Better Cash Flow With Proper Accounting
What are some of the things that you need to do in order to have proper accounting for your company? You need to be able to look at using a good financial program to help you out as it will be able to help you in tracking your various expenses and things so you can have a steady cash flow. This is important as you need to be able to really work on understanding where you have money that is tied up or you can struggle with your bill payment and keeping the business alive.
Accounting Details You Need To Remember
There are a lot of small details that will make your business into a success. You need to be able to pay attention to what these details are so you can have success. One of the areas that you need to consider focusing on is your accounting. Having a good accounting method will prevent you from having a number of issues to deal with and it will help you to grow the company in the right way.
Have Good Accounting!
Do you have a good accounting system in place? If you have yet to create a program to help you out in keeping control over the books, you need to do so as soon as possible! Your company's finances are one of the most important aspects to running the business. If you do not have QuickBooks or some type of program that will assist you in being able to manage the money properly, your company can lose a lot of money and it's likely that you will have tax problems to deal with along with some other problems like struggling with cash flow and even the break even point.
Using The Accounting Cycle For Security And Accuracy
There are generally nine steps in the accounting cycle.They are identifying the transaction, analyzing the transaction, putting the transaction in a journal, posting it to a ledger, creating a trial balance, adjusting the entries, adjusting the trial balance, preparing financial statements, and closing the entries.These steps apply to accounting using a double ledger system where all entries are written as a debit and a credit.
Proper Bookkeeping And Accounting For Business Owners Is A Must
Proper bookkeeping and accounting for business owners is important so that the business can take full advantage of tax laws.That means avoiding paying taxes on items that aren't taxed and getting the full deductions available in a tax year without alerting the IRS to the possibility that the business is estimating expenses.Some business owners keep all of the money information in their heads.This can be a bad idea when it comes to dealing with Uncle Sam or having to make a big item purchase for the company.
How to find a business accountant
One of the most important decisions that you will make for your business is who will help you to manage it finances. Many business owners turn to a business accountant to help them deal with their business finances. This is a very important decision since this is the person who will file your taxes, take care of a number of different financial matters, and offer you financial advice. You will need to make sure that you have the right person and not just someone with the right credentials. Keep in mind that you want to work with someone who has connections and resources for your business, as well. Finally, you want someone who can adequately represent you should you face a business audit. Here is what you need to know about how to find a business accountant-
Keeping your accounting fees low
How much money are you paying to your accountant? Accounting fees are a large expense that you do need to worry about as they can really hurt small business owners, especially in an uncertain economy. Managing your business expenses is vital to your books and to ensuring that your company will be able to survive the ups and downs of a very difficult economic situation. Since your accountant can be a very expensive investment, it is important that you do all that you can to manage their fees. Here are some ways in which you can lower your accounting fees as it comes down to being smart on your part.
How to put together a small business accounting team
Unless you are a complete whiz with numbers, you will need to put together a small business accounting team to help manage your business finances.
Accounts payables procedures
At the successful end of any business is a strong accounts payables and accounts receivables procedure. You need to be able to set up accounts payables in a manner that is easy for you to actually adhere to. Not all of the vendors out there are willing to negotiate better payment terms and many of them are not willing to extend payment terms so you must be able to collect the funds from your customers in a timely manner in order to actually have the money to pay your bills on time.
Selecting the right accounting method
Starting a business is a huge accomplishment and it will require a lot of time and effort on your part. If you aren't the best with your business books, look into hiring someone to manage them. Your business books are essential to the overall health of your company and you must maintain control of them. Choosing an accounting method will help you develop a stronger financial outlook for the business and it will help you save yourself a lot of time, money, and energy in the process.
Finding the right accountant
Picking the right accounting is a very important decision. This person will be in charge of offering you financial advice and they are responsible for filing your taxes and a number of other things. A skilled accountant can be hard to find as you need to look for more than just their credentials. An accountant is the person that will help you prepare yourself to meet with auditors, IRS agents, lenders and many other people. You want to choose carefully when you are hiring an accountant to make sure you have the right one for your business.
Fixing your cash flow with your accounts payable
Having a healthy cash flow will help your business remain successful. You need to have a quality accounts payable process set up in order to fix your cash flow and to make sure you have plenty of money to operate your business. One of the best ways to fix your cash flow is to make sure you aren't paying your accounts payable the next day, you want to try and stretch them out as long as possible so you have plenty of time to actually acquire the funds from your accounts receivables to pay for them.
Discovering the difference between bookkeeping and accounting
Most small businesses assume that bookkeeping and accounting are the same thing. While they function closely and both deal with the business finances, they are two completely different entities. Much like sales and marketing, you need to take heed when you are dealing with the two in order to make sure your business books will come out correctly. This article will teach you about the basics of bookkeeping and accounting and it will help you to understand how the two work.
Why do you need a business plan?
Acquiring financing, investors, and partners for your business can be a challenge if you don't have the right type of documents ready. A business plan offers you the ability to teach others about your business so you can acquire the financing you need along with other things. A business plan is easy to create and it will easily help you establish yourself as a reputable company.
What makes a business sound?
Acquiring money for your business is essential but there are other things you need follow in order to make a business sound and ensure that it will last for many years. A solid business plan will go a long ways in making your business sound and allowing it to last for many years. A business plan allows you to acquire business loans, investors, and working capital for your company to become a success. Here are some other things that will help make your business sound:
Reasons to keep your business banking separate
Many new business owners may be tempted to combine their personal and business banking. 
Most of the time business owners do this, for convenience, since it means that you won't have to go to the bank and open all new accounts. However, while this can seem like a simple solution, the reality is that it can create serious problems down the line. Business financial experts recommend that you should actually keep the money physically separate in different bank accounts, one set up as a business account. Some business owners even use different banks, for their business and personal accounts in order to avoid inadvertent transfers of funds.Here are just some of the reasons to keep your business banking separate-
How to manage the finances of your small business
Studies have shown that when many businesses fail, it is largely due to poor financial management. It becomes clear that one of the keys to the long-term success of your small business will be not only having sufficient capital and financing, but also properly managing your finances. Some of the principal aspects that are involved in managing your small business finances will be: planning, to identify your financing needs; comparing the different types of financing available, in order to obtain the most advantageous terms; projecting your cash flow to anticipate and prepare for cash disbursements; and monitoring and controlling your expenditures and financial activities. When a small business owner can successfully manage this task, then their small business stands a much better chance of success. Here is what you need to know about how to manage the finances of your small business-
How to create a business budget
Having a business budget in place is an essential part of running a business. Many times small businesses fail because of a lack of planning. Having a budget is the best way to plan, for the future growth and expansion of your business. This is true whether you are launching your first business, or have years of experience as an entrepreneur, the importance of having a budget cannot be overstated. This is because creating a budget, for your business will provide a guideline for expected income and expenses, and enable you to compare your anticipated financial goals, with the actual numbers. Your budget will serve as a barometer, for how your business is performing. Having a budget will also enable you to plan ahead, and determine any changes that should be considered.
Finance your business through accounts receivable
Traditional financing is not as easy to come by as it once was. Savvy small business owners are having to turn to other methods in order to secure, the financing they need, for their business. There are many methods that you can tap into; however, many small business owners are turning to using their accounts receivables to gain funding.
Accounting strategies for business finance
Managing the finances of any business can be a challenge and can get very complicated with any company.There are many ways that you can manage business finances effectively using accounting and other financial strategies.Here are some tips and suggestions that will make managing your business easier through accounting.
Why should you use accounting software?
Hiring a trained accountant can easily set your company back $60,000 or more a year. Using professional accounting software is much cheaper and it doesn't require that much of your time. Spending too much time on accounting tasks is unnecessary since you also need to worry about the day-to-day operations of your business. If you are debating whether or not to use accounting software, here is a guide that may help you make your decision:
Using an accounting service to manage your business finances
Managing business finances can easily take up 20 hours of your time each week. This is in addition to managing your company and helping it to grow. Business owners know they need to worry about marketing, sales, customer satisfaction, and product development and they just don't have time to deal with the day-to-day accounting problems. Hiring a professional accountant will set you back thousands of dollars, especially if your business is not growing fast enough to support another employee.
Smart bookkeeping to save money
Businesses are required to keep books in order to pay their taxes and ensure the business is being properly run. Business owners often hire an accountant to handle their bookkeeping and taxes; however you can save money by doing it yourself. Here are some easy ways to save money on bookkeeping:
Improving receivables
Most businesses allow their customers to receive an item and then pay for it 30-60 days later. Since this is a standard procedure, many businesses have cash flow problems because their customers do not pay for the items in a timely manner. If you required payment the moment you sold the products, then cash flow problems would not exist. Proper management of your receivables is necessary to keep your business running effectively.
Here are some tips that may help you improve your receivables:
Choosing accounting software for your business
Accounting software provides businesses with the ability to control their cash flow, receivables, and payables all with the click of a button. There are several types of accounting software programs to choose from, so it is important to understand your options. This article will look at software that will help your business function properly and adapt to growth.
Requirements your business needs to meet before you can obtain financing
If you plan on approaching a bank or other traditional lender for a small business loan to get your business up and running or to expand your business you will need to make sure that your business meets certain requirements. Here are the requirements that your business is going to need to meet before you can obtain financing.
Software for Business Accounting
Business accounting software saves you time and money if you are a small business owner with employees. Compared to handling the books manually or working off a spreadsheet, business accounting software can save you hours. You don't have to enter information redundantly and it automates processes, like invoicing, that you could make costly mistakes on by trying to do it manually. There are a lot of choices out there when it comes to business accounting software, so here are some quick tips that will help you narrow your choices:
Tip #1: Decide what features you want
Accounting software today is much easier to use and some are even designed specifically for someone who has no accounting background. Whatever features you decide you want, make sure the interface is user friendly. Some common features that you may choose to be included in you accounting software may be:
Continue reading "Software for Business Accounting"Why you need a good accountant
You may be a whiz at finances, and you may think that hiring an outside accountant, or a permanent accountant for that matter, is unnecessary, but consider the following.
Making sure your accounting is on track
Let's look at a few pointers regarding making sure your accounting is on track.
What are Generally Accepted Accounting Principles
GAAP stands for Generally Accepted Accounting Principles. GAAP was established by the Federal Accounting Standards Board to assure that most commonly used practices in accounting such as reporting earnings and losses by most businesses are consistent. Most organizations in the United States are expected to follow GAAP standards.
Many accountants working for private, public and governments organization most often use GAAP standards to prepare financial statements. Most of the information provided on financial statements is essential for potential investors and creditors for making the right economic decision based on the economic activity of the company, the time such activity is made and recorded and summarized information of their financial statements.
Continue reading "What are Generally Accepted Accounting Principles"The pros and cons of using independent accountants
At some point during the life of your business, as it grows stronger and prospers nicely, you may think of hiring extra full-time employees or contracting with independent contractors or a combination of both to help you out with different area of the business. Deciding whom to hire to work for you is very important for your small business especially if that person is mostly needed in the accounting department. To help you make the best decision for your business finances, consider the pros and cons of using independent accountants.
Home business tax tips
If you run a small home based business, there are probably lots of things that you are thankful for. Just the simple idea that you own your business, which you run however you want and that you answer to no one as far as setting up your work hours and vacations. However, you need to keep in mind other important things as well, like being able to take care of your business tax return at the end of the year. Here are some tips to follow that will help you be more prepared around tax season.
Tips for choosing accounting software
There are a number of choices when it comes to choosing accounting software for your small business. Technology is the best tool to keep small business organized, help generate money and help keep track of the finances without too much work. Here are some ideas to think about before buying accounting software for your business.
Features you want to have for accounts receivable software
Tracking receivable invoices is very vital for managing your company's available funds. Without available funds, many businesses are forced to borrow money to meet their needs. Lack of adequate funds is the key reason businesses sometimes fail. Accounts receivable software generally allows you to record your sales and other revenues on a daily basis, create customer invoices, monthly statements, and track customers' past and present due balances. These are the main features to have for accounts receivable software, among others. Let's take a look at different features you may want to consider when buying an accounts receivable software package.
When you are ready to set up each of your customer's invoices, the accounts receivable software will help you to create individual accounts to provide you with information on who owes you money along with the amount owed and whether it is overdue and how long it has been overdue. Every time you enter new information regarding your customer's invoices, it will immediately be posted to his account keeping you up to date about his past and current invoice account activities. Some account receivable software programs will give you the option to print reports for previous months anytime you need them. Don't take this for granted because this is not an included feature for all accounts receivable software.
Continue reading "Features you want to have for accounts receivable software"Features you want to have for accounts payable software
As your business grows and expands, maybe your current accounting system no longer fits your business needs because it's outdated, and to upgrade it to better technology would be nearly impossible. It seems understandable why you should hold on to the existing accounting system because you know and understand the old application very well. But you really need to consider investing the time into switching to new accounts payable software to better prepare your business for rapid growth and productivity that you would like to see.
With the new accounts payable software, you will be able to pay and manage your bills more easily. Furthermore, it will give you the most flexibility for processing your invoices, saving you time and money down the road.
Continue reading "Features you want to have for accounts payable software"A look at accounts payable and accounts receivable software
Every company needs to have an accounting system in order to manage revenues and expenses. Choosing an accounting software package or system that meets the needs of your company will make a huge contribution in making your company successful.
Two of the most basic accounting functions that an accounting software package should have are the accounts payable and accounts receivable functions. Accounts payable keeps track of the money not yet paid to suppliers, and accounts receivable is the money not yet received from customers. For example, in a dentist's office, the accounts receivable account would represent the monies due from insurance or patients for services rendered. The accounts payable account would track the amounts from invoices on dental supplies, the lease on the office, and the magazine subscriptions for the waiting room. The dentist could buy an off the shelf basic accounting software for these accounting functions, but a dentist would probably purchase a package that is integrated with the accounting functions unique to the dental industry.
Continue reading "A look at accounts payable and accounts receivable software"Accounting software options for big business
Choosing the right accounting software for a business depends on its size and needs. The most important thing to consider when buying accounting software is its ability to help you organize your business' financial future. So consider doing a bit of research to look at different accounting software options to help choose the very best one.
A big business that generates excellent revenue and spends a great deal of money will certainly need help with its accounting. Choosing the right accounting software is crucial to staying organized and in control of every aspect of the accounting books as well as to master the daily business activities.
Continue reading "Accounting software options for big business"What to look for in a merchant account provider
You have at this point gotten your company up and running. It is going great, but it could be better. You are losing business because you do not take credit cards. Now you need to look for a merchant account provider. However, which one, there are so many?
A merchant account will allow your company to accept credit cards. In this current day and age, plastic is all the more popular. There colored cards, cards with picture, cards with art, cards with family, even see through cards. They are all plastic and almost all of us use them. With the pluses and minuses, it is faster, easier and subsequently safer.
Continue reading "What to look for in a merchant account provider"What are generally accepted accounting principles?
What are generally accepted accounting principles?
By definition generally accepted accounting principles, or GAAP, are the accounting rules used to prepare financial statements for publicly traded companies. However, many private companies use these as well. The Generally Accepted Accounting Principles, are a set of specific accounting rules used to standardize the reporting of financial statements in the United States. This standardization can be very valuable to you as an investor, and helps put each publicly traded company on equal footing when it comes to financial reporting, thus differences are clear and easy to see and understand. Understanding GAAP can help you make better investing decisions.
It is important to note that the generally accepted accounting principles for the US as a whole are often different than those of local or state governments. Generally accepted accounting principles for local and state governments are usually under a different set of assumptions, principles, and constraints, which are determined by the Governmental Accounting Standards Board (GASB).
Continue reading "What are generally accepted accounting principles?"Using an Accountant On-Call - Is it a Good Idea for You?
If you're starting a business, you'll soon find that one of the most important members of staff will be your accountant. He or she will be responsible for the majority of your finances, including payroll, tax preparation, and a wide variety of other money-related tasks.
One way to find an accountant for your business is to use an accountant on-call. These types of employees are typically hired from staffing or placement agencies and can be hired on a temp or temp to perm basis.
Continue reading "Using an Accountant On-Call - Is it a Good Idea for You?"Outsourcing your accounting
Now more than ever, some companies are opting to outsource certain aspects of a business, or transfer management of that area to an external company that specializes in that area. Some forms of business that are typically outsourced include information technology, tech support, accounting, call center duties, or property management.
Outsourcing has a number of benefits, depending on how you look at it. Many companies opt to outsource because they can often save money by outsourcing rather than paying a higher salary to employees in-house. In fact, companies who outsource spend roughly 40% less on training employees than do companies who do not. Even companies who outsource nothing but say, their technical staff, will save a larger amount of money in the long run.
Continue reading "Outsourcing your accounting"How to calculate your breakeven point?
Knowing your breakeven point is crucial to any business venture it changes the risks involved with starting a company and can help you make good decisions with a company that is already running. The breakeven point is a crucial piece of information and calculating it as accurately as possible changes the future from a guess to a plan.
First let's define the breakeven point- breakeven point is when you are back to 0 in your business. Most of us know a products profit margin or the amount over the cost of the product that we make for each item that sells. Let's take a hamburger restaurant as our example. We are great shoppers and find our hamburger for $2 a pound so our ¼ pd hamburger costs .50 plus the bun and toppings lets say we are up to $1 per burger. We sell the burger for $2 and that makes our profit margin per unit $1. But we have to pay Sally and Susie to work at the hamburger restaurant and we have to pay for lights and rent on the building and energy to heat the burgers, these are all our overhead costs. Let's say all those things come to $1000 a month more. That means for our business to get back to 0. We aren't losing any money or making any money we have to sell 1000 burgers a month. That is our breakeven point.
Continue reading "How to calculate your breakeven point?"How to Choose Accounts Payable Software
Accounts payable are an important part of any business and involve paying vendors or suppliers for services. This is similar to writing a check each month for the phone or electric bill at home.
However, businesses regardless of size usually deal with sums too numerous and too large to keep track of with a simple checkbook register. For this reason, most accounting and finance companies will use accounting software to help them keep track of their accounts payable so the payments are accurate and on time. Failing to keep accurate track of accounts payable could result in poor credit scores and financial difficulties for the business.
Continue reading "How to Choose Accounts Payable Software"Accountancy Recruitment - Where to Find the Best Staff
Your accounting staff will undoubtedly be a vital part of your business. The duties of your accounting staff will be varied and include
- Bill payment. The accounting staff will generally prepare you cash disbursement checks where required
- Record receipts. In addition to keeping track of your receipts, they will prepare bank deposits and input credits
- Payroll. Accounting will also compute and prepare your company's payroll checks as well as payroll tax deposits
- Analysis and review of quarterly financial results
- Tax preparation, such as W2s and 1099s, W3 and state reconciliations, and prepare and review federal and state corporate tax returns
Do I need an accountant?
As with most things the cost of hiring professional accountant is usually well worth the price and usually pays for itself. But there are a few questions you should ask yourself before hiring an accountant.
The obvious questions are: Am I good at the day to day record keeping of my expenses and income? Can I keep accurate records? Do I have the time and ability to keep those records? Would my time be better spent increasing my business and doing what I set out to do when I started the business or keeping the records? Could I make more money by hiring someone with more education and experience to do the accounting for me so I am free to do what I am more experienced in and have the desire to do? Are my accounting needs out of my educational ability? Do I really need some professional advice and expertise to make the best business decisions?
Continue reading "Do I need an accountant?"Cash versus accrual accounting method - which is right for me?
There are basically two methods of accounting expenses and income. One is cash basis and the other is accrual. The difference between the two is basically time. With the cash system you only account for an expense or earning when you actually get the money or pay it not when you accrue the sale or expense. This can get inaccurate when you are paying with credit or other ways to prolong the payment or if you use a collection service to do your accounts receivable you only count income when it actually hits your account not when you have done the service or given the product.
Here is an example of each type of system
Cash
On November 30th, 2006 your small business sells 100 Lord of the Rings video games for $100 each. But the person buying the Lord of the rings video games doesn't send the check until Jan 1, 2007. On the cash system you don't list the $10,000 as income for taxes until you file your 2007 taxes.
Questions to ask your accountant to make sure your business is doing ok
If you are a businessman, you are probably always concerned about how your business is doing financially.The financial stability of a business is one of the most important things that can ensure that your business will succeed.An accountant can help you to make sure that your business is doing ok, financially speaking.You should speak with your accountant often to make sure that your business is doing alright.Here are some of the questions to ask your accountant to make sure your business is doing okay:
What are generally accepted accounting practices?
What are generally accepted accounting practices? In the USA, the term GAAP is generally accepted accounting principles. This is the group of rules needing to be followed to prepare accounting reports for publicly traded companies. These appear to have their roots in the English common law system.
The US GAAP was not written into the securities laws, prepared by the Securities and Exchange Commission.The SEC requires that these accounting procedures are to be followed by companies whose stocks are publicly traded, as in the New York Stock Exchange and others.
The Financial Accounting Standards Board sets the accounting principles. The International Financial Reporting Standards provide the same guidelines for world trading companies.
Tips for hiring the right accountant
Your business's finances should be carefully handled. For this reason, an accountant is a vital part of your business. Not only do accountants handle a company's taxes, they can also help determine whether or not certain moves will have an effect on taxes, such as buying a company vehicle or leasing computers. In addition, they can help employers when deciding whether or not to incorporate the business.
How to monitor discrepancies and analyze errors in your accounting
In the business world inaccurate accounting can mean the difference between money coming in or going out of business.So how is it that businesses monitor discrepancies and analyze errors in their accounting?What are the secrets to successful accounting procedures and what needs to be done in order to keep your profits and cash inflow from going down the toilet?Here are some tips on how to monitor discrepancies and analyze errors in your accounting.
How to find a qualified accountant
There are a lot of different things that you will want to make sure that you do when you are first starting a business. One thing that you will want to make sure to do is to get a qualified accountant. Having a qualified account will insure that you get all of the tax benefits for your business along with having accurate books that will have all of your transactions in them. An accountant can also help you with any other financial things that might come up. This is why it is important that you just don't find an accountant but that you find a qualified accountant. Here are some tips on how to find a qualified accountant.
Best accounting practices
When you are starting a business you need to make sure that you have a couple of things in order. You will want to make sure that you have a business plan along with your financing. But you will also want to make sure that you know how you are going to do your accounting. Making sure that your accounting is order is very important to make sure that your books stay on track. Here are some tips on some of the best accounting practices so that you can get the most out of your books.
How to ensure accountant honesty.
Having an honest accountant is key to the success of your company.We have all read horror stories in the newspaper and seen them on the news about how a dishonest accountant managed to steal hundreds of thousands of dollars, even millions of dollars, from companies through simple yet fraudulent accounting deceits.This crime has brought down many a company or an organization, and even though a dishonest accountant can be caught, the damage caused is essentially impossible to repair.
When it comes down to it, you ultimately have to trust your accountant and that she or he knows what to do and will be honest when it comes to your company or your organization's finances.However, there are some general guidelines that you can follow in order to ensure that your accountant is being honest.
Continue reading "How to ensure accountant honesty."Is your accountant skimming off the top? How to know.
Have you noticed your finances reducing? Have you noticed that something wasn't quite right with your finances. Do you think your accountant is stealing money? How do you know if you accountant is stealing money and if they are how can you protect your account?
No matter what you should know your companies finances. Sadly, it is a problem in today's world that accountant's are stealing money from their companies. They can steal money easily since you aren't in control of the day to day finances. You should know some ways on how to protect your account.
Research states that many accountants steal money from their companies because they hold a personal grudge or vengeance against the boss or the company. They also steal because it is easy and they have no moral to resist easy money. Your accountant can steal from your inventory and assets, from petty cash fund, they can steal from deposits, and even directly from your checking account.
Continue reading "Is your accountant skimming off the top? How to know."Why it is important to have a great accountant
Accountants have been around for centuries and have provided us with a number of different services.Mistakenly though, it is believed that accountants simply provide tax return preparation services so why is it so important to have a great accountant?Can't most individuals do their taxes themselves?What most people don't know is that accountants provide much more than just tax return preparation.A great accountant can save you money in many different ways.
What does an Accountant do?
An accountant is a licensed professional who has gone through some pretty grueling education to become a certified public accountant.Accountants are extremely versed in the tax code, finances and tax issues.The stereotypical view of an accountant involves someone dropping off their receipts about a month before tax returns are due, and the accountant doing the best he or she can to prepare them.If this is the only way you are using your accountant then you are wasting your money and their time and skills.Accountants are experts in the tax code, so you should use this to your advantage.Accountants are aware of all aspects of your financial life and can help you plan, invest, and save your money.An accountant can help you plan for the future so there is a future.An accountant puts together your tax strategies to save you money this year, the next year, and throughout your entire life.That's what an accountant does.
How to account for expenses on business trips (How does the business account, or the employee?)
Business trips are beneficial for everyone.The employer is able to send employees to trainings, to do research, look over product production in another country, or to discuss partnering strategies with other companies.The employee is able to travel on the employer's dime, sometimes visiting far away countries or unique cultures.But how should each account for the expenses of a business trip.
How a Business Accounts for a Business Trip
Things your accountant should do to help you know where your business is financially
One of the most important things that an accountant does is helps you know where your business is financially.A good accountant will be able to keep track of your finances and will be able to interpret what your finances say so that you can know where your business is financially.Hiring the right accountant will help you know more about your business.So, in order to keep track of your business' financial state, you need to hire a good accountant and have that accountant help you know where your business is financially.
CPAs have been an important resource for businesses and non-profit organizations for years.These organizations need help coming up with budgets, developing accounting procedures, working through different management and financial problems, and more.CPAs can also help businesses and non-profit organizations come up with different data processing systems and information management systems.Many senior management teams rely on CPAs to help them with their overall finances.
Taking the steps to hire a competent and honest accountant
Accounting is very essential in anyone's life and more so to succeed in business. A knowledgeable, competent and honest accountant assists in the planning of business growth, the maximization of business profit and the expectation of financial problems that might threaten the continuing existence of a business. Hiring an honest and competent accountant doesn't guarantee entrepreneurial success. But not taking the time and the steps to look for a knowledgeable and skilled accountant virtually guarantees business failure.
Hiring an accountant is the solution to knowing accounting and staying organized.No matter
how competent you may be in performing your own accounting, a hired professional who keeps a company's books on a periodic basis is far more adequate and cost effective for the business owner's day by day monitoring of transactions and company performance. In addition, the accountant would provide financial statements of the overall business status anytime you need. He can print a report weekly, monthly, quarterly or annually anytime you need them. You don't need to worry about running your business and taking care of your accounting as well.
Tips for hiring the right accountant
n accountant is a vital part of any business. Not only do accountants handle a company's taxes, they can also help determine whether or not certain moves will have an effect on taxes, such as buying a company vehicle or leasing computers. In addition, they can help employers when deciding whether or not to incorporate the business.
While having an accountant is important, it's even more important to find one who is qualified, competent, and honest, as a portion of the company's financial well-being lies in the accountant's hands.
Continue reading "Tips for hiring the right accountant"Tips for keeping tabs on your accountant
Hiring any kind of professional who will be handling any part of your business can be a scary thing.You want to find someone who will be reliable, intelligent, and trustworthy, but also someone who is not too expensive.You can't afford to hire someone who's going to break the bank just for an initial consultation.One of the worst things you can do when hiring any type of professional service is just call one up and hire one.You need to get to know who will be working with you.And once you've finally decided on a particular professional, you need to keep close tabs on that person to ensure that s/he has your best interests at heart.Here are a few tips for keeping tabs on your account.
Let's begin first with how to find an accountant.
When to hire a full time accountant
While many of us would like to think that we are experts in a lot of different subjects we are not nearly close enough to be considered experts in everything. When it comes to starting a small business many of us will open a business that we know something about so we can be considered an expert in that field. But we can sometimes run into trouble when starting our business if we try to be experts in fields that we know nothing about. Lucky for us there are consulting services that we can use to get our businesses up and running.
Consulting services are services that are offered by a professional. Consultants in the business profession can include lawyers, certified public accountants, marketing, management, information technology, and regular business consultants. Let's look and see how different types of consulting services can be used to get your small business off the ground.
Continue reading "When to hire a full time accountant"How to hire a top-notch accountant
When it comes to hiring people for your company you are going to want to hire the very6 best people for the job. Basically what this means is that you are not going to want to hire just anybody you are actually going to want to hire top notch people, and this includes your accountant. Whether you are going to be hiring a full time accountant or you are going to be outsourcing your accounting you are still going to want to take the proper steps to hire the best person for the job.
Difficulty rating: Moderate to difficult
How to account for profits and loss
Almost every company uses a form of financial statements to help keep track of how their company is doing financially. It is in the financial statements of any company that you will discover the company's retained earnings. The most common place to find a company's profit or loss is in the Income statement. Every year dividends or a share of the profit are paid to the shareholders or owners of the company, this is usually a set amount of the net earnings, such as thirty percent or ten percent, which is then taken away from net earnings to give you the amount of retained earnings a company has.
Currently there are two kinds of income statements used by business, the single step income statement and the multiple step income statement. Which income statement your company decides to use depends on what kind of company you run and if your company is publicly traded or not. Let's take a look at the components of an income statement to see how you can account for profit and loss.
Tips for hiring an awesome, honest accountant
One place where your company is the most vulnerable to loss and fraud is in the accounting and bookkeeping department.A dishonest accountant can pilfer a good proportion of your profits before you will notice it.A bad (but honest) accountant can lose you money on taxes and by making costly mistakes.
How can you go about hiring an accountant that will be both awesome and honest?Here are a couple of suggestions that might help you in this endeavor.
Key questions you should ask prospective accountants in an interview
Hiring any kind of professional who will be handling any part of your business can be a scary thing.You want to find someone who will be reliable, intelligent, and trustworthy, but also someone who is not too expensive.You can't afford to hire someone who's going to break the bank just for an initial consultation.One of the worst things you can do when hiring any type of professional service is just call one up and hire one.You need to get to know who will be working with you.In order for you to get the best possible professional, there are certain questions you should ask.This article will discuss key questions you should ask prospective accountants in an interview.
Let's begin first with how to find an accountant.
Understanding a profit and loss account
Understanding a profit and loss account.In order to understanding a profit and loss account, you need to know what profit is. Profit is what a business works for. It is the reward that comes from running a successful business.
Profit=growth=success
Continue reading "Understanding a profit and loss account"How to understand ratios that measure performance on your accounts
How to understand ratios that measure performance on your business accounts? Measuring the performance on your accounts is easily done when you look at the different ratios that come into play.
There are several different types of ratios that a business can measure. Here are some examples.
Continue reading "How to understand ratios that measure performance on your accounts"What are single-entry accounts and what do they mean to your business
Most people are first introduced to single-entry accounts when they first learn to use a checkbook.The checkbook register is a classic single-entry account, where each line is either an amount of money subtracted from the account (when you write a check) or added to your account (when you make a deposit).To find out how much money is in your account, you just add up the columns and add that amount to the amount that you started with.In business, there are single-entry accounts also, and they are just that easy.However, the single-entry account is rarely used by accountants so as you might expect, there are both advantages and disadvantages or a single-entry system.
The main benefit for the single-entry system is that it is super easy to use.It actually is as easy as keeping a checkbook and if you know how to balance a checkbook, you know how to balance the books for your company.You just have to remember to write down what come into or goes out of the business coiffeurs and be sure to write down absolutely everything.You also have to remember to make sure it is written in such a way that you know the difference between the positive entries and the negative entries.On of the most common ways to distinguish between positive and negative entries is to enclose the negative entries in parentheses.In a very simple business with few transactions, this might be ideal.
Continue reading "What are single-entry accounts and what do they mean to your business"How you should run your accounting department
Here are some tips for running your accounting department:
1. Keep your accounting department accountable! If you want to run your accounting department well, keep it accountable. I know, this needs some explaining. The fact is that accountants occupy a very unique place within a company's structure. They're trained to deal in the single most difficult aspect of business, that is, how to keep track of all those numbers. Accountants have many responsibilities, ranging from keeping track of company gains and losses to taking careful account of what's being spent on company credit cards. Now, many accountants that you'll meet fit a definite personality type: intelligent, hardworking, orderly, bookish, relatively clean and quiet, etc. It's funny, therefore, to learn that company accountants often feel a sense of superiority that has to do with the intricacies of their job: i.e., no one else can do it; they're the accountants, everybody else accounts to them. But who's keeping watch over the accounts? Who are the accounts accountable to?
How to measure performance of you business accounts
Sometimes in the world of business management and business finance, it gets hard to see the forest through the trees.This "tree blindness" can strike when you start looking at the number of business accounts, especially the number of new business accounts, and you stop looking at the bottom line.Sometimes the number of accounts and the bottom line are less related to each other than common sense would indicate.
The truth is that more accounts doesn't always translate to more revenue.Each account should be considered carefully and independently.How much money does the account bring in?How much goes into keeping and maintaining the account?Subtracting the second number from the first will give you a decent picture about the bottom-line performance of that account.Still, that number won't tell you the whole story.
How to master your accounts
If you are in the world of business management or business finance, you spend a lot of time thinking about your different accounts.There are business accounts, which you are trying to get and trying to keep once you have them.There are also credit accounts, which you are trying to pay off while paying the least amount of interest possible.It's enough to give you headaches if you let it.However, there are a few simple tips that you can follow to help you master all of your business accounts.
Be scrupulous-the more careful you are with accounts, the less of a headache they will end up being.You should consider computerizing your business if you haven't all ready.A good computer program is the key to good record keeping.By having all of the account information in a computer program it will be easier for you to work that information into a budget and keep track of it in general.If for some reason you are still doing your finances with pen and paper (and surprisingly, about 40% of small businesses are) you should make sure that all the pieces of paper go into a well-organized system.Meticulous management of your accounts is the first step towards mastering your accounts.
Continue reading "How to master your accounts"10 tips for keeping track of business write offs
Here are some tips to help you keep track of business write-offs for income tax purposes.
Tip one:
To help keep track of miles you will need to get a notebook and a pen to keep in the car at all times. If you get in the car to drive for business purposes you will need to write this down in your notebook. Be sure to record the date, the mileage when you left and the mileage when you returned, as well as the total miles driven. Also be sure to include what the purpose of the trip was. At the end of each month you can then input this information into your computer on a spreadsheet or similar software, but do not get rid of the papers from the original notebooks. When the notebook is full or if it is the end ofthe tax year you should file the notebook with your tax papers.
How to find the right accountant.
If you are looking to find the right accountant for your business, then look for one who has experience in a similar business than yours.Ask the potential employee to describe his relationship with his previous clients, his work ethic and his salary requirements so that you can determine if his service and expertise fit the company's needs. Ask to have references and if any of his former clients can be contacted. Colleagues and friends can share with you some of their experience to find the right accountant. Ask if they have someone in mind that they would like to recommend to you.Ask yourself how you can use the prospective accountant's experience to fulfill the ideal financial future for your company.
There are a number of factors that you should consider before you actually hire an accountant for your business needs.
Tips for making your accounting information up to date and bulletproof
There are so many things that are important to keep up to date when you are running a business. One thing that is very important to keep up to date is your accounting. If your businesses accounting is not up to date there are possibilities that things could go wrong and things will not be in balance. If you are looking for new ways to keep your accounting information up to date here are some tips for making your accounting information up to date and bulletproof.
The first tip for making your accounting information up to date and bulletproof is to make sure that you document everything that goes into your accounts and out of your accounts. You need to make sure that you have receipts, and withdraw along with all of the deposits. You need to make sure that you are always up to date on these things. If you are not there are chances that your balance sheet will be off balance.
Tips for comparing past and future accounting needs
There are different accounting needs that different companies have. Depending on what type of company you are will depend on the certain type of accounting needs you will have. If you are trying to decide what different type of accounting needs to have here are some tips for comparing past and future accounting needs.
The first tip for comparing past and future accounting needs is to decide what your company needs actually are. For example, if your company has an accounting process that has worked for years but the accounting programs are out of date you might want to compare the new accounting programs to the past accounting programs to see if in the future new software might be one of your accounting needs.
How to set up performance indicators on your accounts
There are different performance indicators that can go on your accounts. The reason why there are different performance indicators is because different people want their accounts to perform differently than others do. For example if some one is invested in one type of investment account and their risk is higher than another's or they have more money invested than another does they will probably have an indicator that is different than the other. If you want to set up a performance indicator on your accounts but don't know how. Here are some tips on how to set up performance indicators on your accounts.
The first tip on how to set up performance indicators on your accounts is to first set up a goal that you want to achieve. You might want to make a spread sheet to analyze your cash flow. The reason you might want to do this is because some companies get in trouble because they have think they have more money to spend then they really do. On the spread sheet you will want to make columns that can track your cash flow either monthly or quarters. On the next row put in how much cash flow you have each month or quarter. This will help you get an idea when you have the most cash flow and when you don't.
The second tip on how to set up performance indicators on your accounts is to figure out what your debt/ asset ratio is. This will help you to figure out how much of your property and equipment you really own. In time you want to make sure that your debt comes down so you own more of your company than the bank does.
How to recognize when your accounting figures are being manipulated
There are different ways that a company can recognize when their accounting figures are being manipulated. If a company is not having a good year and they are losing profits your accountant might try to manipulate the accounting figures to make profits look better. If you are worried your company might be manipulating your accounting figures, you need to look into it. Here are some tips on how to recognize when your accounting figures are being manipulated.
The first tip on how to recognize when your accounting figures are being manipulated is to do a thorough search of everything from your accounts receivable to your accounts payable. You want to make sure that you go over all of your accounting journals to see what has been put where. This will help you to get a better understanding of exactly what is going on in your company and this will help you recognize when your accounting figures are being manipulated.
How to compare internal and external accounts
There are so many different accounts out there that you need to compare in your business. The hard thing is deciding which ones you want to compare. If you are trying to decide which accounts you want to be internal and which accounts you want to be external there are some things you need to compare. Depending on your business will depend on what internal and external accounts means. Here are some tips on how to compare internal and external accounts.
The first tip on how to compare internal and external accounts is to decide which is going to cost you more in the long run. For example if you are thinking about having your payroll accounts internal you might want to think about the cost involved with having an in house accountant do the payroll. Plus all of the set up fees and everything else that goes along with it. Then you will want to compare what it would cost you to have your payroll accounts external. How much would you have to pay an external company to do your payroll and everything involved like W-2's for all of your employees at the end of the year and things like that. You also need to compare the time that it takes to do these different tasks internally. This is why you will want to compare the cost of internal and external accounts to see which would work best for your company.
Questions to ask your accountant to make sure your business is doing ok
Everyone who owns a business wants to know if the business is doing well.A business is full of many team members.One member who is probably most important is the accountant.The accountant is the person that is in charge of all business accounts.The accountant knows how much money is going in and out.They are in charge of expenses that the business is accountable for, they decide if purchases are necessary.So if a person wanted to know how their business was doing, if it was doing well or not the most logical person to ask would be the accountant.Lets looks at some good questions to ask an accountant.
1) How much money did the business make this month?The accountant keeps records of all transactions for the business.He/she will know how much money the business made and how much money the business spent. It could be weekly reports or monthly reports.
Continue reading "Questions to ask your accountant to make sure your business is doing ok"Should your accountant have liability insurance?
You may be asking yourself, why would an accountant want to carry liability insurance?The answer to this is because if allegations any allegations are made about the accountant regarding tax preparations or write-ups, then the accountant will have himself a safety net.
A lot of accountants do not like to get liability insurance because of the high costs associated with keeping up on the premiums. However, the cost and severe consequences of a lawsuit can far exceed these amounts.
How to ensure that your accountant is being honest.
Having an honest accountant is key to the success of your company.We have all read horror stories in the newspaper and seen them on the news about how a dishonest accountant managed to steal hundreds of thousands of dollars, even millions of dollars, from companies through simple yet fraudulent accounting deceits.This crime has brought down many a company or an organization, and even though a dishonest accountant can be caught, the damage caused is essentially impossible to repair.
When it comes down to it, you ultimately have to trust your accountant and that she or he knows what to do and will be honest when it comes to your company or your organization's finances.However, there are some general guidelines that you can follow in order to ensure that your accountant is being honest.
Continue reading "How to ensure that your accountant is being honest."What is tracking expenditures, and how should you do it
Expenditures, basically, means "what you spend." Whether a business, a family, a single person, whatever, you have expenditures, things you buy, money you spend. You have rent, you have car payments, insurance, groceries, entertainment, and so on and so forth-all things on which you regularly spend money with such regularity that you often forget you're even doing it. This leads to all sorts of money troubles. You forgot you spent money on this, so you spend some on that, and lo and behold you're getting all sorts of fines from your bank. As I mentioned above, this phenomenon is shared by anyone, anything, that spends money-anywhere.
But let's focus on business for a moment. In business, expenditure is a huge, huge issue-a business is spending money all the time, on all sorts of things, great and small. Think about it for a moment. A minute is spending on things as varied as pencils, computers, and cars. A business must pay its employees. A business must play for plane tickets, banquets, expensive computer programming, etc. It can get so that businesses lose large swathes of money without even knowing it. Just little things, little things, that build up.
Using an independent accountants, pros and cons
While hiring employees is great for some companies, using an independent account can also provide many benefits, but it still does carry some risks. Let's take a look at the pros and cons of using an independent accountant instead of an employee.
Advantages:
- Cost savings
o Federal tax withholding - with independent accountants employers do not have to withhold federal income tax which has to get paid to the IRS certain times of the year. With independent accountant the employer only needs to send in a 1099 to the IRS at the end of the tax year.
What are generally accepted accounting principles?
What are generally accepted accounting principles?
By definition generally accepted accounting principles, or GAAP, are the accounting rules used to prepare financial statements for publicly traded companies. However, many private companies use these as well. The Generally Accepted Accounting Principles, are a set of specific accounting rules used to standardize the reporting of financial statements in the United States. This standardization can be very valuable to you as an investor, and helps put each publicly traded company on equal footing when it comes to financial reporting, thus differences are clear and easy to see and understand. Understanding GAAP can help you make better investing decisions.
It is important to note that the generally accepted accounting principles for the US as a whole are often different than those of local or state governments. Generally accepted accounting principles for local and state governments are usually under a different set of assumptions, principles, and constraints, which are determined by the Governmental Accounting Standards Board (GASB).
Continue reading "What are generally accepted accounting principles?"What are assets, liabilities and owners equity?
To understand a company's financial soundness you need to know what assets, liabilities, and owners' equity are.
Assets, liabilities and owners' equity are the three components that make up a company's balance sheet, and it is this balance sheet that gives you the little snap shot of how secure, or insecure the company is financially.
Generally when these terms are used they are done so in this equation: Assets = Liabilities + Owners' Equity
Continue reading "What are assets, liabilities and owners equity?"What are generally accepted accounting principles?
What are generally accepted accounting principles?
By definition generally accepted accounting principles, or GAAP, are the accounting rules used to prepare financial statements for publicly traded companies. However, many private companies use these as well. The Generally Accepted Accounting Principles, are a set of specific accounting rules used to standardize the reporting of financial statements in the United States. This standardization can be very valuable to you as an investor, and helps put each publicly traded company on equal footing when it comes to financial reporting, thus differences are clear and easy to see and understand. Understanding GAAP can help you make better investing decisions.
It is important to note that the generally accepted accounting principles for the US as a whole are often different than those of local or state governments. Generally accepted accounting principles for local and state governments are usually under a different set of assumptions, principles, and constraints, which are determined by the Governmental Accounting Standards Board (GASB).
What are assets, liabilities and owners equity?
To understand a company's financial soundness you need to know what assets, liabilities, and owners' equity are.
Assets, liabilities and owners' equity are the three components that make up a company's balance sheet, and it is this balance sheet that gives you the little snap shot of how secure, or insecure the company is financially.
Continue reading "What are assets, liabilities and owners equity?"Getting out of the shoebox - Bookkeeping basics
While keeping track of your business's finances may seem overwhelming, it's not that hard when you know the basics of accounting and bookkeeping. So throw out the old shoebox, and start booking right by learning some book keeping basics.
What is the point?
First and foremost it is important to understand why you do bookkeeping, what are your goals. Bookkeeping and accounting share two basic goals:
- To keep track of your income and expenses, which improves your chances of making a profit.
- To collect the financial information necessary for filing your various tax returns.
If you can keep these two basic goals in mind, your world of bookkeeping will become much easier. You will not get nearly as bogged down by the numbers, and think more of the overall picture. Don't get overwhelmed by the details of keeping your financial records, just stick to the basics.
What specifications are there?
Using an Accountant On-Call - Is it a Good Idea for You?
If you're starting a business, you'll soon find that one of the most important members of staff will be your accountant. He or she will be responsible for the majority of your finances, including payroll, tax preparation, and a wide variety of other money-related tasks.
One way to find an accountant for your business is to use an accountant on-call. These types of employees are typically hired from staffing or placement agencies and can be hired on a temp or temp to perm basis.
Outsourcing your accounting
Now more than ever, some companies are opting to outsource certain aspects of a business, or transfer management of that area to an external company that specializes in that area. Some forms of business that are typically outsourced include information technology, tech support, accounting, call center duties, or property management.
Outsourcing has a number of benefits, depending on how you look at it. Many companies opt to outsource because they can often save money by outsourcing rather than paying a higher salary to employees in-house. In fact, companies who outsource spend roughly 40% less on training employees than do companies who do not. Even companies who outsource nothing but say, their technical staff, will save a larger amount of money in the long run.
How to Choose Accounts Payable Software
Accounts payable are an important part of any business and involve paying vendors or suppliers for services. This is similar to writing a check each month for the phone or electric bill at home.
However, businesses regardless of size usually deal with sums too numerous and too large to keep track of with a simple checkbook register. For this reason, most accounting and finance companies will use accounting software to help them keep track of their accounts payable so the payments are accurate and on time. Failing to keep accurate track of accounts payable could result in poor credit scores and financial difficulties for the business.
Accountancy Recruitment - Where to Find the Best Staff
Your accounting staff will undoubtedly be a vital part of your business. The duties of your accounting staff will be varied and include:
a. Bill payment. The accounting staff will generally prepare you cash disbursement checks where required
b. Record receipts. In addition to keeping track of your receipts, they will prepare bank deposits and input credits
c. Payroll. Accounting will also compute and prepare your company's payroll checks as well as payroll tax deposits
d. Analysis and review of quarterly financial results
e. Tax preparation, such as W2s and 1099s, W3 and state reconciliations, and prepare and review federal and state corporate tax returns
What should you look for in a merchant account provider?
You have at this point gotten your company up and running. It is going great, but it could be better. You are losing business because you do not take credit cards. Now you need to look for a merchant account provider. However, which one, there are so many?
A merchant account will allow your company to accept credit cards. In this current day and age, plastic is all the more popular. There colored cards, cards with picture, cards with art, cards with family, even see through cards. They are all plastic and almost all of us use them. With the pluses and minuses, it is faster, easier and subsequently safer.
Continue reading "What should you look for in a merchant account provider?"What percentage of money owed is typically recovered by a collection agency?
What percentage of money owed is typically recovered by a collection agency? The percentage of debt recovered is determined by how old the debt is, the percentage of commission, and the percentage recovered.
Most debts less than 3 months old recover about three-quarters of the amount owed. As the length of time increases the amount recovered decreases. At six months the average drops to close to half and by 1 year only about one third of the debt will be recovered. These numbers reflect the need to start your collection proceedings as soon as possible after the loan becomes delinquent.
What is lean accounting and how can you make it work for your company?
No matter what you call it, lean accounting is a philosophy that has been around for a long time. It is focusing on the customer and eliminating waste,
Creating goals for your company to comply with in changing from the traditional types of standard types of accounting to the lean more efficient accounting plan is important. Here are some suggestions you can follow to implement changes.
- Provide accurate, timely, and understandable information to motivate a simple lean transformation through out your business. With real information, people tend to have an easier time following through with goals.
Continue reading "What is lean accounting and how can you make it work for your company?"What do bookkeepers do and are they worth it?
Bookkeepers used to keep ledger books for businesses thus their name. Of course with the invention of computers and programs like QuickBooks very few people keep literal books in a ledger anymore although it is a great way to learn bookkeeping for children. So why not just use QuickBooks and do your own accounting? This is a matter of how much you value your time and what other things especially money making things you could be doing if you hire a bookkeeper to do it for you. What is a few hours walk on the beach worth to you? or if you are a workaholic, how much more business could you pull in if you were freed up of the record keeping aspect of your business? If you can pull in double the amount it costs to hire someone to do the record keeping aspect then you have paid for them and made your business more successful.
Continue reading "What do bookkeepers do and are they worth it?"How to calculate your breakeven point?
Knowing your breakeven point is crucial to any business venture it changes the risks involved with starting a company and can help you make good decisions with a company that is already running. The breakeven point is a crucial piece of information and calculating it as accurately as possible changes the future from a guess to a plan.
First let's define the breakeven point- breakeven point is when you are back to 0 in your business. Most of us know a products profit margin or the amount over the cost of the product that we make for each item that sells. Let's take a hamburger restaurant as our example. We are great shoppers and find our hamburger for $2 a pound so our ¼ pd hamburger costs .50 plus the bun and toppings lets say we are up to $1 per burger. We sell the burger for $2 and that makes our profit margin per unit $1. But we have to pay Sally and Susie to work at the hamburger restaurant and we have to pay for lights and rent on the building and energy to heat the burgers, these are all our overhead costs. Let's say all those things come to $1000 a month more. That means for our business to get back to 0. We aren't losing any money or making any money we have to sell 1000 burgers a month. That is our breakeven point.
Continue reading "How to calculate your breakeven point?"How much do collection agencies cost?
How much do collection agencies cost? There are two ways that collection agencies charge for their services. The first is a flat or fixed fee for services. An example would be Agency A will send out 3 letters and make one phone call for $10. This is the usual method for smaller debts. For larger debts the company charges on a contingency basis. This means that they charge a percentage of the money collected. The fees also go up if the agency involves a lawyer in the proceedings. This can raise the percentage from an average of 20-35% to about 50%. A good agency will first exhaust all methods available to them to persuade your debtor to pay without legal involvement.
Obviously the contingency basis is to your advantage because you only pay if they collect, giving them incentive in the outcome as well as you. This is a good insurance that the company will do their best to recover your money. This percentage plan is probably more expensive in the actual amount paid to the agency but because they have an interest in the debt on contingency you can't measure how much more they will collect.
Continue reading "How much do collection agencies cost?"What are the Top 10 ways to get my customers to pay on a more timely basis?
1. Use the carrot and the stick method or reward your customers who pay on time. Using a clause in your billing that offers those who pay within 10 days of receipt of the bill a 2% discount is a small incentive for them to pay on time and could increase their desire to do so.
2. Use a punishment and consequence method. Use a clause in your billing that states the consequence of 1.5% added to their bill each month that the account goes unpaid.
3. Make it easy for your customers to pay. Give them many options of methods of payment and don't charge them for paying with credit card or over the phone. Make it easy to pay you by having more hours available for customers to pay and phone methods available for them to pay.
Continue reading "What are the Top 10 ways to get my customers to pay on a more timely basis?"Top 10 ways to choose a good collection agency
Choosing a collection agency is a very important decision and one that must be made with careful planning. Here are 10 things you should consider when choosing a collection agency
1. Does the collection agency have licenses in the states your debtors reside? Each state has different rules about licensing collection agencies. Make sure that the agencies you consider have the proper licensing for the location you are in.
2. Check out the form letters your clients will be sent. Make sure you are comfortable with the wording and that it works for the type of accounts you are wanting collected. Make sure the letter reflects the urgency yet professional attitude you want to portray without offending your clients.
What are five key metrics every manager should watch to guarantee their company's financial health?
A manager needs to watch five key metrics to guarantee their company's financial health.
Business leaders and managers have to develop at least basic skills in financial management. Basic skills in financial management start in the critical areas of cash management and bookkeeping, which should be done according to certain financial controls to ensure integrity in the bookkeeping process.
The best way to start looking at the five key metrics, we need to understand how we come up with what they are. The best metrics bring to light opportunities for improvement and drive the results needed. The metrics will provide a way to measure different types of performance. The metrics will help create change. These metrics must be tailored for your business needs.
What are five key metrics every manager should watch to guarantee their company's financial health?
A manager needs to watch five key metrics to guarantee their company's financial health.
Business leaders and managers have to develop at least basic skills in financial management. Basic skills in financial management start in the critical areas of cash management and bookkeeping, which should be done according to certain financial controls to ensure integrity in the bookkeeping process.
The best way to start looking at the five key metrics, we need to understand how we come up with what they are. The best metrics bring to light opportunities for improvement and drive the results needed. The metrics will provide a way to measure different types of performance. The metrics will help create change. These metrics must be tailored for your business needs.
Do I need an accountant?
Can I personally be liable for a business loan? Yes, there are several ways you can be personally liable for a business loan. If you are the owner of a sole proprietorship or partner in a general partnership you are personally responsible for all loans your business takes out. If you personally guarantee a business loan, it means that you are personally liable as well.
Some people get business loans without thinking about how it will affect their personal credit. If your business is structured as either a sole proprietorMeta Description: Do I need an accountant?
Continue reading "Do I need an accountant?"The Cash versus accrual methods of accounting and which is right for me?
There are basically two methods of accounting expenses and income. One is cash basis and the other is accrual. The difference between the two is basically time. With the cash system you only account for an expense or earning when you actually get the money or pay it not when you accrue the sale or expense. This can get inaccurate when you are paying with credit or other ways to prolong the payment or if you use a collection service to do your accounts receivable you only count income when it actually hits your account not when you have done the service or given the product.
Here is an example of each type of system
Continue reading "The Cash versus accrual methods of accounting and which is right for me?"The Cash versus accrual methods of accounting and which is right for me?
There are basically two methods of accounting expenses and income. One is cash basis and the other is accrual. The difference between the two is basically time. With the cash system you only account for an expense or earning when you actually get the money or pay it not when you accrue the sale or expense. This can get inaccurate when you are paying with credit or other ways to prolong the payment or if you use a collection service to do your accounts receivable you only count income when it actually hits your account not when you have done the service or given the product.
Here is an example of each type of system
Continue reading "The Cash versus accrual methods of accounting and which is right for me?"How do I decide whether to send an account to a collection agency?
Deciding to send an account to collections is a tricky business because the longer you wait the less likely you will get anything and the longer the account has been delinquent decreases the amount you will collect. But you also don't want to have the bad feelings from your customers about sending them to a second party for collection proceedings that can be damaging to your relationship with them. So there is a fine line between jumping to fast to sending them to collections and waiting to long and getting less payment for the debt owed.
Some things to consider when debating whether to send an account to collections is:
• How long has the account been delinquent?
• Is the customer likely to return to your business if you send them to collections?
• Are you getting responses to your collection letters and phone calls?
• Is the person following through with any payment arrangements?
• Is the customer denying the account balance or refusing to pay?
• Has the customers address and phone number changed?
Separating Business and Personal Credit Cards:
If you have your own business you know that there are lots of expenses involved. There are a lot of things you need to buy besides the things that will actually be a part of the building your business runs in.
There are small things here and there that require you to put money on your credit card or out of your checkbook to pay for them, such as paper for a printer, or the snacks for a board meeting. If this is the case it would probably be a great idea for you to get a specific business credit card so that you can separate your business credit card from your personal credit card.
Continue reading "Separating Business and Personal Credit Cards:"Look Out for that Great Accountant
There are many factors to be considered when you are trying to select the accountant who is right for you. In other words how to find that good one. Better still, how to find that "great one".
Make up a shortlist of at least 4 or 5 potential candidates. Compare what each has to offer. Come to a conclusion as to which offers the best service for the cost involved. You must find out about each accountant.
See if they are interested in your type of business. Are they keen on the size of your business and the work involved? Do they only work for the "biggies" or can they help you in your small operation.
If they don't appear interested in you, don't waste your time - keep looking.
Some of the questions that you will need to ask yourself include the following:
Does the accountant understand the type of business you operate?
Has the accountant had experience in your type of business with other clients?