The field of Accounting is broad and wide-ranging and has a origin that goes way back into ancient history. Anyone that have a special talent with numbers or figures combined with the ability to pay close attention to details may aspire to be an accountant by taking up a degree in Accounting or Accountancy. Additional knowledge in computer usage as well as written and oral communication comprise the qualities of a pursuing aspirant in the discipline of accounting. Upon completion of the education required, training and obtaining an license, the qualified accountant may apply for positions in the many available jobs for an accounting practitioner. Various tasks which are vital in the operation of a company or government agency are executed by an employed accountant.
I recently attended a Marketing conference where a consistent message of the guest speakers was "find a hungry crowd and feed them". Their argument was the key to a profitable successful business was the simple principle of finding a group with specific needs and giving them what they want. In the good old days, the Accountancy Profession relied heavily on audit revenues. Like a car MOT it was something that was needed every year and Accountants enjoyed the stability that audit work provided; even though clients occasionally moaned about the fees very few ever switched to another firm. As the audit threshold slowly increased over the past 10 years many a small firm paid the price for their complacency as they watched the foundations of their business dissolve.
Choosing the right accountant for your firm should be at the very foundation of your business set-up; get it right and the relationship you have with your accountant will be one of the longest business relationships you'll ever enjoy. Get it wrong and you could be left feeling bitter and disenchanted with the whole profession. Many people swear by recommendations from friends, family or business contacts and indeed this is still a vital source of new fees for many accountants; the problem with this is that accountants are not a 'one size fits all' type of profession, and so Uncle Peter's perfect accountant is not necessarily going to work well for you; it is important therefore to do a bit of ground work, make a checklist, ask questions, explore your options, and choose a practice that is right for your business.
For any business process to be successful there needs some critical success factors in place to perform it perfectly. Same is true for outsourcing your accounting. If you read benefits if outsourcing and are now willing to start your journey over this highway you should first properly understand how outsourced accounting and bookkeeping works. Because once you have properly understood it then it would be a better experience for both you and your provider. If there are some communication gaps or any misunderstandings these are likely to result in conflicts and disappointments. Here we have tried to explain the process in as simple form as possible. First of all you will choose your outsourced accounting services provider and agree scope of work with them.
Let's say you need some cash for your business. Do you have some customers that are taking over 30 days to pay you? Do you know that you can get that money, often in as little as 24 hours? Receivable financing is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become a popular financial tool in obtaining flexible working capital for businesses of all sizes. A receivable credit line is determined by the financial strength of the customer (Buyer), not necessarily the client (The seller of the receivables). Typically, accounts receivable financing is available in just a few days, not weeks.
Help! My customers just won't pay me on time - some don't even bother to! Cash flow's bad with money flowing out faster than money crawling in... Are you to blame yourself? Yes and No. Yes because you allowed it to happen without pre-empting the possibility of the event happening. No because it is your right to be paid for products delivered and services rendered. But just how often do we come across good customers who pay when they are expected to or pay without being asked? Here are just some ways to cut your credit risk in 7 easy steps and minimize your business from closing down: 1. Pull out your customer statement of accounts Take a trip down memory lane to visit those customers who just love to see their account with you grow faster than a fixed deposit account.
Proper bookkeeping is a not a hit and miss, trial and error thing in a business. A lot of businesses failed in the recent financial crisis because of not being able to strike a balance with the most simple accounting equation Assets= Liabilities+Equity. They have liabilities more than their assets could pay off or lend money to borrowers more than they could afford to part with. The problem boils down with the lack of proper accounting and bookkeeping that lead to a wrong financial judgment. Hence, bookkeeping should not be handled half-baked but with proper scrutiny and well-think of steps; this is where the importance of hiring a bookkeeper and buying reliable bookkeeping software comes in.
All companies need cash. Monies are required to sustain a business. Employees, utilities and rent have to be paid. Companies have to purchase materials and supplies. In summary, capital is necessary to both sustain and grow a business. Without it, a company simply would not be able continue to stay in business. Many businesses rely on debt so that they have enough capital to get by. While debt is sometimes a necessary evil, it is not often optimal. This is largely because debt has to be repaid and with interest. When a company has too much debt they are under a lot of pressure to perform and generate revenue so that it can be repaid. Cash flows problems may particularly hit hardest companies that accept invoices.
Federal income tax laws are always changing. Law makers spend the better part of every year trying to figure out new ways to increase tax revenue. If you are not careful you could easily make a mistake when determining your tax liability. To help you avoid any penalties or fines associated with filing errors, here is a list of five important changes to federal income tax laws that you need to know now. 1. First-time Homebuyer Credit - This credit is perhaps the most popular of the credits available this year. To qualify for this $8, 000 tax credit (or $4, 000 if you are married filing separately) a taxpayer cannot have owned another principle residence in the last three years.
Invoice factoring is a great option for cable installers. It gives them an opportunity to raise money without resorting to the use of bank loans. Bank loans have historically been difficult to qualify for unless a company had been in business for a certain number of years. They would also have to gather and hand over many of their most sensitive financial documents as well as information about their management team. Not only does applying for a bank loan require a great deal of effort and preparation, businesses must also wait until they receive word of whether or not they will be granted a loan. This is time lost. If a company is struggling to stay afloat, waiting for a loan may not even be an option.