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The Main Benefits of Outsourcing Your Accounting Function

The Main Benefits of Outsourcing Your Accounting Function
Outsourcing has become increasingly popular over the last few decades as companies have realised that delegating a variety of business operations to a third-party provider can give them a number of benefits. Indeed, outsourcing your business operations can provide you with a number of benefits, especially in relation to your accounting functions while you should also understand that a variety of third-party providers are available on the market. This is especially pertinent if you are starting up a company and you do not have the relevant accounting experience to carry out this particular management function of your business. In addition, you should also be aware that accounting is essential so that you can generate profitability as well as reduce your operating costs. However, if you are unaware about how to go about the process of outsourcing your accounting function, you should think about consulting an online business directory as you will be able to identify a number of providers that you can contact. 1. Increase your profits One of the main benefits that your business could enjoy by outsourcing your accounting function is that you can increase your profitability. Indeed, outsourcing allows you to spend your resources on the important core business operations so that you can generate more profit. This is definitely an advantage if you are looking for an outsourcing provider, such as Acclime, that can give you the highest quality accounting services in Vietnam. It is also important to understand that you can minimise your risk as well as ensure your financial statements are prepared correctly. This is especially pertinent if you do not have the in-house accounting knowledge while making sure your financial statements are correct at all times is imperative if you want to be legally compliant at all times. 2. Reduce your operating costs Furthermore, you should also be aware that outsourcing a particular business function can allow you to reduce your operating costs. Indeed, by outsourcing your accounting function, you will not have to pay salaries or other recruitment expenses to hire qualified and experienced accounting personnel. As a result, you can focus on your core operations if you are just starting out in business, instead of the support functions that are required for you to carry out your business. 3. Improve your decision making process Finally, you should be aware that if you are looking to outsource your accounting function, you can improve your decision making process. Indeed, this is especially important if you hire an experienced and professional third-party provider as they will be able to provide you with information pertaining to your accounts as soon as possible. This can allow you to improve your decision making process as well as yield reliable information so that you can make better decisions in a short amount of time. Increase profitsReduce costsImprove decision makingThe Main Benefits of Outsourcing Accounting Function Therefore, in conclusion, if you are a business owner and you are looking to increase your profitability as well as reduce your operating costs and improve your decision making process, you should consider outsourcing your accounting function to a third-party provider as soon as...
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Why Outsource Your Accounting?

Why Outsource Your Accounting?
Outsourcing is a trend that’s on the rise for a good reason — it works! Almost two-thirds of all businesses outsource some of their positions and processes, and many more are sure to join in soon. You can outsource anything, from marketing to property management, and there are huge benefits to it. Accounting can take a lot of your time and be extremely stressful, but if you outsource it, you can focus on what you do best and leave the pros to deal with the boring stuff. Here are some of the major benefits of outsourcing your accounting. It Can Be Cost-Effective It may seem at first that hiring an in-house team could pay off in the long run, but the truth is quite the opposite. Apart from their regular salaries, there are many expenses you need to account for, such as training, benefits, accounting software and suitable hardware, as well as office supplies, and more. You could train some of your other staff to do accounting, but if they are not sufficiently competent, their mistakes could cost you even more. So enlisting the services of an external accounting provider might prove to make the most financial sense. What’s more, you may not even require their services all the time, but rather call them as needed. It Can Improve Your Operational Efficiency If you have to allocate hours of your busy day to dealing with payroll, bills, and other issues, that can slow down your progress significantly. Instead of running a business and focusing on your main responsibilities, you have to deal with equally important but menial tasks that you could delegate to someone else. However, if you don’t have an accounting team, you would have to burden one of your employees with these tasks, even though you could have used them for something more relevant. The point is, no one in your company has to deal with financial records, invoicing, and similar tasks. If you outsource them, you and your team can focus on your day-to-day operations freely and without hindrances. You Get to Work With Experts in the Field One of the main advantages of hiring an outsourced provider is the fact that you get expert help. You are likely to end up working with an accounting agency, which specializes in all things accounting related, unlike your team. The accountants you hire will have extensive knowledge and experience in what they do, and you can even find someone who specializes in your particular industry. These professionals always strive to improve so that they can offer the most reliable services possible. Moreover, they will make sure to keep track of any potential changes in the law that could affect you in any way. This can be particularly beneficial when it comes to tax benefits and similar issues. You Get Access to Top-Notch Accounting Resources Just like you try to always keep up with the trends in your area of expertise, so do accounting agencies. If you have an in-house accountant, chances are they’ll be stuck working with the same old program for years, without ever updating and missing out on many innovations. An accounting agency wants to stay on top of their game, so naturally, they will make sure to follow the latest industry trends and thus increase their efficiency. That means that your financial information will be analyzed and operated in the most state-of-the-art accounting software. You don’t have to think about updating your hardware or software; your outsourced provider will take care of that. You Don’t Have to Worry About the Security of Your Records You may be surprised to learn that trusted employees all over...
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Here Are 4 Ways to Pay Your Employees  

Here Are 4 Ways to Pay Your Employees   
Starting a Small Business? Here Are 4 Ways to Pay Your Employees Hiring employees is a major milestone for any business owner who has previously done it alone. Even if the help is quite welcome, some important related decisions will almost always need to be made. This is true even of the most basic issues, such as how workers will be paid. Fortunately, business owners who are armed with a bit of knowledge will always be equipped to choose appropriately. Taking the Next Step Toward Long-Term Success  Sole proprietors who have no workers to worry about, deal with what are generally among the simplest of all possible business arrangements. As soon as employees enter the picture, issues like employment taxes need to be accounted for, lest the government’s wrath descend upon a business owner. Many entrepreneurs find it worthwhile to make use of small business payroll services that virtually rule such problems out. Being able to rely on the expertise of specialists makes potentially costly mistakes a lot less likely and provides a firm foundation for future growth.     Determining the Best Way to Pay Any Company’s Workers  Even with payroll being handled by an expert, though, business owners still face an important choice. Pay can actually be issued in any of at least the following four common ways, each of which comes with certain benefits and drawbacks. Choosing the means most appropriate to a particular company and its workers will always make things easier, in general. The four options that are available to most business owners when it comes to paying workers are: Checks. Bank drafts authorized by means of check are traceable, accessible, and well-established. The paper trail that writing and depositing or cashing a check creates can prove useful if any issues arise later on. On the other hand, not everyone today has access to an account that can be used to convert a check into a balance. Workers who are forced to cash their checks by other means sometimes end up paying a fair amount for the privilege.     Direct deposit. As the more modern relative of the old-fashioned check, direct deposit is an increasingly appealing option. In this case, things are even more restrictive, though, as only employees who have accounts in good standing will be able to make use of this approach. Unfortunately, about 1.7 billion adults worldwide still lack such resources entirely. Prepaid cards. Certain cards associated with networks like those operated by Visa and Mastercard can also be loaded with paychecks on demand. Particularly where some workers might not have checking accounts, this is an increasingly popular choice. Some payroll cards, however, impose maintenance fees and the like, so business owners will always do well to put in plenty of research. Cash. Although it might sometimes seem a bit crude, cash is still very much a valid way to pay wages. Relatively few business owners opt for this approach, though, because of the exposure and hassles it tends to create. The Right Choice is Usually Clear  Business owners who wish to do the most they can for their employees will always put some thought into choosing a means of payment. In many cases, it will even make sense to offer at least a couple of choices, from which each worker can select the most personally appropriate. In practice, it tends to be fairly straight forward to figure out how best to pay any small business’s employees....
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An Introduction to Contracts With Customers

An Introduction to Contracts With Customers
Do you remember the first sale that you ever booked or made on your own? It was probably pretty exciting — that feeling of elation and top-of-the-mountain. You suddenly realize that you might understand how this whole business thing works and you might be able to do this. But of course there are practicalities to consider when you make a sale. It can be tempting to recognize revenue right away, but there’s always a risk. What if the sale cancels, for example? What if it costs more to create the product or service than you’ve booked? It just can be a difficult process to learn the ins and outs of recognizing revenue. Standards to Recognize Revenue Fortunately there are standards to use that others have figured out. These standards are a great way for companies to make sure that people understand what they are doing is on the up and up. Non-accountants must be aware of the concept of recognizing revenue from contracts with customers. Because payments are often not a straightforward affair, accountants have to allocate revenue using specific standards set by national and international accounting boards. While this information doesn’t seem important for non-accountants to understand, it is. Knowing when revenue can be recognized in your company’s financials affects everyone, from the salesperson’s commission to the marketing budget next quarter. What are those standards and what are the takeaways from them? This graphic explains it.   To understand and accomplish the new revenue recognition standards, businesses should complete the following five steps:  1. Identify the contract with your customers Clearly identify the goods or services provided and describe each party’s right to them   2. Identify your performance obligations Specify exactly what you owe your customers and explain what defines “good performance.”   3. Determine the price of your products or services When doing so, don’t forget to consider promotions and other discounts.   4. Allocate a transaction price to the obligations specified in the contract Align the price of your services with your compnay’s performance obligations   5. Recognize revenue as performance obligations are satisfied   Sales people also must understand the difference between booking and revenue. A booking is when the customer makes a commitment via a contract to buy your services or product. Revenue is when the revenue “counts” on the books – When accounting can account for the revenue as being...
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How to Avoid Cash Flow Problems as a Small Business

How to Avoid Cash Flow Problems as a Small Business
If you own a small business, then you’re probably no stranger to cash flow issues. In fact, 21% of businesses claim that cash flow problems were significant issues, potentially leading to closing down. One of the best ways business owners can ensure success is by carefully managing cash flow. Because no matter how great your business plan is, your business won’t survive if you run out of money. What Causes Cash Flow Problems? Before you can get a handle of your cash flow issues, you have to understand why they occur. Here are three common reasons why cash flow problems may arise: Unnecessary Spending Many business owners have head the old adage that you have to spend money to make money. Unfortunately, this belief has caused many ambitious business owners to overspend. Not all business expenses equally as important to your operations. Consider the cost-benefit of each expense. Overestimating Future Earnings Optimism is a great trait but it needs to be paired with a healthy dose of objectivity. It’s important to forecast your sales based on previous earnings and data. By not counting on future earnings that may never show up, you can prevent overspending. Inconsistent Sales Some businesses have occasional spikes in sales followed by months where they sell next to nothing. Trends like these cause problems with budgeting and makes it difficult for business owners to make operational decisions, often choosing to survive off of their “good” months. Get started with Flexible Funding today! Flexible Funding provides payroll-funding solutions in addition to back and front office support services as well. Flexible Funding works with staffing companies to implement the right staffing-industry software solutions for each client’s unique needs to create the best solutions and to save you time and money -from off-the-shelf accounting packages like QuickBooks and Sage 50 Accounting to in-house custom-built financial accounting software tools. Whether you are a start-up or an established staffing agency looking for best business practices, Flexible Funding will find the right solution for you– from payroll and invoice processing to W-2 preparation and filing, background checks, custom reporting, and so much more.   Tips for Avoiding Cash Flow Problems Cash flow problems are a reality for nearly all business owners but there are ways to manage them. Here are five ways to mitigate your cash flow issues: 1) Take Out a Short-Term or P2P Business Loan A short-term business loan can provide the capital you need to run your business and pay for any expense, from inventory to office furniture. Short-term business loans have a high rate of approval even for businesses with limited credit history. You’ll receive the money faster than you would if you took out a traditional bank loan, which can be extremely helpful if you have immediate needs. Sometimes the application process can take as little as 24 hours. One of the first places to check for business loans as a business owner would be Small Business Administration. Or, if you prefer to bypass the government, you can try a peer-to-peer business loan. These loans are funded by individual investors through a lending platform. However, these loans usually require more frequent payments, and you will likely end up with a higher interest rate. 2) Use a Working Capital Loan Working capital loans can give you the cash flow to cover crucial operational costs like rent and payroll. This gives you the flexibility to invest in your company’s growth and still cover day-to-day expenses. Unlike other business loans, working capital loans don’t require that you state your reasons for taking out the loan. However, you will have to repay this loan quickly and your loan may have a...
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