Best Accounting Articles Online

Two Things You Need To Consider When Purchasing Accounting Software

Sep 29, 2009 accounting

In today’s world, it is no longer feasible to do your accounting using paper journal entries or to process your payroll by hand using printed tax tables. All the time and anxiety you are saved using an accounting software program, makes the price you have to pay for the software well worth it. You have to be careful when deciding what software to use. When you purchase an accounting software system, you have to be prepared to commit 100% to it. Yes, you could buy a different system down the line, but is it so much easier if you simply do some research and find a program that will meet your needs now and as you grow in the future.

Here’s some advice to keep in mind when you’re deciding which payroll accounting or straight accounting software to purchase for your business.

Will it be able to perform the necessary tasks?

What will your business accounting need right now? Think about the type of business you operate. For example, do you offer services or goods? Your system needs to keep track of your inventory collection if you sell a product. A CMS, or customer management system, is what you need if you sell a service since it will keep track of the client base you’ve established.

No matter which type of business you are running, you need an accounting system that is capable of providing invoices to your clients, and performing tax reporting for them and for yourself. You will also want it to be able to format Profit & Loss statements, and to be able to monitor your ongoing sales and expenses. You have to be careful not to by too big of a package even though you plan on growing larger as you move forward in your business. Many times this will cause you to pay for features that you may never have a need for. Keep in mind that your accounting department, or you if you run a small business, can actually be hurt by all the bells and whistles the more expensive accounting program provide, because they can be very difficult to use.

How can it adapt to a growing business?

Business owner’s always have plans of growing, and if you find that you are not growing, you may be shrinking in comparison to your competition. You need to consider how, in the long run, you software will be able to handle any growth. You need to know whether the software you are considering is scalable, and to what extent. Many of the software programs that are perfect for a three person construction company will not work for a 100 employee business.

If you plan ahead for this expansion, it will save you time spent on problems that arise, and you’ll be able to keep more of your future profits. Thankfully, numerous accounting software programs have been designed specifically to adapt well to expansion. Keep in mind that not all software companies provide for growth, and will require you to purchase a totally new version when yours is no longer adequate. It’s recommended that you find one that meets your requirements at this time, but allows for growth by providing expansion components or a discount towards a more extensive system.

These features are known as Capability & Expansion, and are very valuable. By choosing a system with both of these in mind, you will find you are provided with benefits now and in the future. Other important issues, like “how compatible the software is with your current system” and “how much the software costs,” will be discussed in other articles.

Tags: accounting, payroll, Payroll Accounting

Two Important Considerations When Purchasing Accounting Software

Sep 28, 2009 accounting

The days of doing your accounting on paper journal entries and documenting your payroll by hand by following printed tax tables are over. Any money you spend on purchasing accounting software is definitely worth it, because you’ll save yourself time and agony. However, you need to meticulously plan your course of action. You need to fully commit to an accounting system before you start using it. Although it’s possible to change it, it’s easier to first research which ones will satisfy your needs at the moment, and will serve them as your business grows over time.

The following are some ideas to consider when you are choosing a Payroll Accounting software or regular accounting software for your business.

Will it be able to perform the necessary tasks?

What does your business need the accounting software to do today? What kind of business are you running? Are you in a business that sells goods or services? If you are in a business that sells goods, than you need an accounting system that will also track your inventory. If you are in a business that sells services, you need a customer management system (CMS) in order to keep track of any clients.

But with either of these business types, you will need you to be able to invoice clients, perform tax reporting for them and yourself. It will also need to perform the basic features like Profit & Loss statements, and monitor your ongoing sales and expenses. Although you want to be able to scale larger & expand moving forward, you don’t want to buy too big of a package. Especially when you are buying features that you may never use. Be aware that your accounting department (sometimes YOU in a small business) doesn’t need all the bells and whistles, when in fact it can be an impractical tool by being so difficult to use.

How can it adapt to a growing business?

All business owners plan on expanding their businesses; if your business isn’t growing, it may be shrinking – particularly in comparison to competitors. You should consider how your software will fit your long-term growth plans within your business. Think about the extent to which the software is capable of handling a larger business. A software program that is perfect for a construction company with three employees probably won’t be sufficient for a business with 100 employees.

If you are able to plan for this growth and find a program that will work with this growth, you will save yourself a lot of unnecessary headaches, problems, and expenses. Thankfully, many accounting software programs have accepted that business grow and the owners do not want to have to purchase another program down the line, so they have formulated their programs with expansion in mind. However, some companies want you to buy a new program when you outgrow the old one, so you need to be careful what product you buy. You will want to find an accounting software system that will suit your need now and allow you to expand as you grow, or give you a discounted price on an upgrade to a larger system later.

These two features of Capability & Expansion are valuable. If you can choose your system with these in mind, you will benefit short-term and long-term. While there are other key factors that are important like “How Compatible is it with your current systems” and “How much does it cost”, we will discuss those in a different article.

Tags: accounting, payroll, Payroll Accounting

Guidelines For Accounting And Cpas For A New Business

Sep 25, 2009 accounting

It is always an important factor to know what to look for when you are hiring an accountant for your business. Why? Well, you see, this is important for helping your business run as smoothly as it possibly can. A certified public accountant (cpa) must possess the right skills in order to succeed at bookkeeping for your business. As we write this article, we would like to deliver you some information on picking a CPA for your business. We are not only going to tell you how to do it, but we would like to tell you how to do it correctly, so pay close attention to what we are going to say.

Knowledge of QuickBooks is an essential skill that cpas should possess. Certification and licensure exams, including the QuickBooks ProAdvisor License and the QuickBooks Certified User exam, are available to help assess the level of skill in this area.

We all know that one will need to have important skills. One of those special skills involves using spreadsheet software effectively without having any troubles with it. Another important skill one should have involves being able to answer questions pertaining to how to Microsoft Excel in specific situations, such as locating the least profitable items offered by a business, during the interview process can help with assessing skill level in this area.

Having general accounting knowledge is necessary for a CPA. Asking questions pertaining to capital expenditures vs. Regular business expenses can help with assessing skill level in this area.

Having general business knowledge is also necessary for a cpa. Asking questions that pertain to the product as far as the profability goes and new marketing strategies should be asked during the interview process in order to assess knowledge level in this area.

A few suggestions, including not incorporating, having a simple account system, having a separate business account, filing taxes on a quarterly basis, and having a personal and business assets kept separate, should be followed in order to maximize the effectiveness of a new business’s accounting system.

Not incorporating helps minimize the complexity of the accounting process. This can help reduce the paperwork involved, since incorporated business must file payroll taxes on either a quarterly or annual basis.

A simple account system should be utilized. Using something such as QuickBooks can help keep the accounting system simple.

A separate business account should exist. This helps prevent potential problems that can occur when trying to assess the profitability of a business as well as trying to write off personal expenses that should not be written off on the business account.

Quarterly estimated tax payments should be made. This can help prevent a crisis situation where it is discovered that a large amount of taxes must be paid on April fifteenth.

Following the above suggestions can minimize the chances of having difficulties with a new accountant or cpa for a business.

Tags: accountant, accounting, business, CPA, deductions, expense, finance, government, irs, law, tax, withholding

San Antonio Quickbooks Aid: Financial Help for Your Trade

Sep 22, 2009 accounting

All business proprietors deserve the finest of all things. When it comes to running your finances, Quickbooks software can be one of the best tools that you can use. Nonetheless, it is essential to make sure that you can find competent San Antonio Quickbooks help so that you don’t have to process everything by yourself.

San Antonio Texas Quickbooks help can come in many different shapes and sizes. The software itself can be purchased from Intuit and make your business much easier to control on a financial degree. The software is designed to make your job much easier and aid you to have less hassles and complications when it comes to your commercial finances. Just make sure that you do whatever it takes to acquire the assistance that you need for your business. Here are a few tips:

-Think about the scale of your enterprise. Do you need critical help with a large operation, or just a little assistance for your small business? The size of your company will directly indicate the class of assistance one would require.

-Take a look at your financial plan, but not only the money you have to spend. Find a company that is authorized to help you that you can afford. This way, you’ll get good service and an affordable cost for your business, rather than just getting cut-rate services or overpaying for the aid that you’re receiving.

-Engage a company that helps with what you need. If you need them to run the software for you, make sure they can do that. If you just need them to teach your employees how to manage things, then find a company that is competent in those areas.

-Don’t limit yourself by not checking all of your options. When it comes to your business, you need the best, and it might take a trivial amount of time and effort to discover that. Don’t sell yourself short or settle for less than what you deserve because you don’t want to expend time looking.

Tags: accountants, accounting, bookkeeping, business, consulting, CPA, Quickbooks, quickbooks pro advisor, tax, taxes

Using Continuing Professional Education To Improve Business

Sep 20, 2009 accounting

Did you believe that once you finished college with your degree in accounting you’d be done with homework forever? Or maybe you took your education further and received a post graduate degree. Surely the endless nights of studying and the ever-present stressful tests are things of the past. Aren’t they?

This is not the case if you become a CPA. In order to stay on top of an ever-changing industry, accountants are in for a lot of studying for the rest of their professional careers. This is because the industry is constantly evolving, and in order to provide a good service, continuing professional education (CPE) is absolutely necessary.

Continuing professional education is required to make sure that CPAs remain current with the developments and trends in the industry. Whenever new regulations or techniques appear (which they often do), an accountant must be aware of them and integrate them with his or her business. A CPE is the only way an accountant can keep up with the changes.

One might say: doesn’t that go for any business? Should any company try to stay educated on the industry trends? The short answer is yes. But it is different for an accountant because it is an actual requirement. The financial industry is highly regulated because so many people depend on a good CPA. By requiring CPAs to continue their education, clients will be able to trust that their accountant has the necessary qualification to help them.

Continuing professional education starts when you make sure the impending coursework is current with modern practices and technically accurate. It doesn’t matter if you’re taking the classes online or in the classroom, you should expect your instructors or providers to provide a quality learning experience to fully understand the material.

Make sure you take the time to find the program that is best suited to your needs. There are classes in accounting, estate planning, computer applications, auditing, taxation, professional ethics and much more. You shouldn’t waste your time on classes that you don’t need and focus on the classes that will really improve your business.

Don’t accept a substandard education from your chosen program. Make sure that your provider is capable of delivering the requisite materials on time and that they are open and clear about their learning techniques. Are the lesson objectives clearly defined? Are they capable of guiding you through the whole process? Do you receive evidence of satisfactory completion?

Continuing professional education will give you the chance to offer your clients the quality service they deserve. When you can offer this kind of service you can be sure your business will grow and your customers will happily rely on you for your financial needs.

Lukas Reynolds is a professional author who specializes in CPE and CPE CPA.

Tags: accountants, accounting, CFP, Continuing Education, Continuing Professional Education, CPA, Cpe, education, ethics CPE

How To Get The Most Of Self-Study CPE

Sep 20, 2009 accounting

Self-study CPE classes are very appealing to many CPAs these days because it will allow them to accomplish their continuing education on their own schedule. These online courses are usually offered at an affordable rate and students can easily register and conveniently take care of all their requirements.

Some people don’t have the discipline to complete coursework independently, and this methodology may not be for them, but for those accountants that want to finish the work as quickly as possible, or only have so much time in which they can fit in their educational pursuits, a self-study program might be the perfect answer.

Continuing education is required of CPAs. The accounting industry is highly regulated for the public good, and part of those regulations is that any certified accountants do everything within their ability to stay on top of an ever-changing industry. Any client should be able to trust that a CPA really will know what they are doing.

Due to advancing technology, globalization, and increasing regulations, the accounting industry is always changing. Business transactions are also becoming more and more complex, and CPAs must develop their skills to understand what is going on. Luckily, a good self-study CPE course can help you manage this.

Before paying for any self-study CPE programs, though, you should make sure that it is right for you. Many programs offer different courses, and they may not have the one you need. If you are interested in pursuing accounting or estate planning, you probably won’t need the courses that focus on taxation and professional ethics.

When you begin your search for a good program you need to make sure that the provider is upfront about the significant features of the coursework. Look into their reputation and make sure they are technically accurate, current with all the recent trends, and are an effective learning tool. You should also make sure they have clear learning objectives, a guide to help you reach the end of the program, and provide proof of satisfactory completion.

Self-study courses open up the chance for professionals to continue the learning process. The provider should provide the necessary learning materials in a timely and efficient manner. You should also take the time to make sure they provide a clear description of their prerequisites upfront.

It may take some time to complete a good self-study CPE course, but in the end it can be very worthwhile. All CPAs are required to continue their education throughout their professional career, and studying independently will help you take care of those obligations at your own pace.

Lukas Reynolds is a professional author who specializes in CPE and continuing professional education for accountants.

Tags: accountants, accounting, CFP, Continuing Education, Continuing Professional Education, CPA, Cpe, education, ethics CPE

3 Important Points To Consider When Hiring A Debt Collection Agency

Sep 20, 2009 accounting

To operate a organization profitably, every owner has to stay on top of their receivables and check their cash flow. Whether you promote a product or offer a service, you probably have to deal with late-paying or none-paying customers from time to time. That means that you have to have a sound, consistent internal debt recovery policy in place. Part of your policy should include knowing when to contract out problem accounts to a debt collection agency.

One notable reason this is proper is because your delinquent accounts continue to devalue, at a rate of 15% per month. And the longer an account goes delinquent, the more challenging AND expensive it is to collect. In addition to spending more time, money and resources pursuing these depreciating accounts, its also costing your company in lost opportunity dollars, by taking you away from your core revenue-generating functions. It is far more cost effective and efficient to outsource these difficult accounts to a dispassionate third party debt collection agency.

Here are three notable tips to think about when hiring a debt collection agency.

When hiring a debt collection agency, you ought to make sure they are licensed in the state(s) where your debtors are located. As collection laws can differ significantly by state, its to your advantage to look at collection agencies that are qualified nationally. Because we live in such a transient society, and with people moving across state lines regularly, its better to know a debt collection agency that is approved in all states are familiar with all the different laws and regulations. In fact, collection agencies can only collect in the states they hold a license in.

Fee structures can vary greatly with various collection agencies. Some offer prepaid, flat fee arrangements, whereas others cost a percentage of any monies collected, usually with no upfront costs required. Still others can offer some combination of the two. Depending on your business, there are advantages to either situation. While there are upfront costs with flat fee based debt collection agencies, you can save a lot of money in the long run, in view of the fact that the collection costs tend to be a small percentage of the total dollars collected.

Because your costs are unchanging, you can also turn over difficult accounts quicker, when there’s a greater probability for recovering your money. Again, the longer you procrastinate, the more difficult it is to collect.

Still, many organizations prefer to give up a percentage of whatever might be collected to avoid the upfront dollar costs. Be sure to compare rates though: a debt collection agency can charge anywhere from 20-50% in contingency fees. One thing to keep in mind though: while you might be encouraged to seek out the lowest fees, you should also know that if the fees are very low, it can mean the debt collection agency has inadequate personnel, time and assets that they will dedicate to collecting your accounts. Although percentage fees charged are important, success in total recovery is far more notable to your organization bottom line. Whichever option you choose, make sure the debt collection agency you’re considering spells out their fee structure clearly in writing.

Finally, when considering a debt collection agency, you need to think of them as an extension of your organization. Seeing as they will be collecting your money and acting on your behalf, its notable that they reflect your organization’s viewpoint. For instance, if you manage a medical practice, your reputation in the community is something you value. You wouldn’t want to associate with a debt collection agency known to engage in harsh, intimidating and/or inhumane behavior when handling patient collections. At the same time, you want a collection agency that while diplomatic, they are determined, steady and constant in their collections activity.

David P. Montana has published widely and worked as a business advisor in debt collection services for thirty years. David provides more helpful tools and resources about choosing the right collection agency.

Tags: accounting, accounts receivable, business, collection agency, debt collection, debt collection agencies

3 Main Points To Consider When Hiring A Debt Collection Agency

Sep 17, 2009 accounting

To operate a organization profitably, every owner has to stay on top of their receivables and check their cash flow. Whether you promote a product or offer a service, you probably have to deal with late-paying or none-paying customers from time to time. That means that you have to have a sound, consistent internal debt recovery policy in place. Part of your policy should include knowing when to contract out problem accounts to a debt collection agency.

One notable reason this is proper is because your delinquent accounts continue to devalue, at a rate of 15% per month. And the longer an account goes delinquent, the more challenging AND expensive it is to collect. In addition to spending more time, money and resources pursuing these depreciating accounts, its also costing your company in lost opportunity dollars, by taking you away from your core revenue-generating functions. It is far more cost effective and efficient to outsource these difficult accounts to a dispassionate third party debt collection agency.

Here are three main tips to bear in mind when hiring a debt collection agency.

When hiring a debt collection agency, you need to make sure they are licensed in the state(s) where your debtors are located. Because collection laws can vary significantly by state, its to your benefit to look at collection agencies that are accredited nationwide. Because we live in such a transient culture, and with people moving across state lines a lot, its better to know a debt collection agency that is accredited in all states are familiar with all the different laws and policies. In fact, collection agencies can only collect in the states they hold a license in.

Fee structures can differ greatly with different collection agencies. Some offer prepaid, flat fee arrangements, as others charge a ratio of any monies collected, normally with no upfront costs required. Still others can propose some blend of the two. Depending on your establishment, there are advantages to either situation. Though there are upfront costs with flat fee based debt collection agencies, you can save a lot of money in the long run, since the collection costs tend to be a small percentage of the total dollars collected.

Because your costs are unchanging, you can also turn over problem accounts earlier, when there’s a better likelihood for collecting your money. Again, the longer you procrastinate, the more difficult it is to collect.

Still, a lot of organizations elect to give up a percentage of whatever might be collected to avoid the upfront dollar costs. Be sure to compare rates though: a debt collection agency can charge anywhere from 20-50% in contingency fees. One thing to keep in mind though: while you might be inclined to seek out the lowest fees, you should also know that if the fees are very low, it can mean the debt collection agency has limited staff, time and assets that they will commit to collecting your accounts. At the same time as percentage fees charged are significant, success in total recovery is far more significant to your organization bottom line. Whichever option you choose, make sure the debt collection agency you’re considering spells out their fee structure clearly in writing.

Finally, when considering a debt collection agency, you need to think of them as an extension of your organization. Seeing as they will be collecting your money and acting on your behalf, its notable that they reflect your organization’s viewpoint. For instance, if you manage a medical practice, your reputation in the community is something you value. You wouldn’t want to associate with a debt collection agency known to engage in harsh, intimidating and/or inhumane behavior when handling patient collections. At the same time, you want a collection agency that while diplomatic, they are determined, steady and constant in their collections activity.

David P. Montana has written widely and served as a business advisor in debt collection agencies services for three decades. David provides more beneficial tips and resources about choosing the right collection agency.

Tags: accounting, accounts receivable, business, collection agency, debt collection, debt collection agencies

CPAs Stay Sharp With CPE

Sep 16, 2009 accounting

Even if you are at a temporary job that could not care less about your continuing education, to keep your accounting certificate, you will need to complete continuing professional education for accountants. This will be important for future jobs, which may take your professional education more seriously. You have several choices when it comes to how you complete this continuing professional education for accountants. One very valuable tool at your disposal is the Internet, which can connect you to everything you need to complete your education.

The first thing you will want to do is to type in “continuing professional education for accountants” in a search bar. When your search engine pulls up your results, scroll through them to find a company you would want to work with. One great thing about doing a search online is that you will get several options to choose from when considering your education. One option is to print a PDF version of your learning materials, which lets you study at your own pace, regardless of whether you have a computer or not.

If you do not have a printer, another option is to complete all the training online. This might become hard on your eyes, but you will not have to print anything. Another benefit to continuing your education online is that you can easily skim through the materials you need. After you are through with the online materials, you will not have extra paper just waiting around to be recycled. With this option, you go green and conserve trees and the environment rather than wasting paper you will not need later.

When you do your continuing professional education for accountants over the Internet, you will most likely be required to pay through that particular site, or through a system like PayPal. It is important that you check the security of the site, to make sure everything is legitimate. Check and see how the site is protected, and make sure they have assurances posted at checkout.

If you choose the traditional method having companies mail the educational tools to your home, then you have little to worry about in terms of technology. This might be a better way of continuing professional education for accountants if you do not do well with technology and computers. No matter which way you choose to go with your education, you should start your search online to find the best company to help you on your way. There are many options open to you, and you want to take advantage of the Internet to sift through the good and bad.

Lukas Reynolds is a professional author who specializes in certified financial planner continuing education and accounting continuing education.

Tags: accountants, accounting, CFP, Continuing Education, Continuing Professional Education, CPA, Cpe, education, ethics CPE

Small Business Accounting Software

Sep 14, 2009 accounting

The very last thing you want to be asking all the time when you run a small business is where all the money is going. This is the reason why high quality accounting software is so essential. Without incurring too much expense you will need software that not only deals with regular taxpayer and homeowner tasks but business ones as well. Luckily for you there are a great number of options available on today’s market and we are going to take a look at the top five small business programs and see exactly how they can help you with your accounting responsibilities.

1. QuickBooks from Intuit has been around for a long time and is a popular series of programs designed to do all kinds of payroll and accounting tasks. It comes in a number of different varieties, including Basic, Pro, Premier and Online editions. In the Pro edition, you’ll get helpful management tools, including a projector for cash flow and a tracker for company vehicle mileage. Choose the one that’ll work best for you and your budget.

2. Simply Accounting – this is another package which is very useful and it has data entry screens similar in appearance to the paper accounting methods of old. With all kinds of reports, some especially designed with ecommerce and the Internet in mind, accounting and payroll features and tips about screen and drag and drop this package provides quite a shallow learning curve. If you require time and billing modules you should opt for the professional version of Simply Accounting.

3. Peachtree ” the complete version consists of over a 125 different reports as well as an in depth inventory feature, time and billing, job costing and so much more. This program has been designed for multiple use and three or more users can operate the program at any one time with this package. You could also choose the Premium and First editions which are available from Peachtree.

4. Sage BusinessVision ” this is a super program which does a great deal of the work on your behalf. An example of this is automatic year end processing. Backdated transactions can be applied to the previous 12 months even when this period is over. The program sports an add on offering a shopping cart and web store as well as integrating well with Act! It comes in limited, small business, standard and client server editions.

5. Microsoft Office Small Business ” Every list of office software really should include an offering from the giant of such products, Microsoft who have proved their great worth in the time they have been on the market. Without doubt, the biggest and best feature of this product is its integration with Office which is a great advantage to those already using this popular office suite. The way in which there is no need to re-enter information held in Outlook and Excel is just one of the great features of this program. PayPal invoicing and on line payroll are additional add on for this package too.

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Tags: accounting, accounting software for small business, bookkeeping, payroll, software, tax