and duly ordained ministers. Both wages earned by a resident or a non-resident while working in Alabama are subject to Alabama withholding tax.
Wages (for Alabama withholding tax purposes) shall include those wages exempt from federal withholding if the wages represent taxable income under the Alabama income tax law and there is no provision under the Alabama law for a deduction corresponding to the allowable federal deduction.
The following federal code sections are recognized by the State of Alabama and should not be included in an employee's wages and are not subject to withholding tax.
1. Cafeteria Plans: A cafeteria plan is a separate written plan maintained by an employer for employees that meet the specific requirements of and regulations of section 125 of the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on a pre-tax basis.
2. Retirement Savings (code 219) Plans.
3. 401K Plans: Cash or Deferred Arrangement. A 401(k) plan allows a worker to save for retirement and have the savings invested while deferring income taxes on the saved money and earnings until withdrawal.
4. 403(b) Plans: Qualified Annuity Plan (Teacher's Retirement). A 403(b) plan is a retirement plan offered by public schools and certain tax-exempt organizations. Basically, 403(b) plans are similar to 401(k) plans. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by the employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed.
5. 408(k) Plans: Simplified Employee Pension: A simpler alternative to a 401(k) plan available only to companies with 25 or fewer employees.
6. 408(p) Simple Plans: Savings Incentive Match Plan (IRA).
7. 457 Plans: Deferred Compensation Plans of State and Local Governments and Tax Exempt Organizations
A business or a tax preparer/practitioner can use a payroll software to calculate Alabama payroll taxes and employer withholding amounts. The tax software can be setup to automatically exclude certain types of incomes (or payroll items) when calculating the state of Alabama withholding tax.
In general all wages earned in Alabama are subject to income tax withholding. However, there are certain types of employment that are exempt from payroll withholding such as merchant seaman, agricultural and domestic employees, and duly ordained ministers. Both wages earned by a resident or a non-resident while working in Alabama are subject to Alabama withholding tax.
Wages (for Alabama withholding tax purposes) shall include those wages exempt from federal withholding if the wages represent taxable income under the Alabama income tax law and there is no provision under the Alabama law for a deduction corresponding to the allowable federal deduction.
The following federal code sections are recognized by the State of Alabama and should not be included in an employee's wages and are not subject to withholding tax.
1. Cafeteria Plans: A cafeteria plan is a separate written plan maintained by an employer for employees that meet the specific requirements of and regulations of section 125 of the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on a pre-tax basis.
2. Retirement Savings (code 219) Plans.
3. 401K Plans: Cash or Deferred Arrangement. A 401(k) plan allows a worker to save for retirement and have the savings invested while deferring income taxes on the saved money and earnings until withdrawal.
4. 403(b) Plans: Qualified Annuity Plan (Teacher's Retirement). A 403(b) plan is a retirement plan offered by public schools and certain tax-exempt organizations. Basically, 403(b) plans are similar to 401(k) plans. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by the employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed.
5. 408(k) Plans: Simplified Employee Pension: A simpler alternative to a 401(k) plan available only to companies with 25 or fewer employees.
6. 408(p) Simple Plans: Savings Incentive Match Plan (IRA).
7. 457 Plans: Deferred Compensation Plans of State and Local Governments and Tax Exempt Organizations
A business or a tax preparer/practitioner can use a payroll software to calculate Alabama payroll taxes and employer withholding amounts. The tax software can be setup to automatically exclude certain types of incomes (or payroll items) when calculating the state of Alabama withholding tax.
Wednesday, March 4, 2009
About MYOB - Mind Your Own Business Accounting Software
If you are looking for accounting software for small to medium sized businesses, you have several options to choose from.
MYOB has a large market share in the Australian, New Zealand and United Kingdom markets and now has successfully moved into the U.S.A market also. MYOB has several products available to cater for the size and requirements of your business. Part of the product family includes:
• Business Basics • Accounting • Accounting Plus with Payroll • Premier • Payroll • Account Edge (for Mac users only)
to name a few.
MYOB Business Basics software has been designed for businesses that want to record and print sales invoices, keep a card file of the people they sell to and purchase from, and do regular bank reconciliations from their bank statements.
MYOB Accounting software is a step up from Business Basics and has the added features such as recording purchases /creditors with the relevant aging reports, recording inventory as stock or as a purchase to on sell, being able to link to Microsoft Office such as Word or Excel, where you are able to send out letters or notifications to your creditors or work in excel using the spreadsheet option to change figures, add formats, etc. There are 100+ reports available in MYOB Accounting as opposed to Business Basics where there are 70 reports.
Stepping up from MYOB Accounting is MYOB Accounting Plus. This software package includes the added features of Payroll and Time Billing. Payroll obviously is for businesses that have employees and want to be compliant with salary and wages legislation and Time Billing is for businesses that charge for their time. This could include professions such as lawyers, consultants, accountants but can also include service industries such as plumbers, electricians etc. The reports available with this program are 140+.
MYOB Premier is the next step up. This program has all of the above with added features such as the ability to use multiple currencies. This is especially helpful if you have foreign currency accounts and are involved in the export / import market. MYOB converts foreign currency into your local currency for accounting purposes. MYOB Premier also allows you to have multiple users. This allows you to have more than one person at any given time being able to access the common data file and use it simultaneously. Reports availability is 165+.
Payroll can be purchased on its own if you chose to use another form of accounting software but still need to maintain employees on salary and / or wages.
Account Edge for Mac only is the equivalent of MYOB Premier and includes all of the same features except Payroll.
To chose what product best suits your business, you need to list down what features you need and then download the appropriate product from your MYOB site and use the trial period to ensure it suits your needs.
MYOB has a large market share in the Australian, New Zealand and United Kingdom markets and now has successfully moved into the U.S.A market also. MYOB has several products available to cater for the size and requirements of your business. Part of the product family includes:
• Business Basics • Accounting • Accounting Plus with Payroll • Premier • Payroll • Account Edge (for Mac users only)
to name a few.
MYOB Business Basics software has been designed for businesses that want to record and print sales invoices, keep a card file of the people they sell to and purchase from, and do regular bank reconciliations from their bank statements.
MYOB Accounting software is a step up from Business Basics and has the added features such as recording purchases /creditors with the relevant aging reports, recording inventory as stock or as a purchase to on sell, being able to link to Microsoft Office such as Word or Excel, where you are able to send out letters or notifications to your creditors or work in excel using the spreadsheet option to change figures, add formats, etc. There are 100+ reports available in MYOB Accounting as opposed to Business Basics where there are 70 reports.
Stepping up from MYOB Accounting is MYOB Accounting Plus. This software package includes the added features of Payroll and Time Billing. Payroll obviously is for businesses that have employees and want to be compliant with salary and wages legislation and Time Billing is for businesses that charge for their time. This could include professions such as lawyers, consultants, accountants but can also include service industries such as plumbers, electricians etc. The reports available with this program are 140+.
MYOB Premier is the next step up. This program has all of the above with added features such as the ability to use multiple currencies. This is especially helpful if you have foreign currency accounts and are involved in the export / import market. MYOB converts foreign currency into your local currency for accounting purposes. MYOB Premier also allows you to have multiple users. This allows you to have more than one person at any given time being able to access the common data file and use it simultaneously. Reports availability is 165+.
Payroll can be purchased on its own if you chose to use another form of accounting software but still need to maintain employees on salary and / or wages.
Account Edge for Mac only is the equivalent of MYOB Premier and includes all of the same features except Payroll.
To chose what product best suits your business, you need to list down what features you need and then download the appropriate product from your MYOB site and use the trial period to ensure it suits your needs.
Tuesday, March 3, 2009
Accounting Software - Advanced Modules
Working with the wrong accounting software is a game of give and take in most companies. Sometimes the company has to alter processes to accomodate the software's settings and at other times the company is able to customize the software to work in line with existing processes.
The trick to avoiding this game is to select the right software from the start. The result of selecting and implementing the right software in the beginning is a more automated and streamlined business that can avoid the back and forth game of adjusting processes to work with the software and vice versa. Accounting software available today comes with a number of modules that can be helpful, and if the right modules are selected, a company will gain almost immediate benefits from the new software. Some of the more common modules are:
General Ledger - The foundation of financial software, a general ledger allows users to interface with all functions of the software package. It will keep a record of all transactions, budgets, and other financials. The general ledger imports data from other modules and displays it in an easier to read format. When selecting software with general ledger capabilities, be aware of what reports you need easy access to and look for the best solution.
Sales Order Entry - A sales order entry module allows companies to store and access all of their sales orders in one place. All aspects of processing an order is put in to the system and everything from the shipping address to the available inventory is accessable. To gain the most functionality from a sales order module, it needs to be integrated with other modules, such as inventory management.
When properly configured, a sales order module allows users to complete all steps of the order process in one place. It should also be capable of tracking packages while they are en route to customers using tracking numbers.
Inventory Control - This module is relatively self-explanatory - it allows users to manage the inventory of products through the software. It is usually integrated with sales and purchase order processing modules and is capable of generating reports about inventory supply, sales, customers, accounts, inventory value, and so on.
Job Cost - This module is capable of tracking costs related to jobs and projects in certain industries, such as construction. The main function of job cost modules is to track the cost to date of a project or job and be able to analyze that cost in relation to hours, percent of budget, and so on.
When used properly, job cost modules can provide companies with beneficial information about how profitable jobs that the organization completes are. This module can be used as both a tracking and estimating software and is capable of tracking previous job costs and using real, historical data to estimate costs for similar jobs.
Purchase Order - Purchase order modules handle ordering new products from suppliers. This item tracks what supplies are in stock, how long they will remain in stock, when new supplies need to be ordered, and how much needs to be ordered. A well-integrated purchase order module will track purchase orders from their initial creation to arrival of the new supplies, however some companies do not operate a level to make this much functionality worth the additional money.
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