Archive for July, 2011
July 30th, 2011 | 
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Most people have some idea of what accounting is. Every month we all need to pay our bills, and balance our budget. A business is no different; they need to account for the purchases that they make and the money that is coming in. The accounting department at any successful business is extremely busy; their main focus is balancing the budget. This is accomplished by finding the best cost strategies available and overseeing company gains and loses.
The basis of accounting is fairly simple, but surprisingly not a lot of people are aware of the importance of accounting. If you look at Apple, they have a huge accounting firm, if you have a neighbor whose daughter is selling cookies and lemonade she too should have some accounting skills. The idea of making more than you spend is rather simple. Getting there is the tough part and having exceptional accounting skills is essential.
This day an age with the tough economy that we are experiencing balancing a budget is extremely important. Agriculture is a good example of a business that has to be very conservative in their day to day operations. The old adage that farming was a million dollar business and that now you have to be a millionaire to farm is close to reality today. The total net profit is based a lot on the overhead costs to run the farm throughout the year. Without appropriate accounting skills it is rather easy to lose control of the business with one bad season.
As you can see accounting is extremely important in all of our everyday lives. If you are not sensible with your income and debt load it can lead to serious financial problems. There is very little difference between personal finances, and that of a large corporation. Both must balance the bottom line and hopefully make enough money to save and invest for the future.
By: Maria Shivers
About the Author:
Maria has been writing articles online for about 5 years. you can check out her latest website on foot problems which discusses common foot ailments such as Achilles Tendonitis, Arch Pain, and so on.
Posted in Tips for Business Accounting | 
Tags: Accounting Department, Agriculture, Bottom Line, Debt Load, Definition Business, Dollar Business, Lemonade, Personal Finances | 
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Inventory accounting software is a must for any business that needs to manage large volumes of accounting data each day. Choosing the right inventory accounting software can however be very confusing unless you have certain parameters in place. You need to look for:
Scalability – Choose software that can be easily upgraded to accommodate business changes such as the number of employees, and the number of services or products being offered.
Support – Go for a company that offers ample support or a good after sales service to help you when things go wrong.
Getting value for money – Shop around, as the prices of accounts management solutions vary a great deal. You may get better deals from online merchants. Go for recognized companies such as Peachtree that offer a wide range of products designed to meet every accounting need.
Before you choose any inventory software, you must first evaluate the following factors:
The cost of warehousing your inventory – This would also include the costs associated with the premises as well such as maintenance, electricity, and location of different items in the warehouse.
Sales ordering system – This is the system that integrates various elements such as discounts, shipping costs and other customer related issues into the inventory.
Purchase order creation and tracking
Assembly production
Shipping software
It is vital for any organization to establish optimum inventory, a level which is adequate enough to meet the projected cost but not sufficient to eat away the projected profits. In order to manage a modern inventory, you need to first identify the functions performed by them and accordingly work out strategies to keep inventories at optimum levels. Fortunately, companies can now depend on inventory accounting software to manage all these chores efficiently that too in little time.
When it comes to buying an inventory accounting software, there are a lot of options to choose from ranging from a very basic wholesale distribution ERP program to a full-featured inventory management software. It is possible now to buy a customizable professionally -developed software that too at an affordable price. Choosing the right software will mainly depend on the kind of business you are into. For instance, if you own a distribution company, then you need to have a software that would track its core areas namely; wholesale distribution management and warehouse automation. Good software gives you the much-needed flexibility and depth of functionality needed to enhance customer service and maximize profits.
Precise ERP/MRP information and good inventory control are a must for the success of any business. Both overstocked inventory and out-of-stock items can be hazardous for the reputation of your company and prove detrimental to your bottom line. Inaccurate inventory control is often a common reason why many companies head straight towards bankruptcy in the first few years of business. Many times, inaccuracy in inventory counts is caused due to lost sales and shipment delays. However, it is possible to erase such inaccuracies with the help of an efficient inventory accounting software.
Top-end inventory accounting software comes with inbuilt features like:
Kitting
Serial number tracking
Complete sales and purchasing functionality
ERP automation
Companies today need to look beyond survival and having an efficient accounting system can help stay ahead in competition. Inventory accounting software from Microsoft is packed with excellent features and targets mainly mid-size and large companies. It can be a daunting task to find software that has high functional value but is easy on the pocket. Ask for price quotes from online vendors and do a cost analysis before selecting an accounting software for your business.
By: Dean Forster
About the Author:
Find out more about inventory tracking and accounting software and Fixed Asset Management at => http://www.fixedassetmanagementsystem.com
Posted in Tips for Business Accounting |
Tags: Assembly Production, Inventories, Little Time, Management Solutions, Optimum Levels, Peachtree, Shipping Software, Warehouse Sales |
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In the present economic times many individuals are living with financial decisions causing them to hold assets, such as houses, automobiles and boats, whose values have plummeted. Individuals are living in properties whose values have dropped far below the mortgages or driving cars, which are valued at a third of the loans. Those individuals with financial difficulties are looking for assistance through the bankruptcy courts in an attempt to get out from underneath all of the debts and liens acquired, which now vastly exceed their current assets.
There are two types of liens, which can be attached to an individual’s property or assets. The first is a voluntary lien, which is basically a situation where you have agreed to use the asset as collateral for a debt, i.e. mortgages and auto loans. A non-voluntary lien is one that a creditor imposes on you and that gives them the right to force you to sell the asset so that they can be paid, for example: judgments against you or tax liens. These liens are either secured or unsecured as to the asset they are attached to.
The most common issue for an individual nowadays is the situation where a homeowner who has a first and second mortgage on a primary residence is facing bankruptcy and wondering if they have the ability to save the family home. As real estate markets fall and the fair market values of the homes fall, homeowners are left with mortgages that far exceed the current fair market value of their homes. There is a process which could be of help to many in this situation and it is called “lien stripping”.
“Lien stripping” refers to the process of reducing a secured claim to the value of the underlying collateral. It uses the combined effect of 11 U.S.C.A.
Posted in Mortgage |
Tags: Auto Loans, Bankruptcy Courts, Current Assets, Fair Market Values, Financial Difficulties, Judgments, Second Mortgages, Tax Liens |
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One of the key software that every small business owner should consider buying is an accounting software. Not only does it decrease cost and time in preparing financial information, it can also be used by businesses to instantly generate reports for decision making.
Choosing an accounting software is an important decision for small businesses since choosing the wrong one would mean losing a substantial amount of money, and losing productive time and other business opportunities due to time spent learning and implementing the system. Here are some guidelines to follow when evaluating different accounting software packages in the market:
1. Cost
Most accounting software can be had for a one-time fee while some charge recurring yearly or monthly payments. There are free accounting software but these packages usually lack support and various updates that paid programs provide. Similarly, open source accounting software, like any other open source programs, must be programmed to fit the specific needs of a business; which translates to hiring computer programmers or specialists to modify the program and in some cases, maintain it for the company.
Remember that you shouldn’t base your purchasing decision on cost alone. We all want to get the most value out of our money but this doesn’t necessarily mean that the cheapest software will give you more value. It might make sense to pay a premium for an accounting software that better suits your needs.
2. Ease of Use
An easy to use system is ideal for small business owners since every bit of time spent on accounting is time that could have been spent running or growing the business.
Simpler systems will most likely have a low learning curve associated with them, and the faster you learn how to use a software package, the faster you gain the benefits from using it. Complicated systems are also prone to user mistakes and if they’re not corrected, any reports and documents generated from it would not be accurate.
A simple single-entry system (as opposed to double-entry or full general ledger) will suffice for the vast majority of small businesses. This will allow you to do your bookkeeping in-house and hire a CPA or accounting firm to produce your end of year financial statements.
3. Other Features and Reporting Capabilities
Depending on your needs, advanced features and reporting capabilities can save you countless hours. Some accounting software may offer advance features such as automatic payroll calculations, invoicing and stock management features. Reports produced by the system allow you to quickly assess your accounts and give you financial insights into your business to help you in decision making.
These features maybe bundled in, sold as an upgrade or provided as add-on modules to the original system. A modularized system is ideal for businesses that doesn’t need a particular feature now, but may do so as their company grows. Having all available features may seem nice but these things will most likely cost more. You must determine your needs before hand so that you don’t end up paying for features or add-ons that you won’t use.
4. Support and Program Updates
Computer and software error can happen when you least expect it so it’s a good thing to know that you can contact someone to resolve your issue. Personal and timely support provided by people skilled in the particular software package can be invaluable and save time, money and stress. Ideally support offered will be more than simply knowledge-base and email. Knowing you can pick up the phone and talk to someone can be important. Some companies even provides webinars and in-person training sessions to help you master their software.
Program updates are important to fix unforeseen bugs, provide software improvements and even new features to the software. Updates are also released whenever there’s a change in accounting law (most specially the tax rate). Support and updates are generally considered as a premium service by the industry. Most companies usually offer per-year or per-month subscriptions to support and update programs while others may also utilize a pay-as-you go model.
Conclusion
As you embark on your search for the right accounting software, remember to spend some time to determine your business needs. Take advantage of the various ‘free trial’ offers. Ask questions of the software provider, get a feel for the extent of their support. This will allow you to effectively evaluate different software first hand before you commit your business’ money and time to a particular product.
By: Jerry A Grant
About the Author:
Jerry A Grant recommends a simple small business accounting software so that business owners can focus more on their businesses. If you are in Australia, checkout http://au.accomplishglobal.com to download a free evaluation copy of an accounting software specifically designed for non-accountants.
Posted in Tips for Business Accounting |
Tags: Accounting Software Packages, Business Opportunities, Computer Programmers, Learning Curve, Open Source Programs, Productive Time, Small Business Owners, Small Businesses |
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A business plan’s contents are no secret. Many books, articles, and courses describe the major sections of a business plan. Although variations exist, there are key sections common to most outlines in business planning literature.
Executive Summary
An executive summary, generally one page to a few pages at most, covers all of the main points of the business plan to come.
Company Overview or Description
The next section begins with an overview of the current situation of the company. This covers who the founders are and why they started the company, what the products or services offered are or will be, and what steps have been taken toward the launch to date.
Market Analysis
Sections detailing research and analysis done on the market for the business come next. This should begin with an overview of the market or industry, including its size, breakup, and trends it is experiencing going forward. Data on the specific customer segments and competitors for the new business follow.
Marketing Plan
A marketing plan then covers what is generally called the 4 Ps of Marketing: Product (description of the products or services offered), Promotion (the promotional tactics to be used), Pricing (the pricing strategy for the business), and Place (the location for a retail facility or other means of distribution for the product or service).
Operations and Management Plans
The next section or sections detail the plan for how the company will operate and be managed. This must include details on who the managers are and their qualifications, whether they are partners or hired employees.
Financial Plan
The business plan continues with a description of the financial results the business intends to see, and the underlying cost and revenue assumptions. The financial section also details the amount of capital needed, what the funding will be used for, and the sources of funding that are being sought.
Appendices
Finally, a business plan concludes with appendices of documents which support the plan further. The appendices include full pro forma financial statements (income statement, balance sheet, cash flow statement) as well.
By: Eric Powers
About the Author:
Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink’s business plan consultants have developed more than 2,000 professional business plans for entrepreneurs and business owners who have raised more than $1 billion in growth capital. Call 800-506-5728 today for a free business plan consultation, or visit http://www.growthink.com/businessplan.
Posted in Business Plan |
Tags: Analysis Sections, Business Plan, Executive Summary, Launch, Marketing Product, Pricing Strategy, Product Description, Retail Facility |
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The importance of planning should never be overlooked. For a business to be successful and profitable the owners and managers must have a clear understanding of its customers, its strengths, its competition, and must have the foresight to plan for future expansion. Whether yours is a new business or an existing business expanding, taking the time to create an extensive business plan provides you with greater insight into your business.
An effective business plan requires you to be objective, critical and focused. The finished project is an operating tool to help manage your business and enable you to achieve greater success. The plan also serves as an effective communication tool for financing proposals.
The are four major reasons for constructing a business plan are:
o The process of putting a business plan together is important; it forces the individual constructing the report to look at the business in an objective, critical and unbiased manner.
o It helps to focus ideas and serves as a feasibility study of the business’s chances for success and growth.
o The finished report serves as an operational tool to define the company’s present status and future possibilities. It can help you manage the business and prepare you for success.
o It is a strong communication tool. It defines your purpose, competition, your management and personnel. The process of constructing the plan can be a strong reality check.
Planning is very important if a business is to survive. An objective look at a business can help identify areas of weakness and strength. You may recognize needs that have been overlooked, spot problems before they escalate, and establish the path that leads to your business goals.
The plan is only useful if you use it. Ninety percent of new businesses fail in the first two years. Failure is often attributed to a lack of planning. To enhance your success, develop and follow a comprehensive, well-constructed business plan.
Finally, your business plan provides the information needed to communicate with others. This is especially true if you are seeking financing. A thorough business plan should have the information to serve as a financial proposal and should be accepted by most lenders.
Who should write the plan?
You, the owner of the business, should write the plan, whether you are using the business plan to seek financial resources or evaluate future growth, to define a mission or give guidance for running the business. You know the most about the business; and you have the most to gain from a well-constructed and insightful plan.
Some use software to assist in the formatting process. Consultants can be hired to assist in formulating the plan, but you must always do a majority of the work. Only you can come up with the financial data, the purpose of your business, the key employees, and management styles to mention a few items. So tackle the plan yourself; if you need further help in one area, then seek the assistance of a consultant.
The Product or Service
It is important for the reader to thoroughly understand your product offering or the services you currently provide or plan on providing. However, it is important to explain this section in layman’s terms to avoid confusion. Do not overwhelm the reader with technical explanations or industry jargon that he will not be familiar with.
It is important to discuss the competitive advantage of your product or service. If entering a new market, explain why there is a need for your offering. If appropriate discuss any patents, copyrights and trademarks the company currently owns or has recently applied for and discuss any confidential and non-disclosure protection the company has secured.
Discuss any barriers that you face in bringing the product to market such as FDA approval, EPA or government regulations, etc. Other areas that should be covered in this section include:
o Is your product or service already on the market or is it still in research and development?
o If in development, what is the rollout strategy or timeline to bring the product to market?
o What makes your product or service unique? What competitive advantage does the product or service have over its competition?
o Can you price the product or service competitively and still maintain a healthy profit margin?
By: John Vinturella
About the Author:
John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.
Posted in Business Plan |
Tags: Communication Tool, Finished Report, Foresight, Importance Of Planning, New Businesses, Objective Look, Possibilities, Proposals |
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