Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

The Age-Old Problem: Cost Control

According to IBM, Gartner and Aberdeen Group, between 75-80% of invoices in any business or organisation, are still processed manually - despite the advent of Electronic Data Interchange (EDI). These days, sophisticated invoice processing systems are available to cut a swathe through the time and costs involved in handling supplier payments and to enhance business workflow. Read the rest of this entry »

Accounts receivables are the amount of money that a consumer owes a company for a service or product obtained on credit. Accounts receivables are therefore a company’s sales that have not yet been paid in cash. While accounts receivables are considered as currents assets, it remains difficult to consider a product or a service as sold or purchased unless it has been paid in cash. If your company regularly makes a sale on credit and you do not implement and maintain an efficient accounts receivable system, the cash flow in your company will be negatively affected. Read the rest of this entry »

The steps are as follows:

1. Ignore opening and dosing cash and bank balances appearing in receipts and payments account.

2. Eliminate all items of capital receipts and payments.

3. Ascertain income of the relevant year by deducting from the total receipts the income received on account of previous and future years and by adding the income accrued due in the year but not received and income received in the previous year but relating to this year. Read the rest of this entry »

Every small business accounting system has following key components.

1.Chart of accounts
2.General ledger
3.Accounts receivable
4.Fixed assets
5.Accounts payable
6.Payroll

Even if you hire an outside accountant for all your book-keeping and payroll management, we should understand the basic elements of accounting system. Read the rest of this entry »

1. Taking everything on yourself

The business owner and/or their spouse try to do it all themselves (even though they don’t really understand what they should be doing, even though they really don’t like doing it, and even though they are busier than they’ve ever been in their lives before trying to do all the things that go with running your own business).

2. Buying goods or services with cash or personal credit card and then failing to record these transactions at all in the books, or recording them incorrectly. Read the rest of this entry »

TOP TEN TIPS FOR MANAGING YOUR SMALL BUSINESS FINANCES
Always work on the basis that you’ll need more than you actually do.

You often only have one chance of raising money so remember that when working out your figures. If your figures are too conservative, it could have a huge impact on the future of your business.
The bank is not the only place to get money.

Having said that, don’t go anywhere near Loan Sharks but always keep in mind that other resources can be available. Read the rest of this entry »

Complete financial accounting course or tutorial covers a range of following topics. It is being evaluated that how computers have affected traditional accounting methods and practices.   Financial Accounting with Double Entry Bookkeeping Principles of Accounting Basic Book of Accounting - Journal Accounting Ledger Accounting Sub Journals - Cash Cook Subsidiary Accounting Books Accounting Verification by Trial Balance Banking Transactions Bank Reconciliation Statement Depreciation Rectification Of Accounting Errors Balance Sheet and Profit and Loss Account Single Entry Bookkeeping Accounting System Non Profit Organization Accounting Capital and Revenue Reserves and Provisions Read the rest of this entry »

You have either started a new business, decided to get your financial information in order for your existing business or your tax preparer has announced that he/she won’t do your tax return anymore if you bring in one more year’s receipts in a shoebox or plastic bag. So on the recommendation of friends, business associates, accountant, or other professional in the know you have purchased QuickBooks. And if you are like most people you have installed it on your computer with great expectations. But you don’t have a clue about bookkeeping and so getting started is not so easy. What are items you ask. I am already part through my year – when and how do I start my beginning balances? Do I need inventory? So many questions and so little time. Read the rest of this entry »

While installing your new accounting software you have most likely been asked whether you would like to use one of the default charts of accounts included with the program or develop your own. Unless you are very familiar with setting up a set of financial books you will want to choose from one of the selections offered. And even if you have the experience choosing one of the defaults will save you a great deal of time. But you may ask what if I don’t need all these accounts and how do I know which accounts I should keep. And should I use a numbering system or not? Let me help you by explaining just what a Chart of Accounts is and how to adjust the default list to your needs.

First of all a Chart of Accounts in its simplest definition is a list of accounts used to track all financial transactions that flow through a business. This list is typically broken in to eight segments: Assets, Liabilities, Equity, Income, Cost of Goods Sold, General and Administrative Expenses, Other Income and Other Expenses. You might see Equity referred to as Read the rest of this entry »

New small businesses and entrepreneurs quickly discover that the accounts payable process can turn into a monster. If it isn’t handled properly, unpaid bills pile up and get paid late, making vendors angry and possibly damaging the business’ credit rating.

Once a consistent procedure is developed, the accounts payable process can go smoothly. If you are in business by yourself and cannot afford to hire outside help, here are ten tips to help establish a consistent accounts payable process: Read the rest of this entry »