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July 30, 2020
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Company Structure

By | Business

Structuring a building or a business depends on the risk you are willing to shoulder. A building can be like PETRONAS TOWER or a solo concrete structure just standing high. There are four legal structures best chosen for incorporating a business. Enlisted below are the four structures with their advantages and disadvantages.

Sole trader:

This is the most common and simplest structure, which is popular for single business owners. It gives you the liberty of filing your expenses and income from your personal income tax returns. This way, any business loss that might occur offset by the income you have earned from other sources whenever it is needed.

Similarly, you are legally responsible for all business your debts and most likely to be sued or have your property seized in the event of bankruptcy. This structure is best for testing your business concepts or if you are bearing no personal assets. Type of firms like consultancy and other service providers were no-one or only a few employees are part of the organisation without investments in assets.

Partnership:

If you are confident in your idea but without capital investment then make sure you collaborate with someone. This structure is bifurcated in general and limited partnership. A general partnership offers any time farewell to a creditor after any or all the partners.

Whereas a limited partnership indulges a general partner with unlimited personal liability and limited partners complete, liability is generally limited to the amount they have invested. You need to report your profit and losses in an informational tax return and fill it with your personal tax return.

It is a low-cost venture. You can avail the advantages on taxes with sharing of profits and losses on the tax return. The only demerit is that the general partners who are always at the risk even if other partners sink the company. Best in real estate industry.

Corporation:

The most prominent and forming structure of today’s era. All the big corporations and big investors out there in the business world are the examples of this structure. It is an independent legal entity that is separated from its owners and you do not need to necessarily risk your personal assets beyond the limit of your investment in the corporation.

These corporations have S class and a C class that of Mercedes, the S-class is the most common with the limitation of 100 shareholders and C class is for high-profile ventures. A board of directors is held accountable for these corporations.

As with its size, it includes a big investment and with that, investment comes high risk. It accounts to more tax returns and other legal formalities. This structure suits the manufacturers and restaurant chains.

These corporations are either part of a large group of investors of ownership of Family Business or Private Limited Company. Therefore, those interested in the corporate life and entrepreneurial career. Then they must not shy away from the Private Limited Company Registration and begin their venture on a positive note.

Limited Liability Company:

This structure was evolved for the sole principle of avoiding the double taxation. It shares its merits with Proprietorship of profits and losses being passed through the owners and included in personal tax returns. It is better than a corporation in liability protection along with no limit on shareholders.

The only demerit it carries is paying on self-employment tax on your share of the draw depending on how the entity decides its taxation. This structure is encouraged and welcomed by the companies to welcome foreign investments. Special Designated Commercial Zones are the best place to land in these projects.

If investing in a foreign land then you need to collaborate a local citizen and make him the representative of all the drafting of your legal documents. S/he will be the partner of 51% shares in your company and the sole share of profits. Best for the startups who are willing to try their ideas with less risk and expense.

Every business has its risk factors involved, the careful planning, operational excellence and execution with detailed market research contributes to the success of the business. It is important for a business owner, sound decision that helps in covering the risks and minimising their impact on the company.

I hope this article would have covered all the spheres of business structures and will help you in choosing your best structure. For more assistance contact us and get professional help from the experts.

July 30, 2020
0

How Can Internal Controls Overcome Payroll Fraud?

By | Payroll

Payroll fraud occurs when employees get their employers to pay them more wages and compensation than is due to them by making false claims and falsifying records. By being more vigilant and adopting control policies, you can protect your business from the losses you might incur because of payroll fraud. The Association of Certified Fraud Examiners warns that internationally, businesses can lose up to 5% of their revenues every year because of fraud; and small businesses typically suffer more because they lack the elaborate internal controls that larger companies might implement.

Non-existent Employees

Your employees could be collecting wages in the name other employees who are not actually working for you; or who have worked for you in the past and have left your company. To overcome this problem, you must make sure that when an employee’s services are terminated, your records are updated right away. Also tally the actual number of present employees with the number of payments made. You could also get your employees to physically pick up their cheques and sign for them. Make sure, they provide you with proper identification such as a National Insurance Number that you can later verify with the authorities. Also check if your records have actual addresses and all payments show mandated withholding. If any of your employees complains that she has not received their pay, you might want to check your entire payroll process.

False Time Sheets

Another method of claiming undue compensation is by clocking in extra hours than the employee has actually put in. If you have an electronic time card system in place, you can assign a supervisor to punch cards. You can also implement new technology by which employees have to add in a password or a code when checking in to work. Scrutinise overtime payments carefully and put in a system of rotation by which supervisors are reassigned from time to time. Separate payroll duties so that supervisors are not the same personnel who add up the time clocked and make payroll. If your bonuses are based on work hours, you could take it upon yourself to authorise them.

Bank Statements and Taxation

You can keep a close watch on the wages you are paying by studying your bank statements. For instance, if you see any similar bank details it could be an indicator of double payment. On the other hand, if details of a particular payment are missing, you might want to investigate the recipient. Also, be on the alert for any payment codes that were dormant but have suddenly been activated. In case an employee changes his bank account number, you might want to verify and ask for reasons. You could also verify your bank payments against your list of employees. Above all, you could monitor the taxes you are deducting and remitting to the HMRC for inconsistencies.

Sales Commissions

Your employees can also add false entries to sales records and commission statements to claim added pay from you. To protect yourself, check your sales revenues against the commissions you are paying. Also, confirm if you are paying for sales that did not actually materialise. If your sales figures are going down but the commission charges are constant or even rising, you might want to investigate the issue. Further, carefully study reports of customers not wanting to honour their payments. When making payroll, check the percentages of the commissions your employees have requested from you against the sales they claim.

July 30, 2020
0

Understanding the Profitable Contents of Online Accounting Services

By | Book keeping

Among range of critical aspects that a small business entrepreneur has to deal with, proper maintenance of regular financial accounts is one. Yet, they are found neglecting this sector by believing on a false premise that it can be managed later. Then, there is a belief in the corporate world that for small business, there is no need to appoint skilful accounting and bookkeeping service providers either. It is a fundamental mistake indeed! That is because a minimal error in this segment may lead to huge losses and regaining a proper prospect in this competitive corporate world from such situation is simply impossible.

No wonder, with such incredible significance, appointing the best firm is equally essential too. In this respect, nothing can be competed with the brilliance and excellence of online accounting services.

Surrounded by numerous supportive reasons, these sorts of bookkeeping services is actually beneficial in every possible way for the small business owners. Let’s go through some of the most effective and constructive reasons, such as:

  1. Convenience of using these internet based solution services is simply awesome for its industriousness. That is the reason why, more and more entrepreneurs and managerial heads are vehemently depending on this solution process.
  2. Uploading correct records of bank statement, payroll, invoice management and several other aspects gets automatically executed with the help of updated technology. Eventually, to remain updated thus becomes achievable by business owners.
  3. Talking proper financial decisions and processing with confidence becomes easier and gets actualised in a more prominent way with such updated results. This again is immensely helpful for small business processes where taking prompt financial decisions becomes vital.
  4. Safety and security maintenance is highly essential for administering appropriate and accurate way of accounts management for business entities. Needless to state, excellent safety measures that such service providers grants to its esteemed clients are capable to meet with such essential necessity too. This results comes with the assurance to receive accurate results without error.
  5. Payroll and cash flow management are two of the most critical aspects of a business entity that can never ever be avoided by any means. That all these features get mentioned in best possible way also gets well met by online bookkeeping services. Thanks to the skill of online bookkeepers for which bookkeeping and accounting services gets easily achieved.
  6. Cost of appointing the same and the return that it delivers is also different. These are profitable features also beneficial to business owners. How? Well the cost of hiring these service providers are comparatively less than any other human resources.  On the other hand, the outcome that it delivers at any time is paramount compared with others.

With this array of beneficial aspects, it is clear that these helping hands are of true help for business owners in every possible way. By looking at these beneficial aspects, it also got transparent that abiding by these solving agents is a must. After all, no one else can support with adroit accounting consultants and technically updated software for a constructive assistance like these.

July 30, 2020
0

Revenue Management

By | Business

Revenue management is the application of well-organised analytics that forecasts consumer behaviour at the retail level and boosts product accessibility and price to enhance revenue growth.

In an internationally competitive business environment, firms are constantly trying to enhance their profitability.

A revenue management system is an effective tool to accomplish the objective with comparatively low technological investments and at present, has extended to several sectors.

The way revenue management instills within the organisational framework relies on the kind of sector and the particular organisation. Certain firms have it as part of the marketing department while some place it within the finance department.

In certain organisations, a Chief Accountant or Financial Controller manages various functions – marketing, product development, and brand management.

Supply chain management and revenue management have many basic harmonies. Supply chain management  is a crucial process in several organisations and is getting interfaced with a revenue management system.

Business Intelligence systems have also been combined with this process. These platforms provide data that can be used for informed decision making.

An organization must evaluate its demand structure and segment its clients on the ability to pay. After the segmentation, the pricing strategy for each segment must be determined, and then the statistical demand for distinct segment must be estimated.

The operating scenarios of production and services sectors differ to a large extent.

For several financial personnel, managing revenue efficiently is extremely challenging. In the context of the amalgamation of uncontrolled regulations, changing guidelines and stringent penalties for non-compliance, revenue management can be very complex for the capabilities of finance personnel.

In the context of these obstacles, firms are thinking about automating revenue management processes to enhance efficiency, augment compliance, and improve transparency.

The strategy to simplifying it begins with processes developed from the top down method, on the basis of information from various stakeholders and activities.

The capability to establish the technology that simplifies and centralises the revenue management process is also very critical. Cloud-based technology enables finance personnel to link with systems, automate processes, and review business performance.

The four critical complexities are as follows:

Regulatory Compliance

The regulations are complex and difficult to infer because firms implement multiple non-standard agreements with the clients.

Internal Controls

According to experts, revenue recognition is one of the most prominent Financial Reporting Standard  102/105 internal control issues reported by auditors.

Forecast Visibility

Revenue forecasting is not easy to determine. Again, a normal income statement cannot differentiate between once and frequent revenue.

Employee Productivity

Currently, several organisations are utilising user-friendly spreadsheets for key revenue accounting activities. Simple and complex spreadsheets used by one person need extraordinary endeavour to construct and manage. Even then, all advanced spreadsheets have errors. They are not easily auditable.

In certain sectors such as IT, this system is very complex since it is difficult to allocate revenue across elements and the duration of revenue recognition.

Currently, vendors and buyers are leveraging the software as a service (SaaS). Revenue recognition issues happen when various components and discounting relate to a SaaS contract.

SaaS firms depend on metrics like monthly recurring revenue, which are different from normal IT businesses.

In service-oriented businesses – technology execution, law, and accounts, this system is affirmed on specialised contracts and distinct terms.

In these cases, project-delivery results are connected to recognising revenue. The revenue recognition method requires the firms to document chargeable time/expenses and monitor project performance to link proceedings back to the contract types.

Hence, firms are seeking to automate revenue management to accomplish enhanced compliance, better visibility, and reduced costs. It encompasses every function in an organisation, the process automating does not begin with IT.

The process of automating the revenue accounting management can deliver substantial results – quick period closes and cost control.

In order to streamline and optimize the system, firms must leverage the technology that enables the finance personnel to link systems, automate processes and evaluate the business on time.

Interface Systems

Streamlining the process eradicates data duplication that occurs between finance and other departments, thereby decreasing errors and reducing time.

The most optimal accounting systems link key business systems – CRM, services management to develop a robust ecosystem for revenue management.

Automate Processes

Every organisation’s revenue recognition process differs based on the distinct business model, products, and market conditions.

In order to automate the rigid process, revenue stakeholders must have the capability to arrange the relevant procedures that replicate the complexities of the business operations.

The automation of revenue recognition process can significantly reduce workload for personnel, decrease spreadsheet errors, and enhance efficiency.

Business Performance

Top quality revenue management systems deliver an insight into both existing/deferred revenues by projecting accurately the future revenues. They enable organisations to evaluate the effect of changes to products and pricing on revenue.

The process of comprehending the system begins with efficient top-down processes. It is only afterwards that technology should be used to automate the revenue management process.

July 30, 2020
0

Get Nurtured With Online Accounting Services for Small Business

By | Book keeping

Small or medium business, no matter what the state is; entrepreneurs to managerial heads are always searching for helpful information that ensures proper functionality of an entity. Easy performances without any hassle, time and risk management process are some of the mentionable aspects in this respect. No wonder, such attributes are eligible in a more flexible and confident way if the financial supervision is done with accuracy and appropriate measures.

Daily records of financial transactions are always helpful and at the same time beneficial too. But this is not the only reason behind employing the best kind of accounting and bookkeeping services. Such assistance is profitable for getting associated with adept consultants and advisors too. But, it cannot be denied either that hiring the best human resource in this respect means huge investment. It is of real hassle for business entrepreneurs.

Productive role of online accounting services for small business needs are an out of the ordinary appreciation here. After all, software to the persons involved in making it lucrative investment by every means is into some active business. Furthermore, entrepreneurs get to enjoy the facility of 24 hours, 7 days services for managing available capital of respective entities. Such development is of impressive assistance in the corporate world.

Safety and security factors matter a lot for maintaining finance of an entity. Then is the importance of dealing with the database in a confidential way. Service solutions engaged with Xero bookkeepers are of magnum help here. After all, dynamic resolving agendas followed by them are advantageous in every other way. Today, it is counted for the exceptional user-friendly features too. One cannot neglect its cost and energy efficiency features either.

It must not be forgotten that those who are new in the world of trade and commerce, of any sorts, have to go through numerous hectic problems. In such situation, getting involved with the crucial aspects of accounts management is not a positive facet to invest-in. However, there must not be any loopholes for accounting and bookkeeping either. Furthermore, such essential necessity needs to be solved with full-on cost efficient way too. Thanks to the responsible performing excellence of online bookkeepers and their dynamic service system, all the essential components are taken care of with their assistance.

Payroll, TAX, invoicing, bank statement management, etc., are some of the other fields that are user friendly with their assistance. All one need is to implement their systematised and methodological work process from the preliminary stage only. Understanding their brilliance becomes easier with it.

This gets easily approved with the most effective factor attached with such service system. That is, there is no need of any paper or office work. This has been made possible because entire functionality is done with the help of internet and is based online. Hence, a person in need can access the necessary information anytime and anywhere. All one need is a hi-tech device like, smartphone, tablet, laptops, etc. Thus to go with such assistance is always appreciable and profitable.

July 30, 2020
0

Real Time Accounting Benefits

By | Book keeping

Real time accounting is said to happen when data is available as they occur, without having to wait for the end of the day, let alone end of the year for getting to know about the figures of business. This is made possible by a number of factors, the chief of which is accounting applications. Cloud storage if used by the application will result in making known the real-time information anywhere, and not just in the premise of the office.

Real time accounting has a number of benefits. With this, time is saved, thus helping the management take decisions in time. Opportunities can be grasped when they arrive and books are kept in real time. Organising and reorganising of the business can happen as and when needed, without having to eagerly wait for the results at the end of the fiscal year (or when quarterly reports come out).

Comparison with corresponding time period can be done easily. This helps in making a decision regarding any change that can be made to optimise the profitability. Faster calculation of figures means fewer people involved in this and more time getting advice from the accountants for the conduct of business. Reacting to any anomalies can be done faster than it would have been possible.

Internal controls are also aided by real-time accounting as it helps in controlling fraud – otherwise, some fraud may happen in the business that may later be covered by the perpetrator. An accountant, for example, may be pilfering some amount and deposit the difference when closing the books at the year-end. This and some of these sorts will not be possible under real-time surveillance.

Another aspect how this helps in internal controls is the way it checks errors, which may accumulate over time and become difficult to either check or even correct. This also helps lower the cost that is associated with the errors. Margins can be added or reduced to sales when the necessity arises thus yielding better figures. Also, it is easier to find offers by vendors quickly thereby reducing the cost associated with purchases.

Conducting business is also easier thanks to information that can be obtained with a click. This means you can communicate with concerned parties – be it vendors, debtors, auditors or other members of management themselves. Communicating, in turn, helps in finding out any pertinent issues and finding that on time helps the business a lot.

While a business can benefit from quarterly or monthly time limit than when closing books annually, it is better if they can go all the way to accounting applications make real-time accounting possible. What’s more, the data is available for viewing in its dashboard in graph or figures, as the management wants it.

July 3, 2020
0

5 Tax Tips Every Small Business Owner Should Know

By | Taxation

Our firm provide our clients advice which is in line with the advice their tax professional give them.

As part of that guidance, there are a few tax advantages that most business owners either do not know about or simply do not t take advantage of. There are also some “deductions” that should be avoided due to misguided tax information. Here is a list of the five most common.

Track All Expenses Consistently

Track all of your expenses including the ones you pay for personally. Business owners always ask me “what about the purchase I paid for on my personal credit card?” Yes, it is all deductible; you just need to get it on the accounting records and account for it. Keep in mind that the credit card is personal so do not add that account to your chart of accounts. They will count as owner or shareholder contributions. TIP: Record these charges monthly so you do not forget at the end of the year.

Avoid Money Leaks

As a small business owner, you are sometimes faced with cash flow issues. As a result, you get behind on paying your bills and your taxes. While your suppliers may not assess late fees, you better believe the HMRC will in the form of penalties and interest. And these my friend are non-deductible. They are not even the interest portion. TIP: Fix this money leak by paying your taxes on time and use those funds on an expense that is deductible.

Maximise Retirement Contributions

Most small business owners are so busy working in their business that they never stop to think about what they will do once they retire. I am not even sure you think about retiring at all. But the fact is you will — one day. So you have to make sure to have something to fall back on. There are several retirement plan options that will allow you to put aside some funds tax free for your retirement and they are all tax deductible to the business. Yes, you can have your own company retirement plan.  TIP: Contact your tax adviser and your financial adviser to discuss retirement plan options.

Expenses Paid Personally

I cannot say it enough – stop co-mingling your personal expenses through the business. They are not tax deductible and us accountants — we know when you try to do it. Believe it or not we are smarter than the average bear. TIP: Don’t co-mingle.

Buying Fixed Assets

The HMRC allows you to expense the purchase of a fixed asset all in the first year instead of depreciating it, baring certain qualifications. You can deduct up to as much as original cost and reduce your taxable income to zero. TIP: Hold off buying any and all equipment until towards financial year end if you can so you can buy just enough and not too much.

What tax tips have you taken advantage of to help keep more money in your business?

July 3, 2020
0

Basic Tax Saving Tips for New Business Owners

By | Taxation

Congratulations on your business! Here’s to its success! You must be celebrating right now. All your years of hard work and consistent money-saving have now started to pay off! Your dream to be an entrepreneur is starting to be fulfilled! Now, are you ready for a big change in your life? You should be! Have you planned all the techniques and approaches that you’re going to do to sustain your business? Most probably! Are you ready to earn big money? Of course! And lastly, are you ready to pay a large amount of tax? Ooops! You know that big income equals large tax bill. You know it’s going to hurt your wallet in way, but what can you do? You prepared yourself to earn big money, so you think you should be ready to pay a big amount for taxes, too. Well, have you been educated about tax savings? Dear, you need to be knowledgeable about it. Yes, there are proper ways to reduce the amount of taxes that you pay, and you need to be in the know of those.

Let’s Talk About Taxes!

So, how is the above mentioned term defined? How do you save on taxes? To answer both questions, the aforementioned term means the amount of taxes you pay is reduced due to an investment income that is non-taxable or taxed at a low rate. It also happens when only a part of your particular investment is taxable and if you have expenses that are tax-deductible.

How Is It Applicable to Your Business?

Review the explanation above. It presents different examples of situations when you can pay a reduced amount of tax. The very last example – that’s the simplest and most applicable one for you! Did you know that it has something to do with merely keeping a record of your daily business-related activities?

• Transportation

Need to attend a business conference out of town? Need to pay for parking? Need to rent a cab for a long travel? Just secure an official receipt; a certain percentage of the total amount that you spent can be deducted from your tax bill.

• Meals

Scheduled to have a series of lunch meetings with various clients? You know what to do with your receipts!

• Investments

Planning to buy a business phone and other business tools? Yes, they can also help you save on taxes.

These are just some of the many examples of tax-deductible expenses. In a nutshell, business-related activities are legitimate means of reducing the total amount of money that you have to pay for taxes. Be in the know of which activities are valid based on the type of business that you have, for they may vary.

Now, are you ready to earn big and reduce your tax bills in all proper ways possible? Most probably! Go on, feed your mind more. But take note of the proper ways, at least. For sure, you would not want to be in trouble. Keep in mind that a brilliant entrepreneur knows how to earn large sums of money, knows his or her rights, and only engage in rightful activities. Nothing unlawful; just purely good measures and strategies to sustain the business.

July 3, 2020
0

Tax Accountants: How to Choose the Right One

By | Business

When tax season comes around, many businesses recall that they wanted to engage a new accountant, and new businesses are often hit with the sudden realisation that they are desperate need of some assistance with their finances. Dealing with business finances on your own can be a nightmare, and can result in businesses missing out on important deductions that could save them a lot of money in the long run. Finding the perfect specialist for the job may take some extra time, but it is important to realise that not all professionals are created equally. Before spending all of your profit just to be left disappointed, take the time to read these tips that will guarantee that you wind up with a tax accountant that is perfect for both you and your business.

Shop Around

When you take the time to shop around, it guarantees that you find an accountant with the experience that you need. Hiring a specialist that is experienced in your area of concern is vital to the success of your business, and can help save you money. For example, you would not want to engage an individual that has limited or no experience in handling business situations if you own your own business, just like you would not engage a professional with no audit experience to handle your audit situation. Experienced professionals are aware of important rules, regulations and deductions that other professionals may not be.

Ask Questions

If an individual is fresh out of school and you are their first client, it is highly unlikely that they will be willing to divulge that information. Enquire about previous clients, issues that they may specialise in, ask for vague examples of previous clients and do not forget about their education. As you ask questions, it may seem a bit like you are interviewing your possible candidates in an effort to find the perfect one to hire, and that is exactly what you are doing. The end result will be the perfect professional for you and your business.

Get to Know Them

Hiring a new accountant is a bit like hiring a person for your wedding. If you hire a professional that you simply do not like or are not comfortable around, for any reason, it will make an already stressful situation much worse. Schedule free consultations when possible, and then use them as an opportunity to get a feel for the person behind the desk. If your personalities are compatible, it will make it easier to delve deep into your situation and work together as a team.

Affordability

Take the cost into account before hiring your next tax accountant. Often, specialists will make vague promises of saving you money on your taxes, and use that as justification for charging more to help you file them in the first place. Unfortunately, these scams do not always, if ever, work out in favour of the business. Be wary of companies that overcharge for their services. If one professional offers similar services at half of the price, it may be a wise idea to give them a chance.

Hiring a new financial specialist at the spur of the moment may seem a bit easier, and it is in the beginning, but the end result may not be as satisfying. Take the time to shop around and get to know the person or company that you may be hiring to make sure that you are hiring a specialist that will be able to help you for years instead of one that will leave you feeling disappointed after just a few months.

July 3, 2020
0

4 Reasons Why Outsourcing Accounting and Bookkeeping Operations Make Business Operations Smooth

By | Book keeping

Better control over F&A (finance and accounting) processes, reduced management costs and more importantly access to the best technology and accountant talent pool are some of the benefits that come to mind, but there are smaller ones too and they are as important as the big ones. We will take a look at a few reasons, 4 to be precise why CFOs around the world are outsourcing their F&A operations.

Leverage Vast Experience in Handling Latest Accounting Technology

Technology is one of those aspects of running a business that presents a universal challenge to the ageing managerial population worldwide. Instead of investing in younger workforce with knowledge of the latest software, CFOs prefer outsourcing accounting and bookkeeping services to companies that staff professionals with access to advanced accounting software and the acumen to handle accounts and transactional records. Doing that saves costs and leverages expert accounting knowledge without investing in creating the necessary talent pool in-house. An advanced knowledge-base, a well-versed workforce are some of the evident benefits you get by leveraging the knowledge of an expert team.

More Time to Concentrate on Pressing Issues

The day to day handling of business processes needs undivided attention of the managerial staff and with accounts and finances totally out of the way, there are very less distractions to worry about. Your core competencies will not suffer anymore due to financial operations. Outsourcing begins with laying down the terms and conditions of your agreement with the accountancy firm. This enforces deadlines and fast turnaround times. Basically, you can forget all about time-wasting issues and work more closely on issues that demand your undivided attention.

Big Cost Savings

Outsourcing gives you access to an entire team of accountants and experts that have been trained and well placed to carry out fault-free financial operations for you. To replicate a talented workforce in-house entails hiring, training and staffing a lot of new people – something that may not make much sense for you. You may choose to maintain a small team at your office and partially outsource some operations. Even this will cut costs by a big margin.

Scalability of Operations

Depending on the size of your operations, you can scale your workforce up or down at the drop of a hat. This kind of flexibility in upscaling your F&A operations in-house is simply not possible to carry out. If at any point in time you wish to cut back on the scope of your outsourced operations it will be lot easier than having to lay off employees at your office. Likewise expanding your scope of operations is also a matter of redrawing your contract.

There are however a few concerns associated with outsourcing accounting and bookkeeping services. For instances, an outsourced team will most likely be present in an offshore location or at least a significant geographical distance. If you are okay with occasional delays in your queries being answered then outsourcing is in fact a wonderful alternative to staffing and maintaining a team of accountants at your office.

July 3, 2020
0

Accounting Consolidation for Developing Countries

By | Accounting

Accounting plays a vital role in business, but its quality is of the upmost importance for it to be used properly. Accounting information must be relevant, faithfully represented, comparable, verifiable, and understandable for a business to make informed planning and controlling decisions. Accounting standards must be in place to ensure factual information is recorded. Without a set of rules, misallocation of resources can result and prove fatal to the company. In developing nations there is a lack of comparability and consistency with various company’s financial statements. Two underlying problems prove to be evident; lack of qualified personnel and ineffective accounting systems (Holzer). In our growing global economy, it is pertinent that these developing nations adopt a set of accounting rules that will keep them on the same page with other global companies. The International Federation of Accountants (IFAC) and the U.K. Department for International Developments (DFID) have partnered together to design a plan to help developing countries strengthen their accounting practices (Cohn).

Accounting systems and auditing procedures in developing countries have been designed to fulfill the needs of centrally planned economies (Zakari). However, the systems and personnel in these developing countries are struggling to keep up with the developed world. There are several reasons for this. These countries are only setting clear-cut objectives for their accountancy. Things like financial information, tax information, and statistical information are all measured and reported, but there is no standardization across countries, industries, or sectors. This is problematic because comparability and uniformity is crucial for external and internal users to make informed decisions. Without standardization and proper procedures, it is hard to know whether a company is being faithfully represented or just cooking the books. This creates a snowball effect for developing countries because investors and creditors will not back a company without proper knowledge of gains or growth being in place. This makes it difficult for developing countries to export, create stable growth in the economy, and raise their GDP overall.

Accounting holds the climate for an economy. The systems and controls in place inspire investor confidence, which leads to a healthy stable growth. Investors seek capital and will only invest when there is proof of growth between periods. This is where using reliable accounting data to allocate resources proves pertinent to creating competition and profits in the company’s sector. Accounting systems is a necessary infrastructure component for developing countries (Fino). Extreme poverty, unemployment, and debt in developing nations are partly contributed by the fraud and unreliable data being produced from accounting systems.

The Department for International Development (DFID) has been working closely with IFAC (International Federation of Accountants) to facilitate a plan to build strong accounting programs and controls for developing countries. The DFID will provide $7.884 million to IFAC over a period of seven years (Cohn). This funding will be used to strengthen professional accounting organizations in at least ten countries that the IFAC see to as having a greater role in furthering economic development. IFAC plans to coordinate, implement, and supervise the support needed to these countries to build managerial, financial, and technical capacity to improve the current professional and ethical standards (Cohn).

The implementation of higher ethical standards, accounting systems, and uniformity in reporting are integral to the building of healthy economies in developing countries. With more reliable and safer data we will begin to see more investment in developing countries, higher capital gains, and more international trade. This is beneficial to any of the developed nations because there will be more areas to export to, more profitability in certain sectors, and more money circulation throughout countries. Consolidating accounting standards in developing countries is the first step that needs to be taken to diminish poverty and unemployment rates. Relevant information is essential to evaluating economic performance in these countries (Fino). Many of these developing countries have adopted IFRS (International Financial Reporting Standards) but have not consulted these standards with their current socio-economic status or cultural factors. These countries need to develop a set of standards that work well for them and that will provide relevant and reliable financial data to its users. Competition is essential in the global marketplace and these developing countries have not been able to get their foot in the door because of improper resource allocation. A company needs to run efficiently and effectively. Internal users will make not be able to make informed decisions if a company lacks reliable financial data.

The DFID is contributing their time and money to boost these developing countries into the global market. Once initiated the global economy will boom. In a few years after placing these standards and systems we will see stock prices rise, interest rates lowered, easier global coordination, and overall stable economic growth. Every country’s economic system is intertwined, so building the economies of these developing countries will show a correlation of economic prosperity around the globe. The consolidation of accounting standards will greatly benefit in the future of global economics because more informed business practices would take place.

July 3, 2020
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Work Scope of Accountants

By | Accounting

Accountants are qualified practitioners of accountancy or accounting. Accounting could be defined as a disclosure, measurement; verification and provision of financial information that assists others in making informed choices when assigning limited resources.

Accountants prepare assets, liability and capital accounts by producing and analysing information on auditors. Accountants, however, document all financial reporting by entering all accounts data. They recommend resource use by doing analysis of the accounting choices. Even though the key purpose of an accountant is to provide financial details to the management after analysing and researching accounting information, they prepare financial reports and other tasks as shown below:

1. Document all financial transactions of a business by entering the account details.

2. Recommend financial actions, after analysing accounting history.

3. Summarize all of the current financial statuses of an organization by collecting info, preparing profit and loss statements, balance sheets, and other finance related reports.

4. Substantiate and confirm financial transactions and records by auditing reports and documents.

5. Manage accounting activities by planning and recommending financial procedures and policies.

6. Accountants also secure financial info by compiling and completing database backups.

7. Reconciles any business by compiling and analysing account information.

8. Accountants also preserve the financial security of a firm by following the internal controls.

9. Prepare payments by asking for disbursements, after confirming employees documents.

10. Answer financial, procedural questions by researching, compiling and interpreting accounting policies and regulations.

11. Complies financial, legal requirements by going through new and existing regulations, enforcing adherence to the financial requirements, and advises the management on required actions.

12. Works on financial reports by collecting, compiling, analysing, and summarizing account trends and data.

13. Maintain the confidence of customers and workers by keeping the firm’s financial information private.

14. Maintain professional and technical knowledge by going to educational and inspirational workshops, developing personal networks, reviewing professional publications, and by participating in some societies.

15. Contributes to the efforts of the group to complete assigned results.

16. It seems that all the business results are achieved by doing duties.

Some of the essential abilities that accountants need to have include: Accounting, reporting skills, corporate finance, attention to detail, reporting research results, deadline oriented, confidentiality, SFAS Rules, general math skills, time management, data entry management and be fluent in both spoken and written English. Besides accounts specific tasks, accountants just like any other expert also have to be neat, assertive, have fantastic professional relations and have the interest of the company at heart.

July 3, 2020
0

Benefits of Training in Payroll and Bookkeeping

By | Book keeping

Payroll training and software is usually offered in two separate sectors. Level 1 consists of Sage payroll training, Excel payroll training and Quick Book payroll. Level 2 is a higher level and consists of training in Sage payroll 2, Quick Book, Excel payroll advanced, IRIS, TAS and TALLY.

Training courses in any of these fields provide the recipient with comprehensive payroll software and training as well as payroll education. It gives a clear understanding of the payroll process to ensure the accuracy of payments. Payroll training and software gives depth knowledge of the industry and allows an application of all this knowledge in practical work. These programs are constantly updated with the ongoing stream of regulations and legislative changes. Payroll training and software teaches accurate and efficient workforce management solutions.

Bookkeeping training is usually offered in different software and fields of bookkeeping such as Sage, Sage 50, and Quick Book, VT, IRIS, TAS books and Peach Tree. Bookkeeping allows a company to understand its net worth and stay in control of finances. It also allows a company to compare their records with competition and avoid any chances of financial fraud happening in the business. Bookkeeping training increases professional knowledge, skills and personal qualities in the individual. This is for allowing them to improve their professional and technical services in the field of bookkeeping.

It also allows understanding about the relation between bookkeeping and accounting. It makes it possible for a bookkeeper to keep their work straightforward and organized. Bookkeeping training also allows learning about the roles of bookkeeping and accounting in profitable organization, non-profit organizations and the public sector. It also increases knowledge and understanding of principles, concepts, ethics and limitations in bookkeeping. One who undergoes such courses is updated with all new procedures and methods. This is ultimately going to increase the knowledge and experience held by the individual in the field of bookkeeping.

By undertaking any training courses in the relative fields, one is able to get many benefits. All these learning are going to be something really worth considering when it comes to make the professional lives more and more advantaged. For example, this almost guarantee work placement as well as certification of completion by the training company which would improve your resume and image. One of the greatest advantages is the practical work experience that is provided and is crucial for one in the accountancy field.

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