December 10, 2007

Basic Bookkeeping For Small Business Can Save Money

Basic bookkeeping consists of recording the prime business transactions of sales, purchases and cash. The accounting documents supporting and evidencing these transactions being called prime documents which are entered into the business books by a bookkeeper.Sales InvoicesA sales invoice is a prime document. In more advanced accounting systems technical terms such as sales day books, sales ledgers, debtors and credit control are important but at the basic level bookkeeping of sales is the act of recording those sales in the business books.A sales day book is basically a log of sales invoices issued by the business and this level of recording financial transactions is all that may be required for a small business. A simple list of the sales invoices which would be described as part of a single entry bookkeeping system.A basic bookkeeping system for sales invoices would be a single entry bookkeeping system with minimal analysis of the total sales value. An accountant or bookkeeper may make these entries although in smaller organisations the records are often kept by the business owner.Larger organisations may well maintain sales day books but would certainly also enter the sales invoices into an accounting system and would usually use accounting software to do so. Within the financial accounting package the sales would not only appear as a list making up the total sales turnover but would also be entered in a sales ledger.Each sales invoice being allocated to the various clients to whom the sales had been made. The sales ledger at this stage of the bookkeeping represents the value of goods or services sold to each customer.Purchase InvoicesA purchase invoice is a prime document and a purchase day book is a list of purchase invoices received from suppliers. The purchase invoice day book would not normally require further financial analysis of the type of expenditure. To that extent a simple purchase day book would be a good starting point for a simple set of accounts but require a little more sophistication requiring analysis by expense type for both financial control and taxation purposes.A basic bookkeeping system for purchase invoices would be a single entry bookkeeping system that also had columns to analyse the expenditure into the expense categories required by the particular tax rules under which the accounts were being prepared.Medium and larger organisations require to track and control purchase invoices to control costs and payments. In a mirror of the sales ledger system purchase invoices would also be entered by supplier into a purchase ledger. The easy way is to allocate each supplier a code number so that the accounting software can collect the amounts owed to each supplier the individual supplier accounts being the purchase ledger.Cash and Bank TransactionsQuite apart from the single entry of sales and purchases is the recording by a business in its books of cash and bank receipts and payments. The third area of prime documents is the cash receipt or bank slip, given or received. Such documents may take many forms from the till roll of a retail business to the deposit slip at a bank but all are evidence of money changing hands.In a small business cash and bank records may be maintained separately to the records of other prime accounting records. In a simple format the cash or bank records would be similar to the bank statement but showing the names of customers and suppliers or if multiple customers for example then the source of the money being received or paid.Larger organisations and particularly using accounting software also code each receipt and payment to the same customer and supplier codes used to produce the sales ledger and the purchase ledger. In addition to recording the cash and bank transactions in the cash and bank accounts the amounts received and paid are also recorded in the sales ledger and purchase ledger.By recording the cash and bank transactions in the ledgers the customer and supplier records making up the accounting ledgers then show the balances on each account and the recording of the financial transactions in this way is effectively the other side of the double entry bookkeeping system.A small business not requiring sophisticated accounting records for financial control purposes and using a single entry as opposed to a double entry bookkeeping system could simply record receipts against the list of sales invoices and the payments against the list of purchase invoices.Basic bookkeeping using single entry of prime accounting documents would be suitable for small business, requires very little accounting knowledge and when carried out by the business owner rather than a bookkeeper or accountant can save money,
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions for with single and double entry Bookkeeping solutions for limited companies and self employed business

Managing Receivables Is Crucial for Businesses

If you want to make your business a success, a steady flow of revenue will be essential. Without a steady flow of money your business will stall and ultimately sink into debt and hard times as you live from payment to payment. But there are ways to ensure that you manage your receivables effectively. Read on to learn about some ways of accomplishing this. All the bills and invoices that you have sent out constitute your receivables. This expected payment from customers and clients will be the bread and butter of your business as you will most likely rely on the proper payment of bills to finance any expansion plans or just to pay the plethora of bills that you will face. Hence, you cannot afford to play the fool with your account receivables. You can't just scribble down a bunch of numbers onto a little notepad and expect for everything to work itself out. You will need to keep a full sales ledger to track all of your customers' outstanding debts. Make sure that you do not miss out on any bills. Improper management would mean senselessly lost revenue that could have helped your business grow even more.Thus, you should make an effort to learn how best to manage the receivable of your business. This would be beneficial to you. There are many accounting terms and practices that you will have to learn if you wish to do it for yourself. This will involve a fair amount of accounting work. Get into it only if you have the time to spare. Many large businesses end up devoting tremendous labor into just managing their receivable and ensuring that debts are collected in the proper time frame. If you want to manage your own account you will have to be ready to spend a considerable amount of time learning all of the ins and outs of the process. There are many legal processes and procedures that have to be followed which you may not be aware of. Improper management could result in a nasty disagreement, accounting errors, lost clients, and even possible lawsuits. But don't let all this talk of losses upset you too much. It is actually possible to outsource your accounts receivable to a special company that will ensure a steady flow of cash while also preventing you from having to personally deal with angry customers that just refuse to pay what they owe. Most of these companies will actually act as a type of short term loan provider by buying your invoices at a discount and then earning money by collecting the full amount later. You might find this to be an odd procedure, but smaller businesses can actually benefit from this. They will have expertise that you can't just learn and also have the drive and incentive to actually follow your debts through to the end. Clearly, you cannot possibly afford to forget about or mismanage your receivables. Any business needs to have a steady flow of new money to continue to thrive and improve itself. If you want to make sure that the income keeps coming in, effective receivables management will be essential. Without it, you can bid goodbye to any payments.
Article Source: ArticlesMaker.com
About the Author: Have accounts receivables? Use our collection services. We also help with receivables management.

How To Find The Right Tax Consultant

When it comes to tax consultants London it can be hard to know which one to choose because there are so many to choose from. There are certain things you can look out for and ask for though that will help you to get the most out of the person you have hired. Once you have found the tax consultant that is going to suit your needs the best, you will find that your job becomes a lot easier and more stress free. It is important that you choose a company that you completely trust as they will have complete access to all of your financial records and documents. This means that don't go with a company just because they are cheap. It is possible to find good deals out there but sometimes you get what you pay for so if you pay more you are likely to get more. If you know someone in a similar line of business to you this is a great way of finding tax consultants London. While this is usually the best way of finding a good company, bear in mind that you are bound to think differently to your friend so you may not necessarily like the company that they are using. It is also important to find tax consultants London who are familiar with the line of business that you work in. Nearly all trades have tax advantages and disadvantages so it will benefit you to use a company who knows the industry well so they can provide you with more benefits. Don't fall into the trap of letting a friend or family member doing the job for you. This could lead to arguments and you may end up loosing someone close to you. It is advisable to use someone you have never met before so if there is a disagreement or you don't like them you won't have any guilty feelings about hiring someone else to take over the job. When choosing tax consultants London it is important to take your time and do your research on companies. If you are in a rush and use the first company you find you could find yourself having problems later and then have the hassle of trying to find a new company in the future. Many businesses use tax consultants London because they offer many benefits to all companies. The best part is that while your finances are being looked after you can get on with other aspects of your business in order to further increase profits.
Article Source: ArticlesMaker.com
About the Author: At Wilkins Kennedytax consultants london we provide a vast range of professional advisory services to the main, owner managed businesses. These include but are not limited to audit, accountancy and taxation advice. Submitted by search engine consultants at Web Repair Services. http://www.webrepairservices.co.uk

Accounting Software Can Be Sophisticated Or Simple But Rarely Both

Accounting software is a system of recording financial transactions on a computer across a full range of accounting options almost invariably dependent upon the size of business being catered for. Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses.The requirements from accounting software are diverse with the most complex and comprehensive financial accounting packages incorporating financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Similarly the accounts payable function might be split between the purchasing department, accounts purchase invoice department and a legal function for overdue payments.Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.In addition to inputting the prime income and expenditure details the most benefit of a database accounting system is the level of financial control the information it contains can provide the company management and financial directorship. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.Accounting software packages requiring little or no accounting knowledge are available.Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright, CEO DIY Accounting, a qualified accountant in the UK, designs Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies

Bookkeeping Software Spreadsheets Are Essential Small Business Accounting Tools

Businesses generally make extensive use of spreadsheets both in accounting and all other business fields. Being a numerically based system of analysing information spreadsheets are used throughout every accounting function as the technique presents an ideal basis to maintain accuracy and automate the collection of financial information.Every small business needs to keep records of sales invoices and income received and purchase invoices in respect of expenses. It is not sufficient for accounting and taxation purposes for these receipts and payments to be left in the office or the back of a van in a carrier bag. At some stage these prime bookkeeping documents need to be processed.Processing the financial documents related to a business enterprise basically means they need to be listed. For taxation and financial control purposes the invoices also need to be added up and analysed. The most basic method would be to simply make a list of the sales income and a second list of the purchase expenses.Using a manual method of listing the information falls short of the analysis required and is more time consuming that using a little technology to both ensure the summation is accurate and the analysis simplified. Listing the sales and expenses of a small business on spreadsheets is no more difficult then a manual paper system and has tremendous advantages in automating and ensuring accuracy.Hence the use of bookkeeping spreadsheets to prepare the accounting information required.Instead of listing the items on a paper list the items can be just as easily listed on a spreadsheet which will add up the items as required without the requirement to double check the adding up is accurate. Such a list has a history in accounting term as a sales daybook and a purchase daybookTo achieve the required analysis of sales and purchases all that is required is to write into the top of each of the spreadsheet columns the titles of the analysis headings required. Then repeat the value of each transaction in the total column into the analysis columns. Use the spreadsheet technology to add up each column and you have an effective bookkeeping spreadsheet.Preparing such a bookkeeping spreadsheet might and often does suffice the needs of the smallest business enterprise and is a close step towards achieving a valuable tool for this purpose, bookkeeping software. Bookkeeping software can be as simple as a home produced spreadsheet but with additional facets that can have significant financial benefits to the business.Bookkeeping software produced on spreadsheets would normally be a series of spreadsheets with the columns preset and titled and formulae written into the sheet to automatically add up each column. In addition the columns used would normally be restricted to general headings to include a full analysis of all items.Small businesses that might produce their own spreadsheet would often do this on an annual basis. Bookkeeping software is much more likely to provide these bookkeeping spreadsheet templates on a monthly basis to enable a degree of financial control to be exercised by the small business.That is the second real value of bookkeeping spreadsheets, the ability to provide the business with financial information and through that data financial control over the business activities. The first value is of course the simplicity of listing with automated summation of the figures.Small businesses can also benefit from professionally produced bookkeeping spreadsheets that have been specifically arranged not just to produce a list of income and expenses but also in a way that analyses that information in the way the small business requires it. There are two main requirements of the way the financial records are analysed being to produce a financial profit and loss account for the business on a periodic basis but also to provide the totals of the categories required for taxation purposes.Buying a piece of bookkeeping software written on spreadsheets can thus become an essential tool for the business. The essential element being to both make the accounting simple and easy as listing items, automated analysis and summation assisting the financial control and improved financial performance while also producing the benefits of being analysed to make the completion of annual tax return forms easier.Everyone in business wants to make a profit making financial control important. Everyone in business has to fill in tax forms and submit accounts in the tax authority format. Bookkeeping spreadsheets provide an essential accounting tool for every business to achieve these objectives.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright a qualified accountant at DIY Accounting in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions with single and double entry Bookkeeping Software for both limited companies and self employed business

Financial Control Under A Self Employed Single Entry Bookkeeping System

Double entry bookkeeping is an accounting technique to record the financial transactions of a business where every transaction is entered twice, equal and opposite transactions. Double entry is required for all businesses that must produce both a profit and loss account and a balance sheet.All limited companies are required to produce a statement of assets and liabilities and maintain a system of financial control and invariably need to adopt a system of double entry bookkeeping usually using an accounting software package.The same rules may not necessarily to self employed business that does not require to produce both a profit and loss account and a statement of assets and liabilities as the final product of the financial accounting. In the UK a balance sheet is an optional requirement of self employed business.There are advantages and disadvantages in preparing financial accounts using self employed bookkeeping. The main advantage being the simplicity with which accounts can be produced requiring a much lower knowledge of accounting systems. The main disadvantage of single entry bookkeeping is the absence of financial control due to limited detailed records of asset and liability accounts.Preparing accounts using single entry bookkeeping involves recording the prime financial transactions once rather than twice. Prime financial records include sales income, purchase expenses and cash or bank transactions. As the accounts do not require to produce a trial balance and balance sheet then when using self employed bookkeeping recording cash and bank transactions is not strictly necessary but highly recommended to provide additional financial control. While cash and bank transactions are movements of assets or liabilities and not part of the income and expenditure account accurate cash and bank records are useful since cash flow is a highly critical area for small business.In the absence of a double entry bookkeeping system the small business has less control over the debits and credits of the business. That being the amounts owed for sales invoices from customers who are called debtors and the amount owed by the small business to suppliers who have supplied goods and services on credit and are called creditors.What is required from commercially available single entry bookkeeping software is not just an accounts package that produces the profit and loss account but also has additional facilities to assist financial management and control of the business by providing optional areas for cash, bank, debtors and creditor accounts to be maintained. Mismanagement of small business finances is a major area which can drive a small business into liquidation and bankruptcy. The first lesson an accountant might learn when studying accounting and financial control is that the business must always have sufficient cash or availability to cash resources to trade the next day. Bank records and maintaining a positive cash flow is important as without liquidity the business cannot trade..In a similar vein control over debts owed to the company and owed by the company is also important for the smooth operation of a small business. Bad debts from clients can cripple a small business in fact high levels of bad debts can cripple any size of business as evidenced in recent times with the so called credit crunch. Lack of control over unpaid purchase invoices to creditors can result in serious disruption and higher costs since suppliers stop supplies and may charge recovery costs and relentlessly chase up the debs taking up valuable time.The conclusion then is while single entry bookkeeping is a viable option anyone who adopts a self employed style of bookkeeping to simply produce a profit and loss account, or income and expenditure account should also have supplemental systems to control assets and liabilities. Bookkeeping software can produce a solution by adding additional financial control.The advantage of using a single entry bookkeeping system involves the simplest form of keeping records of financial transactions. Essentially the small business makes two lists, one of income received and one of expenses incurred. Using single entry might involve virtual zero accounting or bookkeeping knowledge.When recording the financial transactions in the two lists of income and expenditure a small amount of extra detail can have magnificent effects on the quality of records produced by grouping together items of a similar nature.When entering sales invoices or income received to produce the sales turnover total a small amount of analysis can save much time and produce a more sophisticated result. For example the sales can be listed in one column to produce the overall sales turnover but also analysed to a small number of additional columns in which could be entered different types of sales income.The additional columns might be for different types of product or sales from different sales channels, sources, or perhaps used to separate out interest received if tax differently to business sales income. Some analysis of purchases is usually essential as only the tiniest business would get away with lumping all purchases together as one total.Single entry bookkeeping would involve making a list of all purchase invoices for goods and services. The analysis of those purchases then achieved by listing each invoice again in an analysis column according to the type of expense incurred. Bookkeeping software should include a simple expenditure analysis.Having produced the list of sales and the list of expenses all the information is then available to produce an income and expenditure account. Enter the totals from the single entry bookkeeping sheets on a separate sheet with sales income at the top, a list of expenses under each purchase expenditure category. Take the total expenditure from the total sales and the result is the net taxable profit. Bookkeeping software should automate this process.The financial accounts based upon a single entry bookkeeping are complete and a net taxable profit produced for the tax authority.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright a qualified accountant at DIY Accounting in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions with single and double entry Bookkeeping systems for both limited companies and self employed business

Why Bookkeepers And Accountants Use Double Entry Bookkeeping

Double entry bookkeeping stretches back centuries perhaps even as early as the 12th century and is now accepted worldwide as the accounting standard to be employed by all companies in recording the financial accounting records. The first written explanation of the accounting system was reportedly by a Venetian mathematician Luca Pacioli towards the end of the 15th century.The accounting industry has grown somewhat since then and today contains many technical words known but largely ignored by non accountants. The understanding and desire to understand accounting terms is further confused by the banking industry while adopting double entry bookkeeping as standard use what appears to be diametrically opposed terms in the presentation of information to their customers.In accounting terms an asset such as money in the bank is a debit balance, while bank customers are told if they have money in the bank it is a credit balance. This arises because what the bank is really saying is when a customer has money in the bank that the balance represents a creditor to the bank as it owes the customer money and is a creditor in the banks books. Hence the bank describes the balance as a credit balance.The simplest way to understand double entry bookkeeping is the understanding that every financial transaction has a double effect. One effect is to change the profit and loss of the business with sales income increasing the financial profit and purchases reducing the financial profit. While the double entry is that every profit and loss transactions also has a balance sheet effect in either increasing assets or increasing liabilities.In more complex accounting areas such as journal entries or bank transactions both sides of a transaction may have no impact on the profit and loss account as both sides of the double entry effect the value of balances in the balance sheet. For example when a creditor is paid the bank balance reduces and the amount owed by the business reduces by the same amount.The greatest value of double entry bookkeeping to a business is its ability to show in numerical terms the profitability of the business to generate improved financial performance and management while also producing a statement of assets and liabilities. These factors are important to accountants too although the greatest benefit to an accountant is that because every transaction has an equal and opposite entry a mathematical check can be produced to ensure all financial transactions have been recorded accurately.This mathematical balance is when all the financial accounts into which the financial transactions have been entered are listed and added up and if all transactions have been entered correctly the total is zero. This is called the trial balance.The function of accounts clerks and bookkeeper is to record the prime documents such as sales invoices and purchase invoices into the financial ledgers. Cash and bank records must also be entered. And for every entry made there must also be the opposite entry into the business financial ledgers such as sales ledger, purchase ledger and bank.Accounting software is basically a database of these financial transactions that automates the double entry enabling a single transaction to be entered once by the user but create the second entry in the company financial accounts. Using accounting software which all but the smallest companies adopt as a standard business tool ensures greater accuracy and usually produces a self balancing trial balance since the accounting software always produces a second equal entry to the one being input to the financial system.The task of an accountant is first of all to ensure the prime documents are entered accurately and then interpret the results produced by the trial balance into financial statements and reports in a format that aids the financial management of the business and ensure those financial figures also represent a true and fair view of the financial position.Limited companies must produce a balance sheet under various financial acts and submit the balance sheet to both Companies House and the tax authority each year. Different rules apply to a limited company as opposed to self employed business because the accounts including the balance sheet are public records available to the members of that company and not necessarily the property of a single individual or partnership.Self employed business in the UK are not compulsory required to produce a balance sheet and consequently may choose to operate a single entry bookkeeping system rather than double entry. By adopting a single entry system the self employed business has less financial control over the assets and liabilities although this is often not a problem as the self employed in smaller businesses often know exactly what the individual assets and liabilities of the business are.In smaller businesses that may not have adopted accounting software it is a common practise for the bookkeeper to maintain day books.A sales day book would be a simple list of sales invoices issued and by recording against those financial transactions the sales receipts as they are received the sales day book effectively becomes a sales ledger in that it shows the debtor balance owing to the company. A purchase day book would be a list of purchase invoices received and by recording on the purchase day book the amounts paid to each creditor that day book effectively becomes the purchase ledger.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions for with single and double entry Bookkeeping systems for both limited companies and self employed business.

What Is Supply Chain Management?

Supply chain management software UK can help a business with the day to day running of their business in order to make it easier and more effective. It can be hard to find the time to do a lot of things and a lot of people new to the business also don't understand a lot of the terminology. It helps you to get jobs done quicker which leaves you with more time to concentrate on other aspects of your company. Supply chain management software UK can help businesses because it improves the way that a company finds the raw components it needs to make a product or service and then deliver it to its customers. This is one of the most important aspects for any business.The first basic step of supply chain management software UK is to develop a strategy. This is so that you can manage all of your resources that go toward meeting customer demand for your product or service. It is your aim to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers. If a company can achieve all this then they are highly likely to be successful because customers are going to be happy with what they receive and therefore use the company again. The next step is to choose a supplier or suppliers that can deliver the goods and services you need in order to create your product. From here you can develop pricing, delivery and payment processes with suppliers. All of this can be achieved with supply chain management software UK as it can assist you in making your job easier and more straightforward. Manufacturing is the next stage for your product or service. You are likely to need production, testing, packaging and delivery if you are supplying a product. This software can help to ensure that this is a quick process so that you are producing maximum output and therefore making more profit as you can reach more customers. Finally, supply chain management software UK can help with the delivery process for any business. There is quite a lot to organise from receiving orders and processing them to hiring people to deliver them and take payments. It is also important that this stage is quick because customers will get annoyed if they have to wait a long time for the delivery of their product or service.
Article Source: ArticlesMaker.com
About the Author: At CPiOsupply chain management whether you are looking for a fully integrated ERP solution or taking your first steps into CRM, CPiO is ideally placed to guide and support you.

Why Use A Tax Consultant?

Tax can be a tricky and confusing subject - are you paying too much? Too little? Are you on the right tax code? These are the very reasons why so many companies hire tax consultants London. It is so much easier than trying to understand everything yourself and you can be guaranteed that the job is going to be done correctly. Tax consultants London offer tax and financial advice to businesses regardless of whether it's one person running it or if it's a large multinational company. They come as a great benefit to any business because they can help to reduce your tax liability which is a massive advantage. As well as this it will undoubtedly save you a lot of stress and frustration trying to work everything out for yourself. It is also a very time consuming task so hiring tax consultants London to do it for you saves large amounts of time which leaves you free to concentrate on other aspects of the business. The person or company that you employ will work hard to balance your books whilst reducing your tax liability at the same time. As well as this they will provide you with a financial service that will minimise your taxes and therefore maximise your profits. Initially you may think that you can't afford tax consultants London or you just may not want to pay for one, however, when they are maximising your profits for you in time they will pay for themselves and you will probably wonder why you didn't start using the service earlier. One of the most important aspects of what tax consultants London do is to advise their clients on all aspects of tax. This is to give them a clear understanding of what they're dealing with and what they have to do. Once people have become more knowledgeable about tax and how it works they find it easier to run the financial side of their business. Files will be analysed, problems will be solved and opportunities will be pointed out. This helps to ensure that a company gets the most out of what they are doing and are more likely to make a profit. Tax consultants London can help make a business so much easier to run because people will be more clear about what they are doing. This will help to improve any company no matter what sector they are in as the owner will be more knowledgeable.
Article Source: ArticlesMaker.com
About the Author: At Wilkins Kennedychartered accountants london we provide a vast range of professional advisory services to the main, owner managed businesses. These include but are not limited to audit, accountancy and taxation advice.

Double Entry Bookkeeping Versus Single Entry Bookkeeping

Bookkeeping stems from the recording of financial transactions and the accounting term for a business accounts as books. In effect the accounting function prepares a record of the monetary affairs of a business and stores the information in files called books. Hence the term bookkeeping often misspelled as book keeping which is the function of a librarian not that of a bookkeeper.The difference between bookkeeping services and accounting may be unclear to the uninitiated while both are of vital importance to financial success. Bookkeeping is an important part of the accounting function and is essentially the record keeping of the financial transactions. Accounting is while incorporating the record keeping also includes the presentation, interpretation and financial control functions including interpretation of the numbers for the financial health of a business of which taxation can play a major part.The financial affairs of a business involve many aspects and start with the recording of what is termed the prime documents. The task of a bookkeeping service is to record the prime documents, those prime documents being the sales, purchases and cash/bank transactions. All small businesses do bookkeeping and the most successful use the bookkeeping records as a basis for an accounting function to generate a more efficient financial service.All business involves buying or selling something and the consequent function of receiving or paying money to the value of those transactions. Recording these transactions in larger business organisations is done by accounts clerks who work under the supervision of the accountant.Invariably medium and larger businesses use a double entry system for recording transactions. Double entry accounting evolves from the fact that every transaction as a double effect on the business of which these are prime examples.A sale is made creating a record of income for the business on which the business is taxed and the other side of the financial transaction, the double entry, is the organisation who was sold the goods now owes the value of that sales invoice to the business. That is the double entry, record the sales income and also record the debt due from the customer.Someone who owes the business a debt is called a debtor.A purchase is made creating a record of expense for the business which can be deducted from income and lowers taxes and the other side of the financial transaction, the double entry, is the organisation who supplied the purchase on credit is now owed the money. That is the double entry, record the purchase and also record the credit due to the supplier.Someone who has supplied goods on credit is called a creditor.The third type of prime transaction is the transfer of money between the debtors and creditors and the business.When a debtor pays his sales invoice the double entry is to add that amount of money to the business financial records and the opposite double entry goes to the debtor account to reduce the amount owed to the business since it has now received the cash.When a creditor is paid the amount owed the money is recorded as reducing the cash resources of the business by for example deducting the money from the bank balance and the double entry reduces the amount the business now owes to the creditor account since it has reduced the credit received.The bookkeeping function is to record these prime transactions. Since every financial transaction has an equal and opposite entry in the books there has to be a mathematical check that both sides of the transactions add up to zero. This check process is called a trial balance where both sides of the entries should be in agreement and normally the point at which the bookkeeping service is deemed to be complete.Double entry bookkeeping is required for all businesses that require to produce a statement of its assets and liabilities. This statement of assets and liabilities is the total of all the balances from the trial balance and is called a balance sheet.Many small businesses do not require a balance sheet. In the UK the production of a balance sheet is optional for every self employed business as it is not an obligatory requirement of the self assessment tax return form. A self employed bookkeeping system is not required to produce a balance sheet because the business effectively belongs to the owner and is that owners personal business.Limited companies must produce a balance sheet under various financial acts and submit the balance sheet to both Companies House and the tax authority each year. The different rules applying to a limited company is because the accounts including the balance sheet are public records available to the members of that company and not necessarily the property of a single individual or partnership.The self employed bookkeeping system can be simpler being produced from a single entry style of bookkeeping rather than double entry. Single entry bookkeeping makes a single entry for each financial transaction which is sufficient to produce an income and expenditure account, a profit and loss account, but does not make the reciprocal entry that establishes the value of the assets and liabilities.Single entry can be as simple as making a list of the sales income and the purchase expenses. Such a bookkeeping system is valuable to the smaller business as it requires little or no bookkeeping or accounting knowledge. A smaller business can produce its own accounts without the need for a bookkeeper or accountant particularly if it has access to bookkeeping templates through bookkeeping software to produce the accounts in the accounting format required.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright is a qualified accountant in the UK designs Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions for with single and double entry Bookkeeping solutions for limited companies and self employed business

Internal Auditor Career Options

An auditor could be a person from the accounts department who is trained in internal auditing. Their objective would be to determine the efficiency, adequacy and the effectiveness of the systems in place for internal control. They also review the reliability and integrity of management and ensures compliance with policies, procedures and laws. They help to safeguard the assets of the business. Internal auditors are in complete control of the organization's computer system, to guarantee the reliability and integrity of the data. Computers are literally changing the nature of work of the auditors. With the aid of special software packages, accountants are required to submit all transactions in a specific format for financial analysis. These software packages greatly reduce the workload of auditors and now, auditors are performing more technical duties, such as controlling, implementing and developing technology plans and budgeting.Due to the corporate world taking over the small business market, internal auditing is an excellent career option. - Public Sector Audit Jobs- Internal Auditors are in great demand in the public sector, where contract jobs, as well as permanent positions are available. To find a job in the public sector, the best way to find a job is through recruitment firms.- Audit Jobs in Financial Service Firms- If you are looking for a career in a financial service firm, the best thing to do is to look at options that provide you with a combination of services like insurance, financial management and assets management.- Retail industry Audit Jobs- There is no shortage of work for auditors in the retail industry. From the smallest region to a large metro area, there is an increasing demand for professionals who can identify losses and audit finances.- Risk Management Jobs- One of the fastest growing opportunities in the Audit and Finance industry is the risk management category. There is always a need for qualified people to assess, identify, monitor and report the risk factors and their effect on the business. Positions are usually found in financial services firms and the headquarters of large companies.Most auditors work from private offices. Self-employed accountants work from home. Auditors travel frequently to perform audits at various branches of the employing firms. Most auditors work for a standard 40 hours a week, but many work longer hours, particularly if they are self-employed and have many clients. Some auditors work as college or university faculty, while some are salaried accountants at private industries and even government offices. Internal Auditors must have a Bachelor's degree in accounting or a Master's degree in business administration, with a specialization in accounting. Many colleges also offer internship. People pursuing this career should have a flair for mathematics and a high standard of integrity.
Article Source: ArticlesMaker.com
About the Author: Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Financial Solutions For Businesses

Financials is an integrated financial management system that gives a company total control over their international business handling whether it's local or head - office based. All of this is done whilst fully accommodating local markets and legal, accounting and taxation requirements. This provides great financial solutions for business which makes it easier and more straightforward to run which makes everyone's job easier. Financials also increases productivity from its users because it's an easy to use system that can be customised to suit any businesses needs. Again, the reason why this is one of the most popular financial solutions for business is because it automates routine tasks and therefore lowers the amount of administrative work that needs to be done manually and thus lowering costs. Financial solutions for business are very important because it is imperative to know what financial position the company you own or work for is in. If things need fixing then steps can be implemented in order to help amend the problem or problems. This will once again get things running smoothly and efficiently which will undoubtedly improve business. Financial solutions for business also ensure that the decisions made in order to solve the problems are based on concise information that is accurate and will help. Spreadsheets and other documents make financial solutions for business easy to understand and implement. As all the documentation is easy to find and understand it is not hard for employers and employees to understand how to implement the systems. Once financial solutions for business have been implemented there are so many benefits to the company using them. Productivity increases which means that administrative costs are lowered which saves money and increases profits. It doesn't matter if your business is international because there are multi - language and multi - currency features available. Not only does this make international businesses more straightforward to deal with, but it also saves you having to manually work out different currencies and hire a translator for different languages. Financial solutions for business also include powerful reporting tools and evaluation of market trends which assists informed strategic decisions. This means you can be assured that you are making the right decisions and that they are going to help you to get the most out of your business. Another reason why this is so popular is because it manages a companies' cash flow through close budget control and efficient purchase requisitioning which is a major advantage for any business.
Article Source: ArticlesMaker.com
About the Author: At CPiOfinancial solutions for business whether you are looking for a fully integrated ERP solution or taking your first steps into CRM, CPiO is ideally placed to guide and support you.

Vital Importance Of Small Business Accounting Software

Every business functions through a range of disciplines, sales and marketing, operational skills, purchasing and management. A small business accounting software is also an essential tool to bring financial discipline to the business. No matter how skilled and well trained the business every small business needs a full range of functions to reach the highest levels of success.The first lesson in business is to ensure that business has sufficient cash to trade the next day. Failing to meet this target and the business is finished which is why accounting and in particular accounting software should be regarded by the small business management as an essential piece of kit.Small business accounting software comes in many guises some of which will be more suitable for a particular business than others. Nevertheless the choice to adopt a solid form of financial control is vital to ensure sales are higher enough to generate profits, margins are sufficient, costs are controlled, net profits are generated, cash flow is under control and losses can be identified and reversed or halted. No large business would survive without a sophisticated system of financial control and small businesses have the same requirements albeit on a different scale.Many entrepreneurs who run a small business regard the accounting function and the recording of financial transactions as an administrative burden. Small business accounting software should not be viewed in this way but instead as a tool to assist the generation of safer stringer profits and the early warning system of dealing with problems if the business does not perform.Use the small business accounting software to update the financial records at least once each month. With sales recorded every month peaks and troughs in performance are obvious and can then be examined to replicate those actions that produced higher sales levels and cut out those actions which produced lesser results. The result hopefully being sustained sales growth.Record all the costs each month and as with sales the trend to higher costs or more efficient cost control will be evident from the financial accounts. Also of importance will be the profit margin being achieved and this can be viewed against the level of sales and justified. Statistically small businesses run by born salesmen achieve high sales but at the cost of lower margins while businesses run by accountants tend to achieve higher profit margins but with lower sales.This statistical fact is true as is also the fact that most small businesses are run by neither accountants nor salesmen but by the skilled worker applying their trade or area of expertise. By using a small business accounting software the entrepreneur can judge what he would like the figures to show against what they actually show and take the necessary action to change the future and produce the desired result. Without accounting software the entrepreneur works in the dark depending on hunches rather than financial facts.No matter how good or bad a business is the cash flow or lack of it might well determine future growth or in the worst case scenario, survival. Many small businesses that do not use a small business accounting solution package and run into difficulties have often been in financial problems for many months before it is obvious as reductions in profitability are hidden by extended credit from suppliers or tightening credit lines with customers.Small business accounting software can indicate which parts of the business are doing well, where action is needed if underperforming and may also indicate where action needs to be taken. Accurate control of money owed in and money owed out is extremely difficult without the information to know how significant these figures are. But they can be critical for some businesses and using a small business accounting software that provides this information is crucial.A disadvantage of small business accounting software is that it may sound like a foreign language but it does not have to be so difficult. Accounting software using a database can require some bookkeeping skills to get the most out of the system but there are other alternatives. A small business accounting software solution written on excel spreadsheets that produces all the main requirements with all transactions visible can be an ideal solution for small businesses with little or no bookkeeping or accounting knowledge.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright is a qualified accountant in the UK designs Accounting Software UK on excel spreadsheets providing complete Small Business Accounting Software solutions for small to medium sized business with

Customer Relationship Management For Businesses

No matter what business you're in, unless your customers are happy, you won't succeed, and this is why Customer Relationship Management (CRM) is so important. More important than sales, or marketing, or any other part of the company that wouldn't survive without customers; yet customer relationship management is still low on the priority list of so many companies today.To know how to maximise your businesses potential, you need to know what your customers are thinking. After all, if you feel that your customers are happy because profits up, it may have more to do with your recent price rise, as opposed to them actually buying any more. Additionally, if you have a change in personnel, is this going to affect a relationship with an existing customer?This is where good management skills come in. If the result of a salesperson leaving means your company is going to lose business from a particular client, you can stay one step ahead of this by smoothing the waters with that particular client, assuring them their service won't suffer accordingly.Depending on the size of your company, you will obviously have different priorities and goals. A small company, for instance, may be focused on building its existing client base, whereas a larger company may have its priorities in expanding globally.But without a strong existing and loyal customer base, these plans and ideas would simply be that - plans and ideas, difficult to implement with the current climate. However, by using customer relationship management, you can ensure that you have a strong customer base to build from. After all, the best form of advertising is still word-of-mouth; keep your customers happy, and you'll soon see your business grow.Since Customer Relationship Management is all about customer relationship management, the good thing is that is can be used in so many ways, and it isn't limited to just the service side of your company. No matter what department you use Customer Relationship Management in the options are endless:- Sales teams can see what sales opportunities weren't closed, and determine the reason for that to improve upon the next time- Accounting can see what accounts were closed, and use the feedback from customers to try and win them back and ensure that whatever the problem was is not repeated- Customer services can make better use of their time by identifying why a certain problem customer is continuously having problems, and come up with a solution to that problem
Article Source: ArticlesMaker.com
About the Author: At CPiOcustomer relationship management whether you are looking for a fully integrated ERP solution or taking your first steps into CRM, CPiO is ideally placed to guide and support you.

What Is An Audit?

When you own your own business it is important to enlist the help of an accountant in order to provide audit services. This is because it provides documentation that you are dealing with the financial aspect of your business in the correct way and can be used as evidence if any issues arise. Some people don't even know what audit services so they don't bother using them. However, once you understand it is very easy and can be very beneficial to your company.An audit is an independent check of a company's financial statements which is carried out by an outside company who has nothing to do with the business. It ensures that the company being audited is presenting a true, fair and accurate view of its financial position. Audit services can also review a company's systems and analyse risks. This means that you will be made aware of any risks you may face so you can be prepared for them if they ever happen. It can also monitor how your systems are performing in order to ensure that you are getting the most out of what you are using. When using audit services they can also perform tests to check financial information and systems. Again, this is in order to ensure that you are getting the most out of what you are using and that it is being beneficial to your company. One of the most important parts of audit services is that once they have been completed, the accountant you are using can then advise you on areas you can improve in. For example, they may offer tips to make certain jobs easier and quicker which will save you time and money in the long run. Audit services can also include an examination of whether you are or not complying with the relevant terms, laws and regulations. Although this sounds daunting it is very important and beneficial in the long run because it is better than doing something wrong and then getting penalised for it later. With so many advantages of audit services it is not surprising that so many companies large or small hire an accountant to conduct them for their business. You can be reassured that the financial aspect of your business is in safe hands and you will be given quality advice. This will make the running of any business a lot smoother and easier.
Article Source: ArticlesMaker.com
About the Author: At Wilkins Kennedyaudit services we provide a vast range of professional advisory services to the main, owner managed businesses. These include but are not limited to audit, accountancy and taxation advice.

How To Produce Taxi Driver Accounts Plus Tax Returns In Less Than 2 Hours

Since the majority of taxi drivers, but certainly not all, have little accounting or bookkeeping knowledge the lower the level of expertise required the more suitable such an accounts package will be. Data entry basically consists of just 3 records, being an excel spreadsheet for taxi receipts; another for taxi expenses plus a further worksheet in which assets such as a vehicle can be recorded.Taxi receipts are entered on a series of excel worksheets within the taxi income work book preset with each day of the financial year. Weekly and monthly totals are added and transferred through the linking system from the taxi bookkeeping sheets to the taxi financial accounts sheet.Taxi expenses are listed on a series of twelve monthly spreadsheets which have preset columns with appropriate headings for taxi drivers to record office and rental costs, fuel bills, other vehicle costs and licence fees. The total of each expense is entered on each row and a single letter used to then analyse the taxi expense to the column required. As with the taxi income sheet the columns are then automatically added which includes a check on data entry accuracy before being transferred to the taxi driver accounts sheet.Cash and bank spreadsheets are not provided as not required by taxi drivers as taxi drivers do not need to produce a balance sheet.In addition to entering purchases on the taxi expense sheet the only other entries required from the taxi driver to produce a set of taxi driver accounts is to also enter vehicle and any other assets purchased on the fixed asset spreadsheet. The fixed asset spreadsheet having already been preset with both depreciation rates and the capital allowances that taxi drivers can claim. The taxi accounts software is then complete.The financial accounts file contains formulae to produce a monthly profit and loss account that includes the taxi capital allowances from the fixed asset schedule.A unique feature is that both mileages covered and vehicle running costs can be entered. The tax rules in the UK state that drivers cannot claim both mileage allowances and vehicle running costs. It has to be one or the other and only at the end of the financial year when it becomes clear which is the most tax efficient.This taxi accounts package compares both the mileage cost and the vehicle running cost and automatically selects the most expensive. This ensures the highest costs are selected into the calculation of the net taxable profits and highest cost equals lowest tax bill.Also in the taxi accounts file is an excel spreadsheet designed with the same layout, colour codes and box numbers as the inland revenue self assessment tax return. The taxi self assessment tax return is completed automatically by the cabsmart taxi accounts software. No entries are required leaving the taxi driver only to click print to produce the self assessment tax return.Finally having calculated the net taxable profit for the year the accounting package also has a tax calculator that calculates the amount of income tax and national insurance to be paid.The taxi driver accounts package has been tested many times and the annual receipts and expenses for a full year take approximately 2 to 3 hours to enter, and have been completed in less than 2 hours. The end product is a full set of taxi driver accounts including the self assessment tax return.Both couriers and van drivers have similar businesses to taxi drivers in that they move items from one place to another in a similar way in which taxi drivers move people from one location to another. And because of the similarity in business activity then this taxi accounting package would be equally suitable for couriers and van drivers.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright, a qualified accountant in the UK, designs Taxi Accounts software on excel spreadsheets specifically for the Taxi Driver wishing to save money and prepare the Taxi Driver Accounts and produce the self assessment tax return in the process.

What Does A Financial Planning Consultant Do?

Financial planning is important to any business for many different reasons. These can be in order to protect your business assets, so you can plan for retirement, to extend your investments and many other reasons as well. For these reasons many companies hire a financial planning consultant in order to help them achieve all of these things. A financial planning consultant will help you protect and get the most out of the money that you already have. This is helpful to any business as they will be able to maximise profits and make wise business decisions. Once your financial planning consultant knows what you business does, where it is at the moment and where you hope it will be in the future, they can help you make smart decisions regarding your money. This advice can range from how to make the most out of the money you have, investing wisely, how to protect it and how to use financial products that suit your needs. A financial planning consultant will take into consideration the seven key building blocks needed to run a successful business and will mix and match them to suit you personally. The information from this will then be used to make a financial plan. The information on this plan should summarise your current financial position, list your goals, explain how you will reach them, show any investments, analyse any risks, state costs and reveal any money coming in from investment. Having all of this information to hand is very helpful as it can help a business to run more efficiently. One of the many advantages of using a financial planning consultant is that you can be assured that you are getting quality advice from someone who knows what they are talking about. If you did it yourself you may be worried that you're making mistakes or taking too long to do it. Hiring a professional means you know they know what they are doing and can help you get the most out of your money. As well as this, it also leaves you free to concentrate on other aspects of your company that you need to work on as well. Many businesses realise that having a good financial planning consultant should be an essential member of their team. This is because they can help to coordinate all areas of their financial life and develop the bet strategies for the company.
Article Source: ArticlesMaker.com
About the Author: At Wilkins Kennedyfinancial planning consultant we provide a vast range of professional advisory services to the main, owner managed businesses. These include but are not limited to audit, accountancy and taxation advice.

Advantages Of Using Accounting Software

Whether you are a large business or a small business there are many advantages of using Sage payroll accounting software. Not only can it help you to stay more organised but it can also help you get certain jobs done quicker and more accurately. Many people who are in charge of doing the wages hate doing them because it can be a very time consuming task and it's hard to find the time to do them. However, with a package such as Sage payroll accounting software, once it has been set up its quick and easy so won't take up much of your time. This software can also help to ensure the accuracy of the wages you are putting through. If you currently have a system where you manually have to work everything out it can be very easy to make mistakes, especially if you're rushing. However, if you simply need to enter in the number of hours an employee has worked and the software does the rest for you, it is very unlikely that there will ever be mistakes.Using programmes such as Sage payroll accounting software enables you to process your employees' wages without you needing to understand the complexities of payroll legislation. It is very unlikely that many employers know much about this or understand how it works which means you could run into problems if you are doing the payroll manually. This is just one of the many reasons why so many companies are now using a computer programme that already takes this into consideration. If employees have varying hours it can be a very long process to do the payroll system. However, programmes such as Sage payroll accounting software makes information such as this easy to input which saves so much time. One of the main reasons why businesses have started to use accounting software is because they are able to project salary costs with Salary Review Forecast. This means that costs can be projected in order to help you stay in budget. The effect of proposed salary increases or decreases can be analysed, you can forecast for the next month, quarter or year and you can view the impact of things such as pension and National Insurance payments. It is no surprise that so many companies have started to use Sage payroll accounting software because it doing the wages quicker, easier and much more enjoyable.
Article Source: ArticlesMaker.com
About the Author: At CPiOsage payroll accounting software whether you are looking for a fully integrated ERP solution or taking your first steps into CRM, CPiO is ideally placed to guide and support you.

Small Business Accounting Software That Fills In Your Tax Return

Most accounting software package are used by non accountants often with little or no previous accounting knowledge. Bookkeeping is best in these circumstances reduced to making a list of sales and a list of purchases on preset excel spreadsheets. Each workbook is arranged as 12 monthly spreadsheets with preset columns and uses an entry code letter to analyse both sales and expenditure.Cash and bank spreadsheets are included as optional extras for those businesses that require them with a built in automated bank reconciliation. The sheet designed to be completed by copying the figures from the bank statement into the bank spreadsheet and the bank reconciliation is achieved by entering the statement total which is automatically checked against the entries made.Monthly profit and loss account can include a financial health check based upon an automated tax forecast to enable businesses to monitor their financial performance. By entering drawings the package then compares the net profit made with the likely tax liability plus the drawings.Quarterly vat returns can be generated for vat registered business and should also suitable for non vat registered business. To produce a vat return clients simply go to the vat file and select the quarter end date from a drop down menu and the figures for the vat return are automatically generated.The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.The accounting package includes a stand alone sales invoice generator which requires invoices generated to be manually input into the sales sheet.The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation is automatically calculated with preset percentages that can be changed as required.The excel templates in the small business bookkeeping software being arranged to automatically generate an excel copy of the self assessment tax return. The excel self assessment tax return being arranged in the same layout as the official inland revenue form with the same box numbers making it easy to copy the figures from one to the other for submission.Self-employed accounting software based upon single entry of transactions does not produce a balance sheet which is an optional requirement for self employed and therefore not a problem for the vast majority of businesses. Self employed businesses should consider using a limited company accounts package if a balance sheet is required. A limited company accounts package would produce a balance sheet being based not on single entry but on double entry bookkeeping principles.The small business accounting software is suitable for a single tax year, the latest being 2007-08 and does not cater for accounting periods other than April to April. There are benefits in anyone self employed adopting the standard April to April financial year as this avoids tax allowances from two separate years being a feature of the accounts.When used by small businesses using the cash accounting system the bookkeeping entries to the sales and purchase sheets must be entered according to the dates money is paid or received rather than the dates invoices were issued. At the end of the financial year any invoices not yet entered require to be listed to adjust the final profit and loss account figures. This a major disadvantage if using the vat cash accounting scheme rather than the accounting software being reviewed.The product has a stock control feature to monitor any stock losses. The small business accounting software contains a wages interface that fully integrates the with the payroll software when the payroll files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries.The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return.As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. Accounting software written on excel spreadsheets also works fine with an Open Source spreadsheet package.Essential requirements of accounting software for the self-employed should produce a set of accounts for the small business requiring no bookkeeping skills and no previous accounting experience with the desired end product of a fully automated self assessment tax return.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright, a qualified accountant in the UK, designs both Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies

Simple Company Accounting Software That Produces Final Accounts For Publication

This whole small business accounting software for a limited liability company can be written on excel spreadsheets which means all bookkeeping transactions are visible at the click of a button. Each excel workbook being arranged in 12 monthly worksheets. Prime data entry excel spreadsheets being provided for sales, purchases, cash, bank, savings account and credit card account.Financial transactions such as sales or expenses are listed on the appropriate month. And should a change be necessary any item can be easily changed. This simple listing process is a definite advantage to non accountants as no previous bookkeeping or accountancy software knowledge is required.Bank spreadsheets can be entered by listing the items that appear on the bank statement and include a box to enter the statement balance each month. The formulae within the excel spreadsheet then automatically checks that the entries made agree with the statement balance producing effective bank reconciliation. This feature that ensures entries are recorded accurately in the companies accounts.From the lists of sales and purchases plus the bank statement entries all the information is automatically transferred to the financial accounts file. A trial balance with embedded formulae automating all the double entry accounting transactions. No entries are required from the user removing the need for accounting experience. The trial balance is purely an accounting solution, visible, transparent and contains an audit check to ensure the company accounts are accurate. The financial accounting software file should contain an automated monthly profit and loss account to enable limited companies to track their financial performance and very important, the package also produces a balanced profit and loss account and balance sheet in the correct format for submission of the final accounts. This set of final accounts automatically gathering the financial information from the basic entries made with the final accounts also including the statutory notes required for a set of company accounts being published.While quarterly vat returns are generated for vat registered business the accounting package is also suitable for non vat registered business. To produce a vat return clients open the vat returns file and select the vat quarter end date from a drop down menu and the figures for the vat return are automatically generated. The vat calculations can be disabled by non vat registered small businesses by changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation calculation are also automated being preset with depreciation percentages that can be changed as required.The limited company corporation tax liability is calculated within the package in such a way that all the calculations; additions and deductions are both automated and visible. Capital allowances on both existing and new assets being shown on the corporation tax calculation.Accountancy knowledge requiredThe limited liability company accounting software is based upon single entry of transactions requiring no accountancy or bookkeeping knowledge. All the accounting knowledge required to perform the double entry of transactions which is a required feature to produce a balance sheet automated through the accounting software formulae and linking structure. The company accounts package has a feature so that the figures for the previous year may be entered and lists of opening debtors and creditors recorded. A minimal level of accounting knowledge is required to correctly list the closing debtors and creditors and check the totals of those lists agrees with the automated balances shown on the company accounts balance sheetOther featuresThe product has a stock control feature to monitor any stock losses. The limited company accounting software reviewed contained a wages interface that fully integrates the payroll software when the payroll files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries.The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.Excel packages can be easier to use than database systems and produce the end products every small limited company requires in a small business accounting software package, automated accounts requiring no bookkeeping skills and no previous financial accountancy software experience with the valuable end product of a fully automated final set of accounts for the limited liability company.
Article Source: ArticlesMaker.com
About the Author: Terry Cartwright, a qualified accountant in the UK, designs both Accounting Software on excel spreadsheets and Payroll Software for small to medium sized business providing a complete accounting solution and also supplies Company Formation packages for new limited liability companies

Driver's Need Motivates Car Selection

There are tremendous assortments of automobiles that a driver can make a selection from. While some of the car models look very inviting and beckon to the driver to take it out on the open road for a test drive, there are other needs that the driver has that will motivate car selection more than stylish lines and powerful engines will.An automobile driver might not be happy with the car ownership limitations that they have to guide them but they will typically stick with these sensibilities while they are on a car dealership lot. Some car dealerships might not have one vehicle that meets that need and the automobile buyer will drift off the lot very quickly and silently before a salesman approaches them with talk about great deals and low prices.It would be madness for a family man to consider buying a sports car for regular driving purposes throughout the week. If the man has a vehicle in the driveway that takes care of this need then his sensible nature might consider a sports car if the matter has been thoroughly discussed with the spouse beforehand. Some obstacles work themselves out and allow people to follow their dreams and buy fancy cars with no guilt attached to it.Some people use their automobiles for business purposes and have several needs that need to be met when they select an automobile. Some businessmen require luxury automobiles because they have clients who require a certain sense of style to be present in the people that they do business with. Some high-priced luxury vehicles would be the only automobiles on the lot that this particular salesman would be motivated to consider for purchase.The financial stability of a car buyer also has a great impact on whether they will be motivated to buy a new automobile. For low-income families, a used car might be the right fit because the payments are usually much lower and can be arranged for a specific period of time. An auto loan calculator could help motivate a driver with low income opportunities to consider buying any automobile because they will know beforehand the sticker price that will be in their price range.A college student will be motivated toward car ownership if they live off-campus. A single college student might be motivated to buy a flashy sports car just because they want to impress girls and get more dates. A college student with a family might be motivated toward buying a fuel efficient automobile that will allow the family to put a little money in a savings account each month to buy a home with after graduation.A car salesman will try and figure out what motivates a prospective car buyer to buy a car. Once they find out what a person needs in the automobile they buy, then they have ample information to offer them many cars that are on the automobile dealership lot. They might even offer advice on how to get pre-approved for a new or used car loan so that the customer will know for sure what payments they will make and will be motivated to buy cars in that price range.
Article Source: ArticlesMaker.com
About the Author: James Brown writes about ajprindle.com on-line coupons, AutoAnything.com coupon code and actionsalvage.com on-line coupons

Accounting Fraud - Creative Accounting Gone Criminal

Accounting fraud is often characterized by the:1. Misuse/misdirection of funds2. Understating/overstating of revenues3. Understating/overstating of expenses4. Overstating of corporate asset values5. Underreporting of liabilitiesProsecuting accounting fraud is often aided by a whistleblower disclosing unethical practices or unlawful tactics. At times, the whistleblower is someone who also participated in the accounting fraud.Law enforcers may offer a plea bargain with a diminished sentence or penalties to the whistleblower for exposing his "guiltier" associates. Protection from retaliation may also be provided. In extreme cases, the whistleblower (along with his family) may also go into the government's witness protection program.In publicly listed companies, creative accounting tactics, not necessarily among those listed above, may be regarded as fraud. When such tactics are detected, a government oversight agency, like the Securities and Exchange Commission, may launch an investigation.Sarbox ResponseThe Public Company Accounting Reform and Investor Protection Act, also called the Sarbanes-Oxley Act (or Sarbox), was speedily passed in 2002 in response to the wave of accounting scandals that occurred in corporate America that year.It was in 2002 that the countries biggest accounting firms, like Arthur Andersen, Ernst & Young, Pricewaterhouse Coopers, etc., were charged in court or admitted negligence in their duties.The government held that these accounting firms were tasked with identifying and preventing the publication of bogus financial reports. As a result of their neglect or collusion, their clients were able to publish reports that gave a misleading impression of the client company's financial status. Accounting fraud reached billions of dollars in some cases.Sarbox contains provisions, such as the following:1. Public companies must assess and divulge the effectiveness of their internal financial reporting controls.2. Independent auditors must vet these assessments and disclosures.3. Financial reports must be certified by CEOs and CFOs.4. Personal loans to any director or executive officer are banned in most cases.5. A stock-exchange-listed company must have a 100% independent audit committee whose sole task is to oversee the relations between the company and auditor6. More severe civil and criminal penalties for violating SEC rules and longer jail sentences plus bigger fines for execs who intentionally misstate their company's financial status7. Protection for whistleblowers to wina. Reinstatementb. Back payc. Benefitsd. Compensatory damagese. Abatement ordersf. Attorney's fees and legal expenses within reasonFallout from FraudIn the three-year period before Sarbox became a law, the SEC reported that accounting fraud showed a 41% increase: from only 79 cases in 1998 to 112 in 2001.Many believe that the stock market downturn of 2002 was caused by a widespread perception that many publicly listed companies (such as Enron and WorldCom) may be cooking the books. More recently, an accounting fraud scandal arose to rival Enron and WorldCom. AIG is still being investigated for accounting fraud as a result of the mutual funds and insurance fiasco of 2004. But recent investigations uncovered more than a billion dollars in accounting transaction errors.Oftentimes, the worse punishment is loss of support for the offending company. So far, AIG has already lost around 50 billion dollars in market capital as a result of the investigations.
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Back To School Classes And Electives

Some children have no idea what their back to school class schedules will be. They may have filled out a questionnaire at the end of the last school year that asked them to pick some elective courses for the next year but since they never heard anything else about them from their teacher, they forgot about them.When the child gets a list of the back to school classes and electives that they were assigned by the computer system, they might be shocked to find out that they must take a computer course during the first half of the year and finish off the year with an elective like home economics. They are really worried when they learn that home economics might require that they bake a cake and change a diaper.These back to school class assignments might see far fetched and out of the ordinary for a male student. They might think that they selected the wrong courses on the electives forms when they filled them out because male students always have the perception that home economics courses were strictly designed with girls in mind.They might spend a lot of time pondering their list of back to school classes and the electives that were offered. Perhaps the sex was not clear on the form or could it be that these were the only courses with vacancies. Some students will drag their feet when they head toward the home economics course because they know that people will make fun of them constantly.There will not be any justification that would explain why going back to school should be so hard. There is nothing wrong with taking a home economics course or any other elective that used to be oriented toward a certain gender. The students feel a certain amount of dread while walking to class because the new student body has already had the opportunity to preview the class assignments and make notes of which males were enrolled in these elective courses.These males might feel better about taking the course when they learn that several of their buddies are in the same class. Many students get a lot of benefit out of home economics courses because they prepare them for a life. When they are no longer living at home, they will find the training on how to manage a home budget very helpful. These classes will also teach them about how to use various appliances in the kitchen and this information might save their life one day because when they cut meat they currently find that they are cut constantly.The end of the next school year will certainly be different. The students will take time to consider all of the classes that they will take when they go back to school. While some of them might not be socially recognized or considered cool by all of their friends, they might just be electives that will help them later on in life.
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All About Business Accounting

Many small business owners wonder if accounting is a necessary evil. Those who run the accounting system speak a language of credits and debits. Most business owners feel they can not speak this language. An efficient accounting system contributes to overall profitability.An accounting system is for communication. The system produces information that tells specific things about the company. An accounting system provides the information to run the company, at the owners fingertips. The system includes accounts receivable, accounts payable, order entry, inventory control, cost accounting, payroll and fixed assets accounting.The general ledger shows transactions in four different categories. These categories include the account assets, liabilities, income and expenses. Entries are posted to each and summarized. The summary is then sent to the general ledger for posting.It is best to organize your business accounting system by function. From an internal control, it is best not to have one person do all the functions. Fraud and embezzlement are possible if too few people are doing all the accounting. An internal control structure helps mitigate risks through mechanics and procedures.The type of information needed from an accounting system should be accurate, fulfill managements needs and be easy to use. As well as accuracy, relevancy and simplicity an accounting system should be set up so that it does not require an inordinate amount of time to maintain. The accounting system should be easy enough to understand so that a CPA is not required to operate it or interpret its output. Some automated accounting systems require knowledge about computers and accounting. If you are thinking about one of these systems, make sure that the people running it have the ability to install and operate it. It is best to get a package that works well with your firms capabilities. Also, the automated package needs to be able to work on the computer equipment you currently have or will be purchasing in the near future.A business cycle is a flow of transactions needed to complete a sale and collect the proceeds. In setting up an accounting system you need to know what types of accounting transactions are involved and what entries are to be made along the way. Most company cycles follow these steps, purchase raw materials, enter them into the inventory, begin the manufacturing process, enter goods in the process inventory, pay suppliers and employees, complete the manufacturing process, enter goods into the finished goods inventory, sell the inventory and collect payments.When purchasing an accounting system you need to figure who is going to do what in the system. It is best to assign the person who is most familiar with the system to be in charge of it. If you are just starting a business you will need to know the background of your new employees. At least one of them should be able to run the system. You might want to consider having them interview with an accounting expert, check their references from past jobs and ask them accounting questions. It is your company and you need to do everything possible to protect it.
Article Source: ArticlesMaker.com
About the Author: Obinna Heche. Los Angeles - California Delivering the best home based business ideas and opportunities so you can work at home successfully.. http://www.home-incomeportal.com

Lets Talk About Business Accounting

Many small business owners wonder if accounting is a necessary evil. Those who run the accounting system speak a language of credits and debits. Most business owners feel they can not speak this language. An efficient accounting system contributes to overall profitability.An accounting system is for communication. The system produces information that tells specific things about the company. An accounting system provides the information to run the company, at the owners fingertips. The system includes accounts receivable, accounts payable, order entry, inventory control, cost accounting, payroll and fixed assets accounting.The general ledger shows transactions in four different categories. These categories include the account assets, liabilities, income and expenses. Entries are posted to each and summarized. The summary is then sent to the general ledger for posting.It is best to organize your business accounting system by function. From an internal control, it is best not to have one person do all the functions. Fraud and embezzlement are possible if too few people are doing all the accounting. An internal control structure helps mitigate risks through mechanics and procedures.The type of information needed from an accounting system should be accurate, fulfill managements needs and be easy to use. As well as accuracy, relevancy and simplicity an accounting system should be set up so that it does not require an inordinate amount of time to maintain. The accounting system should be easy enough to understand so that a CPA is not required to operate it or interpret its output. Some automated accounting systems require knowledge about computers and accounting. If you are thinking about one of these systems, make sure that the people running it have the ability to install and operate it. It is best to get a package that works well with your firms capabilities. Also, the automated package needs to be able to work on the computer equipment you currently have or will be purchasing in the near future.A business cycle is a flow of transactions needed to complete a sale and collect the proceeds. In setting up an accounting system you need to know what types of accounting transactions are involved and what entries are to be made along the way. Most company cycles follow these steps, purchase raw materials, enter them into the inventory, begin the manufacturing process, enter goods in the process inventory, pay suppliers and employees, complete the manufacturing process, enter goods into the finished goods inventory, sell the inventory and collect payments.When purchasing an accounting system you need to figure who is going to do what in the system. It is best to assign the person who is most familiar with the system to be in charge of it. If you are just starting a business you will need to know the background of your new employees. At least one of them should be able to run the system. You might want to consider having them interview with an accounting expert, check their references from past jobs and ask them accounting questions. It is your company and you need to do everything possible to protect it.
Article Source: ArticlesMaker.com
About the Author: Obinna Heche. Los Angeles - California Delivering the best home based business ideas and opportunities so you can work at home successfully.. http://www.homeincomeportal.com/obhmy365/