Financial Systems

Financial Systems

This pillar also includes the software you will use in your business as well. You need a reliable accounting system to help you track your numbers and know what is truly going on in your business. Excel is great but even with the best macros in place, it is still a manual process and is therefore susceptible to more errors than a full blown accounting system.

Now that we are in the 21st century, technology is everywhere. And you need to embrace it. Don’t be scared of it. If your accountant or CPA does not have a stack of technology applications that they recommend, figure it out for yourself. Make a list of your need and wants – in two separate columns. Then start your research. Figure out which applications can give you most of your needs and a few of your wants. No software is perfect, so I doubt you will be able to find every want and need in one application. But hey – anything is possible. Be sure to check the advantage and disadvantages of each one, so you can make a well-informed decision.

Now once you leverage technology by matching it to

Practices for Accounts Payable

Practices for Accounts Payable

  1. Develop a written accounts payable policy and procedures document. A written policy: (a) facilitates employee training, (b) helps to establish a consistent response to routine situations and, (c) may create a framework for appropriate delegation of responsibilities.
  2. Identify incompatible duties and implement appropriate segregation of these duties. For example, employees who authorize invoices for payment should not have the ability to edit vendor master files, so too, employees who can edit vendor master files should not be allowed to process vendor invoices. Where possible appoint someone, not otherwise involved in the accounts payable process, to monitor changes to vendor master files.
  3. Where possible make purchases from pre-approved vendors only. This could help negotiate more favorable terms.
  4. When new vendors are added to the system, be sure to send a new vendor welcome letter. The letter should detail where invoices must be sent and any information necessary to process vendor invoices such as the completed w-9 forms, which are needed for the annual preparation of form 1099. There are hefty fines for non-compliance with 1099 reporting.
  5. Have all vendor invoices sent to the accounts payable department, where they should be logged, before they are sent
Opening A Business Bank Account

Opening A Business Bank Account

Online banking. Online banking is a key feature that all business owners should look for. Busy small business owners can save a lot of time by using online banking for paying bills, doing bank transfers, checking balances, and even accepting payments. They or they employees won’t have to spend time going to the bank and waiting in line for doing these. Most banks today offer this solution for free and when opening an account, just make sure the institution offers a safe and secure online banking service. Its website should not suffer from regular glitches and has a good and reliable loading speed.

They have little to no monthly fees. If you make the mistake of opening a business bank account that come with monthly fees, a portion of your hard-earned money will simply go to paying for these fees. To make sure you will enjoy this service, find out what this free banking offer includes. Check if each transaction is free no matter what the balance in your account may be or if there a minimum balance requirement. You would also do well to find out if printed checks for the account, cash deposits, and cashing

Accounting for Inventories

Accounting for Inventories

The first difference is the inventory costing methods used and applied. U.S. GAAP permits the use of last-in first-out (LIFO) costing method. Last-in first-out assumes that assets produced or acquired first are the assets used, sold, or disposed of first. Meaning, the newest inventory goes out first. The LIFO inventory costing method is prohibited by IFRS. U.S. GAAP and IFRS use first-in first-out (FIFO) and weighted-average cost. FIFO is another asset-management and valuation method used nationally and internationally. The assets produced or acquired first are sold, used or disposed of first. Assuming the assets left in inventory at the end of the accounting period correspond to the assets that are produced or purchased most recently. The weighted-average costing method uses the average of the costs of the goods, which is achieved by taking the total cost of items in inventory and dividing that number by the total number of units available for sale. The weighted-average method produces a cost for inventory that is between the costs determined by LIFO and FIFO. With regard to application of the different costing methods, U.S. GAAP does not require the same method to be used in determining the cost of for all

Befriend Balance Sheet

Befriend Balance Sheet

All these things help you plan well-some will help you figure out which assets you can easily convert into cash, how much liability the company has to pay, or how much capital the business has for day-to-day activities. In addition, you can use balance sheets to compare your business with others in the industry, analyse risks, and determine how the company can reduce financial and operational risks.

It’s important to pay close attention to your business’s balance sheet; you’ve made a significant investment in your company, and you need to take that investment seriously. If the return on equity is high, then the company is generating decent money for its investors. If not, then that company isn’t making anyone rich. In addition, if a competing company has a better return on equity, then your business isn’t as efficient as it should be.

The same is true with return on assets, which shows that the return that the company is earning on all its assets. Total assets include both the equity as well as the liabilities. If another firm in the industry is enjoying a better return on assets, you need to study why your business

Cloud Accounting Benefits

Cloud Accounting Benefits

It is very flexible, reliable and easy to access.

Cloud accounting allows you to access your data anywhere you are and anytime you want, as long as you have an internet connection and an internet connected device to use. You don’t need to go to your office and log in to your traditional accounting system any more. Cloud accounting allows you to work even from the comfort of your own home.

It offers real-time financial reporting.

One of the revolutionary things that cloud accounting offers, is provision of automatic transaction updates and real-time financial reporting, whichever accounting software you are using. You don’t need to wait for weeks or months before you get your financial reports because everything is updated in the system as soon as there are changes made or information is added. This helps you save so much time that you can use to focus on running your business.

It increases accuracy.

When you use any kind of cloud accounting software, you don’t have to duplicate your data entry. This means that some possible human error is eliminated, increasing the accuracy of your financial reports. Access to accurate and timely balance

Fuel Inventory

Fuel Inventory

Managing fuel also means installing appropriate measures to safeguard other assets in case there is fire. Other measures that the management deems proper should be in place that is dictated by law, including the dimension and the location of the fuel storage and insurances to be done.

Management may use an accounting application to facilitate fuel inventory. This application will keep records of the information that are entered in it. Now this entry of data can be done automatically in case the equipment is compatible with the app and vice versa. However, once compatibility is there, what the management can see for itself is the amount of reduction in work that would have been needed – no more will the manual entry is needed, and neither will there be the need of making copies of one entry as required by the books.

The app also gives an opportunity for checking and referencing the figure in the books; any abnormalities can be investigated as the management finds it. Moreover, this finding is aided by the app because it provides real-time information to the management. This means not only information needed to make decisions are available when they

Pharmacy Accountant for Business

Pharmacy Accountant for Business

Working with a pharmacy accountant is extremely important whether you own a single pharmacy or a network of several pharmacies. The right team can help you maximize profits and while minimizing taxes legally. Their services are tailored for clients in the pharmacy sector, so there is no waste or inefficiency.

Some of the best accounting firms offering services for pharmacies offer fixed and transparent prices. They can reduce your liability risk and ensure that your taxes are always paid on time. Their accounting services for community pharmacies include bookkeeping, VAT services, payroll, and quarterly management of accounts, corporation tax return filing, personal tax return handling, and annual accounts management. For locum pharmacists, they can provide advice on relevant expense claims, reducing taxes through trading, reducing enquiry risks, and efficiently drawing money tax.

Do you need help registering your pharmacy with HM Revenue and Customs? A pharmacy accountant can do that as well. The best accounting firms will likewise handle self-employed accounts preparation, HM Revenue and Customs filings, company tax return preparation, personal tax return preparation, and limited company accounts preparation.

A reliable pharmacy accountant can even help you with buying a pharmacy as well. They

Businesses Should Hire Accountants

Businesses Should Hire Accountants

Managers Are Too Busy for Bookkeeping

The path towards proper tax preparation depends upon accurate bookkeeping. If the enterprise is too busy or growing rapidly, an accountant can help with bookkeeping. The right firm will be able to keep track of the books so the managers and owners can devote their time to growing their client base. The more time they can spend on operations and management, the better the company can function.

Profits Aren’t Increasing Along with Revenue

An increase in revenue does not automatically mean an increase in profits. Accountants do more than handle tax preparation-they examine overhead costs and look for areas of improvement. If they see a particular expense that can be eliminated or reduced, they’ll advise the company.

Demanding Investors

Investors place their money in a company if they believe it will be successful, but their support is often contingent on a degree of involvement. Many investors expect the owner to provide them with professionally prepared financial statements. These statements should give the investors an idea of the company’s performance, the way their contributions have impacted the business and if they can expect any returns on their investment.

Influence of Globalization on Tax Revenue

Influence of Globalization on Tax Revenue

The Tax Effect

Because certain locations allow for lower costs of doing business, corporations realize more net revenue, which should translate into increased taxable income. However, increased revenue does not necessarily translate into taxable revenue if the organization is maximizing profit by reducing net income tax expense by conducting business where the tax rate is the lowest. When this happens an economic phenomenon called “race to the bottom” occurs (Dreher). Governments reduce tax rates to encourage corporations to locate to their country to do business, thus increasing their economy.

Tax loopholes contribute to a decrease in corporate income tax revenue (McIntyre). Theoretically, these companies should be taxed in both their base country and the target country, which is called double taxation (Lentz). However, double taxation agreements limit double taxation by providing an arrangement where countries do not subject foreign income to double taxation in more than one national taxing jurisdiction. Global taxing agencies enact these agreements to entice companies to do business within their borders to increase their local economy and boost their markets.

There are also other ways to get around taxation. Often a country will enact tax holidays (Lentz) as an incentive for