Acounting Archive

Stephanie Elsen asked:




In comparison to the 1980′s when accounting software was in its infancy, there is now a sea of accounting software systems available for businesses. When it comes time for your business to choose a system, where do you begin? How can you narrow down your search to find just the right list of products, without becoming overwhelmed? Use these simple tips to help you create your master vendor list.

Make your mission critical list.

Think about the main reasons your company is searching for a new system. Perhaps your system has gotten bogged down, or you need to manage multiple units of measure. Maybe you need a budgeting tool or a different costing method. No two software searches are the same, and your business surely has its own reasons for its search. Write down those reasons in a Word document or simply on a sheet of paper. When you have your list of critical needs, you reduce your chances of being spellbound by huge array of features you will learn about during the software research process.

Use internet software search tools.

The internet has really enhanced the availability of information, making it possible to find nearly any business you seek. This includes businesses that create and sell accounting software systems. However, doing an internet search brings up far too many results to sift through each and every single one. If you try to, you will quickly become overwhelmed and frustrated. Also, you may not realize that the words “accounting software” and similar terms are some of the most competitive words on the internet. This means there is a huge variety of software companies competing for the first page of search results, yet there is only room for ten results on that first results page. (And only a small percentage of people go on to the second page.) That first page may not even come close to featuring any results that are right for your company!

Your ideal result may be on page 5 or 8 or 10! Just because they are not showing up on the first page of Google, does not mean their software won’t fit your business. Therefore, using an online accounting software database / directory can be a very good idea. Accounting software databases typically have lists of accounting software vendors which can be browsed on the Web by categories, alphabetically, and in other ways. Some of them allow you to choose the features you are looking for to see which vendors fit, and some even allow you to submit your requirements and have the vendors contact you, at no charge to you. Try out these Web sites: Capterra.com, Findaccountingsoftware.com, or Accountingsoftware411.com. These Web sites feature comprehensive databases of accounting software companies and provide excellent services you can use to narrow down your search. There are also other great databases available. However do take note that some accounting software databases only list vendors who pay to be listed, and ignore the rest. You would be doing yourself a disservice by searching through an incomplete database of accounting software providers.

Ask business associates for recommendations.

One of the best ways to start narrowing down accounting systems is to ask friends and businesses similar to yours what they are using, their likes and dislikes, and what they would recommend. Since accounting software is so intertwined within the daily operation of a business, you should receive good responses from your associates about what they use the software and their opinions about it. Asking somebody in the same industry as yours is definitely beneficial, since you will be able to ask them about needs and features they have had that are similar to yours, and what has worked for them.

Using your master list, online tools, and the help of your business associates can help you become organized and efficient in your search for a new system.

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Brien Hode asked:




If you are looking to explore the field of accounting as a career option, then you can make your chances even better with an Associate’s Degree in Accounting. With this degree you can gain skills and knowledge that will get you an entry level position in the accounting arena within any organization.

As someone who would like to develop a career in the field of accounting, it would be of great help if you obtained an Associates Degree in Accounting first. Thereafter, you can easily pursue and get a Bachelors Degree in Accounting. This way, you will be sure that you have the necessary background knowledge and understanding of the different accounting systems and practices that are required for you to become an accounting professional.

As someone who has an Associates Degree in Accounting you can find yourself working at entry level accounting positions within organizations. This is the best means of ensuring that your knowledge and experience in accounting develops a firm base. Potential job options might be a position as a book keeper, or a payroll clerk, an accounts receivable clerk, or an accounts payable clerk. All these are very important positions within any organization – and will serve to improve your knowledge base of the subject.

An Associates Degree in accounting is a 2 year accounting degree program – which you can complete either as a full time course in a university or as an online course via the Internet. This course will train you in the different subjects that are a part of the accounting curriculum such as basic accounting, cost accounting, financial statement analysis, taxation, and payroll accounting.

After completing an Associates Degree course in Accounting, you can earn an annual salary in the range of $25,000 to $35,000. And in each of these different positions, there is a lot of scope for further career advancement. You can also choose to enhance these career advancement opportunities by getting a Bachelors Degree in Accounting at a later date.

Thus, with an Associates Degree in Accounting, you can certainly begin to start charting your career path in the field of financial accounting in a much better and stronger manner.

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Tynika Stevens asked:




According to the U.S. Census, there are approximately 100 million ethnic minorities in the United States, and the Bureau estimates that about one in three of U.S. residents are a minority. In addition, the population will continue to increase, and by 2050, minorities will account for nearly half of the U.S. population (U.S. Census, 2009). Based on this data, there is a high chance that minorities account for a increasing percentage of working in the accounting profession.

Today, minorities in the CPA profession account for 8%, consisting of 4% Asian/Pacific Islander, 3% Hispanic, and only 1% African American. There has been a positive turn around in the past few years with minorities only occupying 1% of the CPA profession, which includes African American, Latino, and Asian ethnics. This data above, illustrates how minorities are slowly entering the accounting professions (The CPA Journal, 2009).

The percentage of accounting graduates who are minorities is 22%, consisting of 10% Asian/Pacific Islander, 7% African American, and 5% Hispanic or Latino. According to U.S. News & World Report, City University of New York’s Baruch College has been the country’s largest and most diverse business school for the last nine years. More than 600 accounting students graduated in 2007, 25% of the class consisted of African American and Hispanic students. This is not the case for every accredited institution. Previous studies showed minority graduates, particularly African American are not being kept in the profession of CPAs and ultimately partners or executives. Only 7% graduate, 3% are hired, and 1% becomes a CPA or partner.

There are accounting organizations that were established to enhance opportunities for minorities in accounting, finance and related professions. NABA (National Association of Black Accountants) and ALPFA (Association of Latino Professionals in Finance and Accounting) are well known organizations that assist minorities in this profession. The primary purpose of these organizes is to develop, encourage, and serve as a resource for African American and other minorities in the accounting profession.

NABA is a nationwide membership organization established in 1969 by nine African American professionals who were concerned about the limited numbers of minority accountants participating in the field of accounting, particularly the number of certified accountants. Since 1969, NABA has been the leader in expanding the influence of minority professionals in the field of finance and accounting. The goals of the association are to promote and develop the professional skills of the members, to encourage and assist minority students in entering the accounting profession, to provide opportunities for members through networking, and to ensure long-term financial stability and provide adequate resources to implement chapter, regional, and programs. Today, through the efforts of NABA, there are now over 200,000 African Americans participating in the field of accounting, of which over 5,000 are CPAs. NABA continues to create opportunities for the purpose of enlarging the pipeline of African Americans into every level of accounting and finance.

ALPFA (Association of Latino Professionals in Finance and Accounting) is a successor of the American of Hispanic Certified Public Accountants association established in 1972. ALPFA creates opportunities, adds values, and builds network opportunities for its members. According to ALPFA’s website, its guiding principles are a commitment to increase opportunities for Latinos, to commit to honesty, integrity and the highest professional and ethical standards, and most importantly, to embrace community service and advocacy.

ALPFA offers scholarships every year to students, in the U.S. or Puerto Rico, who are pursuing undergraduate/graduate degrees. With 52% of ALPFA’s 11,000 members comprised of students, ALPFA is committed to providing greater access to scholarships in addition to programs and opportunities that will help students transfer into the corporate world. The ALPFA expects to distribute $130,000 in scholarships in 2010 and bring the top scholarship recipients to the ALPFA Annual Convention to network with executives from the top CPA firms (PricewaterhouseCoopers, KPMG, Ernst & Young and Deloitte).

Accountant organizations such as NABA and ALPFA are encouraging young members of all ethnic backgrounds to pursue the CPA profession through their outreach programs and mentoring strategies. The number of minority CPAs are increasing and the retention rate of minorities within the accounting profession is also improving with the assistance of NABA/ ALPFA Statistics have shown that the accounting profession has improved in its recruitment of minorities; however, the number of minority candidates still remains the issue. With so many internships and scholarships offered each year, it still remains a question of why minorities are not attracted to professions within the accounting industry. Questions have arisen relating to early exposure of accounting during pre-collegiate education.

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Ryan Mutt asked:




Following best practices for accounting software implementation and selection ensures maximum ROI and eradication of problems or bottlenecks in the system for better and efficient working. Like ERP and other software of similar magnitude accounting software too need a planned approach for a proper selection and smooth operation at later stages, any flaw or omission may throw the whole effort in vain.

Before selecting any particular accounting software preparation of RFP will prove more than handy as it becomes an important document to guide and set a benchmark for short listing the most suitable software according to the needs of the company. Another benefit of this document is that during its preparation the management discovers all the problem areas and changes that may be required after the installation of new system.

Always short list 2-3 software and invite them for demonstration designed according to the RFP. Involve all the concerned people from executives to senior accountants of the company to take part and watch the demonstration and identify which software caters to the needs of the company in the best way. This is also one of the best practices to build trust of the employees in the accounting software and gives them a very good chance to get acquainted with its capabilities and shortcomings.

Avoiding too much customization is the best practice which is ignored many times by the buyers due to lesser purchase price of particular accounting software. Most of the time such a selection leads to a wrong decision as too much customization can prove costly and may disturb the functionality of the main software to create run time errors and problems.

Determining the budget before going for implementation and after the selection of accounting software is another best practice as it avoids situations like lack of funds or compromising quality due to under estimation of cost. Include each and every activity involved in the implementation from purchase of software to training, implementation, infrastructure, consulting and customization.

Selection of most suitable implementation strategy is an important decision to make as a wrong strategy can create mistrust amongst the employees and can make the new system unpopular to cause a failure. Study of the present system while making RFP can help in correct selection as it gives complete idea about the problem areas and the magnitude of changes the new system will bring in. This knowledge helps in choosing correct implementation strategy.

Creation of project team for the implementation process is another best practice if project team represents all the areas of the company which will be affected by the new accounting software. This team may also conduct a dry run of the project on a test data before going for actual implementation and get the results tested and approved by all the concerned departments for preventing any chances of minor faults and omissions in the software or the process.

Project team shall also ensure that sufficient importance is given to the mostly neglected part in the implementation process but a very crucial one, training. Sufficient training about handling the new system, differences in it with old system, ways to handle the situations and best practices to avoid incorrect entries or incorrect module selection shall be given before handing over the new accounting software to the users.

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Robert Thatcher asked:




Choosing accounting software can be confusing. The fact is you are looking for accounting software because accounting is a complex matter that you’d like to simplify. Choosing the right accounting software will help you simplify your finances, but choosing the wrong one will only complicate matters further. It is really important that you choose your accounting software based upon your needs and not just product reviews. This ensures that your needs will be met and you will be comfortable with using the software.

There are many different types of accounting software with many different features. Personal accounting involves bank account monitoring, loan management, investments and budgeting. It is important to focus on accounting software aimed towards personal finance rather than business finance. This will help you to narrow down your choices to ones that are most likely to work for your needs.

The first step is to check out what accounting software is on the market. Look at websites, in stores and anywhere else you can find the information. You can even ask friends or family if they know of a good software program. At this point you are trying to gather information about features available and names of certain software programs.

The next step is to make a list of all the products you found out about. You can now do some deeper research. Look for information about each product. Find out the features and anything special that may make the product stand out, like products that are made specifically for the beginner.

Now you can look over your list and eliminate any that do not impress you or look like they are lacking something you will need. You should also look at how much they cost and eliminate programs that cost too much.

Once you have the list narrowed down you can try to get an evaluation code from the manufacturer. Most companies will allow you to download a demo so you can try the software yourself. This will allow you to figure out the ease of use and if you like the general layout of the program.

After you have tested the software on your list you should easily be able to narrow down your choice to one accounting software program that meets your needs.

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Natasha Bright asked:




Say what you will about modern financial times, the world always needs those who understand and can work in the language of finance. The more complicated and intertwined finances get, the greater the need for those who can navigate a smooth financial course. Obtaining your bachelors degree will start your trip as the captain of a financial ship.

The field of accounting can certainly trace its roots back quite a ways. In fact, one could say it may be the third oldest profession, with accounting records going back some 7,000 years. In those days, farmers (and probably their rulers) utilized accountants to keep record of a year’s harvest. Naturally, the field has evolved quite a bit and in current times has become so diverse and complex that the modern day accountant is often furthering his/her education long after obtaining their bachelors and even their MBA.

In the United States, legally practicing accountants can be divided into four major groups. They are Certified Public Accountants, Certified Internal Auditors, Certified Management Accountants and Accredited Business Accountants. The difference between these certifications is primarily the legal status and the types of services provided. Additionally, much accounting work is performed by uncertified individuals (such as a medical biller), who may be working under the supervision of a certified accountant.

As can be imagined, a strong head for crunching numbers is an absolute must. While this does not mean one will have to apply formulae usually reserved for Stephen Hawking and his fellow theoreticians, a solid knowledge of statistics, spreadsheets and college-level math wouldn’t hurt. The truth is one can actually start being an accountant with an Associates degree and then work-study their way up, if needed. One aspect of being an accountant is easy access to financial aid, both for undergrad and senior employee.

The Bureau of Labor Statistics says the future of the field is about average, with an estimated 10% growth from 2008 to 2018. When the study was done, barely over 2 million accountants were employed in all capacities. The Bureau projects that number to go up to 2.25 million by 2018. They state the three key reasons for more accountants will be those deciding to retire, grow out of their positions into upper management and the expected general increase in the country’s population.

The salary of an accountant can go anywhere from $26,000 on the low end to just under $95,000 on the high end. This is not including those who work in more specialized areas or are employed by larger conglomerates. Employment perks can include health care, as well as a wide range of retirement and other investment packages as fitting a stalwart member of the financial industry.

As for advancement? Many senior members of major corporations, including members of the board of executives, started as accountants. A number of accountants take their hard earned knowledge to set up their own practices. With the right contacts and certification, an accountant’s future is truly unlimited. Obtaining your bachelors degree is just the first step to an exciting future than can include branching into law or marketing, offering specialization in areas that provide challenges and advancement.

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Stephanie Elsen asked:




No matter the size of your business, accounting software must be an integral part in managing your finances. Of course, the range of software packages available these days is vast, and you have to strike a balance between something that can handle your needs while being as easy to use as possible. But, regardless of which accounting software you choose, keep in mind that all packages should allow you to get the information you need without a hassle. What good is a system that only allows you to pull out information on reports and other documents, with only the data they deem valuable? Consider these tips for obtaining the information you need, the way you want to see it.

Customizable Reports: While many accounting systems do include a variety of standard reports, they are typically very general to satisfy the needs of the masses. What happens if you want to include an additional field? Or how about if you would rather have two columns of information switched around? It’s best to be able to view what you and your management team want to see on financial statements. Look for a system that allows you to take one of their standard reports and add, remove, or move fields of information as you like to see it. Then, save your revised report so you can run it exactly the same from month to month, giving all those who view the reports a consistent view of the crucial financial information. Financial information is simply too important to leave the data you pull out up to the discretion of the general reports in your system.

Drill Down to Original Source Entries: When using the reporting within your accounting system, using drill down to original source entries can be an extremely useful tool. When you are in a report, you may have a question about what makes up a number or how that figure was calculated. Drilling down to the original source eliminates the step of having to go into a full edit function or run another report. This helps keep your information accurate while also letting you make edits more quickly and efficiently.

Departmental Reporting: Do you often throw or stuff your personal cash into your wallet or purse helter skelter? No, you likely fold up your dollar bills and perhaps even organize them by dollar amount. If you had to search for and unravel scrunched up dollar bills each time you wanted to buy something, it would take a long time and frankly that would be embarrassing. This is similar to organizing your transactions in your accounting software. Setting up and tracking information by department helps you understand financial information about each of your departments, so you have a more solid idea about each department’s success and where improvement may be needed. Instead of viewing all of your financial information together, it can be broken up and more easily understood.

When you are able to pull the information out of your software with ease, you can spend less time analyzing and more time improving and carrying onward. Use the analysis tools within your software to help you get the information you need, in the way you need to see it.

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Dean Forster asked:




Inventory accounting software is a must for any business that needs to manage large volumes of accounting data each day. Choosing the right inventory accounting software can however be very confusing unless you have certain parameters in place. You need to look for:

Scalability – Choose software that can be easily upgraded to accommodate business changes such as the number of employees, and the number of services or products being offered.

Support – Go for a company that offers ample support or a good after sales service to help you when things go wrong.

Getting value for money – Shop around, as the prices of accounts management solutions vary a great deal. You may get better deals from online merchants. Go for recognized companies such as Peachtree that offer a wide range of products designed to meet every accounting need.

Before you choose any inventory software, you must first evaluate the following factors:

The cost of warehousing your inventory – This would also include the costs associated with the premises as well such as maintenance, electricity, and location of different items in the warehouse.

Sales ordering system – This is the system that integrates various elements such as discounts, shipping costs and other customer related issues into the inventory.

Purchase order creation and tracking

Assembly production

Shipping software

It is vital for any organization to establish optimum inventory, a level which is adequate enough to meet the projected cost but not sufficient to eat away the projected profits. In order to manage a modern inventory, you need to first identify the functions performed by them and accordingly work out strategies to keep inventories at optimum levels. Fortunately, companies can now depend on inventory accounting software to manage all these chores efficiently that too in little time.

When it comes to buying an inventory accounting software, there are a lot of options to choose from ranging from a very basic wholesale distribution ERP program to a full-featured inventory management software. It is possible now to buy a customizable professionally -developed software that too at an affordable price. Choosing the right software will mainly depend on the kind of business you are into. For instance, if you own a distribution company, then you need to have a software that would track its core areas namely; wholesale distribution management and warehouse automation. Good software gives you the much-needed flexibility and depth of functionality needed to enhance customer service and maximize profits.

Precise ERP/MRP information and good inventory control are a must for the success of any business. Both overstocked inventory and out-of-stock items can be hazardous for the reputation of your company and prove detrimental to your bottom line. Inaccurate inventory control is often a common reason why many companies head straight towards bankruptcy in the first few years of business. Many times, inaccuracy in inventory counts is caused due to lost sales and shipment delays. However, it is possible to erase such inaccuracies with the help of an efficient inventory accounting software.

Top-end inventory accounting software comes with inbuilt features like:

Kitting

Serial number tracking

Complete sales and purchasing functionality

ERP automation

Companies today need to look beyond survival and having an efficient accounting system can help stay ahead in competition. Inventory accounting software from Microsoft is packed with excellent features and targets mainly mid-size and large companies. It can be a daunting task to find software that has high functional value but is easy on the pocket. Ask for price quotes from online vendors and do a cost analysis before selecting an accounting software for your business.

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Stephanie Elsen asked:




With the start-up of a new business comes a wide range of choices. Often, accounting software is not the most top of mind concern. However as a company grows, the need for a more robust accounting software package becomes evident. The basic software package that was installed upon startup lags behind and cannot keep up with the complexity of the growing business. Here are five main ways that basic accounting software packages differ from more advanced (or mid-range) accounting software.

Ability to Customize: The longer you are in business, the more you realize that your business has a unique set of needs. For example, you want to show a special field on your invoice, or you want to start tracking information by sales category or by project. With a basic accounting software package, there is limited ability to customize, and therefore you must make due with a system that is made for the masses. Advanced accounting packages recognize that your business develops its own specific needs over time as it grows, and therefore allows for customization.

Data Limits: This is a major different between basic and advanced accounting software packages. A basic system will only allow for a finite number of things like inventory items, concurrent users, transactions, accounts, etc. Often this is the main reason for needing to upgrade to a more advanced system. When your business starts to require additional data storage, this is when a more advanced system can really make your life easier.

Reporting: Again, for the sake of ease of use, basic accounting programs provide a limited set of reports for you to run. Yet your business may really need to see the data in its own way. For example, perhaps you want to include a line that shows the subtotal per item with tax. A more advanced program will allow for revisions to be made, and the reports can then be saved for later use, so that you can view the information in a way that is more helpful to you and your accountant.

Data drill down: How easy is it to view all of the details of a transaction when you are looking at your business numbers on a report? In a more basic system, you will likely need to close out the report and go searching through layers of information to find the details. By contrast, a more advanced system will allow you to view the transaction details that make up the number with just a few clicks, and will even allow you to edit the information on the fly.

Service: As with any product available today, the end result of paying too little means your service will be less as well. Many basic accounting software programs will defray service expenses by outsourcing their service to an overseas call center. More advanced programs provide more complete support services, with a variety of contact methods, and technicians with years of experience.

When choosing accounting software for your business, be sure to consider all of the above points so your system will grow along with your business.

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Charles Cheow asked:




In today’s ultra-competitive business environment, “survival of the fittest” is often an appropriate phrase to describe the extreme competition between small businesses. With a small business, small mistakes can pile up and can provide a death knell for a once solid, profitable organization. Many entrepreneurs, even those who have been in business for years, have found themselves struggling to stay in business, let alone to make a decent profit. In the fight to survive, many are trying to find every advantage possible, and are working feverishly, often for long hours, to strengthen any weaknesses that their company might have. One large weakness, which often plagues small operations that have been in business for years, is their book keeping and accounting systems. By switching to accounting software, rather than continuing to utilize the paper and pencil method, small business owners can make big differences to their bottom line.

So if you want to make the switch, how do you start? To begin with, thoroughly research your available options. Check out features, prices, and services of reliable accounting software programs. One very important resource in the research process is your accountant. He or she should be able to give an educated recommendation based on the needs of your business. Second, once the program has been purchased, have a professional set it up and teach you how to use it. The fast-paced nature of business today makes learning on your own at a snail’s pace nearly impossible. Expect to invest some time and money on this front, but expect also to recoup that as you fine-tune your finances with the information you’ll gain. (One other note on getting started: you will also need to ensure that your computer equipment is up to par in order to run the programs. An update may be a good idea if you’re working with older systems.)

Although accounting software brings great benefits, it is not without risk. One particularly concerning risk is that of data loss, such as from a hard drive failure. Regular backup onto an external device is essential in protecting against such a catastrophic loss. Another area of concern is cost. The programs can become quite expensive to run and maintain, so it’s imperative to budget and plan for this. You don’t want to become trapped by a bill you can’t afford in order to keep a system you can’t function without. Another risk is computer security. Keeping all that sensitive information on a hard drive makes it susceptible to hacking and other malicious problems, so a good security program, updated regularly, along with a secure network, are imperative. Expect to pay a professional to set both up for you if you aren’t able to do so yourself.

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