The Benefits of Hiring an Accountant
Posted on 12. Jan, 2010 by admin in general
If your checkbook always balances to the penny, keeping your own books may be a good option for you.
If you are still keeping your books manually, however, you may want to consider a software solution such as QuickBooks. It is easy to make a small error in data entry, and QuickBooks can help you spot such an error quickly. Additionally, the software can analyze data and generate reports, freeing up your valuable time. Software solutions are reasonably priced and will quickly pay for themselves in timesavings.
Even if you keep your own books, with or without a software solution, you may wish to hire an accountant. Accounting is significantly more involved than simple bookkeeping. Accountants use the information in the books to create reports and analyze the business’s performance in many important ways. A good accountant can even assist at tax time, working through the complicated IRS paperwork and finding those deductions and credits that may apply to the business.
While it is possible for a business owner who is very good with numbers to perform his or her own accounting, the time requirements can be prohibitive. If you are unfamiliar with the principles and tools of accounting, much of your time will be spent simply sifting through books and websites looking for the relevant information. This also opens up the possibility of making mistakes, which can be quite costly to fix.
Consider hiring a Virtual administration firmto handle your accounting needs. Outsourcing to a specialized company can represent a significant cost savings over hiring an in-house accountant. One such firm, IAC Professionals, offers a complete line of services that can grow with your business. The company can help you get started with QuickBooks, and then provide as much or as little assistance as your company requires. You can keep your own books, and submit your records for accounting purposes. If the bookkeeping ever becomes overwhelming, IAC will step in to take over. You pay only for the time that you need, without the responsibility of keeping an in-house accountant busy during the slow periods.
If you are good with numbers, then keeping your own books may be right for you. Complicated accounting procedures, however, can take up valuable time and energy. Why not allow someone else to handle your accounting, freeing you to focus on making your business the best it can be? If you have any questions about hiring an accountant,contact us today.
IAC Professionals is a single source for contracting qualified professionals to assist you with your most critical business needs. They offer a wide range of outsourcing solution which include Accounting, Bookkeeping, Virtual Assistants, Company Formation and Business Consulting.
DIY Accounting Limited Company Accounting Software
Posted on 29. Dec, 2009 by admin in general
DIY Accounting produce Accounting Software for UK limited liability companies which consists of teamplates on excel spreadsheets, suitable for any small limited company aimed at automating monthly profit and loss account and a set of final company accounts with balance sheet ready for publication.
As the whole small business accounting software for a limited liability company is written on excel spreadsheets all bookkeeping transactions are visible. The excel spreadsheets have 12 monthly sheets in each work book. Prime data entry excel spreadsheets being provided for sales, purchases, cash, bank, savings account and credit card account. Financial transactions such as sales or expenses are then simply listed on the appropriate months? sheet. And changes or errors can easily be rectified by simply deleting errorsa or entering new information. This simple listing process is a huge advantage to non accountants as no previous bookkeeping or accountancy software knowledge is required.
Bank spreadsheets can be entered by listing the items that appear on the bank statement and include a box to enter the statement balance each month. The formulae within the excel spreadsheet then automatically checks that the entries made agree with the statement balance producing effective bank reconciliation. A good feature that ensures entries are recorded accurately in the companies accounts.
The simple bookkeeping entries that have been made to the sales,purchases and the bank statement is automatically transferred to the financial accounting file. In this file is a trial balance which actually automates all the double entry accounting transactions. No entries are required removing the need for users to have accounting experience. The Trial Balance is purely an accounting solution, visible and contains an audit check to again ensure the company accounts are accurate with no entries are required. The lack of entries in the area of accounting makes the product an ideal package for companies requiring a small business accounting software package.
Within the financial accounting software file is an automated monthly profit and loss account to enable limited companies to track their financial performance and very important, the package also produces a balanced profit and loss account and Balance Sheet in the correct format for submission of the final accounts. This set of final accounts automatically gathering the financial information from the basic entries made and includes the statutory notes required for a set of company accounts being published.
The package is equally suitablke for both vat and non vat registered business with vat returns produced at the touch of a button each quarter. To produce a vat return clients simply go to the vat file and select the quarter end date from a drop down menu and the figures for the vat return are automatically generated. The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.
The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation is also automatically calculated with preset percentages that can be changed as required.
The limited company corporation tax liability is also calculated automatically in such a way that all the calculations; additions and deductions are both automated and visible. Capital allowances on both existing and new assets being shown on the corporation tax calculation.
Accountancy Knowledge Required
The limited liability company accounting software is based upon single entry of transactions requiring no accounting or bookkeeping knowledge. All the accounting knowledge required to perform the double entry of transactions which is a required feature to produce a balance sheet has been automated. The company accounts package has a feature so that the previous years? figures may be entered and lists of opening debtors and creditors recorded. A minimal level of accounting knowledge is required to correctly list the closing debtors and creditors and check the totals of those lists agrees with the automated balances shown on the company accounts balance sheet
Very Low Priced
At £15 the accounting software can save many businesses exempt from a full audit the need to employ an accountant potentially saving hundreds of pounds in professional fees. Hundreds of small limited companies with up to 20 employees also purchase the DIY Accounting Payroll Software which is sold separately from £14.99 and fully integrates into the Financial Accounting Software.
Other Features
The product has a stock control feature to monitor any stock losses. The limited company accounting software contains a wages interface that fully integrates the DIY Accounting Payroll Software when those files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries. The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.
Conclusion: to Buy or not to Buy
Exceptionally good value, very easy to use and produces exactly what every small limited company requires in a small business accounting software package, automated accounts requiring no bookkeeping skills and no previous financial accountancy software experience with the valuable end product of a fully automated final set of accounts for the limited liability company.
Suitable Accounting Software Exists for All Business Sizes
Posted on 16. Dec, 2009 by admin in general
Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses. Simple accounting solutions are most suitable for small business.
The most comprehensive financial accounting packages incorporate financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.
Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.
Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.
The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.
In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Accounts payable would normally be multi functional of the purchasing department, purchase invoice accounts department and a legal function for overdue payments.
Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.
Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.
The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.
A database accounting software system not only produces high quality financial records but offfers numerous financial control alternatives for both junior and senior business management. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.
Accounting solutions requiring little bookkeeping or accounting knowledge are available usually based uponh spreadsheets as this is the most transparent method of viewing the accounts.
Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.
Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.
There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.
Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.
Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.
Why Your Small Business Needs An Accountant
Posted on 13. Dec, 2009 by admin in general
Accounting is an important aspect of any business, regardless of the size of the business. Keeping your accounting in proper order should be a top priority. If you are like most business owners, you probably have trouble maintaining the accounts and tax paperwork yourself. If this is the case, then you need an accountant to handle the accounting aspects of your business. This will free up your time to perform other tasks to help your business run efficiently. Last-minute problems, especially during tax season can be stressful and frustrating. You may find at tax time that some of your account balances are incorrect. This happens a lot with small businesses. A professional that specialises in small business accounting can correct these mistakes and prevent them in the future.
Most new entrepreneurs are unaware of how important accounting is to their business, and they end up with some major errors, due to poor record-keeping or incorrect accounting methods. Many business owners are simply unorganised, making it impossible to accurately track business finances. Some just do not have the time to keep track of financial records. The solution to these problems is to hire an accounting firm that specialises in small business accounting services.
When choosing a firm, examine its credentials, and explore its services to help you decide if the firm is right for your business. Don’t hire the first firm you come across. What is suitable for one business may not be suitable for another. Consult with the accountant about your specific needs. Once you’ve hired a firm, you can hand over your accounting to him, and you no longer have to worry. However, keep track of the work that is being done, and check from time to time to make sure your business accounts are being properly maintained. Share all your questions and concerns with the accountant.
Some businesses hire accountants on a long-term basis to keep the company financials in order year-round. In many cases, it is more efficient and affordable to hire a bookkeeper to handle day-to-day financial operations. Other businesses only use accountants yearly to prepare tax returns. Bookkeepers cannot legally prepare tax returns for a business. You may want to prepare your taxes yourself, but hiring an accountant to file tax returns is a wise choice because these tax professionals know how to maximise the number of tax deductions for their clients and how to organise financial documents such as receipts.
The main reason for hiring an accountant is that it is the easiest way to have your financial records put in order and your tax returns completed. Most accountants guarantee their work and complete it in a timely manner, so there’s really no reason to not hire one. Instead of spending hours sorting through your company finances, pick up your phone and schedule an appointment with a local accounting firm. Remember, time equals money, and you may find that the hours you save by hiring an accountant is well worth the cost.