How Does Account Reconciliation Work?

Author: Stephen L. Nelson, CPA

Balancing, or reconciling, your bank accounts represents an important financial management task. By regularly reconciling your records with those of the bank, you improve the accuracy of your bookkeeping, you assure that bank errors haven’t been made, and you also reduce the chance that you aren’t the victim of fraudulent transactions, such as those perpetrated by a forger.

The problem when reconciling bank accounts

But unfortunately, trying to reconcile a personal or corporation bank account with Microsoft Money can seem pretty daunting at times. On any given day, a comparison between what your records show is the balance in your bank account and what the bank’s records show will yield a discrepancy. And reconciling a bank account simply explains the difference between your records and the bank’s.

Locating Forgotten Transactions

In general, two factors explain the differences between the two sets of records: First, there are the transactions you haven’t recorded but that have been recorded by the bank, such as transactions you’ve forgotten to record as well as transactions for items such as bank fees and interest that you won’t know about until you see them on the bank statement. Second, there are the transactions you’ve recorded but that haven’t yet been recorded by, or cleared, the bank.

The process of reconciling any account involves looking carefully at both factors. For example, typically your first step is to look for and then record any transactions you forgot or didn’t know about before seeing the statement: cash machine transactions, forgotten checks, interest, and monthly service fees. (This step of looking for and then entering forgotten transactions can be particularly important if you're using Microsoft Money to manage a small business's finances--even a small corporation or small limited liability company can easily have hundreds of transactions a month in a bank account.)

Explaining Discrepancies Between Your Records and the Banks

Once you’ve done this, you then identify and total the transactions that you recorded but that haven’t yet been recorded by the bank, such as outstanding checks and deposits in transit. The total of these transactions should explain the difference between your recorded balance—this is what Microsoft Money shows—and the bank’s balance—this is what appears on the bank statement.

When the total uncleared transactions don’t explain the difference between your records and the bank’s, you need to repeat the two steps discussed in the preceding paragraphs. You’ve made a mistake in at least one of them.

Reconciling Corporation and Limited Liability Company Bank Accounts

If you're reconciling a bank account for a small business that includes more people than just the owner and his or her family, you probably want to add one more step to the basic account reconciliation program: You should consider the possibility of forgery and embezzlement and look for evidence of either crime as you reconcile.

Specifically, if you do see forgotten transactions, you should consider the possibility that you didn't forget the transaction. You should consider the possibility that some nefarious third person effected a transaction in a fraudulent manner (such as by forging a check).

About the Author:

CPA Stephen L. Nelson is the author of do it yourself kits for New Jersey incorporation, New Jersey S corporation, and New Jersey llc formation.
Trying to print a report or chart in Microsoft Money? Follow these simple steps, says CPA and computer book author
Stephen L. Nelson.

Article Source: Articlesbase

Outsourcing Accounting to India - A Powerful Business Strategy

Author: Amitaabh Saboo

Dealing with the accounting function of any business can be laborious and time-consuming. Making sure that accounting details are accurate is no walk in the park either. It requires great care and expertise. When business owners review accounting records to check the firm's financial status, they realize how much time is spent on getting accurate details and chalking them up. In fact, doing accurate accounting can take significant time and effort.

Only qualified accountants can draw accurate conclusions from accounting details and help firms realize the actual financial picture. However, procuring the services of an accountant that is both qualified and experienced is cumbersome. In this instance, one might opt to simply hire the services of an outsourcing firm that specializes in accounting. These days, outsourcing accounting to India has become one of the most preferred options for businesses and accounting firms.

The work of an accountant never ends and it requires vigilance. If one appreciates the details that can possibly make or break a business, he would certainly want to get the most qualified accountant for the job. Outsourcing accounting to India is ideal because it ensures that only a qualified professional from a reputable firm will work on the accounting services for a business.

Now, choosing a reliable, authentic and established accounting outsourcing vendor in India can be difficult. In spite of this, one must give it time and care because once outsourcing accounting to India is accomplished, there would be no more need to worry about accounting again.

When outsourcing accounting, the first step is to skim through the many different firms listed in classifieds over the internet or online. Available vendors offer accounting services to both large and small businesses. Different businesses have different requirements when it comes to accounting. For this reason, it is imperative to procure the services of a firm that understands the accounting needs of the business.

When outsourcing your accounting to India, business owners will need to follow a structured process to ensure its success. First you need to choose an accounting firm that has good experience in accounting outsourcing. Always choose an accounting firm that works 24x7 since efficient communication is the key to most outsourcing initiatives. Then you have to give the accounting firm accurate details regarding the firm's accounting requirements. Business owners also need to take measures to ensure only proper use of the firm's accounting data. Further, one must ensure that outsourcing service is significantly beneficial to the firm. It is, after all, the business owner's money that is at stake.

About the Author:
Outsourcing Accounting to India requires great care and expertise. There are many accounting outsourcing firms in India that cater to small and medium businesses worldwide with a structured process to ensure its success.

Article Source: Ezinearticles

Outsourcing Bookkeeping Makes Perfect Business Sense

Author: Amitaabh Saboo

Bookkeeping is a time consuming and tedious but essential task for businesses. Moreover, it can be quite expensive as it entails accountants’ salaries – very likely substantial – and benefits over and above the cost of training them. Though hiring a proper staff for bookkeeping may fit the budget of many small business ventures, often, after the expense on training accountants in bookkeeping, in due course, companies find that they can not afford to hire these accountants permanently.

To conserve the budget for in-house bookkeeping, a company may opt for outsourcing bookkeeping work - a portion of it or its entirety. Savings on the cost of training and retaining an in-house bookkeeping staff translates into lower capital expenditure. Additionally, shifting some of your workload to others saves you time and allows you to perform efficiently in other areas of your business. Therefore, outsourcing bookkeeping saves time and money. Time and money saved can be utilized for strengthening core sectors of the business and expansion, both of which increase profit.

Yet another benefit of outsourcing bookkeeping is enhanced efficiency. Usually, because of the multitasking nature of work in businesses, a person or a company is unable to give its best just when it is needed most. In this instance, it makes perfect business sense to outsource bookkeeping work to accounting firms. The professionals at outsourcing bookkeeping firms lay great emphasis on expertise and proficiency. Because professionals at specialized outsourcing bookkeeping firms have the advantage of being able to concentrate on maintaining your accounts, they do the work in much less time than in-house accountants. Plus, they can take each and every step of bookkeeping very carefully thus producing meticulous work.

Many outsourcing bookkeeping firms have specialized software for managing accounting transactions. This spares your company the time and expense required by acquiring and maintaining software, as well as training accountants in software manipulation.

Bookkeeping outsourcing online is especially beneficial to small and medium business firms. Online accounting services generate additional savings in time and manpower - time and manpower that would otherwise be spent on visits to the offices of professional bookkeeping firms. Again, the time and energy thus saved can be redirected towards other sectors of the business or towards expansion.

Bookkeeping outsourcing online also generates additional savings on computer maintenance cost, training cost, fixed costs and overheads. Indian Online bookkeeping outsourcing companies are especially noteworthy for the nominal rates they charge for providing efficient services.

About the Author:

Outsourcing bookkeeping services & outsourcing accounting services at amazingly low rate for small business. #1 selling online accounting & bookkeeping services firm. QuickBooks online bookkeeping & accounting outsourcing firm in India.

Article Source: Articlesbase

Account Receivable Management

Author: Scott Stevens

Your business has been reaping huge profits for years now, when all of sudden you find yourself in need of fast cash. If you have tried several solutions without success, you may be interested in learning more about accounts receivable management. But what are accounts receivable and accounts receivables management?

An account receivable is the money owed to a company by a consumer for products and services purchased on credit. This is usually treated as a current asset of accounts receivable after the customer is sent an invoice. Accounts receivable are known by various names, such as accounts receivable aging, accounts payable, days receivable, accounts receivable turnover and invoice factoring.

According to the experts, accounts receivable or invoice factoring is one of a series of accounting transactions. These accounting transactions deal with the billing of customers who owe money to a person, company or organization for goods and services purchased. If you are seriously considering using accounts receivable as a method of obtaining a more liquid asset, then it is wise to hire accounts receivable management specialists.

Accounts receivable management specialists can help you in a variety ways:


• It can cut and maintain your average collection delay or DSO

• It can lessen your direct and indirect expenses

• It can considerably reduce your bad debt

• It can tell you various ways to take advantage of your cash-flow

• It can help you capitalize on your internal resources

• It can maximize your interventions on sales, service and market share.

Hiring the best accounts receivable management will clear up the common misconception that the selling of accounts receivable is a loan. Accounts receivable are the amounts that customers owe a business; this is clearly shown on a company's balance sheet.

Some also call accounts receivable trade receivables and try to classify them as current assets. Accounts receivable management’s main goal is to take care of all these debts and to record sales of accounts; one must debit a receivable and credit a revenue account. Accounts receivable management also looks into issues such as recognizing accounts receivable, valuing accounts receivable, and disposing of accounts receivable.

Thus if you are looking to hire accounts receivable management specialist but don’t know whom to choose. Then Magnolia Financial is there for you. For more information on accounts receivables management, receivables management, account receivable and factoring invoices please visit www.magfinancial.com.

About the Author:

Scott Stevens is well known author who writes about financial services such as cash flow programs, account recievables, factor recievable etc. Find more information about magnolia financial service at http://www.magfinancial.com

Article Source: Ezinearticles

Bookkeeping Software Spreadsheets Are Essential Small Business Accounting Tools

Author:Terry Cartwright

Spreadsheets are the accepted global method of listing and analyzing data. Used extensively throughout the business world bookkeeping spreadsheets and templates can provide the essential solution to a small business keeping accurate accounts.

Every small business needs to keep records of sales invoices and income received and purchase invoices in respect of expenses. It is not sufficient for accounting and taxation purposes for these receipts and payments to be left in the office or the back of a van in a carrier bag. At some stage these prime bookkeeping documents need to be processed.

Processing the financial documents related to a business enterprise basically means they need to be listed. For tax calculation purposes and also accounting control over finances the invoices need to be added and analsysed. The most basic method would be to simply make a list of the sales income and a second list of the purchase expenses.

Using a manual method of listing the information falls short of the analysis required and is more time consuming that using a little technology to both ensure the summation is accurate and the analysis simplified. Listing the sales and expenses of a small business on spreadsheets is no more difficult then a manual paper system and has tremendous advantages in automating and ensuring accuracy.

Hence the use of bookkeeping spreadsheets to prepare the accounting information required. Instead of listing the items on a paper list the items can be just as easily listed on a spreadsheet which will add up the items as required without the requirement to double check the adding up is accurate. Such a list has a history in accounting term as a sales daybook and a purchase daybook

To achieve the required analysis of sales and purchases all that is required is to write into the top of each of the spreadsheet columns the titles of the analysis headings required. Then repeat the value of each transaction in the total column into the analysis columns. Use the spreadsheet technology to add up each column and you have an effective bookkeeping spreadsheet.

Preparing such a bookkeeping spreadsheet might and often does suffice the needs of the smallest business enterprise and is a close step towards achieving a valuable tool for this purpose, bookkeeping software. Bookkeeping software can be as simple as a home produced spreadsheet but with additional facets that can have significant financial benefits to the business.

Bookkeeping software produced on spreadsheets would normally be a series of spreadsheets with the columns preset and titled and formulae written into the sheet to automatically add up each column. In addition the columns used would normally be restricted to general headings to include a full analysis of all items.

Small businesses that might produce their own spreadsheet would often do this on an annual basis. Bookkeeping software is much more likely to provide these bookkeeping spreadsheet templates on a monthly basis to enable a degree of financial control to be exercised by the small business.

That is the second real value of bookkeeping spreadsheets, the ability to provide the business with financial information and through that data financial control over the business activities. The first value is of course the simplicity of listing with automated summation of the figures.

Professionally produced spreadsheets by an accountant can benefit a small business if they have been prepared on tried and tested bookkeeping templates and the background software prepared in such a way to produce accounting information in the fomrat the small business requires it. There are two main requirements of the way the financial records are analysed being to produce a financial profit and loss account for the business on a periodic basis but also to provide the totals of the categories required for taxation purposes.

Buying a piece of bookkeeping software written on spreadsheets can thus become an essential tool for the business. The essential element being to both make the accounting simple and easy as listing items, automated analysis and summation assisting the financial control and improved financial performance while also producing the benefits of being analysed to make the completion of annual tax return forms easier.

Everyone in business wants to make a profit making financial control important. Everyone in business has to fill in tax forms and submit accounts in the tax authority format. Bookkeeping spreadsheets provide an essential accounting tool for every business to achieve these objectives.

About the Author:

Terry Cartwright a qualified accountant at DIY Accounting designs UK Accounting Software on excel spreadsheets providing complete Small Business Accounting Software solutions with single and double entry Bookkeeping Software for both limited companies and self employed business

Article Source: Articlesfactory

Accounting outsourcing services help you run a successful business

Author: Alliesharbor

The various departments like finance, marketing, human resource and IT, join hands to make a company run successfully. The income soaring over expenses provide the business with the profits, which is the main reason why a person ventures into business in the first place. However, every business needs a guardian to keep track of the expenditure made on successfully the business and the financial returns achieved through the efforts. Accounting plays the role of this guardian who keeps track of every little income and expenditure incurred by any business during the course of its existence. At times, it may not be possible for a company to devote an entire division to manage these all-important accounts of day-to-day business. This is where accounting outsourcing services come in handy.

Many vendors are offering competent accounting outsourcing services to various businesses across the globe. The services of these vendors are being successfully utilized by businesses to ensure that their regular accounts are accurately maintained on a day-to-day basis and are readily available for scrutiny at a short notice. The vendors also ensure that professional accountants who are well qualified for this kind of a job handle the accounting outsourcing services provided by them to their clients. The accountant has to be certified by a recognized institution and should be competent enough to accurately handle the financial records of the client. As accounts are very sensitive data of any business, the security provided by such vendors should play a crucial role in selecting the right service provider.

Many third world countries like India and China are gaining reputation as the best vendors for accounting outsourcing services. The labor cost of these countries is much lower than the western countries and the professionals are also well qualified to handle this job responsibly. The availability of ready financial data at a moment’s notice plays a crucial role in maintaining the reputation of the client. This comes in especially handy during the annual time of paying taxes. Having all the financial records in proper order during filing tax returns places the company in a favorable light for the tax auditors, customers, clients and the general public. The outsourcing of such work to a vendor ensures that the company officials do not have to keep a track of each minute detail in relation to running the business. All these data is carefully recorded, stored and accounted for by the accounting outsourcing professionals.

Before handing over the financial data of your business to any vendor providing accounting outsourcing services, you must carry out a detailed research about the vendor. A past reference from a company that has already availed of their services will further help you in choosing the right vendor. Also, ensure that the vendor you choose can continue to use the same accounting software through which your company had been maintaining the accounts until date. Once all these factors and queries have been satisfyingly solved, you can go ahead and give your business the advantage of accounting services outsourced.

About the Author:
Allies Harbor is a writer and writes articles on various topics including outsourcing. To know more about Accounting outsourcing services ,Business Process Outsourcing,Software Outsourcing India visit www.ifrstaffing.com

Article Source: Articletrader

Small business accounting will earn you more profits

Author: Alvis Brazma

Small business accounting is the latest one to attract the attention of many business owners as they find the larger accounting firms too busy in executing their tasks. Moreover, keeping a track on every day’s financial transaction is a tough job; hence, needs a specialist to take care of accounting records especially when you are a businessperson. Thus, these firms are turning towards small business accounting organizations for their proficient
abilities to accomplish work within a short period of time.

Irrespective of the size, every organization needs an expert to take care of the financial numbers efficiently. However, due to the busy schedules and mismanagement of time on the part of many big accounting service providers, many business owners seek help from small business accounting firms. However, every business wants to earn numerous profits and at the same time want to make the business popular; hence, a small business accounting is needed to handle the account books of such companies. Well, sometimes running a business can be overwhelming and that is the reason, why many organizations opt for small business accounting because they offer accurate results. With the help of small business accounting, the companies also earn huge profits in a very short time.

These firms also help in curbing the losses that are incurred due to various problems like work force and other resources. The service offered by small business accounting also enhances the performance of business in the market. However, one can say that through it, the organizations tend to earn more and simultaneously able to curtail losses that were incurred during the entire financial year. Accounting service providers also earn edge over big service providers as they have lesser clients and denote ample to cater to their needs and requirements. Small business accounting firms are getting tech savvy just like big and large accounting service providers. They are opting for various software solutions that are specifically designed for their clients. In fact, with the help of accounting software, the whole process becomes easier and the financial records and tallying them over and over again is simplified.

However, most of the business owners are not a qualified accountant and are always busy in churning out profits, hence; hiring an accountant for various accounting tasks is a good option. This is one of the significant reasons to have small business accounting expert for business deals for a future. Taking services from small business accounting solutions is a good way to reduce time and personnel resources. Therefore, small business accounting is professionals who specialize in providing efficient and accurate accounting services. Thus, do not wait anymore and call an executive for accounting services as soon as possible as they deliver solutions with accuracy. The accountant will handle accounting work carefully and efficiently, in fact, they will also help in making a daily report on the regular transactions and the client is updated through online file transfers. Therefore, one can say that to earn more profits one can rely on small business accounting for a successful business.

About the Author:
Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about Accounting outsourcing services,Small Business Accounting,Bookkeeping help, Accounting Outsourcing,Small Business Accounting visit this leading internet source: www.impacctusa.com

Article Source: Articlecube

Accounting Outsourcing Services are the Best Way to Save Time, Money and Expense

Author: Michelle Barkley

The perfect maintenance of the accounts and financial statistics of a company in a subsequent order is the key to quality development for both economy and reputation of the firm. However, this essential task has always been a lengthy deal, which demands good amount of time and hard work. Call it a necessity or an advantage, but hiring an expertise team for sorting out the accounts is highly beneficial. Though, unfortunately this is not as easy as it appears and to solve this issue, the firms can approach to many capable accounting outsourcing services. It is significant to deal the accounts of a company in the absolute order as the dearth of funds can obstruct the growth of a business. While on the other hand the higher influx of funds can give the business an option of expansion with a remarkable name in the market.

The major purpose of accounting outsourcing services is to provide you with the basic concept of holding of the accounts, so that you prevent the chance of losing out any record or expense during the times of heavy work pressure and season of tax payment. The services other than managing the financial status of the firm are also well planned to modify many other critical aspects of the business such as invoice generation, creating accounts, financial statements, profit and loss account, trial balances, pay roll processes, checking credit card accounts and lots more, so as to earn profit in every possible legal way. In order to avoid any sort of tension regarding balancing your account to boast good profits the assistance of accounting outsourcing services is worth recommendable.

Accounting outsourcing services is a house to numerous projects. Veteran in multi tasking, the services perform all kinds of programs such as bookkeeping record and many different accounting concerned works. You may choose any from the myriad number of websites and expert teams to deal your company's accounts and details. A quality firm responsible for managing your outsourcing work will thoroughly concentrate on every economic detail of your company to make the optimum use of the resources in an efficient manner. The team is accountable for doing everything from analyzing your expenses to adding them up and creating ledgers. The creditable service lets you pay attention to all features of your business.

Now, the accounting outsourcing services have totally taken the position of an inevitable feature for any competent accounting firms. The accounting firms designed to outsourcing their services commendable in saving good amounts of money. On taking help from these online accounting firms, the companies can make lot of economic savings as the team does not ask for many allowances and expenses such as medical expenses, conveyance charges and house allowances. All they have to pay is the certain amount of money to the staff for holding the accounting tasks. This process has been very profitable in managing the capital expense of the company. Therefore, if your accounting firm is over pressured with work, the best outcome to save time, source and money is getting outsourcing services.

About the Author:

Michelle Barkley is a CPA who advises people on tax preparation and tax calculation.She specializes in bookkeeping outsourcing,Tax return preparation,back office outsourcing and Outsourced Accounting.To know more about accounting outsourcing services,accounting outsourcing,bookkeeping outsourcing and to use the services visit http://www.ifrworld.com/

Article Source: Articlebase