Accounting

Do you think that your workload is hampering your killer marketing activities?

2009-02-06T15:56:00.000+05:00

Do you think that your workload is hampering your killer marketing activities?
by: Arun Tibrewal
You need an extra effort not the extra workload. Today when competition is high and consumers have many options to choose, an extra effort towards improvement of your product, managing your customers and taking care of other aspects of your business will give you advantage over your competition. You need to multiply your time may be you can keep your margin low, but will give you more volume and increase in your turnover.

Most SME’s start well during there initial stage of launching the business but looses its consistency do to pool of workloads on its day today life. It is often seen that hiring more employees gives extra load on limited earning resources resulting less revenue than expected. You need to put more efforts on Marketing and concentrate on your other activities so that you can do business with an ease. Outsourcing is one of the solutions for small and medium business entities too, that give them more opportunity to utilize there valuable time on marketing and other efforts. (Provided they get an honest an able outsourcing partner.)

Outsourcing is hiring a third party service provider to participate as a team member in your organization and share your workload. You may need to outsource your projects to save your time and get an expert professional to do the job for you. It is helpful to you in terms of, managing and multiplying your time so that you can focus on other important activities of your business needs. This is another effective tool to stay ahead with your competitions. By sharing your workload you get enough time to manage your business and think of its better promotions. You can outsource many things mainly your daily business activities i.e. accounting, document processing, Web site maintenance, Secretarial work, or other works need manual operations as well as marketing services. Below are some reasons to give an idea about benefits of outsourcing.

1.You save time in finding, interviewing and selecting the new employees by hiring an agency or search for your own.

2.You save time on providing them proper training as well as they need to adjust with your work culture too.

3.You can save your time, which you need to do all time-consuming paperwork requires hiring a permanent employee to your organization.

4.You do not need to buy extra equipments for your existing setup.
5.You save cost in your daily office expenses as well as recurring employee charges i.e. Taxes, Insurance, Medical, leave and many more.

6.You can utilize your time in better way and can deliver better output for your business.

7.If you are a contractor, you can hire a subcontractor and focus on more orders.

8.If you are marketing professional you can double your marketing efforts and can have a wider reach.

9.You will be giving the extra efforts, which all are needed in present competition, to develop your business and getting more volume of works.

10.You will be getting a professional who has expertise in his own field and can deliver you better output.

There are many more reasons why you need to outsource your projects. Today time management is an important aspect of your business. There are many instance of SME’s growing to a large business houses simply multiplying there existing time.

About the author:
Arun Tibrewal [ www.arun.info] is an online marketing promotions specialist since 1998 and promoting KPO WEB [ www.kpoweb.com] A knowledge process outsourcing company. Permission is granted to reprint this article as long as the resource box should keep intact.
http://www.kpoweb.com>>Outsourcing services
http://www.arun.info>> Honest Online Marketing Guide

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Managing Your Home Based Online Business – 2

2009-02-06T15:55:00.000+05:00

Managing Your Home Based Online Business – 2
by: Roy Thomsitt
In the first part of this series of articles, on managing your online business at home, I wrote about the many management responsibilities and functions you have rolled into one if you have your own sole proprietor business, with no staff. Your management task is perhaps the most difficult of all. You have to manage yourself, in all those different areas of your business such as finance, marketing, purchasing and computing.

I believe that if you think of your new home business as having different areas of management for you to concentrate on, you are more likely to succeed long term. If you can adopt some of the techniques of good management, you will end up with a more sound business that will stand the test of time. You will be a better decision maker, and it is decisions that dictate the progress or downfall of any business. Decision making needs to be unemotional and as scientific as possible, but as much as anything needs to be based on common sense. Good management is often a matter of common sense, and that is why I believe you, whatever your background, can run a successful business limited only by your ambitions.

The other virtue you will need in abundance is patience, and this an area where you definitely need to manage yourself. Impatience brings emotion into your decision making. It also brings self criticism, or criticism of others, when none is either deserved or necessary. Patience, realism and common sense combined will contribute greatly to making you a good business manager. With those three attributes, you will be well placed to learn the skills of management in the context of your own small business. You will be able to learn how the different functions of a business relate to each other and interact.

That is not easy, but over time, if you apply yourself, it will all fall into place. This is where patience is vital. Your age or background do not necessarily matter. I know that in my late 20’s I did not really understand business and how it all fitted together. At 30, I knew I needed some sort of professional qualification, and I decided on management accountancy. The syllabus was tough, with 18 exams over 2 and a half to 5 years. What surprised me was the variety of subjects to cover. There were exams in company law, business law, economics, corporate planning, marketing, production, decision making, cost accounting, management accounting, mathematics and statistics. Each subject was very different. Then, at the end, I suddenly realized that all of them knitted together. The ones I hated (law) and loved (marketing) all had a place in the scheme of things.

You, of course, have no need to study or be an expert in all of those things. But it does help to at least be aware that some of them are, in their own way, critical to your success. If you are taking a long term view of things, which you should be if you are serious about having your own home business, you have plenty of time to learn about those subjects that are most critical for your business:

Finance

Whatever your business, this is a very critical function for you to understand and manage, so when it comes to learning all you can, financial management is a priority. Much of this is again common sense, and realism, and there are many tools around to help you keep good financial records. But as I mentioned before, it is decisions that dictate the progress or downfall of any business. All decisions you make will have a financial impact on your business. However, good financial records alone will not bring the reward of better decision making. If you want to maximize the profits of your home business, you may find it helps to have other, non-financial records to aid your decisions. I will discuss this more in part 3 of this series of articles.

Marketing

Marketing is what I love most about business, and it is equally important to finance in all free enterprises. With an online business, the marketing side is an ever moving area of expertise. Offline, marketing has long since stabilised. Online, it has not stabilised at all; it is still developing and evolving. You need to be aware of what’s happening in the world of internet marketing, what has happened, and what is likely to happen. Always remember, though, there will always be a financial impact of your marketing decisions. You are obviously prepared to take risks, as you have started or are starting an online business at home. As the manager of your business you will need to balance the financial and marketing conflicts as they arise. You have to strike the right balance. If the finance director in you is too risk averse, you may stifle the growth of your business. If the marketing director in you is too cavalier, and unrealistic about sales prospects, you may ruin your business in one or two rash decisions. More on this in part 4.

Computing

If you are working online full time, or even part time, you will always need to be looking out for developments in the arenas of software and the internet itself, and maybe at times hardware. You may come across software that either improves your efficiency, makes life much easier or takes you into a new and better way of working. This is another area where knowledge is power. You need to be competitive, and sometimes you will come across new software that will make you more competitive. Try to keep abreast of things in the software marketplace, as it affects your business.

Time Management

While not a function like finance or marketing, when you work at home alone you will find that time management becomes key to your success and enjoyment of working from home. It is a subject you should always be aware of and make conscious decisions about. I will write more on this topic in part 5.

The above are just the key areas where you need to view your business from a management viewpoint, and the list of course is not exhaustive. However, pay attention to these from a manager’s perspective, and you should benefit in the long run. You will take the leap from being “employee” to “boss”, even if you are the only one you can be “boss” to.

About the author:
Roy Thomsitt is the owner and part author the home business websites http://www.change-direction.comand http://www.home-working-start-up.com

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The Fun Of Starting A New Business

2009-02-06T15:54:00.000+05:00

The Fun Of Starting A New Business
by: Sintilia Miecevole
So you had that fantastic business idea, the one that's going to be wildly successful and make you a fortune - even better, you actually did something about it and started your own business. Good for you! Not everyone gets that far. Most people sit and day dream about what they might do if only ....

"The world is full of dreamers, there aren't enough who will move ahead and begin to take concrete steps to actualize their vision" - W. Clement Stone

But you got over the biggest hurdle, that first step and you actually created something.

Well done - you did more than most. Now you have the day to day details of running your business so how do you keep going?

There are several things to look at here:

1. What are you good at and what do you enjoy doing? Make two lists - one of the jobs you like and one of the jobs you don't do very well. Take the second list and have a look at what you might outsource or automate. Do you love doing those accounts or would your time be better spent in forward planning while your accountant does the sums? Must you personally reply to every enquiry or could you create a FAQ which you can post on your website and refer people to by autoresponder? In the early stages of your business you might find you don't have the money to pay someone to do the jobs you hate. Could you swap skills to get the help you need?

2. Why are you doing this? You need to be motivated to start a business and keep it going. The best way to do this is to know what the effort is for. What really moves you to get up in the morning and do what you need to do even when you don't really feel like it? Write your reasons down. Find pictures of that house, or that holiday and put them where you can see them.

3. How do you deal with those bumps in the road? Not everything you do will be perfect - sometimes things you've tried will be a disaster - it's the way you react to problems that matters. If you curl up in a ball and give up at the first sign of failure you'd better not be in business. It's all about attitude.

4. Have a plan and stick to it as far as possible but be prepared to be flexible and open minded. Sometimes the most unexpected opportunities come and you need to be ready to seize them. - as Joe Vitale says 'Money likes speed'.

5. Get a mentor - learn from someone who has done it. Someone to bounce ideas off and who can encourage you when things get tough is invaluable.

And most importantly, never let anyone put you down and never be afraid of failure:

"It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena; whose face is marred by dust and sweat and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who at the best, knows in the end the triumph of high achievement; and who, at worst, if he fails at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat" - Theodore Roosevelt.

Don't ever forget that!

About the author:
Check out http://www.yoaccountant.comwith your host, Sintilia Miecevole and enjoy the wealth of information from careers, salaries, auditing, CPAs, consulting and taxes to resumes,forensic accounting and more. Click on to http://www.yoaccountant.comfor further information.

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How Nov. 15, 2004 Deadline for Sarbanes Oxley 404 Compliance Affects You

2009-02-06T15:53:00.000+05:00

How Nov. 15, 2004 Deadline for Sarbanes Oxley 404 Compliance Affects You
by: Chris Anderson
Public companies have 90 days from the end of their fiscal year to comply. For those with market capitalization of $75 million or more, this clock starts on Nov. 15, 2004; while all others with less than $75 million market capitalization begin July 15, 2005.

Fast Relief for Sarbanes Oxley Section 404 Compliance

Section 404 of the Sarbanes-Oxley Act requires management to confirm the effectiveness of their IT and financial controls in an "internal control report", which is contained within the annual report (10-K) issued to the public. But what exactly is an internal control report, and why is it important to you?

The Section 404 Internal Control Report

First, the internal control report must affirm management’s responsibility for controls and procedure, and second, it must contain an assessment of the effectiveness of the internal controls and procedures for financial reporting. Although both of these issues might at first appear difficult to solve, they are actually not as hard as you would think.

Management’s Responsibility for Controls and Procedures

Affirming management’s responsibility for controls and procedures means more than to simply say management believes in or trusts their system. The affirmation will also need to include a program for a code of ethics for senior financial officers. The program must include prompt disclosures of any changes to your ethics program. So how do you do this?

Business Ethics and Compliance Program

You can easily implement a business ethics program using a step-by-step guide for developing your firm’s business ethics and compliance program. This manual will save you time researching, writing and editing your program. It provides sample policies, surveys, forms and training session outlines that are fully editable using MS Word. And it is also fully endorsed by The National Association of Corporate Directors (NACD) as a tool to maintain a culture of integrity.

Internal Controls

Your internal control report must also contain an assessment of the effectiveness of your internal controls and procedures for financial reporting. In practical terms, control is equivalent to predictability. Everyday management creates forecasts and budgets to predict the future. And the further into the future you can accurately predict, then the more control you have.

Achieve More Control Over Your Forecasts And Budgets

A training class for creating well defined processes shows you how to attain more control. Real world exercises and examples explain how to increase management effectiveness, achieve process control, communicate clear procedures, and verify if your processes are working. So what about procedures?

Procedures Effectiveness

For dealing with Section 404 of the Sarbanes-Oxley Act, you can look at products like the Management CFO Value Series that includes Accounting, Human Resources, as well as policies, procedures and forms for other departments. Such procedures will save you time researching best practices, creating a standard format, and thinking of clear and concise paragraphs to write.

Easier Section 404 Compliance

Your internal control report is the key to your Sarbanes-Oxley Section 404 compliance. You should also look at a business ethics and compliance program, attend a training class for creating well-defined processes to learn more about management effectiveness, and use a CFO Management Value Series to speed the development of your procedures. You want to achieve fast, easy, and effective relief for your Sarbanes-Oxley Section 404 compliance.

About the author:
Chris Anderson is co-author of policies and procedures manual products, providing the layout, process design and implementation to increase performance. He is currently the Managing Director of Bizmanualz, Inc., and holds a Masters in Business Administration from Pepperdine University and a Bachelor of Science degree in Electrical Engineering from Southern Illinois University. Visit: http://www.bizmanualz.com/accounting?src=ART68

Policies and Procedures Used as Management Key

2009-02-06T15:52:00.001+05:00

Policies and Procedures Used as Management Key
by: Chris Anderson
Managers know the difficulty of getting people to do the right things the right way. And employees need their expertise and understanding of the way things should be done. But how do you get it across so it actually sticks? The answer is well-defined policies and procedures.

Quickly Convey What’s Right

Managers can convey the exact way things should be done with policies and procedures, and they can do it faster than ever with pre-written documents. This speeds an organization’s standard operating procedures project effectiveness to get results.

Create Strong Operating Procedures

Departmentally-focused manuals provide an excellent opportunity to create strong, consistent Standard Operating Procedures across multiple functions. This includes added savings of time and resources. Departments that benefit with improved results include:

• CEO Management - Build an effective management procedures system based on best practices for the entire organization
• CFO Controller - Simplify the job as a CFO or Controller, and speed the development of comprehensive Accounting and HR manuals
• ISO 9001 Quality Manager - Create ISO 9001 quality policies and procedures manual with prewritten policies, procedures and forms
• Human Resources Manager - Create HR policies and procedures manual with prewritten policies, procedures and forms
• Security Manager - Create complete facility security procedures and disaster recovery plans

Customize to any Business

When researching effective solutions, the content should be well-researched and follow industry-standard formats. Moreover, the applications such as MS Word-based standard operating procedures documents should be easy to edit and simple to customize for any business or organization.

Utilize Essential Procedures

Management should have a solution to implement their entire policy system with essential procedures in one concise, consistent format. And they can do it effectively and efficiently because pre-written documents:

• Saves research time
• Improves procedure writing
• Speeds policy development
• Eases document editing
• Enhances policy knowledge
• Simplifies implementation

The Right Documents

Business owners and executives should select a pre-written policies and procedures package specifically created for a particular management scope. And choose the one that identifies their role and needs.

About the author:
Chris Anderson has over 18 years of sales, marketing and business management experience working with business process design, software and systems engineering. He is also co-author of policies and procedures manual products, producing the layout, process design and implementation to increase performance. He is currently the Managing Director of Bizmanualz, Inc.
Visit: http://www.bizmanualz.com?src=ART66

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Can You Play the Drums?

2009-02-06T15:51:00.000+05:00

Can You Play the Drums?
by: Erin Banister
When I was a child, all I wanted from life was to be able to play every instrument under the sun. Pretty lofty goal, right?

I spent a couple decades learning numerous instruments, a couple I mastered; with many of the instruments I considered myself an
average player, but that was ok – at least I could do it! Years went by, I kept learning new instruments, and I was very proud of myself.

One day, I decided it was time to learn the drums. I started with the snare drum, and I was fair at playing that. Next, the
tri-toms, the bass drum, symbols, and so on. Being the overachiever that I am, I decided one day to get a drum set. I
worked on it, day in and out, striving to make some sense out of this set of drums. I banged on them endlessly, struggling to find
my beat – to make them all work together while in my hands. My father, being a kind soul, walked in on me playing my drum set
and said, “You know, you look like a maniac flailing around over there.”

Skip forward several years later. I still have that drum set (in my shed), and I still play it occasionally. No set of lessons, books, or study seems to teach my feet and hands to move as they should with the drums. My beats end up half-witted, and I’ve resigned myself to the fact that 1) I can’t do it all myself and 2) If I need a drummer, I might as well hire a professional.

The moral of my story is, I know what I can and can’t achieve. The drums are not my ‘cup of tea’, but I know of several
individuals who are very good at the drums. This is true in my business as well; while I can keep my books and do my personal
taxes, when I put all of the accounting/bookkeeping together, I end up flailing like a maniac once again.

Many business owners seem to be under the assumption that they can do it all, that they can be the catch-all support that their
business needs. In my experience, this is only not true, but can also make your business look very unprofessional. Your ability to say, “I’m not a web designer” or “I’m not an accountant” or “I don’t know my head from a hole in the ground in regards to [fill in the blank]” will set your business apart from the crowd. I can
give you a great for instance: I know next to nothing about real estate. I know it has something to do with houses, mortgages,
listings, and showings; but what good does that do me? However, I know a friend of mine has ample experience in real estate, and this is her niche market. Thus, every inquiry I get about real estate I send to my friend.

We all forget at one time or another that we can’t do everything, and take on projects we are blatantly not qualified for. It is imperative that we not only find our niche market, but also figure out what we cannot accomplish successfully, and pass it on to someone who does.

I cannot play the drums, but I am a master at the flute and trombone. I cannot do bookkeeping/accounting, but am a whiz at
marketing and design. How about you?

About the author:
Erin Banister is the president of TrinityJacobs – Your Personal Virtual Assistant. Erin’s expertise includes marketing and desktop publishing, amongst other administrative specialties. For
more information, visit http://www.TrinityJacobs.com

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Issuing Warrants to Investors

2009-02-06T15:50:00.001+05:00

Issuing Warrants to Investors
by: Dave Lavinsky
When raising capital for a business venture, warrants are a common form of equity that is given to investors. A warrant is like an option – it gives the holder the right to buy a security at a fixed or formulaic price, which is known as the "exercise" or "strike" price.

Warrants are often confused with options. Options, as used in the venture capital space, are typically long term (up to 10 years). They are also typically issued to employees versus investors. Conversely, warrants act like short-term options and, unlike employee options, can be traded as an independent security.

In general, neither the issuance of warrants nor their exercise (at least by non-employees) is a taxable event. In fact, in 1984, Congress reversed the earlier position of the IRS that the expiration of a warrant is a taxable event for the issuer. However, whenever a debt security with warrants attached is issued as a package, original issue discount problems are invited.

One type of warrant that once popular as a financing mechanism for emerging ventures is contingent warrants. These warrants become exercisable if and when the holder does something for the issuer, for example buys a certain level of product. Contingent warrants are no longer used often since the SEC ruled in favor of current and periodic recognition of expense to the issuer.

Like an option, a warrant is considered a "common-stock equivalent” for accounting purposes. And, if the warrant has been "in the money" (i.e., the exercise price is below the market price) for three consecutive months, it is deemed to impact earnings per share under the so-called treasury-stock method. That is, the warrants are considered exercised, new stock is issued at the exercise price, and the proceeds to the issuer are used to buy in stock at the market price.

Warrants are a common financing mechanism and companies seeking venture capital should consider and become knowledgeable about this type of equity device.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

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Resume Outline - Add Structure & Flow to Your Resume

2009-02-06T15:46:00.001+05:00

Resume Outline - Add Structure & Flow to Your Resume
by: Roger Clark
Building your resume, based on a resume outline will give it structure and flow... it provides an outline of all the things you should include in your resume.

A resume is one of the most important documents you will ever create

First you have to decide on a particular format for your resume. The two main formats in use today are chronological and functional format. Which one is best to use will depend greatly on your situation.

To build your resume you can use free resume forms located on the web. This can provide you with directions if you are having trouble building your resume. A sample resume outline would include the following sections:

The Heading

Your resume should start with the heading. You can list your basic details so the employer can contact you. You can include your name, address, telephone number and e-mail address.

NAME
ADDRESS
PHONE NUMBER
EMAIL ADDRESS

Job Objective

This is an optional section of your resume outline. Here you can tell readers what the objective of your resume is and what you are looking for.

Example:

Entry-level accounting position with medium to large public accounting firm.

The "Body" is the largest section of your resume outline
This is where you can enter details about your education, work experience and additional information. The body contains:

Education

Here you can list your educational background.
Educational Background Format: College, Degree, Major, Honors, Relevant Courses
Sample Education Section: Drexel University
BA Educational Leadership, May 2000

If you have a college education, do not list your high school information. You can also list any honors for academic excellence in this section of your resume outline.

If you are a graduating senior or looking for an internship, you can add a relevant courses section to your resume outline.

Employment History

This is an important part of the resume. Here you can list your previous employment history. If you are using a chronological resume format, you should list the most recent job positions first on your resume outline.

Example:

Drug Emporium, Wayne, PA
Cashier, June to September, 2001
Supervised customer check out
Handled the cash register
Managed and stocked merchandise

You can also list relevant volunteer activities or work experience programs if you do not have much job experience.

Achievements

If you have any special achievements you would like to announce, you can use this section. Maybe you made a suggestion that saved your previous boss a ton of money. You can list it in this section of your resume outline.

Special Skills

The remaining sections of the resume can include additional skills such as fluency in a foreign language.

References

You should leave this section out altogether. References are not required at this stage and stating that 'References are available upon request' is assumed anyway... so you just end up wasting valuable space!

Additional Optional Sections

You can add additional sections to your resume outline such as volunteer work, community involvement or honors.

You also have to decide on the layout of your resume. Choose a common font and medium range font-size, such as 12. Decide how you want to highlight the headings of the different sections. You can use bold, italics or underline to highlight section headings. Some people use bold and a larger font size to highlight their name on the resume.

The last part of your resume will probably receive little focus, so if you have a marketable skill or outstanding honor you should try to incorporate them in earlier sections of your resume.

You can find a lot of resources on the web that can provide you with free outlines and sample resume layouts. Usually an outline will differ if the resume is for a recent college graduate or a long time professional. Choose a resume outline that is specific to your career field and you can build your resume around that outline.

About the author:
Roger Clark (BSc) has over 25 years experience in career development & recruitment at a senior level through top management positions he has held with major international companies.

You can visit his "Top Career Resumes" website for a wealth of top quality information relating to the employment market.

http://www.top-career-resumes.com

http://www.top-career-resumes.com/resume-outline

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How to Start an Investment Club - Business Model

2009-02-06T15:44:00.001+05:00

How to Start an Investment Club - Business Model
by: chris hickman
Your investment club will need to decide what type of entity you're going to adopt for business purposes. You'll have to decide whether you're going to be a corporation, a general partnership, or limited liability partnership.

Each of these business models has their own advantages and disadvantages.

· Corporation. Most investment clubs will avoid becoming a corporation. This is because corporations are taxable business entities that require knowledgeable accounting skills to make them run smoothly and in accord with government regulations. A corporation generally means a lot of paperwork. This paperwork can be avoided by choosing another business model for your purpose of running an investment club.

· General partnership. This type of business model requires less paperwork and knowledge about taxes and other financial issues. Most investment clubs choose a general partnership as their choice of a business entity. A general partnership has nominal paperwork and costs associated with it because the taxes are passed to each partner's tax returns. This type of business model will let you accomplish what you need to do to run your investment club with the least amount of tax influence.

· Limited liability corporations. This type of a business model is much like the general partnership but it gives individual members of your investment group a bit more liability protection. Keep in mind that this type of business entity can be expensive and will need more paperwork.

Members of your investment group will have to decide which of the above business models works best for your club.

You will have to make a decision one way or the other since establishing a business entity is a requirement for tax purposes.

About the author:
Chris Hickman owns a full info site about investment clubs. Check Out his site at http://www.ez-investment-clubs.com

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Small Business 101: Deadly Ignorance

2009-02-06T15:43:00.002+05:00

Small Business 101: Deadly Ignorance
by: Daniel Sitter
Copyright 2005 Daniel Sitter

American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. This is a relatively new phenomenon with hints of explosive sector growth in the days ahead. As this turbulent economy has forced downsizing, offshore restructuring and closures in large companies, many new entrepreneurs have been born. These are people, who instead of tirelessly attempting to find new employment and possibly enduring the same fate as previously experienced, are now starting small businesses and enjoying the benefits and perils of self-employment.

There's an old story telling of an Admiral's decision to fight a battle against overwhelming odds. It seems that he was approaching the coast of an enemy land, with a larger naval force closing in from behind and a great army approaching from the land ahead. He prayed and then addressed his men. He announced that their battle weary forces would land on the beach ahead, dig in and prepare for the upcoming battle. There was no turning back and no other alternative. He ordered their ships burned after they landed. Their only choice was to fight to win or perish. They defeated their enemy because he eliminated any other escape route. They were fixed on the goal of survival and none other.

That is the same attitude we as entrepreneurs must take. We can not afford to be denied. We must grow and prosper or our business will surely perish. We must constantly be looking for ways to cost-effectively market our business and increase sales. We must control costs and have sufficient cash flow for daily operations. Each of us must be persistent, relentless and vigilant. As CEO, we are the manufacturer, the sales team, the marketing department, legal office, accounting office, human resources manager, IT manager, the webmaster and so on. We can't afford to be all these positions. Our job is to sell! We must locate cost effective resources to help us grow and protect our investment in our business.

The growth of the internet has changed our marketplace as well. Years ago, a small business owner decided upon a geographic chunk of the market and set up shop. Today, that shop is typically located in an office at the entrepreneur's home. The marketplace is now the world. The costs of marketing products and communicating worldwide are so low that almost anyone can take part in this revolution. Sophisticated voice mail, cell phones, email and effective ecommerce web sites now provide the illusion of size and grandeur for even the smallest home-based business. The end customer typically has no idea whether their supplier is local or across the world. He may be dressed in a shirt and tie or in his pajamas! All that typically matters is that the exchange of product and services is successfully made for a profit.

It is critically important for the small, home-based entrepreneur to be aware of resources available to her as she makes this great leap. Too many people leap prematurely into business only to fail because of poor planning and insufficient financial resources. Do not get caught in this trap. Don't quit your day job until you have enough cash on hand to pay the bills for at least a year into your new venture. Become aware of and develop the resources available to you. You want everything possible going for you as you make this leap of faith into the entrepreneurial world.

Here in South Carolina, we have the outstanding Women's Business Center (http://www.scwbc.org), a division of the SCMEP, South Carolina Manufacturers Extension Partnership (http://www.scmep.org), one of the best kept secrets available to businesses at all levels in our State. Other States have similar programs modeled after ours. These are incredible resources, partially funded by the State and private resources, available at little to no cost to entrepreneurs, with the purpose of aiding the successful growth of small business. Some additional national resources are:

http://www.national business.org
http://www.nase.org
http://www.gosmallbiz.com
http://www.empoweringbiz.com
http://www.nfib.org
http://www.qualitybusinessdirectory.com

There are also numerous magazines devoted to small business, home-based business, marketing, sales, accounting, etc… Get tuned in to these and other resources available to you. Read your industry publications to stay abreast of competition and other facets of your business interests.

A single legal issue, FACTA problem, accounting error or marketing miscue can put you out of business. In the case of FACTA, insufficient security or poor record-keeping these days could find you legally responsible for a single employee's identity fraud issue, which may end up being very costly. A single lawsuit or vendor dispute can shut you down. Many entrepreneurs are ignorant, ill-prepared and under-schooled with regard to these and other issues. Do not get caught in the deadly ignorance trap.

There is more opportunity available today than ever before for the wise entrepreneur. Get all you ducks in a row before you make the fateful leap into the new world marketplace. Be smart, learn all you can as quickly as possible and take action on your ideas. Like the Admiral, be determined to win in the face of what may appear to be overwhelming adversity.

About the author:
Daniel Sitter is the author of the breakthrough e-book, Learning For Profit, the revolutionary how-to book providing simple, step-by-step instructions to teach people exactly how to learn new skills faster than ever before. It’s currently available from c|net’s download.com, the author’s web site www.learningforprofit.comand a variety of online book merchants. Mr. Sitter is a contributing writer for several online and traditional publications. His expertise includes sales, marketing, effective learning techniques, self-improvement and general business interests.

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Is Your Business Profitable?

2009-02-06T15:42:00.001+05:00

Is Your Business Profitable?
by: Pam Newman
Copyright 2005 Pam Newman

What’s your job profitability? Do you know?

Many business owners are unsure of their profitability at a company or job level. They “think” they are making money because they have a few dollars in their checking account. Having money in your checking account doesn’t mean you are profitable. It might simply mean you haven’t paid all the bills yet, so you have a little cash. Cash and profit are two different concepts. If you don’t know your exact income and expenses for each job and your overall business, then how can you know whether you are making a profit? And, if you aren’t profitable, your business won’t last long.

Analyze Each Job

Regardless of the size of your business or your industry, profitability is something you should be monitoring on a monthly basis. To determine your profit, you must know how much you make and spend on each job. Expenditures should be tracked for direct labor and material costs on each job. In addition, you should also be tracking overhead costs and allocating them to your various jobs as applicable. There is always going to be some general overhead, but too often dollars are thrown into general overhead, when those dollars could easily be attached to specific jobs.

Intuit’s QuickBooks software program has easy-to-use features that allow you to do job-costing for time and materials, so you don’t have to worry about having to track it all manually. Rely on tools to help you run your business more efficiently and effectively.

Are you curious how you are doing with job costing measurements? Here are some quick and easy questions to gauge your job costing performance:

1. Do I track each customer’s revenue information through a detailed invoice?
2. Do I have a way of breaking down my direct job materials cost by customer?
3. Do I associate all time spent to each job accurately with actual dollar amounts?
4. Do I have access to reports to monitor profitability on each job in a timely manner?
5. Do I have a way to trend the fluctuations in job profitability from job to job, month to month, etc?

If you answered “no” to any of these, then it’s time for you to take an objective look at your financial goals. It’s time for you to implement a job costing mechanism to help you answer “yes” to all these questions. How can you track your profitability and long-term growth plans if you don’t have detail at a job level?

QuickBooks Can Help

Here are some easy ways to utilize QuickBooks effectively to help you with your job-costing process:

1. Set up the QuickBooks Item list so that you’ll have both an expense and an income aspect to each of the items. This will allow you to track your costs and your income, and will provide you profit by item.
2. Record your sales through the invoicing or sales receipt process. This will record the income aspects of the items.
3. As you purchase the product or service items, make sure that you utilize the Items tab so that it will record the cost to the appropriate item. In addition, make sure to assign your customer/job information to each line item so that you’ll have the costs associated to the appropriate customer/job for job-costing.
4. Utilize the time-tracking mechanism in QuickBooks so that you and your employees can track time by item and customer/job. No dollar value is associated with this time until you actually pay the employees within QuickBooks.
5. QuickBooks has preformatted reports that you can access to have job-costing information right at your fingertips. These are found under the Reporting menu and the Jobs/Time/Mileage option.
6. QuickBooks has the ability to provide reports for any time period you select. This will allow you to have a variety of detail over the growth of your business and to produce trending reports. You can modify the report as needed to meet your needs.

A good accounting professional can help you understand what these reports are telling you, in terms that you can use. Reports alone don’t provide value if you don’t understand them. So it is key that you understand the reporting information and how you can use that information to assist you in decision-making as you grow your business profitably.

Job-costing is easier when you set-up your accounting/bookkeeping software package and know how to use it. So, challenge yourself today to become more adept at running a financially savvy business through job-costing. Then, you’ll know, without a doubt, whether your company is profitable.

About the author:
Pam helps business owners keep money from slipping through their fingers. She is a Certified Management Accountant, Certified QuickBooks ProAdvisor, and Author of Out of the Red and Unlocking the Secrets of QuickBooks. For more information, you can visit our website at http://www.quickbooksinformation.com

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Here is the latest and accurate assistance relating to laptop bags.

2009-02-06T15:40:00.001+05:00

Here is the latest and accurate assistance relating to laptop bags.
by: Tom Brown
Here is the latest and accurate assistance relating to laptop bags.
When you are on the lookout for excellent information relating to laptop bags, you'll find it's complex sorting out the best information from unprofessional laptop bags proposals and guidance so it is important to know how to judge the advice that is offered.

Here's a few tipswhich we sincerely believe you should use when you're searching for information about laptop bags. You need to understand that the advice we present is only relevant to web based information about laptop bags.We do not offer you any advice or guidance for conducting research offline.

A good hint to follow when offered help or advice concerning a laptop bags site would be to confirm the sites ownership. This could reveal the people behind the website laptop bags authority The quickest way to work out who owns the laptop bags web site is to find the sites 'about' page.

All decent sites providing information on laptop bags, will nearly always have an 'about' or 'contact' page which will record the owner's details. The info should make known major points about the site owner's capability. This permits you to make an informed assessment about the vendor's education and practical knowledge, to give recommendations about laptop bags.

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About the author:

Tom Brown is the webmaster at accountingdata-info-news.info

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Resume Writing and Preparation is Free Online

2009-02-06T15:38:00.002+05:00

Resume Writing and Preparation is Free Online
by: Donna Monday
Creating a strong resume is a very important part of applying for a job, either online or off line. There are many resume writing services that will help you build an impressive resume for job interviews.

You can also learn how to write a resume for free by surfing the Internet for resume writing help. Many sites will show you tips and advice on choosing a resume style that works best for you.

You can also find samples of resumes, resume templates, resume software, and examples of resume cover sheets or letters.

Whether you’re looking to create a business resume, marketing resume, military resume, electronic resume, accounting resume, nursing resume, acting resume, sales resume, teacher resume, executive resume, student resume or a customer service resume, you can find great advice online with a little research.

When preparing your resume, keep in mind that employers use resumes for several purposes:

** Screen Applicants – Most employers will only look at a resume for about 30 seconds to determine whether or not an applicant is a good fit for their organization.

** Develop Interview Questions – Statements on your resume can be used to formulate questions they may ask during an interview.

** Communication Skills – Employers want to see how well you express yourself.

** Qualifications – Employers will reference your resume when making hiring decisions based on how closely your qualifications match their needs.

Writing a resume isn’t easy, but by studying various tips and advice, you can learn to create a type of resume that will get you one step closer to your ultimate goal of finding a great job.

About the author:
*********************
Copyright 2004
Donna Monday writes employment related articles for
http://www.get-a-job-interview-quick-tips.com

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Company/Employee Handbook as Organisational Improvement Tool

2009-02-06T13:47:00.001+05:00

Company/Employee Handbook as Organisational Improvement Tool
by: Stephan Szugat
A business is only able to grow as fast as the internal organisation is able to process higher volumes of sales. But how to get an optimal internal organisation? Well, you will need to adapt your internal organisation over and over again. It’s a never ending story. However, a Company/Employee Handbook could assist you to achieve the best internal business organisation.

This brings up the question, What has to be included in a Company/Employee Handbook? Everything what has influence to your business operation. First of all, it has to be outlined which areas the Company/Employee Handbook will cover. As it has to do with internal operation, here is a list of items you should include:

- Company Background Information (Name-Development, Foundation date and place, History-Milestones, Vision)
- Owner and/or Manager Bios/Profiles
- Listing of Officers and Board of Directors
- Employment Roles (Job Roles, Job Descriptions)
- Description of the main products and services (just use your marketing material)
- FAQ (about internal subjects only)
- Company timeline (What, when, where)
- Office procedures (Workflow-Information, Working Procedures)
- List of persons to know (Bank Contact, Tax Advisor, Laywer, Main Suppliers, etc.)
- Overview of agreements (Rental, Leasing, etc.)
- Internal Policies (Dress code, Phone usage and answering, Voice Mail Procedure, Parking,
Business Cards, Drug Policy, etc.).

The above list shows which information should be included. The following list shows which departments should be included:

- Distribution
- Inventory/Warehouse
- Marketing (How Follow-up’s are handled, Lead-Generation, etc.)
- Customer Support
- Research and Development
- Accounting
- Human Resources
- Purchase/Procurement.

The above two lists just show, how complex it could be to setup a Company/Employee Handbook. But it don’t have to be complex, just start partial. Only include the information which are already available and use the help of your employees. The benefits of having a Company Handbook are numerous, your employees will save time, it will be easier to improve procedures, because the procedures will be broken down into small sections of the whole precodures. Everything is clearly described, so nobody needs to ask over and over again. In case of holiday or illness of an employee, others could jump into the job, because they could be trained faster.

As employer, you could hire employees with lower education. And your employees will love it, because they know where to look, when they have questions and they could improve their working environment as well. But the most advantage for the owner is, that the organisation will be able to work properly, when the business grows and when the owner might sell the business one day, it might get sold easier, because of the proper organisation.

When installing a Company Handbook, you will find procedures you could automate. Automating the operation as much as possible will also be a big benefit, because employees and employer are able to focus their workforce on more important topics, such as improving the sales volume. Furthermore automatization will reduce to cost of operation as well.

A Company/Employee Handbook is a bit like a Business Plan, but far more detailed, because it will contain information on every internal procedure. Only the financial part of the business plan will not be included, but if you like you might include some financial information you like to share with your employees. As you describe your procedures just do it as a numeration or listing. The description don’t have to be very well formed, it’s just important that everyone who will read it, is able to understand what has to be done.

Remember, a Company Handbook is a living system, if you and your employees are not updating it regularly, it will be death one day, because it will only contain old stuff. So keep all people within your business engaged in improving the Company Handbook, because it will improve your business internal organisation as well. While starting to write the content of your Company Handbook, concentrate on job roles at first, afterwards write down job descriptions, in case a job role has been given to employees twice (Accounting Staff, etc.). Job Roles need to include the duties and the responsebilities of the described job.

Job Roles, Job Descriptions and Workflow-Descriptions of sepcial procedures don’t have to be the same, but take care that the information is consistent, that means that it is written in a stream. This way the entire Company Handbook will be of benefit for everyone. When rereading something on your Company Handbook and you still have questions, than the entry is not finished.

Last but not least, your Company/Employee Handbook should be available everytime. To do this, think about an Internet or Intranet Solution, depending on the size of your business. Keep it simple and slim, and you will have many benefits from it. Good Luck.

About the author:
Stephan Szugat is founder of abenetis a web-based service about Business Management Solutions. He has approx. 15 years experience in the Finance and Accounting Area from companies of different size and from various industries. http://www.abenetis.com

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10 Amazing Ways To Jump Start Your Sales

2009-02-03T17:42:00.001+05:00

10 Amazing Ways To Jump Start Your Sales
by: Wesley Atkins
1. Find a strategic business partner. Look for ones that have the same objective. You can trade leads, share marketing info, sell package deals, etc.

2. Brand your name and business. You can easily do this by just writing articles and submitting them to e-zines or web sites for republishing.

3. Start an auction on your web site. The type of auction could be related to the theme of your site. You'll draw traffic from auctioneers and bidders.

4. Remember to take a little time out of your day or week to brainstorm. New ideas are usually the difference between success and failure.

5. Model other successful business or people. I'm not saying out right copy them, but practice some of the same habits that have made them succeed.

6. Take risks to improve your business. Sometimes businesses don't want to advertise unless it's free, sometimes you have to spend money to get results.

7. Include emotional words in your advertisements. Use ones like love, security, relief, freedom, happy,
satisfaction, fun, etc.

8. Ask people online to review your web site. You can use the comments you get to improve your web site or you may turn the reviewer into a customer.

9. Out source part of your workload. You'll save on most employee costs. You could out source your secretarial work, accounting, marketing, etc.

10. Combine a product and service together in a package deal. It could increase your sales. If you're selling a book, offer an hour of consulting with it.

About the author:
Wesley Atkins is the owner of http://www.reviewbooth.com/ - containing numerous web site marketing tips, articles, and reviews of marketing tools and software.

An introduction to point of sale software

2009-02-03T17:40:00.003+05:00

An introduction to point of sale software
by: Jakob Jelling
Point of sale software gives business owners a convenient way of checking out customers and of recording sales. It can keep a record of the store inventory, updating it when an order is processed. It can also print out receipts, carry out credit card processing, track customers, etc. Point of sale software eases the flow at checkout terminals, while recording all the information that can help you make better business decisions.

Point of sale software allows users to input via keyboard or mouse, and some even have a touch screen interface. You can install the software on your checkout register.

When checking out a customer you can either input the sales item yourself or use a bar code scanner. The point of sale software will look up the item in the inventory and bring up the price. It can also calculate tax on the item and change for the customer.

POS software can print out receipts and reports. Point of sale software makes your business accounting a lot easier by creating reports on inventory, sales, customers, etc. Since it is already recording each sale, it can easily tell you the sales and revenue of the day.

Point of sale software can also help with credit card processing. Credit cards are the preferred method of payment. People do not want to carry around cash for all their purchases. Credit card is a convenient method of payment and if you do not have credit card processing, your business can lose some of its competitiveness.

Point of sale software receives input from the POS hardware, which is the scanning station for the credit card. The software will process the credit card payment for you. It can check that the card has not expired and is valid. You will need a merchant account for the point of sale software to do its job.

POS software is generally easy to install and easy to use. You will need to know how to update inventory and record a price change for an item. Point of sale software usually provides an easy to use interface to do this. It can make the job of the cashier a lot easier by automating the routine tasks of the day.

There is a wide variety of point of sale software available. You can choose one that fits your budget and meets the needs of your particular business. The software will have compatibility requirements with the point of sale hardware. It will also have operating system requirements such as it might need a Windows or Linux system.

Point of sale software can more than pay for itself over time by making checkout faster and doing your accounting for you. Point of sale software may be the right solution for your business and can provide you with tons of benefits.

About the author:
Jakob Jelling is the founder of http://www.cashbazar.comVisit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

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Why Online Presence Is Essential For Small Business Success

2009-02-03T17:33:00.004+05:00

Why Online Presence Is Essential For Small Business Success
by: Srinivasan R.G.
If you are any kind of small business or home operated business, online presence is essential. Majority of web site visitors are from the English speaking population due to the high levels of internet penetration in that category, online presence for all small enterprises cannot be overemphasized. The research data in the US about online connectivity reveals the following facts which may help to understand the importance of the web presence for businesses especially the small enterprise.

70 % of the US households have web connectivity.

In 2004 worldwide online population was 801 million worldwide.

Of these 36% used English as the language. Of this U.S. alone accounts for close to 200 million.

The next major group was European languages with 38 % and major single language next to English was Chinese accounting for 14%.

Home web users were generally affluent, literate, and belonged to the younger age profile. This means the web presence for any business is necessary if you want to succeed in promoting your products and services to a population who can afford them and also willing to buy them online.

The household that did not own a computer or who were were not connected to the web, generally felt it is not useful or needed and cost too much.

What this means for a small business owner is that they are better off promoting their products to people who were online.

You small business success is undoubtedly linked to your online presence

About the author:
R.G. Srinivasan is a managerial professional, Writer and Author. He writes a regular blog on management thoughts with interesting articles, resources, personal experiences and links useful for practicing managers at http://management-thoughts.blogspot.com

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Starting An Online Business From Home

2009-02-03T17:27:00.007+05:00

Starting An Online Business From Home
by: J. Elisha Burke
Many people believe that starting an online business from home is difficult. In fact it is quite easy. If you are already familiar with what product you will sell you will need to create or hire someone to produce an online website for you. This website should list the product or products you have available. If you will be selling your own products, make sure that your online business has a name that reflects you and what you offer.

After this has been completed, you should inquire in your local state to learn the guidelines necessary for you to run a business from your home. Many states require that even an online business register with them and receive a business license. You will have to get the necessary forms to request this license.

After you have obtained you license, you should also find out how running an online business from home will affect you tax situation. You would still need to report any income you make from your business, even if you are working at home.

After all this paperwork is completed for you business, it is important to set up your home office for you new job. It is suggested that you have a separate space to conduct
your business affairs. A separate phone line that customers can call is also very necessary and I strongly suggest you get a fax machine. You will lose customers if you are not able to be reached by telephone, fax and e-mail. Having a separate phone line from the rest of the house is essential!

Other than a second phone line, it is also a good idea to buy the necessary hardware and software for you home office. You will save lots of money if you have your own fax machine, scanner, and printer. Also it is probably wise to have the latest software additions for word processing and accounting. The accounting software is especially useful for you to keep track of all expenses and revenue for your online business.

When you have established the business and things are going well, it is a good idea to consider outsourcing. This would mean hiring someone to take care of the little jobs that
you would have to do such as email or letter correspondence or creating marketing brochures. By doing this, you will be able to focus on the more important areas of making money and marketing your business, which will be key to your success.

Copyright 2005 Burke Publications All Rights Reserved

About the author:
Dr. J. E. Burke, an educator and entrepreneur, has been involved in various business enterprises via his business, Burke Publications for 11 years. Dr. Burke is an educator, writer and motivational speaker on a variety of topics. He is also known for his expertise on nonprofit organizations and grant proposal writing. Dr. Burke can be contacted at http://burkepublications.comor http://news.burkepublications.com

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9 things you must do to maximize your chances of obtaining a small business loan

2009-02-03T17:26:00.001+05:00

9 things you must do to maximize your chances of obtaining a small business loan
by: Neil Best
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.

To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. – Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!

About the author:
Neil Best is an accountant with over 15 years experience in business finance. This article and other useful business finance information such as making effective business plans and sourcing and applying for business grants can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html

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Taxing Overseas Firms for SOX Compliance

2009-02-03T17:24:00.003+05:00

Taxing Overseas Firms for SOX Compliance
by: Neil More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform and Investor Protection Act of 2002 was signed into law on July 30, 2002 by President Bush. In the aftermath of Enron, Arthur Andersen, Global Crossing, and WorldCom, SOX promises greater corporate accountability and transparency. Named after Senator Paul Sarbanes and Representative Michael G. Oxley, SOX focuses on the importance of ethical behavior in corporate governance-across the United States and now…overseas.

All countries have government-required laws like Sarbanes Oxley. In the UK, it’s the "Combined Code on Corporate Governance," in The Netherlands it’s the "Code Tabaksblatt," Germany has a "Bilanz Reform" and a "Bilanz Kontroll Gesetz." But then, why do we need SOX overseas since we already have the required laws? It’s because companies with U.S. headquarters must ensure that all foreign outposts meet federal standards. This is the major cause of concern in the management and accounting circles. According to some experts, the Sarbanes Oxley Act might have dictated convoluted rules and regulations on the U.S. businesses. While the rules are concrete ideologies that prevent accounting scandals, the constant flux in the policies confuses businesses around the globe.

SOX compliance by vendors and business partners outside the U.S. is a frightening task. The risks and complications involved in enforcing the regulations for multiple firms around the world are enormous. The U.S. firms should keep themselves abreast of the data operations and data management followed by overseas vendors. This complicates the case further as the data should be integrated in financials or entered in balance sheets. Cumbersome processing of data would step up IT-related expenses.

The global impact of SOX is tremendous. At the moment, the UK Big Four firms are feeling SOX repercussions in their consulting sectors. http://www.big4.com -a website for global Big4 alumni - receives periodic updates on the latest news and trends at the Big Four firms. The Big Four in UK reportedly lost GBP250 million in consulting fees since 2002-a direct outcome of Sarbanes-Oxley Act. Among the Big Four firms, PricewaterhouseCoopers faced a huge decline in their consulting fees. Causes for this decline can be attributed to:
·The increased cost of compliance that usurped consulting budgets.
·Independence restrictions in Sarbanes-Oxley have restrained companies from utilizing their auditors for many consulting services.

There is an apparent role reversal in consulting fees and audit services. If consulting fees have declined, audit fees have considerably increased. A whopping 30% increase in Big Four audit fees has been observed over a period of two years. This spike does not compensate for the revenues lost for consulting. Consulting was the major strength of the Big Four in the UK. But, in the present conditions, the significant decline in consulting fees clearly demarcates the performance of the Big Four in the UK.

According to a survey by an European firm, many overseas firms with their shares listed in the U.S. were not ready to meet the deadlines of Sarbanes-Oxley. Since European firms already have specific regulations, SOX compliance is extremely difficult. Some overseas firms have been attempting to get delisted from the U.S. stock markets since SOX’s inception. Foreign firms about to get listed on overseas exchanges are also resisting to get listed in the U.S. These problems would take toll on the U.S. market performance and economy. But, the exit of foreign firms from the U.S. exchanges is not that easy. As per SEC guidelines, foreign firms holding 300 or more shareholders in the U.S. cannot delist from the U.S. exchange where they trade.

In the light of these problems, the Securities and Exchange Commission-in its bid to offer sustained flexibility-started modifying rules for overseas firms listed in the U.S. The SEC would facilitate foreign firms to delist their securities that are traded on the U.S. exchanges. Modifying SEC rules to accommodate European firms would create a state of unrest among the American managements.

The SOX compliance should be an “all-encompassing” formula-that which enables governments and managements worldwide to function efficiently and in rhythm. A level headed approach to weed out this disconcert would improve the situation.

About the author:
Neil More webmaster@big4.com is an Alumni Member and Staff Writer with Big4. He writes articles on issues pertaining to the
global Big4 firms - Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers.

Neil's articles focus on latest news and happenings in Big4 Accounting, Big4 Management Consulting, Big4 Information
Technology, Big4 Tax and Big4 Legal domains.

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Top 7 Strategies for Writing Accounting Procedures

2009-02-03T17:22:00.001+05:00

Top 7 Strategies for Writing Accounting Procedures
by: Chris Anderson
You have permission to publish this article free of charge, as long as the resource box is included with the article. If you do run my article, a courtesy reply to sean@bizmanualz.com would be greatly appreciated. This article is 909 words long including the resource box. Thanks for your interest.

Part Two of Cash to Cash Cycle Series

Part One: http://www.bizmanualz.com/articles/01-05-05_inventory_procedures.html/?ART78

Next Week: Sales

We’ve already found $250,000…so let’s find another $250,000…

Laying the Foundation

Last week, we raised the question: what would your business do with $1,000,000? To lay the foundation we introduced inventory as the first of four areas that will lead toward our million dollar goal. And you saw exactly how to achieve the first $250,000 in cash savings by avoiding delays with an increase in velocity, as well as an increase in discipline and competency. But how exactly? With time – as you saw with inventory and as you’ll see this week.

Tackling Accounting Procedures

Let’s continue that crucial theme of time with another major source on your balance sheet – specifically, accounts receivable (A/R). If you have $500,000 or more in accounts receivable then STOP! We have found it again.

Reducing Average Days Collection

Why? Because if we focus on reducing your average days collection by 50%, then your accounts receivable balance will fall to $250,000 and the result will be an extra $250,000 in your bank account. And just like that, we’re halfway to our $1,000,000 goal.

So now, let’s see how this actually works in a real-life business scenario.

Accounting Procedures Service Business Example

A service organization with $700,000 in average A/R balances needed assistance. So we examined their A/R function to understand and quantify the workflow and workload issues. Then we designed and implemented a process to improve the A/R performance.

The metrics we developed reduced their “over 60” accounts receivables by 85% and their overall A/R balance by 50% within 90 days of implementing the new procedures. With these new processes and reports, the company now tracks Average Days Collection and past due rather than just Days Sales Outstanding (DSO) as the measure of their collection effectiveness.

The result: an extra $350,000 in cash. And, again, we explicitly see the crucial role of time and how an increase in velocity and discipline directly yields an increase in efficiency and cash savings. So how can you use time to your advantage?

Methods to Design the New Accounting Process

Decrease collection cycle. Examine customer accounts that go beyond your terms. Do not wait until twice the net terms to take action.

Tighten credit policy. Examine credit process for slippage. Do you have a credit approval process? Do you perform credit checks? What standards are used to extend credit?

Reduce credit terms. Change the credit terms you offer your customers. If you offer terms of net 45, reduce it to net 30. You might offer a discount of 1% if paid within 10 days else net due in 30 days. This is equivalent to 18 % annual interest and most businesses will take those terms.

Shorten the invoice process. Bill your customers immediately. This is a big one. Many service organizations wait until the end of the month to tally billable hours and determine customer charges. Do not wait until the end of the month. This could reduce your day’s receivable by as much as 15 days right there. Email or fax your invoices to save another day or two (e.g. QuickBooks accounting software contains this feature).

Reduce billing errors. Most customers delay payments because of invoice errors. Customers won’t recognize the invoice until it is corrected and may not even notify you, the vendor, of the error until you call for collection. Again, avoiding this delay in error and time will amount to cash savings.

Train Accounts Receivables personnel. Make sure that all personnel involved are training to understand the performance metrics for their jobs. For example, a company will manage $500,000 in monthly A/R balances (that’s $6 Million a year!) using an A/R clerk who makes $30,000. But then the supervisor uses nothing more than On-The-Job (OJT) training for the clerk. Then the CFO thinks that he or she (the CFO) is really managing the money. But, in reality, that’s not the case; the clerk is managing the money day-to-day. So shouldn’t the A/R clerk receive enough training to manage such a significant amount? After all, it only takes a 6% change in A/R in one month to equal the A/R clerk’s entire annual salary. Isn’t the A/R savings worth a little extra time in training?

Maximize the Accounting Process. With the Accounts Receivable department you should use each element of the process to gain the most benefit for your business. And with time-saving procedures set in place, you will let your efficiency work for you.

Grabbing Your Policy Goal

With well-defined processes and procedures in place, you will increase efficiency by reducing your Average Days Collection. And of course a reduction in Average Days Collection means your Accounts Receivable balance will also fall, creating more cash in cash on hand. And just like that we’re halfway to our $1,000,000 goal. All you have to do is grab it.

Next week, we will look at finding still another $250,000 in the Sales function – which will give us $750,000 toward our goal of 1 Million in cash savings. So, again, not only do you aim to reap the rewards of extra savings to your bottom line, but also see more cash in the bank - $1,000,000 cash to be exact.

About the author:
Chris Anderson is currently the managing director of Bizmanualz, Inc. and co-author of policies and procedures manuals, producing the layout, process design and implementation to increase performance.
To learn how to increase your business performance, visit: http://www.bizmanualz.com?src=ART79

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mmaterial Values in Business Management

2009-02-03T17:21:00.003+05:00

mmaterial Values in Business Management
by: Stephan Szugat
Article Title: I
Author: Stephan Szugat
Word Count: 915

mmaterial Values in Business Management

Maybe you have already heard that in some ways immaterial values are important for business management. But you might not found how to bring them into your management processes or into your reporting packages. However, first of all we should be clear, what immaterial values are? Well, this includes the balance sheet information about intangible assets, but is going far behind it.
As we all know, decisions are mostly based on feelings or emotions, than on logical judgement. A feeling is an energy. Energy is not material, it is immaterial. The overall emotions or motivation of employees in a business is a immaterial value, it could have positive and negative impact on the business development. Does sound very esoterical for you? Might be, but today we know that our emotions drive a lot of our life.
Not only the feelings of the emplyoees have an impact on the business development, also the feelings of potenial customers have it. These customer feelings could be measured as customer satisfaction, as how customers see the company or it’s products and services and so on. There is more energy, which is immaterial, included in our business life as we are aware of.
Until today we might know about these energies or have read that businesses have to be more aware of them. But to find Solutions which are able to measure these energies are not very common and hard to find. Business Management still uses hard figures such as ratios based on financial values and just forgets that there has been more than only the numbers from the accounting and the money in the pocket.
If you only look to the accounting figures of a business, you only look to this company as if you were looking at an iceberg. You only see a fraction of the iceberg, only what is above the surface. Everything below the surface is out of your view. While the iceberg is melting away, it still brings up new parts of it self. But you only see this new parts, when the iceberg is melting. It’s just the same with the accounting figures as soon as you see them they are gone. That means they are old, it’s nice to knew them, but they relate to business already accomplished.
The accounting figures are just like to iceberg when it comes above the surface while it is melting away. Now, wouldn’t it be great to see the whole iceberg, even if a big part is below the surface? Yes, it would be great. The immaterial values of your business are just below surface. If you bring them up, you could see the whole picture of your business.
Running a business only focusing on profit could lead to running into a collapse. It might take time, but soon customers and employees will find out that just the profit counts to a specific company. Well, it’s correct, no business could survive without profit, but first of all every business has to make profit on immaterial items, such as image, motivation of employees and customers faith.
One day from these immaterial profits the financial profit arises. That’s the theory. Propably you already read about this, but have you found a way to measure immaterial values of your business? It’s not that difficult, but it needs some thoughts. First of all it is important to make a list of immaterial values which have the most impact on the business development. When this has been finished, methods to measure and valuate the immaterial values have to be found.
And at last, the values for all the selected immaterial items have to be analysed regularly. Setting up such a Reporting System for immaterial values could be a long lasting task. You might try to do it with a spreadsheet program or with a database, but either way will take it’s time. Using ready made Standard Software might be another option, but there are not much choices. In case you use the Balance Scorecard, you might think having all the data mentioned above and you might think having a good solution for analysation.
The Balance Scorecard has it’s advantages, but for a short, fast and regular analysis of immaterial values it is far to complex and much to slow. There is just the need to measure, store and analyse some data. About 30 items will be enough to have an overview of immaterial values and some material values as well. Most of the necessary data are usually already stored in every business. They only need to be concentrated into one table and have to be analysed.
Are immaterial values important for every business? Yes. This includes big businesses as well as the one-man-business, retail stores, mechanics, freelancer and so on. You may find more information on immaterial values in business management, when searching for Early-Warning-System, Early-Recognition-Sytems and something similar. You are able to find one or the other immaterial value included in Management Methods, Ratio Systems and Financial Analysis. But still, most Reports and Measurement System are based on financial data.
A Solution which every business, no matter of size, could use, is the abenetis ERS (Early-Recognition-System). It is called Early-Recognition-System, because with the used immaterial values every business could be aware of tendencies in it’s business development soon. At the moment the abenetis ERS is available only as Online-Service, but could soon be delivered as Intranet-Version, too. More details are available at our ERS-Subscription Page.

About the author:
Stephan Szugat is founder of abenetis a web-based service about Business Management Solutions focusing on the core needs of business management. This includes operational and strategic analysis especially Early-Recognition-Systems, Knowledge-Management and other Services for small and mid-sized businesses. He has approx. 15 years experience in the Finance and Accounting Area from companies of different size and from various industries. http://www.abenetis.com

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HOW TO STAY FOCUSSED AND BUILD YOUR BUSINESS

2009-02-03T17:16:00.007+05:00

HOW TO STAY FOCUSSED AND BUILD YOUR BUSINESS
by: Matt Bacak
You have a detailed business plan, which showed the overall intent of your company. You presented the business plan to your bank before start-up and they submitted funding in the amount that you both deemed acceptable. The original business plan contained the basis of the procedures that will help you stay focussed while the company grows. Let's examine some of these processes that you will use to give your business the focus it needs to grow and succeed.

1. A marketing plan. If sales are a part of your operation (and it seems that some form of selling is always a big part of every company), then, you will need to have your sales group focussed on a marketing plan. Short term and longer-term analysis should be a part of this planning and will likely contain an analysis of your competition, market potential and sales projections. Be careful not to fall into the trap of letting “the business take care of itself”, stay focussed at all times and be sure your managers are tuned into this market monitoring regularly, nothing is more defeating to the general manager/owner than to be told by a sales manager…I didn't see that coming! YIKES!
2. Accounting procedures. If sales are important, then the need to stay focussed on receiving the proceeds from sales is equally important. Accounts payable, expenses and accounts receivable need to have fixed procedures in place to allow money to flow freely through the company coffers. Focussing on these procedures at regular weekly and monthly meetings will put the accounting and marketing groups on the same path. A rift between marketing and accounting is a common bureaucratic occurrence; so don't be surprised if one point you hear from someone from sales state, “We make the money here, how come I have to live by their rules?” Getting these two operations to stay focussed on a bottom line results oriented approach is a regular part of an owner's job description.
3. Human resources. If you have ever worked for a manager, who considered his employees as expenses rather than assets, then you will be familiar with the need for managers to stay focussed on human resources within the company. A manager who is fixated on staff reduction regardless of their accomplishments will create an atmosphere of fear. Certainly, no one wants to be grossly over-staffed, but a good owner/manager will focus on keeping adequate employee base numbers, and ensure continuing training, safety programs and top of the line employee benefits. It's your campground, why not have “happy campers?”
4. Selling your business. This does not mean selling in the true literal sense. It means focusing on being sure your company image is one that is the envy of your competitors and is known in the business world as a first class operation. You can do this by having key managers attending industry conferences. Be clear and tell them that their focus at these seminars is to network, thoroughly gathering as much new information that they can. They should also 'sell' other attendees on the importance and efficiency of their company in the industry. Upon their return, have follow-up meetings with these managers where they will report in detail on what they have learned. Managers attending conventions and seminars should take opportunities to enjoy themselves, nevertheless, they will be the “face” of your company, it's wise be sure that they focus on making them business meetings, and not all “playtime.”

If planning, organizing, staffing, direction and control are five major factors in managing a company, staying focussed throughout the process, is paramount!

About the author:
Matt Bacak became "##1 Best Selling Author" in just a few short hours.
Recent Entrepreneur Magazine’s e-Biz radio show host is
turning Authors, Speakers, and Experts into Overnight Success Stories.
Discover The Secrets http://promotingtips.com

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Outside The Box

2009-02-03T17:15:00.002+05:00

Outside The Box
by: Phillip A. Ross
Outside The Box

Thinking "outside the box" or as it is sometimes called, "coloring outside the lines" is a popular idea in the business world today. People and organizations are told to think outside the box or color outside the lines as a way to stimulate creativity when they need to solve problems like streamlining production, establishing a new product, or developing a new process. And it's true that creativity and innovation often arise from unexpected and unconventional thinking.

But there is a serious problem with trying to apply such thinking too broadly.

For instance, creativity is valued in art and advertising, but not in banking and accounting. An accounting firm recently ran an ad suggesting that it could think "outside the box." Do you really want your business to be associated with creative accounting? Aren't accountants supposed to put the numbers in the right box? Wasn't creative accounting a serious problem for Enron?

In reality, clear thinking and the creativity that it produces are rarely a matter of thinking outside the box. And coloring outside the lines is for the most part just sloppy workmanship. The art of clear thinking is a matter of putting thoughts in to the right boxes or categories. Clear thinking is a matter of mental organization. Conversely, sloppy thinking involves the confusion of categories, of putting ideas into the wrong boxes or not putting them in order at all. Is a child who will not straighten his or her room creative or just sloppy? There is a significant difference. While creativity sometimes looks sloppy to an outside observer, it does not issue from sloppiness.

Picasso was a creative artist.

But his creativity was not a matter of the art he produced. In reality his abstract work is technically sloppy. It looks like the work of a child. Picasso could sell his abstract art only because he had previously established himself as an artist who could color inside the lines very well. Had he not first proven his artistic talent in the traditional way, his abstract art would have been worth much less. He used his reputation as a traditional artist to establish a new direction in art. He didn't so much color outside the box, as he expanded the boundaries and definition of the box. But the point is that his abstract creations were valuable only because of his proven abilities in the traditional arts.

Contrast my own efforts to establish myself as an abstract artist. My art has gone unnoticed because I have not been able to prove myself as a traditional artist. Not that I actually tried to do so, but I am using myself as an example to make the point. The creativity of a novel idea requires the discipline of order and structure to be valuable. Picasso's art is valuable because he was an accomplished painter who intentionally colored outside the lines. My art is not valuable because I am not an accomplished painter and I accidentally color outside the lines. While the two products may look similar, the difference is critical.

Creativity is more than breaking the rules.

Similarly, Joseph Heller was able to break the rules of English grammar in his book, Something Happened (Scribner, 1974), only because he was intimately familiar with them. Having taught English at the University of South Carolina, he was a master of grammar. And only out of his expertise could he creatively exploit, expand and redefine the boundaries of grammar. And so it is with regard to thinking outside the box.

Thinking outside the box apart from being able to think inside the box is worthless.

Such thought is just plain sloppy. Thus, the suggestion that creativity lies in the ability to think outside the box is mostly nonsense. Creativity issues from talent, ability and discipline. Talent must be forged and shaped on the anvil of discipline in order to develop ability. Great ability is always the result of study, discipline and practice.

Creativity is more a matter of seeing that the boxes themselves are inadequate and suggesting a better arrangement or a better definition. Creativity doesn't simply discard the boxes, it redefines and/or rearranges them after becoming intimately familiar with them. Real creativity is always the fruit of discipline and order. Creativity, in order to be genuinely creative and not simply sloppy disorganization, must emerge out of discipline and order as an intentional effort.

While a creative idea often comes unbidden out of unexpected places, it requires discipline, study and order to make something of it. Apart from discipline and order, what passes for creativity is nonsense, and to suggest otherwise actually undermines and/or weakens the creative process.

What does this mean for our industry? Distributors and suppliers should apply themselves to mastering the basics before attempting to break the rules in the name of creativity. Don't start outside the box. First, establish your ability to think within the box. Master the rules before you suggest breaking them. For example, before a distributorship presents a wild, innovative concept to a client for a campaign, it should first establish its expertise with campaigns and/or ideas that have a track record of yielding good ROI. Designers, artists, and copy writers should establish their mastery of basics before experimenting outside the box. For the most part the important stuff is inside the box.

©2002 Phillip A. Ross

About the author:
.

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3 Essential Tools for Starting and Maintaining a Small Business

2009-02-03T17:11:00.003+05:00

3 Essential Tools for Starting and Maintaining a Small Business
by: Ryan Hough
We believe that there are 3 factors that drive the success of small businesses.

1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses

The following resources will help your small business achieve these success factors.

Acquiring Start-Up Capital

An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.

There are two ways to obtain a business plan.

1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.

Obviously obtain 1) will be a great deal cheaper.

Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world.

Finding Customers

Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards.

Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150.

Accounting For, Budgeting and Controlling Revenue and Expenses

Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.

Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 - US $300.

Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website.

About the author:
http://www.best-quality-small-business-resources.com/

Ryan Hough is the webmaster of best quality small business resources.com, who's aim is to help you save time and money by finding reviews and case studies that will enable you to choose the best resources at the right price.

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Understanding Depreciation: It May Be More Simple Than You Think

2009-02-03T17:09:00.002+05:00

Understanding Depreciation: It May Be More Simple Than You Think
by: John Day
Depreciation is defined as a portion of the cost that reflects the use of a fixed asset during an accounting period. A fixed asset is an item that has a useful life of over one year. An accounting period is usually a month, quarter, six months or one year. Let’s say you bought a desk for your office on January 1, for $1000 and it was determined that the desk had a useful life of seven years. Using a one year accounting period and the “straight-line” method of depreciation, the portion of the cost to be depreciated would be one-seventh of $1000, or $142.86.

Most non-accountants roll their eyes and shudder when the topic of “depreciation” comes up. This is where the line in the sand is drawn. Depreciation is far too complicated to try and figure out, or so it seems to many. But is it really? Surely the definition of depreciation mentioned above is not that difficult to comprehend. If you look closely you will see that there are five pieces of information you must have in order to determine the amount of depreciation you can deduct in one year. They are:

-The nature of the item purchased (the desk).

-The date the item was placed in service (Jan 1).

-The cost of the item ($1000).

-The useful life of the item (seven years).

-The method of depreciation to be used (straight-line)

The first three are easy to figure out, the second two are also easy but require a little research. How do you figure out the useful life of an item? Let me regress for a moment. There is “book depreciation” which is based on the real useful life of an item, and there is the IRS version of what constitutes the useful life of an item. A business that is concerned with accurately allocating its costs so that it can get a true picture of net profit will use book depreciation on its financial statements.

However, for tax purposes the business is required to use the IRS method. The IRS may have shorter or longer useful lives for fixed assets causing a higher or lower depreciation write-off. The higher the write-off, the less tax a business pays. The long and short of it is that you end up having to create a book financial statement and a tax financial statement. So, most small businesses that aren’t concerned with a precise measurement of their net profit use the IRS method on their books. This means that all you have to do is look in IRS Publication 946 to find the useful life of a particular item.

The last piece of information you need is found by determining the method of depreciation to use. Most often it will be one of two methods: the “straight-line” method or an accelerated method called the “double-declining balance” method. Let’s briefly discuss these two methods:

Straight-line

This is the simple method mentioned in the definition above. Just take the cost of the item, divide it by the useful life and you’ve got the answer. Yes, you will have to adjust the depreciation for the first year you placed the item in service and for the last year when you removed the item from service. For instance, if your depreciation for one year was $150 and you placed the item in service on April 1 then divide $150 by 12 (months) and multiply $12.50 by 9 (months) to get $112.50. If you removed the item on February 28 then your deduction will only be $25.00 (2 x $12.50).

Double-declining balance

The idea behind this method is that when an item is purchased new, you will use up more of it in the earlier years of its life, therefore, justifying a higher depreciation deduction in the earlier years. With this method, simply divide the cost of the item by the useful life years as in the straight-line method. Then, multiply that result by 2 (double) in the first year. The second year, take the cost of the item and subtract the accumulated depreciation. Next, divide that result by the useful life and multiply that result by 2, and so on for each remaining year.

But, wait! You don’t have to do this. The IRS provides tables that have the percentages worked out for each year of the two different methods. Not only that, they have set up special first year “conventions” that assume you purchased your depreciable fixed assets on June 30. This is called the one-half year convention. The idea behind this is that you may have bought some items earlier than June 30 and some after that date. So, to make it easy to figure out, they assume the higher and lower depreciation amounts will all average out.

Actually, the IRS doesn’t even call it depreciation anymore. They call it “cost recovery”. Let’s face it. This is a political tool. Congress giveth and taketh away. They have been playing with this system for years. If they want to stimulate growth in business they will shorten the useful life of assets so businesses can attain a higher write-off. If they are not in the mood, they will extend the useful life of an item. A good example is the 39 years set for the useful life of commercial property. This means that if you lease a building for your business and make improvements, those improvements have to be depreciated over 39 years. Now congress is working on a bill to drop that down to 15 years for leasehold improvements.

Before December 31, 1986 we had ACRS or Accelerated Cost Recovery System. Currently, we have MACRS or Modified Accelerated Cost Recovery System. Every time congress tweaks the rules they give it a different name.

Keep in mind there are different schedules for different properties. For instance, residential real property is depreciated over twenty-seven and one-half years and non-residential real property is depreciated over thirty-nine years. In addition, if more than forty percent of your total fixed asset purchases occurred in the last quarter of the year, then, you must use a mid-quarter convention. This convention assumes that your purchases made in the last quarter of the year were made on November 15. This prevents you from buying a big expensive piece of equipment on December 31 and treating it as though it were purchased on June 30 and gaining a larger depreciation expense.

Understanding how basic depreciation works can be valuable to the small business owner because it helps to know the tax implications when planning for capital equipment purchases.

About the author:
John W. Day, MBA is the author of two courses in accounting basics for non-accountants. Visit his website at http://www.reallifeaccounting.comto download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues. Ask John questions directly on his Accounting for Non-Accountants blog .

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Explode Your Consulting Income

2009-02-03T17:07:00.002+05:00

Explode Your Consulting Income
by: J. Stephen Pope
Here are just a few ways to increase and diversify your
income from your consulting business.

1. Sell More Services to Your Existing Clients

Instead of spending all that time and money trying to get
new business, why not try to sell more services to your
existing client base?

If you are an accounting and tax consulting firm, for
example, you likely have clients who need some assistance
in their record keeping and documentation. In addition to
your year-end tax services, could you provide monthly
bookkeeping and financial statements, accounting system
setups, training in accounting software, or other services
to assist your client?

Monthly services, in addition to annually billed fees, will
help you smooth out your cashflow and minimize the seasonal
nature of your business.

2. Mass Market Your Advice by Productizing Your Services

Could you produce a folio, special report, newsletter,
e-book, book, audio cassette, video, or course? If so, you
could enjoy making money even when you're not billing for
your time. While asleep or on vacation, the sale of your
information products could be generating additional income
for you.

Sell such products through direct mail, mail order,
exporting, and Internet marketing (your own website,
your own affiliate programs, eBay auctions, and so on).

As well as the passive, residual income that information
products can produce for you, they also help establish your
credentials as an expert. This, in turn, produces more
consulting opportunities for you.

3. Perform Group Consulting

Seminars, workshops, and teleclasses enable you to help
many participants in a cost-effective manner. In addition
to paying for admission, your attendees may also purchase
some of your information products or even become your
regular consulting clients.

4. Consider Additional Markets

Could you sell your consulting services to federal, state,
provincial, or municipal governments? Could you be an
expert trial witness?

If you consult with local clients, could you extend your
reach nationally or internationally by using the telephone
and Internet?

These few ideas are a starting point for you to brainstorm
all the possibilities for exploding your consulting income.

About the author:
RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc.,
has been helping clients to earn maximum business profits
for over twenty-five years.

For more information about profitable consulting and other
Work at Home Small Business Ideas, visit:
http://www.yenommarketinginc.com/consulting.html

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What Software Do You Need For Your Small Business

2009-02-03T17:06:00.003+05:00

What Software Do You Need For Your Small Business
by: Jeff Schuman
When running a small business there can be several jobs and
tasks to take care of. Obviously knowing where the money is
coming from and going is essential to running your business.
That's why it is good to find out which small business
accounting software is best for you to help you run a well
organized and efficient small business.

There are hundreds to thousands of small business accounting
software out there to help you with reports and tools needed to
use your financial data. Depending on the one you go with will
depend on how much you're going to pay for it. The more you
pay, the more accessories and programs there will be that come
with it. Some come with a billing and time module, various
amounts of financial and management reports, and more. You can
choose to get it in different editions from basic, online, pro,
or premier for your computer.

One small business accounting software that is recommended is
the 2005 Peachtree Complete Accounting. This is a multi-user
ready system that provides you with all the features needed.
You'll have features including in-depth inventory, job costing,
time and billing, fixed assets and more. With all these great
features the price of this runs between $165-$290 as it is sold
by different merchants. You can shop for this product through
the different merchants here:

http://about.pricegrabber.com/search_getprod.php/masterid=2936006/search=Peachtree%20Complete

Another feature that is offered with certain software is the
capability to scale as your business grows. That is just one of
the many features that the high end Microsoft Business Solutions
Small Business Financials North America Edition offers. Also
included in this program is the capability of keeping record of
financial management, sales, purchasing, inventory, payroll, and
reporting. This is software that will easily allow you to run
an organized small business and keep track of the people in it
and all of the numbers associated with running a small business.

This software will give you everything that you'll truly need.
With this high end software is a hefty price as it runs between
$995-4,500, so you'll have to decide how big your small business
is going to get. If you're going to be running a large small
business, then this will be worth it to help keep track of all
the payrolls and inventory and more. On the website listed
below, you'll also see a free 60-day CD demo that you can try it
out first to see if you like it.

http://www.2020software.com/products/Microsoft_Business_Solutions_Small_Business_Financials_North_America_Edition.asp

There is plenty more software to choose from, but there's a high
end software and a cheaper software to check out. If you go to
http://www.2020software.com/default.asp you'll find a list of
what this website claims the top 7 software out there. Included
on this list is the Microsoft software I have briefly talked
about just above.

This list is going to consist of the more expensive software out
there. All of the software on the list is priced at above
$1,000 with some of them reaching the $100,000 mark. While it
is pricey, it will install very easily, be very secure over the
internet and computer, and offer all kinds of features you
wouldn't even consider such as a built-in report writer to help
deliver the content in the format you need.

Now you know the general price range for accounting software and
the features you'll get for what you pay for. In order to get a
good quality software for your small business it's going to be
pricey, but it will help keep your business organized and in
tact. So don't be afraid to drop some money on software that
will help expand your business in the long run.

About the author:
Small business grants and small business resources to help you start and run your own business. Small business training, information, articles, loans and more.
http://www.sites-plus.com

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Internal Control: A Preventive Maintenance Program

2009-02-03T17:04:00.003+05:00

Internal Control: A Preventive Maintenance Program
by: John Day
You read about this in every newspaper in every town in the entire country: Some bookkeeper, trusted by the owner of a small business, embezzles thousands of dollars. If the theft doesn’t put owner out of business, it certainly causes a major headache.

The reason we hear of these cases so often is that, in a small business, there may only be the owner and a bookkeeper. The owner doesn’t like doing the books, doesn’t understand them, and relies on this one person to take care of things. The bookkeeper, who is usually having personal financial difficulties, takes a small amount of money intending to pay it back. No one seems to notice, so more is taken. Over a period of time, it starts to mount up to a lot of money.

This is where the concept of “internal control” comes in. Essentially, every business should have, at some level, an internal control system in place to protect against losses, both intentional and unintentional. This is because “internal control” systems will: 1) protect cash and other assets; 2) promote efficiency in processing transactions; and, 3) ensure reliability of financial records. An internal control system consists primarily of policies and procedures designed to provide reasonable assurance that these three objectives will be achieved. The size and complexity of the business will determine the extent of the internal control system.

Regardless of size, one of the most important aspects of an internal control system is the concept of separation of duties. Separating duties makes it more difficult for theft and errors to go undetected. It is highly unusual for two employees to “collude” in an effort to steal from the company.

I worked as an internal auditor for a newspaper chain for three years. My job was to walk in to the newspaper offices unannounced and go directly to the cash boxes, count them, and verify receipts. One of my most important audit steps was to make sure the internal control procedures were in place and working properly. Here are a few suggestions for internal control procedures regarding handling of cash:

- Allow only specific designated individuals to handle cash.

- Give responsibility for bookkeeping to an individual who does not handle cash.

- Use numbered receipts to document all payments.

- Make all bank deposits promptly.

- The person who prepares the bank reconciliation should be different than the one handling cash.

- If possible, the person who makes the bank deposit should be different than the one who handles the cash and the one who prepares the bank reconciliation.

- Make deposits intact with no amounts withdrawn to pay expenses.

- Keep cash and checkbook in a locked drawer or cash register.

- Since tills will never be 100 orrect all the time, establish a tolerance level for overages and shortages to determine the point at which corrective measures will be triggered.

- Make all disbursements by check, except minimal amounts paid from petty cash.

- Make certain every payment is related to a paper document, such as a voucher, to ensure that a paper trail exists for all disbursements.

- Conduct random surprise counts of petty cash and cash drawers.

- Count inventory and other assets frequently and compare with company books.

An internal control system set up early as a preventative measure is more efficient than establishing a corrective system in reaction to a loss. If it so happens, that there is just you and the bookkeeper in your small business, you need to learn how to do some of the bookkeeping tasks so you can spot check the bookkeeper’s work. That, in itself, is an excellent preventative measure.

About the author:
John W. Day, MBA is the author of two courses in accounting basics: Real Life Accounting for Non-Accountants (20-hr online) and The HEART of Accounting (4-hr PDF). Visit his website at http://www.reallifeaccounting.comto download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues.

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How to Stop Waste, Fraud and Abuse

2009-02-03T17:02:00.005+05:00

How to Stop Waste, Fraud and Abuse
by: Chris Anderson
Each year, businesses write-off six percent of revenue to waste, fraud and abuse. But why would managers throw all that hard-earned money away when there is a reliable way to eliminate waste, fraud and abuse using accounting policies & procedures to create internal controls. Internal controls eliminate uncollectible receivables; prevent theft or embezzlement; optimize inventory; and stop waste, fraud, and abuse. Utilizing just a single control will add real money to your bottom line each month.

Look for Easily Customizable MS-WORD files to Save Time

You can quickly and easily develop customized procedures and internal controls for your organization, no matter what size it is. WORD templates reduce the stress of writing clear internal controls, policies or procedures; of staying late at the office to research “best practices” or of worrying over what format to use.

Use Prewritten Text by Industry Experts

It's much easier to edit prewritten controls than to develop them from scratch. Let experienced CPAs, auditors, and business process experts think through the steps for each procedure or form. Then, save even more time by using the resulting content that technical writers have edited in MS-WORD instead of re-entering the text.

Vital Procedures Resource used by Thousands

Accounting Policies and Procedures is one such vital resource used by thousands of executives and managers to strengthen their financial operations. Such a manual contains an introduction to accounting, an explanation of how to create your own controllers manual, an example of a complete prewritten manual, ample policies, procedures and forms for the most common processes (revenue, cash, assets, purchasing and administration), a detailed index to every keyword, phrase and regulation used, plus a Guide to Embezzlement Prevention.

Examples for Every Owner or Executive

Every month executives share their stories about satisfying their auditors with new controls, of increased earnings found in their business and how much time was saved. So, if you want to increase the profits of your business then consider an Accounting Policies & Procedures manual.

Help Your Business Grow Now

Can you afford to let a single precious hour pass without finding out what Policies and Procedures can do for your business?

About the author:
Chris Anderson has over 18 years of sales, marketing and business management experience working with business process design, software and systems engineering for over ten years. He is also co-author of policies and procedures manual products, producing the layout, process design and implementation to increase performance.
Visit: http://www.bizmanualz.com?src=ART68

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Press ReleaseUCLA Alumni Association Retains the Accounting Firm of Singer Lewak Greenbaum & Goldstein, LLP

2009-02-03T16:57:00.003+05:00

Press ReleaseUCLA Alumni Association Retains the Accounting Firm of Singer Lewak Greenbaum & Goldstein, LLP
by:
The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor.

Los Angeles, CA July 17, 2004 -- The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor. SLGG, a leading regional CPA & Management Consulting firm, provides accounting, tax and management consultant services for a broad range of clients including individuals, family-owned businesses, private and public companies as well as nonprofit organizations.

"The Association is entering an exciting new phase in its history. We wanted a firm with roots in the Los Angeles community, a depth of resources and the adaptability necessary to support a dynamic organization's business requirements while ensuring the finest audit support available. SLGG has a solid reputation for professionalism and service with proven expertise," said Keith Brant '83, M.A. '88, Ph.D. ’95, assistant vice chancellor, alumni relations and executive director, UCLA Alumni Association

"We are excited to work with the UCLA Alumni Association, strengthening further our ties to UCLA community. We look forward to growing together as we help this innovative and award-winning Association achieve its vision to serve more than 300,000 UCLA alumni," said Lewis Sharpstone, partner in charge of nonprofit practice group at SLGG.

About SLGG

Singer Lewak Greenbaum & Goldstein LLP is the largest certified public accounting firm headquartered in Los Angeles, California. Established in 1959, the firm has grown to more than 150 professionals and support staff. Today we serve a broad range of clients ranging from individuals to family-owned businesses to public companies of all sizes. Singer Lewak Greenbaum & Goldstein, LLP has offices in Los Angeles, Santa Ana, and Ontario, California. For information, visit www.slgg.com.

About UCLA Alumni Association

One of the top organizations of its kind in the world, the UCLA Alumni Association boasts more than 88,000 members and serves as liaison between UCLA and its more than 300,000 living alumni around the world. Founded in 1936, the Association is proud of its long history of developing support for UCLA and its mission in the Los Angeles community and throughout California while offering UCLA alumni a wide array of services, ranging from professional networking to educational travel. For information about the Association, visit www.UCLAlumni.net.

Media Contact:

Mark Davis, director of communications
UCLA Alumni Association
310-206-4715
MarkD@UCLAlumni.net

About the author:
.

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Non-Profit Organizations - What Are They?

2009-02-03T16:56:00.004+05:00

Non-Profit Organizations - What Are They?
by: John Day
Definition of Fund; Assets; and Fund Balance

According to the “Financial and Accounting Guide for Not-For-Profit Organizations” written by CPAs Gross, Larkin, Bruttomesso, and McNalley, (fifth edition, pg 25) the definition of a these three terms is as follows:

- A fund is any part of an organization for which separate account records are kept.

- Assets are valuable things owned or controlled by the organization. Types of assets include cash, investments, property, and amounts owed to the organization.

- Fund balance is the mathematical number obtained by subtracting total liabilities from total assets; it is a numerical representation of the net worth of the organization, but has no other significance. Fund balances do not exist except on paper; unlike assets, they have no intrinsic value and cannot be spent. Both assets and fund balances (as well as liabilities, revenues, and expenses) are part of the accounting records of a fund.

What are non-profit organizations?

A few years ago, a dentist client of mine, who did a lot of work for low-income patients under the California medical assistance program called “MediCal”, asked me a bizarre question. He wanted to know if he could be considered a “non-profit organization” since he did so much MediCal work. At first, I thought he was joking, but he was serious. I told him that just because he charged less for his services did not qualify him to become exempt from paying taxes. In fact, he made a very nice profit. However, this is a good example of how non-profit organizations (NPO’s) are misunderstood by a large segment of the general public.

Most countries around the world have NPO’s, but outside the U.S. they are called non-governmental organizations (NGOs) or civil society organizations. These organizations are exempt from paying taxes because they provide some sort of public benefit. They are said to enhance the fabric of society. They differ from a business organization in that there are no owners. A Board of Directors oversees operations of the organization. An Executive Director, who reports to the Board, functions like a CEO of a business. Usually there is a lengthy application process to establish the mission or purpose of the organization before exempt status is granted.

According to Independent Sector, an organization that serves as an information resource for non-profit boards, there are 1.5 million non-profits that, when combined, have general annual revenues totaling more than $670 billion dollars. They report that six percent of all organizations in the U.S. are non-profits and one in twelve Americans work for a non-profit. That’s big business and has caused profit-making businesses to become alarmed that some of these NPOs are competing unfairly. Think about a private hospital as compared to a non-profit hospital. The profits of the private hospital are taxed, but the NPO hospital can apply all their profits to higher salaries, more equipment, etc. Hence, there is high scrutiny of NPOs by the Internal Revenue Service, state Attorney General offices, private watchdog organizations, and the press.

There are all types of non-profit organizations. Public charities are exempt under the Internal Revenue Service code 501(c)(3). These organizations, such as hospitals, museums, orchestras, private schools, churches, scientific research organizations, soup kitchens, etc., obviously do much more than provide free care and services to the needy. To qualify for exempt status, these organizations must show broad public support, rather than funding from an individual source. In addition, there are private foundations, colleges, universities, social welfare organizations, professional and trade organizations, and many more. Governmental organizations such as communities and agencies are also non-profit organizations, however, their accounting and record keeping is handled quite differently from 501(c)(3) organizations.

How are non-profit books organized?

Briefly, the books of an NPO are organized in the same way as a profit-making business except for a few differences. It’s okay for a non-profit to make a profit because there may be many uses the board has planned for the extra money. But, NPOs traditionally refer to profit as “Excess Revenues over Expenses” to avoid being mischaracterized as a profit-making organization. A net loss is called “Excess Expenses over Revenues”. Recall the fundamental equation that makes double-entry accounting work:

ASSETS = LIABILITIES EQUITY

Instead of the term EQUITY, a non-profit will substitute the words FUND BALANCE or more recently NET ASSETS. The concept is still the same. After subtracting liabilities from assets the difference is what is owned by the organization. Where NPOs differ in their financial statement presentation from profit-making businesses is what is called Fund Accounting. Obviously, the presentation varies depending on the purpose and size of the organization. For instance, a Little League baseball organization may only have one fund for which they have to account. They also may not have any restrictions placed on the usage of contributions they receive. Everything is straightforward.

Or, a scientific research organization may be working on various projects at the same time with funding sources made up of private and governmental grants or contracts, private donations, sales of research documents, some of it restricted to specific expenditures and the rest unrestricted. The accounting challenge is to report the revenue and expenses accurately for each fund or project and be able to combine all the funds into one cohesive financial statement.

The problem in the past for the contributors was that they could not easily tell from the financial documents what funds were restricted and unrestricted and whether their contributions were being spent properly. The Financial Accounting Standards Board (FASB) decided that all external accounting should be done using the “Net Assets” approach as opposed to the “Fund Balance” approach. Essentially, the net assets approach requires that the equity of the organization be presented with three classes of assets, i.e., Restricted Assets; Temporarily Restricted Assets; Unrestricted Assets. You can still use Fund Accounting for internal bookkeeping purposes, but for external reporting purposes you are required to disclose your restricted and unrestricted funds. If you have no restricted funds, then it is not much of a challenge.

One of the key factors in setting up non-profit books is a well thought out Chart of Accounts. In other words, this is choosing which general ledger accounts are the most appropriate for recording revenue and expenses, etc., and organizing them in such a way as to provide meaning. Some U.S. organizations simply follow the same format found on the 990 IRS form for non-profits. They do this so that their financial statements are in conformity with the way that return is organized. This makes it easy to transfer information from their financial statement to the 990 form.

Nevertheless, the main thing is to design your accounts so that they tell you exactly where your revenue came from and what expenses are related to that revenue. I have worked with NPOs that have not done a very good job of this in the beginning, and I can testify that it is no fun trying to straighten the accounts out later. It may be well worth the money to hire a competent accountant to guide you through the set up phase. Better yet, let your accountant review your books a couple of times a year just to make sure you are on track and save yourself some year-end grief.

About the author:
John W. Day, MBA is the author of two courses in accounting basics for non-accountants. Visit his website at http://www.reallifeaccounting.comto download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues. Ask John questions directly on his Accounting for Non-Accountants blog.

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Accounting Methods – Cash and Accrual

2009-02-03T16:54:00.002+05:00

Accounting Methods – Cash and Accrual
by: Richard A. Chapo
When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.

Cash Method

If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example.

I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return.

Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method.

Accrual Method

The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind.

Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred.

Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year.

In Closing

As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional.

About the author:
Richard Chapo is with Business Tax Recovery - Stop overpaying small business taxes. Read more business tax articles.

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7 Things to Consider Before Buying Small Business Accounting Software

2009-02-03T16:49:00.006+05:00

7 Things to Consider Before Buying Small Business Accounting Software
by: William Siebler
The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.

Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals.

1. Scalability

Businesses change over time so it's critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily
upgraded when needed with minimum disruption and cost to your business.

2. Support

It is important that any software has great support for when something goes wrong (and it always does). Most major companies offer support but you also need to think about support in your local area. It's often much easier to have someone locally come in and do things you need done with your software than have someone trying to help you over the phone. Make some
enquiries with other businesses about the package they use and who helps them.

3. Accountant Interface

It's most unlikely you will handle every aspect of your businesses accounting. Your accountant is an important factor in making the right decision. What software are they used to working with and what do they prefer? Can you easily supply them data and reports from your package without the need for any extra work (which you'll have to pay for). Don't be afraid to ask their opinion as they live and breathe this stuff.

4. Best Value For Money

Once you have selected the right package for your business you may as well get the best value. Shop around as the price can vary greatly and the product is exactly the same. Online merchants such as Amazon may offer better pricing because of the sheer volume of products they sell. However price is only one part of the equation so if their is great merchant locally with support or installation assistance this may be far more valuable.

5. Major Brands

There are two major players in the small business accounting software market. They are QuickBooks and Peachtree. Microsoft is expected to enter the market soon. I recommend choosing a major brand so that you can get regular updates and you know the company will be around as long as your business needs them.

6. Ease of Use

Ease of use is a personal thing but it is worth trying the software before you buy it if you can. Remember to get the person who will be the main user to test the software as well. Also consider how well the package can interact with other software you use. This is an advantage the Microsoft package may have when it's available.

7. Features Needed

I touched on this earlier when talking about thinking ahead as to where you business will be in 5 or 10 years time. Most accounting software packages come in several different versions. If you don't need certain features now and can't see a need for them in the future then don't buy them. The major differences are usually - number of users allowed, inventory management capability and number of reports available.

To sum up think ahead when planning your purchase of small business accounting software. You will make a much smarter business decision that will save you plenty of trouble and money in the future.

About the author:
Please visit us for more information and a feature by feature comparison of:
Small Business Accounting Software

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Asset and liability basics

2009-02-03T16:47:00.003+05:00

Asset and liability basics
by: Mansi gupta
Knowledge of accounts can make life much easy. If you are to invest in a new business or joining your forefather’s business, planning to take some loan, looking for job in any marketing company, desire to be the manager of a multinational company or have the onus to manage your own assets and liabilities, knowing some basics of accounts becomes mandatory.

Broadly, accounting is bifurcated into two categories-

Cash Bases Accounting

Accrual Accounting

The Cash Based accounting pertains to the management of an individual’s personal monetary transactions. In this case, he keeps a track of the money he withdrew, deposited, gave or received from someone etc. This accounting comes to life when actual cash transactions take place.

The Accrual Accounting requires an accountant who notes the transactions even if no money has been actually exchanged. This method works on the principle of comparing or seeing the ratio of the expenses to expenditure. If the expenditure is more, you need to cut down your luxuries, if not then it’s always good to have some savings for future. This type of accounting tells you the amount that you owed; this might not match with the figure of your bank balance.

In the language of accounting there are several key terms that one needs to be familiar with. Some of the crucial ones are discussed below-

The Assets- the assets are generally those possessions of an individual that have a good market value or are quite valuable. Assets are mainly classified into three types-
Current Asset- the cash is the most basic asset of any individual. The money that is being held in accounts like the checking and savings accounts is also included in the cash. Also inclusive are the marketable securities in the form of bonds, stocks, shares etc. The money lent or payments due from clients, even form a part of it.

Fixed Asset- comprises of all the tangible valuable things like property, machines, equipments, land and the like that are not meant to be sold.

Intangible Asset- incorporates all the untouchable things like copyrights, patents, trademarks etc. that have tremendous monetary significance.

The law of opposites governs the nature; where there are assets, there will be liabilities. These are the debts that you have to pay back to your creditors. This can be done through giving cash or any other asset like jewelry, some other goods etc. Liabilities again are of two kinds-

1. The Current Liabilities- the liabilities that are to be paid back within a certain time limit and most often through your current assets. These include the accounts payable i.e. type of bill that you have to monthly, the Notes Payable-loans taken from banks meant to be repaid within 30 days and the Accrued Expenses- the compulsory expenses like taxes, wages, interests etc. where the bills are not received but the balances of each must be repaid.

2. Long Term Liabilities- those debts that can be repaid at ease for the tenure is more then a month.

The Financial Capital- is the economic capital. It is any liquid medium or merchandise that stands for wealth or other styles or capital. There are four ways to manage and display the financial capital. First, this capital is needed when a contract is made with any sort of capital asset. The financial instruments work in the form of currency in case of sale, purchase or trade of goods i.e. the medium exchanges. Second, it works as a settled medium or mode like gold for the
Standard of Deferred Payment. Third, The Unit of Account has a market value attached to it which in turn varies with the economy of the country. Fourth, The Source of Value is concerned with financial capital that needs to be saved and recovered. It is a collection of things like gold, real estate, collectibles etc.

Petty Cash is an important factor in business. It is the smallest account within a business setting or the cash in bills and coinage required to pay little expenses.

Types of Business- there are several kinds of business one should be aware of like

Sole proprietorship- where a single individual who starts the business owns it too.

Partnerships- the companies or businesses started by two or more persons where they conjointly own it.

Corporations- involve lot many shareholders or investors who are responsible in taking decisions for the company.

Limited Liability Companies- can be said to be sisters of corporations. Here the business members are not under a legal obligation to pay the debts if the business fails.

Payrolls- the term payroll designates the manner in which you will be paying the employees of your company and even yourself. Many multinational companies cater to payroll service provider companies that do the work quite efficiently.

These are some of the broad guidelines that will help you grasp the basics of accounting. It is essential to have some such wisdom for accounts as it is fruitful in all walks of life.

About the author:
Mansi gupta writes about asset and liability Learn more at http://www.assetsandliabilitiesbook.com

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After the latest and accurate help in relation to accountancy.

2009-02-03T16:42:00.003+05:00

After the latest and accurate help in relation to accountancy.
by: Tom

When you are looking for high-class advice concerning accountancy, it will be hard sorting out the best information from foolish accountancy proposals and guidance so it's best to know ways of moderating the information offered to you.

NetSuite: Small Business Accounting
NetSuite offers an integrated online accounting application with ecommerce, sales, inventory, shipping and support. Free Trial.

Now we would like to offer you some advice which we advise you to use when you are searching for information about accountancy. You need to realize the guidance we put forward is only pertinent to internet based information concerning accountancy. We don't really offer any direction or assistance when you are also conducting research in books or magazines.

OpenPro: Web Based Accounting
Offers Web-based, open source ERP accounting system with financials, supply chain, manufacturing, CRM and ecommerce features.

An interesting tip to pursue when you're presented with information and suggestions on a accountancy website would be to determine who owns the site. Doing this could reveal the owners accountancy credibility The easiest way to reveal who owns the accountancy web site is to find the sites 'about' page.

Any reputable site providing information concerning accountancy, will always have contact information which will record the site owner's contact details. The details should make known some key points concerning the owner's requisite knowledge. You can then arrive at a decision about the webmaster's depth of experience, to offer guidance about accountancy.

About the author:
Tom Brown is the webmaster for http://www.hession-acton.info

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How to Choose the Right Accounting Software for Your Business

2009-02-03T16:21:00.001+05:00

How to Choose the Right Accounting Software for Your Business
by: Brandon Hall
With any good luck and a good amount of hard work, you're having the same problem many business owners today are facing. Your business is growing rapidly and you're having problems controlling your finances. Time and time again, that Microsoft Excel spreadsheet you've been using just isn't getting the job done for you.

So, you’ve decided that you’re ready to take the next step, and buy a full-featured accounting software program. Many options are available to choose from, but I believe the best solutions to be Quicken Premier Home and Business by Intuit, QuickBooks Pro also by Intuit, and Peachtree Accounting by Sage. In order to decide on the right package for you, you need define the type of business that you operate.

With the rise of self-employment (businesses with one or more owners but no paid employees) a need has arisen to manage business and personal finances on one platform. Intuit has released Quicken 2005 Premier Home and Business to fill this need.

This software is perfect for the small business owner who receives income from investments, real estate, and/or internet
marketing. Also, Quicken 2005 Premier Home and Business is well priced at only $89.95.

For more typical brick-and-mortar business owners, you will usually need a more robust solution like QuickBooks Pro or
Peachtree Accounting for functions like payroll reporting and check producing. Each piece of software has its advantages,
but don't forget that QuickBooks has been the standard in business accounting software for many years now. As for features and basic operations, both applications will provide you the same functionality and convenience for your business.

One additional factor to consider in your decision is that Peachtree Accounting is less expensive than QuickBooks. Both
starter versions of Peachtree and QuickBooks are priced at $99.95 each, but the full-featured version of Peachtree is priced at only $199.95 while the full-featured QuickBooks Pro is priced at $299.95.

At the end of the day, the biggest advantage QuickBooks offers over Peachtree is compatibility with other applications. For example, most commercial banks (Bank of America, SunTrust, etc...) provide you with files designed to work directly with

QuickBooks, so that you can read, study, and decipher transaction details. Also, some banks will allow you to update account information in real-time with QuickBooks. Check with your bank to see what accounting software their online services support, and you should be able to make your decision.

About the author:
Brandon Hall owns http://www.accountingsoftwareportal.comwhich is a site dedicated to providing resources, links, articles, and news related to accounting software products.

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Do You Need Accounting Software For Your Small Business?

2009-02-03T16:08:00.002+05:00

Do You Need Accounting Software For Your Small Business?
by: Jakki Francis
If you’re anything like me then you dislike with a vengeance doing your accounts and taxes.

So how can you make this process easier, less painful and cut your accountancy fees?

Well buying an accounting software package is one way.

First of all you need to decide whether you are going to keep your accounting records manually, that is using pen and paper, or whether you are going to computerize the process.

If you decide that computerizing the process is the way to go then you need to decide whether to buy an accounting software package, for example Sage or Quicken, or whether a spreadsheet, such as Microsoft Excel will suit your needs better.

As a general rule if you are a cash business that just needs to record income and expenditure then you are better off using a spreadsheet.

So, should you choose an accounting software package? Yes if:

· You have customers to whom you extend credit and you buy goods in the same way

· You process in excess of 50 transactions per month

· Your business is an Incorporated Company (Limited Company in the UK)

and

· You are computer literate or are willing to learn!

Before choosing the accounting software, speak to your accountants – they will be familiar with the various accounting software packages on the market and will be able to advise you. Most accountants use software in their office to process the bookkeeping for their clients and will have a working knowledge of the accounting software package they use. It may be cheaper for you to use the same one they do, because they can advise you how to get it up and running and will be on hand to answer questions, plus at your financial year end when your accounts need preparing it will be less expensive, believe me to have a compatible program.

I also recommend doing some research yourself, you may be able to obtain a demonstration disk or download of the most popular accounting software packages and this will give you an idea of how they work and if they are user-friendly.

The cost may also be an issue, so you need to decide on your budget. But consider how your business is likely to expand - you may outgrow that budget accounting software quickly and end up buying the more expensive one anyway.

Accounting software providers may also try and up-sell you a maintenance contract. Save your money! In my experience the established software providers will not have bugs in their systems. They will also try and upgrade you to the next version on a regular basis, but if the software is doing everything you need then there is no need to upgrade.

Of course, you could also pay someone to do your accounts for you, either your accountant or a bookkeeper – the payoff being you don’t have to do it yourself and it frees you up to actually run your business!

Copyright © Jakki Francis,(UK), 2005

About the author:
This article is copyrighted. Please feel free to use it in it's entirety including copyright information and information about the publisher. Jakki Francis operates the website http://www.accountingsoftware-reviews.com

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Surprise! Accounting is the Hot New Major

2009-02-03T15:36:00.005+05:00

Surprise! Accounting is the Hot New Major
by: Donna Monday
There was a time when accounting was the boring college major that many people regretted signing up for. A constant barrage of numbers, statistics and spreadsheets was none too interesting.

Boy, have times changed! Thanks to recent accounting scandals by companies like Enron, there is a high demand for accountants and auditors.

According to the Job Outlook 2005 survey, accounting comes out on top as the most in-demand major on college campuses. Forget dot com start ups. Cleaning up a company’s accounting books is what’s in.

But can accounting be sexy?

“All the focus on accounting created a perception to students that accounting matters and is perhaps even sexy,” says Ira Solomon, head of the department of accountancy at the University of Illinois at Urbana-Champaign.

Colleges are scrambling to find more accounting teachers and professors to replace those retiring. Not an easy task, since there are twice as many accounting faculty openings than applicants to fill them.

Here are the top 10 most in-demand college majors as surveyed by the National Association of Colleges and Employers (NACE):

1) Accounting
2) Electrical Engineering
3) Mechanical Engineering
4) Business Administration/Management
5) Economics/Finance
6) Computer Science
7) Computer Engineering
8) Marketing/Marketing Management
9) Chemical Engineering
10) Information Sciences and Systems

If you’re good with numbers and a stickler for details, you might want to consider accounting as a good career choice. However, you’ll probably have to take a number and wait in line behind all those other future accountant hopefuls.

About the author:
***********************
Copyright 2004
Donna Monday writes employment related articles for
http://www.get-a-job-interview-quick-tips.com

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Accounting Police: Do They Exist?

2009-02-03T13:03:00.009+05:00

Accounting

Accounting Police: Do They Exist?
by: John Day

Who created accounting principles? Who sets and revises accounting standards? What if you don’t follow all the rules, do you go to jail? Is there an accounting police force that investigates and arrests violators? It would seem that there must be some regulatory force to make sure that providers of financial statements conform to the rules. There is, up to a point, and here is how it works:

Mainly, it’s all voluntary and it works pretty well. First, double-entry accounting originated in Italy in the 1400’s, so its been around awhile. Accounting principles have evolved over the years just as have accounting standards. The reason why the system works is that the business community could not function if there was not commonality and consistency in financial statement reporting. It would be chaos, much like if there were no driving rules of the road.

Therefore, in the United States, a body of experts known as the Financial Accounting Standards Board (FASB pronounced Fasbee) was established in 1973, which superseded another board called the Accounting Principles Board (APB). The FASB members go through a lengthy process of analyzing and reviewing problems in the accounting field that are brought to them. After much thought, they will make a pronouncement as to what they think the new or revised way of approaching the treatment of an accounting issue should be.

They are a non-governmental organization that has private financing. A big supporter of FASB is the American Institute of Certified Public Accountants (AICPA). Many Certified Public Accountants (CPAs) belong to this prestigious organization and are obligated to abide by its guidelines and principles of behavior. Other countries no doubt have similar organizations that require high levels of accounting professional conduct.

FASB established an accounting code called “Generally Accepted Accounting Principles” or (GAAP). The assumption is that if a business financial statement is prepared according to GAAP, then the user of that financial statement could rely on or trust the information more readily than if not prepared according to GAAP. Those businesses that deviate from GAAP, and many smaller businesses do, cannot say that their statements are prepared under GAAP; in fact, they should inform the reader that they are not. However, let the buyer beware.

One governmental body that has a policing function is the Securities Exchange Commission (SEC). It is primarily concerned with public companies because their job is to protect investors from unscrupulous acts. Recently, the SEC has gotten into the act of establishing accounting standards. It has its hands full today.

Since most businesses use their financial statements to prepare their required income tax returns, the Internal Revenue Service (IRS) may audit those tax returns and review the financial statements upon which the tax returns are based. Not following the rules can get you in trouble with this governmental body.

You can see that in many ways compliance to the principles and standards is a mixture of voluntary and regulatory behavior. Currently, there is an effort underway to set international accounting standards due to the inexorable globalization process. This is a massive undertaking that will take years, but it is obviously necessary and inevitable.

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