Bookkeeping Archive

Peter Terry asked:




Bookkeeping is basically concerned with checking and maintaining financial and accounting documents for the smooth business process. Well, maintaining such documents is a hard nut to ***** and the accountants really have a tough time to settle down these things. On of the most important things in a business is its revenue and expense record. These things have to be taken care of efficiently because even the slightest mistake can cause blunders and you could land up in a big financial problem. Bookkeeping New York is definitely an essential part of the business that requires maintaining record of the minutest detail.

If you happen to stay in New York, then you can look out for certified public accountant that can help you in taking consideration of bookkeeping work. Checking of accounting and bookkeeping documents becomes all the more important during tax filing season. This is the time when businessmen and many others are on a look out for professionals who can settle the finances and tell them the exact amount that has to be paid as tax. Some of the bookkeeping documents are payroll processes, invoice generation, balance sheet, trial balance, profit and loss account, bank statements, financial reports and many others. All of them needs to be looked out at carefully and should be tallied properly.

Many states of US including New York have some organizations which provide trained staff for supervising bookkeeping work. These companies are called outsourcing firms. Supervising bookkeeping work becomes quite tedious when you have other departments to handle also. At this particular time, you may feel frustrated and make mistakes in handling the task properly. When such is the situation, outsourcing surely proves advantageous for you. You will be able to cut down on the extra cost that is being paid to in-house staff and can also pay attention to such factors that are responsible for the growth of your business.

Handling and paying attention to bookkeeping work is becoming more and more important. The reason is that business houses have become quite concerned about filing taxes on time, so as to avoid tax raid problems. Just imagine if you do not file tax on time and have to face tax raids, your business will surely be in a danger zone. So, it is always better for you to complete your bookkeeping tasks on time and have discussions with certified public accountant to find out ways to save you from tax raids. After all, you have come in the business world to earn profits and not to suffer loss due to any reason.

If you are not able to find the services of accounting staff during tax season near your official complex, then you can take the help of internet. In fact, internet is the best source for searching the certified public accountant that can take you out of the problems related to filing taxes and managing bookkeeping works. You will also get to know the rates that they charge for their services and then you will be able to decide that whose services will best suit the budget that you have allocated for this purpose.

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Michelle Barkley asked:




It is that time of the year again when you have to pay your taxes and this must be giving you sleepless nights. So, now you must be hunting for an accounting firm that will do all the tiresome work for you and help you in paying your taxes in time. There are certain things that you must check out regarding the services provided by the firm that you hire to do your tax calculating and accounting works. Bookkeeping rates are very competitive and so you must be very careful while you choose a firm to do your accounting and bookkeeping work. No doubt this is a very important aspect of your tax payment process, so you need be very cautious about this.

You must keep in mind the fact that most tax calculating and bookkeeping calculation firms outsource their work from a third party. This is because the workload becomes really heavy for these firms during the hectic tax paying season in the United States. If your accounting firm is outsourcing the work, this means that the bookkeeping rates are bound to be affordable and will be within the budget for everyone. In fact, there are several bookkeeping and tax calculating accounting firms that do the work at a lower rate and you can actually save money on this.

Bookkeeping rates can vary depending on the firm from which you are hiring the services. So the best thing for you to do before you hire the services of any accounting firm is to check out the rates that are provided by different firms. Most of us have very busy and tight daily schedules, and finding out about the bookkeeping rates can be a time consuming and tiresome job for you. The internet is one good option that you can explore for finding out good bookkeeping rates offered by different accounting firms.

Bookkeeping and tax calculating becomes very simple if you preserve the records of all the major expenses incurred within the financial year. So make sure that whatever financial transactions you have made, you maintain a record of this. In the last stages of your tax return and bookkeeping calculation, this may pose huge problems for you. So make all provisions beforehand to take care of all these aspects.

Bookkeeping rates can be charged by accounting firms based on several aspects. The rates can be fixed rates or hourly rates. Before you give them the work to do, it will be of big help if you find out the kind of bookkeeping rates that the accounting firm charges from their clients. Paying taxes is no doubt a very important thing, but what is even more important is paying your taxes at the right time. If you are not timely on this aspect, you can land up in problems. Pay your taxes in time and become tax free as soon as possible. Paying taxes on time can become all the more easier for you, if you are aware of the latest and the best bookkeeping rates that are offered by accounting firms.

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Vaughan A Jones asked:




What to avoid when budgeting and make your money stretch using correct financial planning.

Correct stock management to save money and make more profit.

Basic bookkeeping for business owners.

How to limit stock losses through stock wastage, breakage and spoilage.

Introduction

Many businesses fail due to inadequate or non existent filing and record keeping systems. Another reason for failure is the lack of monitoring profitability, bank balances and cash flow forecast in comparison to actual cash flow on a routine basis.

Nothing is more embarrassing or frustrating to be caught in the trap of being unable to find important documents at crucial moments.

For example; I once visited a business, who became my client and, during the discussion, the one director mentioned an issue with one of their suppliers concerning prices and a credit note which was incorrectly passed. She insisted on showing me the history and started searching for the relevant documentation. Do you know that after a half an hour she had located the supplier’s invoices and monthly statement in two separate files, but could still not lay her hands on the credit note or the last payment advice? She blushed ashamedly.

I asked her whether their previous accountant had suggested a proper filing system, in which case she would have been able to lay her hands on the whole set of supplier documentation within ten seconds. SHE TOLD ME THAT SHE HAD DESIGNED THIS FILING SYSTEM HERSELF AND ADMITTED THAT IT WAS AN ABSOLUTE SHAMBLES.

Not to mention that I changed their filing system immediately on taking over their accounting. All suppliers documentation must be filed together, sorted only by supplier name and filed alphabetically. They had all the supplier’s invoices in one file, all credit notes in another, all payments in another, all orders and Goods Received Notes in yet another, and queries in another. More like a spider web to my mind.

I suggest that you keep a filing system structured as follows:

A separate file, or set of files, for:

- All business or company registration documents

- The minutes of meetings

- Formal and annual financial statements

- All managements and informal operating reports, as these are used for decision-making

- All Revenue Services registration documents and monthly/bi-monthly returns

- Industry Regulatory Authority documentation

- Labour Relations and Union related documents

- Retirement Fund registrations and monthly returns

- Medical Aid registrations and monthly returns

- Contracts

- Staff Letters of Appointment

- Salaries and Wages

- Suppliers / Creditors and their monthly reconciliations

- Customers / Debtors and their monthly reconciliations

- Legal matters and Labour Disciplinary Hearings

- Bank statements and reconciliations, a separate one for each bank account

- Petty Cash book and reconciliations

- Any other separate group that may exist in your business.

This method of filing will at least be a good, structured start to keeping the books of a business and having access to all source documentation.

To read more along these lines, follow the information in the author’s biography.

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Amitaabh Saboo asked:




Bookkeeping is a comprehensive record of the financial deals of a company maintained by an accountant. The financial deal involves how much your business owes to the creditors, and how much do they owe to you, the amount of money invested in the inventory and equipments and other possible expenses and incomes. In case of small companies, small business bookkeeping services include accounts payable and receivable, making financial statements like cash flow, balance sheet, income statements, etc. Small business bookkeeping services also involves watching out on bank reconciliation statements.

Usually these tasks are commonly avoided by the companies and are treated as a chore which has to be compulsorily put up with, in order to stay in the business. While most entrepreneurs enter businesses out of mere passion for the services or products they are selling, this is the most neglected part of it. This is because small business bookkeeping services demand an expert accountant who will take care of all the calculations promptly. While a qualified accountant can charge you up to $ 1500/ month, most small companies feel reluctant to incur such an expense. This charge can climb depending on the size of your concern, geographical location, experience of the accountant, volume of work, etc. Preparation of tax will charge you further.

Outsourcing services could be quite a big help during these times. Because outsourcing small business bookkeeping services could make you handle your company with more efficiency, better work quality can also be attained.

This is the reason why more and more companies are turning towards outsourcing their small business bookkeeping services to cut on the huge cost. There are several perks to this. Hiring a second party to do the job for you will let you rest the matter peacefully on them, and you now can focus better on the main part of it. Rendering your small business bookkeeping services is a great way to focus all your positive energies on the business. In the meanwhile, you will know that an expert is taking care of all your financial details.

You will not have to painstakingly look for an expert accountant who can do the job for you without making mistakes. Furthermore, you will not have to pay him with hourly or flexible charges depending on the load of work he is allotted to finish. The chartered accountants who will accomplish your small business bookkeeping services in these outsourcing firms are all government approved. You can always contact them via email or telephone in case of any doubts and vice versa in their case.

By outsourcing your small business bookkeeping services and accounting jobs, you will be provided with a profit and loss statement with the date mentioned on a balance sheet that displays all the details of ledger listing. If the accountant sets all the twelve sets of accounts monthly for the whole year, then the year-end figure will be so much easier to calculate.

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Felicity Plowman asked:




Bookkeepers are generally more involved in the systems applied to the daily running the business and accountants take the information provided by the bookkeeper to produce end of year accounts and tax returns.

According to the qualifications that are offered by the Institute of Certified Bookkeepers (ICB), bookkeepers are able to perform everything from maintaining the sales and purchase ledger accounts, all the way up to producing VAT returns and constructing management accounts. Accountants then take what work the Bookkeeper has produced during the year to devise tax strategies, business advisory services and auditing of the clients accounts.

Bookkeeping and accountancy are complimentary fields; the two professions work hand-in-hand with each other thus if the bookkeeping expert of this partnership does not perform well, their bad job will hinder the important work of their accounting associate. The line between where the bookkeepers job ends and accountants job begins can be blurred however many accountants have the skills to perform most of the tasks that a bookkeeper is able to. Even though both services are essential to a well run business, the services of a bookkeeper are more affordable than that of an accountant.

Bookkeepers are capable of producing Management Accounts and cash flow forecasts for their clients that will allow clients to have the financial transparency they need to make informed important decisions. The management accounts also show the client the effects of a business decision on their finances on a regular basis instead of only being able to see this in the end of year accounts when it may be too late to make changes.

It is very important that you source a bookkeeper that performs their role effectively with the correct exepreince and qualifications or you could face fines from HMRC and higher Accountancy bills with increased hours due to inefficient bookkeeping throughout the year.

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Suzanne Daykin asked:

Lots of us are looking for recession proof jobs. Fortunately, there are some careers — even for those of us over 50 — that are pretty much recession proof. If you haven’t been in the job market for a while and it’s time to change careers, let’s take a look at a few new choices, some of which may not have been available last time you were job hunting.

Teaching

We all hear that teachers are overworked and underpaid, but in fact, this is one of the fastest growing professions in the industry. And, despite the so-called “advantage” that teachers get summers off, this is one of the most difficult positions to do well, too.

Fortunately, you have a couple of options. First of all, the teaching profession is so desperate for teachers right now that one of the fastest growing sectors of that market is in the area of substitute teachers. As a substitute teacher, you generally don’t need ANY specific certification to get started. You do need a college degree, but it can be in accounting, for example. Many districts will give you a two-year provisional certificate and you can begin teaching absolutely immediately. If you like it, you can stay with it and get a degree in the area you want to teach in permanently, which makes it a win-win situation all around.

Finances and bookkeeping

There are an awful lot of people out there who are good business people, but they’re terrible at figures. In addition, a lot of established companies are forgoing in-house accountants and bookkeepers in favor of outsourcing the work for much cheaper rates. If you’ve got a degree in bookkeeping or finance, set up your own shingle and start to offer your services to those who need the extra financial help. You can set an introductory “new client” rate initially so that you attract clients your business, and then establish a higher rate for ongoing business. If you don’t have a degree in bookkeeping or finance but you’re good at this type of work, consider getting a degree, as this is an area of employment that’s not going to go away anytime soon.

“Green” living and renewable energy

This is an area that’s burgeoning, especially with an emphasis on global warming and the need for a move away from fossil fuel dependence. This is a particular employment sector that’s going to open up in all areas in the next few years. Depending on your area of expertise, it bodes well for job-hunting indeed.

Maintenance or repair work

If you’ve been a handyman, good at plumbing, good at fixing things, and so on, now may be the time to make a career change into this area. With the shrinking economy, people are no longer buying new as much and they’re trying to keep what they have running. Car mechanics, electricians, plumbers, and all areas that deal with repair work of some sort are going to be growing in the foreseeable future. In general, this does require specific certification and training depending on the area you live in, so check into your areas ordinances and get the proper training you need.

Childcare

It’s true that as incomes shrink, more households may have one parent staying home and taking care of the children while the other works, but as the economy picks back up, so, too, will the need for child care. As soon as the recession begins to recover at all, there will be an explosion in the need for childcare. Get your certification now so that you’re ready to go to work. Alternatively, of course, you can offer babysitting services out of your home without certification as well, as long as you’re otherwise qualified.

Of course, there are truly no guaranteed “recession proof” jobs, but there are those that certainly stand up well to recession even when it happens. If you’re in the need for a career change, take a look at one of the career options listed above and see if one of them is for you. Embrace the change if it happens, get the training you need, and be ready to go onto a new opportunity.

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Sylvia Jaumann asked:




I’m sure you’ve heard about bookkeeping businesses and may be curious on how to start one. It can be challenging to get started, but if you’re determined to do it, it’s not a difficult process. Here are a few guidelines to get you started.

First, you should obviously be knowledgeable in the field of bookkeeping. You don’t have to be a CPA or a degree holder, although that’s an advantage, but it’s not a requirement. You can acquire bookkeeping training by enrolling in schools or colleges or even by taking online courses. A year or two of training is a great preparation.

Second, you should also have several years of bookkeeping experience under your belt working for an employer before you even consider venturing out on your own. Training lays the foundation, but you’ll find you’ll learn so much more once you actually use the skills you’ve learned in everyday practice.

Third, before you start your bookkeeping business, you’ll need a business plan. As the name implies, it’s the plan for your business. It’s your guide to your goals, mission and vision of what your business will become along with your objectives and your plan of action. This is an essential part of how to start a bookkeeping business, so be sure that you create a business plan.

Unlike other businesses, a bookkeeping business is relatively inexpensive to start. It doesn’t necessarily require bank loans or financing but you should have enough savings to cover your operating expenses. If you’re working on a tight budget, you can start with a small budget and expand later on.

You’ll have to invest in good accounting software and don’t skimp on this. Good accounting software will pay for itself over and over. Make sure you have lots of practice in using this software too because it will be the backbone of your business.

Another thing that you must be prepared to invest in is advertising. However, you can start by simply asking friends and relatives to recommend you to someone they know who may be looking for a bookkeeper just get your first few clients. There are also online sites that allow you to advertise for free such as Craigslist.org. But be prepared to spend money advertising your bookkeeping business by sending out sales letters to potential clients and placing classified ads in local newspapers.

Now that you have some quick guidelines in how to start a bookkeeping business, the process should be a little easier for you. So, be your own boss and start your bookkeeping business today.

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W Tsang asked:




Bookkeeping is one of the many tasks involved in accounting. The job of being a bookkeeper is frequently described to be designated at the lowest section of accountancy jobs. Despite this demeaning depiction for a bookkeeper, his or her role is nevertheless the most important in all systems of accounting. Additionally, much of a bookkeeper’s work is similar to that of a CPA.

Based on statistics, bookkeepers along with accountants and accounting clerks comprise 2.1 million employments in almost all industries in 2008 alone. They are also employed in all agencies of the government. Unlike a certified public accountant or CPA who is required to undertake a degree in accountancy, the minimum education required of a bookkeeper is a high school certification followed by a post-secondary associate degree education in business or accounting. Bookkeepers also need to undergo OJTs and classes for record keeping procedures.

As a financial record custodian, a bookkeeper is responsible in updating and maintaining accounting records. His/her task also involves calculation of expenses, receipts, accounts payable and receivable plus profit and loss. Full charge bookkeepers uphold the entire company’s books.

Bookkeepers employed in small businesses takes care of the general ledger where they record all transactions, post costs and income. Financial statements and reports are prepared by bookkeepers along with particular summaries needed by supervisors and managers. To prepare bank deposits, bookkeepers gather all necessary data from cashiers, verify and balance receipts then send the cash or check and other payment modes to the bank. Payrolls may also be dealt with by bookkeepers, they can execute required purchases, set up invoices and keep track some overdue accounts.

An office is the general work environment for bookkeepers where they are in constant use of computers. Common ailments experienced by bookkeepers are eye and muscle strain, backaches, headaches and recurring motion injuries due to extended work periods while reviewing detailed and correct data.

Full-time bookkeepers work for a 40 regular business hours per week, although some instances may require them to work occasionally on weekends and evenings. There is about one in every four clerks who are working part time. Particular instances when a bookkeeper may work overtime in order to meet deadlines are fiscal year-ends, tax times, or periods for monthly or yearly accounting audits. If a bookkeeper works for hotels, restaurants and shopping stores or malls, he or she will usually need to work overtime during peak holidays and vacation seasons.

There are two systems employed in bookkeeping. In a Single-entry system, a cash book is the primary bookkeeping record used that is like a checking account register. This cash book apportions income and expenses to appropriate accounts. Petty cash, accounts payable and receivable, and other relevant transactions such as inventory and travel expenses are kept in a separate record of accounts.

This system are nowadays done with DIY bookkeeping software which increases the speed of manual calculations. While in a double-entry bookkeeping system, a set of rules is followed in recording financial information. Debits and credits are now utilized to serve as a kind of error-detection system. An error is known and identified should the sum of debits be not equal with the sum of credits.

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Ian R L asked:




Bookkeeping is the process of keeping full and up-to-date business records. It’s the recording of financial transactions. Transactions include sales, purchases, income, and payments whether by organizations or individuals. A bookkeeper must make sure all transactions are recorded in the correct daybook, suppliers ledger, customer ledger, and general ledger. Although a bookkeeper is called an accounting clerk, or an accounting technician, don’t confuse bookkeeping with accounting. An accountant uses a bookkeeper’s records to create financial reports. Since the jobs are similar, many bookkeepers have the potential to become (or are) accountants also.

There are two common systems that bookkeepers use to record financial transactions. Small businesses primarily use the single-entry system. This system uses only income and expense accounts, recorded primarily in a revenue (money earned) and expense journal. The double-entry system is more complicated, and makes sure that the books are error-free. This system does this by recording transactions in two different nominal ledgers (two parts) of the books, and using a balance system of debits and credits. Having the data recorded in two different ledgers allows the bookkeeper to recover from an error in one, by looking at the other…at least in theory.

Financial transactions are recorded in several different books. These, starting with the daybook, contains the most detailed records. Sometimes daybooks are not kept, so everything is recorded in journals. The totals in each section (sales, purchases, credits, cash etc.) are recorded in the ledgers. Ledgers also have different sections, and they are used to make the balance sheet and income statement. Ledgers often include: