1: Accounting Competition
How many times have we wondered where to find a competition that suits our talent and skill or whether is it being held in our neighborhood? Well, this article is about a place or a site in this web where you could access a resource.
2: Accounting Degree Benefits for Businesses and Firms
Accountants are the ones who know best how to increase business deductions and maximize profit.
3: The Facts About Accounting and Accountancy
Oftentimes when I meet someone for the second or third time, they say, arent you in accounting? While I am into accounting, which is the methodology and measuring aspect of my work, the profession as a whole is better labeled as accountancy.
4: Sarbanes-Oxley Act And Other Measures
Against Accounting Scandals
Sarbanes-Oxley Act is the response to the malicious accounting practices that had been going on before. It seeks to restore the public's confidence in the corporate governance ethics and financial reporting guidelines.
5: Select The Accounting Software That Suits Your Needs
Many people say that with free accounting software they can perform the same tasks as with a paid version.
6: Accounting And Quasar Software
Quasar has an intelligent design that allows friendly user interface to facilitate quick and easy data entry. Some accounting programs do not optimize keyboard use. They depend on selection of frequently used options through the mouse.
7: Tips On How to Make Profits Online
The best way to keep track of your profits is to make a financial plan and measure actual performance on a periodic, preferably monthly basis. This allows you to detect problems early and correct them quickly.
8: The Accounting Profession
Accounting records form the basis for several internal statements used in Management Information Systems. That is why, all managers need to have adequate knowledge of accounting principles.
9: Final Statements
The starting point for the cash flow statement is the balance of cash at the start of the year. There are three segments in the cash flow statement: Operating, Investing and Financing.
10: The Nitty-Gritty Of Accounting
The basic aspects of accounting relate to correct classification of transactions. There are four major accounting heads: assets, liabilities, revenues and expenses.
Friday, July 17, 2009
HDC - Accounting
Labels: Accounting
Posted by Hartono D.C at 12:49 AM 0 comments
The Nitty-Gritty Of Accounting
Accounting is as ancient as man's attempts to transact with fellow human beings. With the predominance of money measurement in economically useful activities, accounting became the most vital tool. At the center of all accounting principles is the urge to ensure accuracy and consistency. This takes the form of double entry system of accounting. The 15th century Italian mathematician, Frater Luca Pacioli, first extolled about the features of the system.
Double entry method offers a convenient and accurate format for recording transactions. Put simply, all transactions have two aspects. Therefore, omissions or numerical errors would automatically stand out. Thus, it acts as a self-correcting mechanism.
The basic aspects of accounting relate to correct classification of transactions. There are four major accounting heads: assets, liabilities, revenues and expenses. At any given point of time, the firm's assets should equal its liabilities. This is the accounting equation. If they do not match, there is an apparent error in the accounting process.
The enterprise's assets represent the productive resources used by it. Plant and Machinery, building, stock of raw materials and stores, debtors or accounts receivables, cash and bank balances are some of the assets. Liabilities are the sources that finance the assets. Owner's capital, long-term loans, short-term bills, sundry creditors and other financing are the liabilities.
When revenues exceed expenses, the firm makes a profit and in the reverse it is a loss. Ultimately, profit or loss reflects in the financial position or the values of assets and liabilities on the given date. An increase in assets or decrease in liabilities means profit and decrease in assets or increase in liabilities mean loss.
Profit is the driver in any business enterprise and no wonder entrepreneurs seek to maximize it. More critical than profit is the measure of profitability because the latter reveals the firm's efficiency in utilization of financial resources. Return on Investment is the most common profitability ratio. The claim over profits of a business depends on the organizational type. In ownership or partnership firms, the owner or partners have total claim over the profit. In joint stock companies, the stockholders are entitled only to the dividend as declared by the board of directors.
The work of an accountant is crucial as he reports the performance of the enterprise to the management and the owners. Based on the figures supplied by him, important decisions like capacity expansion, make or buy, retaining or hiving off unprofitable lines of business and employee incentive computation are taken
Double entry method offers a convenient and accurate format for recording transactions. Put simply, all transactions have two aspects. Therefore, omissions or numerical errors would automatically stand out. Thus, it acts as a self-correcting mechanism.
The basic aspects of accounting relate to correct classification of transactions. There are four major accounting heads: assets, liabilities, revenues and expenses. At any given point of time, the firm's assets should equal its liabilities. This is the accounting equation. If they do not match, there is an apparent error in the accounting process.
The enterprise's assets represent the productive resources used by it. Plant and Machinery, building, stock of raw materials and stores, debtors or accounts receivables, cash and bank balances are some of the assets. Liabilities are the sources that finance the assets. Owner's capital, long-term loans, short-term bills, sundry creditors and other financing are the liabilities.
When revenues exceed expenses, the firm makes a profit and in the reverse it is a loss. Ultimately, profit or loss reflects in the financial position or the values of assets and liabilities on the given date. An increase in assets or decrease in liabilities means profit and decrease in assets or increase in liabilities mean loss.
Profit is the driver in any business enterprise and no wonder entrepreneurs seek to maximize it. More critical than profit is the measure of profitability because the latter reveals the firm's efficiency in utilization of financial resources. Return on Investment is the most common profitability ratio. The claim over profits of a business depends on the organizational type. In ownership or partnership firms, the owner or partners have total claim over the profit. In joint stock companies, the stockholders are entitled only to the dividend as declared by the board of directors.
The work of an accountant is crucial as he reports the performance of the enterprise to the management and the owners. Based on the figures supplied by him, important decisions like capacity expansion, make or buy, retaining or hiving off unprofitable lines of business and employee incentive computation are taken
Labels: Accounting
Posted by Hartono D.C at 12:49 AM 0 comments
Final Statements
Accounting does not end with recording transactions. The owner or the management needs useful information about whether the business made a profit or loss or how the financial position at the end of the accounting year compares with that at the start.
From the trial balance all the income and expense items are transferred to the income statement. Further, certain other items are also adjusted before transferring the balances. Consider rent. Now, rent becomes payable at the end of a month. Therefore, following the accrual principle the accountant posts the rent as payable outstanding and adds this amount to the rent expense. The rent payable appears as current liability in the balance sheet and squared off when the actual payment is made.
Similarly, insurance payments are made annually. But, they would not match the accounting year. On the date of the preparation of final statement, there could be some months of insurance remaining prepaid. This amount is deducted from the expense and shown as current asset in the balance sheet. It becomes expense for the next accounting period.
The excess of income over expenses represents profit while the reverse scenario would mean loss. Profit adds to the equity or owners' capital while loss erodes the same. In effect, profit means the assets have increased while liabilities have decreased. Loss means assets have decreased and liabilities have mounted.
To find out the exact position of assets and liabilities, the accountant prepares the balance sheet. Although one would know whether the business made profit or loss or the value of assets and liabilities have increased or decreased, there is a need for a statement that gives complete information about how the financial position was achieved. The Cash Flow statement serves this purpose.
The basic rationale behind the cash flow statement is that all operations of the business are connected with receiving and paying cash. This is also called the cash-to-cash cycle. The firm buys inventories, sells them, incurs expenses and pays off the dues. So, there is always a parallel run between the firm's debtors and creditors. There are also transactions like fresh infusion of capital, paying off loans and making investments.
Therefore, to get the correct picture about how the firm's operations and other non-operative items contributed to the changes in financial position, the cash flow statement is useful.
The starting point for the cash flow statement is the balance of cash at the start of the year. There are three segments in the cash flow statement: Operating, Investing and Financing. For the first segment, we knock off non-cash charges like depreciation and loss on sale of assets to derive the operative profit in cash terms. We also adjust the net increase or decrease in all current assets and liabilities except cash. In the second segment, we include the investments in fixed assets or financial instruments. In the third segment, we show the dividend or withdrawal of capital. The net effect of all the three segments is adjusted with the opening cash balance to get the closing cash balance.
From the trial balance all the income and expense items are transferred to the income statement. Further, certain other items are also adjusted before transferring the balances. Consider rent. Now, rent becomes payable at the end of a month. Therefore, following the accrual principle the accountant posts the rent as payable outstanding and adds this amount to the rent expense. The rent payable appears as current liability in the balance sheet and squared off when the actual payment is made.
Similarly, insurance payments are made annually. But, they would not match the accounting year. On the date of the preparation of final statement, there could be some months of insurance remaining prepaid. This amount is deducted from the expense and shown as current asset in the balance sheet. It becomes expense for the next accounting period.
The excess of income over expenses represents profit while the reverse scenario would mean loss. Profit adds to the equity or owners' capital while loss erodes the same. In effect, profit means the assets have increased while liabilities have decreased. Loss means assets have decreased and liabilities have mounted.
To find out the exact position of assets and liabilities, the accountant prepares the balance sheet. Although one would know whether the business made profit or loss or the value of assets and liabilities have increased or decreased, there is a need for a statement that gives complete information about how the financial position was achieved. The Cash Flow statement serves this purpose.
The basic rationale behind the cash flow statement is that all operations of the business are connected with receiving and paying cash. This is also called the cash-to-cash cycle. The firm buys inventories, sells them, incurs expenses and pays off the dues. So, there is always a parallel run between the firm's debtors and creditors. There are also transactions like fresh infusion of capital, paying off loans and making investments.
Therefore, to get the correct picture about how the firm's operations and other non-operative items contributed to the changes in financial position, the cash flow statement is useful.
The starting point for the cash flow statement is the balance of cash at the start of the year. There are three segments in the cash flow statement: Operating, Investing and Financing. For the first segment, we knock off non-cash charges like depreciation and loss on sale of assets to derive the operative profit in cash terms. We also adjust the net increase or decrease in all current assets and liabilities except cash. In the second segment, we include the investments in fixed assets or financial instruments. In the third segment, we show the dividend or withdrawal of capital. The net effect of all the three segments is adjusted with the opening cash balance to get the closing cash balance.
Labels: Accounting
Posted by Hartono D.C at 12:48 AM 0 comments
The Accounting Profession
All of us need to grapple with accounting whether we like or not. From managing your personal finance to running a corporation, there is no escaping accounting. It might seem very complex and overwhelm a novice. The complexity is only with respect to practices and presentation. The principles are fairly simple and guided by common sense.
The purpose of all accounting is to ascertain whether the business made a profit or loss or whether its assets have increased or not. This is possible only when accurate information about the revenues and expenses are recorded, classified and compiled. Thus, accounting is concerned with tracking inflows and outflows.
The most common perception of accounting stems from the financial statements of businesses. These statements are only a culmination of the accounting processes. Accounting plays a much larger role that of assisting in managerial decision-making.
There are several elements of accounting in a business. The basic step is of course, book keeping. This is concerned with recording the transactions and preparing the periodic books and journals. Another aspect of accounting is the preparation of final statements or "financials". These financial statements disclose information about the performance of the business. These figures are audited and tax returns are prepared.
Besides the management and the taxman, there are others too that need accurate financial statements about the business enterprise. In the case of corporations, the stockholders, sometimes thousands of them, are the owners who gauge the efficiency of the board of directors only through the financial statements. Lenders or creditors are also interested in learning about the earnings of an enterprise and its ability to meet regular payments before advancing a loan or line of credit.
Accounting records form the basis for several internal statements used in Management Information Systems. That is why, all managers need to have adequate knowledge of accounting principles. The GAAP or Generally Accepted Accounting Principles represent the codified wisdom that seeks to make accounting statements comparable and standardized. Because accounting is concerned primarily with monetary values, accounting principles closely follow the elements of consistency, accuracy, historical cost measurement and appropriate classification of capital and revenue items. Accountants spend much of their time in ensuring that the accounting processes comply with the GAAP.
Accounting offers a challenging and satisfying career avenue. Educational requirements of the profession range from a graduate degree to qualifying as a Certified Public Accountant (CPA). Society looks up to CPAs as the custodians of high ethical standards of reporting and accounting disclosures. They are independent professionals and are popularly called auditors. CPAs are mandated by law to conduct audits of certain types of business enterprises notably joint stock corporations, not-for-profit entities and so on.
If you choose to work as an accountant you could rise up to become the Chief Financial Officer with a number of controllers reporting to you. The main areas of focus for controllers are cash or treasury management, capital budgeting and taxation. With organizations going global, working in industry is surely a high-adrenalin situation.
Teaching and research is also a viable alternative and you could be a forerunner for developing the theoretical basis of accounting to keep pace with changing economic scenario. The domain expertise of the accountant is essential for developing advanced software for accounting, enterprise resource planning (ERP) and so on.
The purpose of all accounting is to ascertain whether the business made a profit or loss or whether its assets have increased or not. This is possible only when accurate information about the revenues and expenses are recorded, classified and compiled. Thus, accounting is concerned with tracking inflows and outflows.
The most common perception of accounting stems from the financial statements of businesses. These statements are only a culmination of the accounting processes. Accounting plays a much larger role that of assisting in managerial decision-making.
There are several elements of accounting in a business. The basic step is of course, book keeping. This is concerned with recording the transactions and preparing the periodic books and journals. Another aspect of accounting is the preparation of final statements or "financials". These financial statements disclose information about the performance of the business. These figures are audited and tax returns are prepared.
Besides the management and the taxman, there are others too that need accurate financial statements about the business enterprise. In the case of corporations, the stockholders, sometimes thousands of them, are the owners who gauge the efficiency of the board of directors only through the financial statements. Lenders or creditors are also interested in learning about the earnings of an enterprise and its ability to meet regular payments before advancing a loan or line of credit.
Accounting records form the basis for several internal statements used in Management Information Systems. That is why, all managers need to have adequate knowledge of accounting principles. The GAAP or Generally Accepted Accounting Principles represent the codified wisdom that seeks to make accounting statements comparable and standardized. Because accounting is concerned primarily with monetary values, accounting principles closely follow the elements of consistency, accuracy, historical cost measurement and appropriate classification of capital and revenue items. Accountants spend much of their time in ensuring that the accounting processes comply with the GAAP.
Accounting offers a challenging and satisfying career avenue. Educational requirements of the profession range from a graduate degree to qualifying as a Certified Public Accountant (CPA). Society looks up to CPAs as the custodians of high ethical standards of reporting and accounting disclosures. They are independent professionals and are popularly called auditors. CPAs are mandated by law to conduct audits of certain types of business enterprises notably joint stock corporations, not-for-profit entities and so on.
If you choose to work as an accountant you could rise up to become the Chief Financial Officer with a number of controllers reporting to you. The main areas of focus for controllers are cash or treasury management, capital budgeting and taxation. With organizations going global, working in industry is surely a high-adrenalin situation.
Teaching and research is also a viable alternative and you could be a forerunner for developing the theoretical basis of accounting to keep pace with changing economic scenario. The domain expertise of the accountant is essential for developing advanced software for accounting, enterprise resource planning (ERP) and so on.
Labels: Accounting
Posted by Hartono D.C at 12:47 AM 0 comments
Tips On How to Make Profits Online
It is not just enough that you increase your sales or area of operations. You need to know whether you are actually making a profit or not. If you do not do this exercise, you will not likely judge whether your business is successful or not. Moreover, keeping track of your profit is the best way to measure effectiveness of other functions like production planning, marketing, advertising, etc. There are many instances of businesses that did high volume, but lost their advantage because they ignored adequate profit planning. For small businesses especially keeping constant track of the profit plan is the best way to increase competitiveness.
So, we repeat again that the gross revenue is not that critical as the net profit is. You need to know what eats into your profits and how you can plug it.
The best way to keep track of your profits is to make a financial plan and measure actual performance on a periodic, preferably monthly basis. This allows you to detect problems early and correct them quickly.
Here are a few surefire strategies:
Make a realistic financial plan. This means put down in money terms how much revenue you project for the period. Factor in the corresponding expenses.
Install a suitable accounting process that records the transactions in a timely and accurate manner. Always set aside some time to review your accounting transactions. This prevents frauds.
Remember that time and money lost can never be recovered. At best, you can only recast your projections and work towards a more achievable target. This approach however does not allow for risk-taking. Therefore, a plan that combines aggression with pragmatism should be followed.
Analyze the loopholes and plug them right away. If your sales have not increased as expected, consider efficiency of marketing staff or effectiveness of the marketing strategy. Remember, accounting profit does not occur out of the blue. Make team work the cornerstone of business success. Brainstorm for ideas on improving efficiency and cutting down costs.
Always do a complete cost benefit analysis for any investment. Extra outgo for the purchase should be more than matched by sales inflow.
Increasing your profit should be the motto. Therefore, attempt measures to improve profit through reduction of costs or better utilization of resources. If your growing revenues were just about matched by soaring expenses, you would soon go out of business. Higher dollar inflow from sales should actually translate as higher dollar for keeps as profit.
So, we repeat again that the gross revenue is not that critical as the net profit is. You need to know what eats into your profits and how you can plug it.
The best way to keep track of your profits is to make a financial plan and measure actual performance on a periodic, preferably monthly basis. This allows you to detect problems early and correct them quickly.
Here are a few surefire strategies:
Make a realistic financial plan. This means put down in money terms how much revenue you project for the period. Factor in the corresponding expenses.
Install a suitable accounting process that records the transactions in a timely and accurate manner. Always set aside some time to review your accounting transactions. This prevents frauds.
Remember that time and money lost can never be recovered. At best, you can only recast your projections and work towards a more achievable target. This approach however does not allow for risk-taking. Therefore, a plan that combines aggression with pragmatism should be followed.
Analyze the loopholes and plug them right away. If your sales have not increased as expected, consider efficiency of marketing staff or effectiveness of the marketing strategy. Remember, accounting profit does not occur out of the blue. Make team work the cornerstone of business success. Brainstorm for ideas on improving efficiency and cutting down costs.
Always do a complete cost benefit analysis for any investment. Extra outgo for the purchase should be more than matched by sales inflow.
Increasing your profit should be the motto. Therefore, attempt measures to improve profit through reduction of costs or better utilization of resources. If your growing revenues were just about matched by soaring expenses, you would soon go out of business. Higher dollar inflow from sales should actually translate as higher dollar for keeps as profit.
Labels: Accounting
Posted by Hartono D.C at 12:47 AM 0 comments
Accounting And Quasar Software
Businesses operate under extremely competitive circumstances. From the small business to the transnational corporations, all seek greater profits and cost competitiveness. With wafer-thin profit margins and shrinking market share, businesses can survive and grow only with constant reduction in costs. Growing complexities in accounting mean one has to adopt technology to function efficiently. There are a number of accounting software packages. Quasar is an excellent package.
Why do we need accounting software? Because, the capabilities of the accounting system of an entity should be geared towards providing better flow of operations and reporting mechanisms for control purposes. The basic functions of accounting like bookkeeping are addressed well by Quasar. Besides generating the payment, receipt and transfer entries for cash and bank, there are a number of modules that help in management reporting. The most interesting is its inventory control module. All versions of Quasar offer comprehensive inventory controls. The module allows tracking the location and quantities of all inventory items. Beyond the simple operations, the software allows inventory management for in-house assembled products. Manufacturing companies often assemble kits using raw material components from the inventory. With Quasar, when the components are removed for assembling kits, the inventory of components is adjusted suitably. It also allows grouping of items into various categories and nesting of groups into various levels. Stocks falling below the reorder level can be replenished with automatic vendor purchase orders. Costs and selling prices can be pre-set and discounted in a number of ways. Mark up and sales figures can be easily extracted.
Sales invoicing and purchases management are the main strengths of Quasar. Customer quotes are easily converted to final invoices. Adjustments for promotional schemes and discounts can be formulated depending on period, customer profile or store location. Margins can be analyzed item-wise, customer-wise or salesperson-wise. Similarly, purchase orders can be cross-checked with vendor invoice. There are several payment options including printing a check. Miscellaneous fees such as container deposits, freight charges and franchise fees can be monitored.
Quasar has an intelligent design that allows friendly user interface to facilitate quick and easy data entry. Some accounting programs do not optimize keyboard use. They depend on selection of frequently used options through the mouse. This can be a somewhat time-consuming manner of working. Quasar's menu options are accessible through the mouse but the interface allows for development of keyboard shortcuts. Thus, data entry is speeded up saving a lot of time in the long run.
Why do we need accounting software? Because, the capabilities of the accounting system of an entity should be geared towards providing better flow of operations and reporting mechanisms for control purposes. The basic functions of accounting like bookkeeping are addressed well by Quasar. Besides generating the payment, receipt and transfer entries for cash and bank, there are a number of modules that help in management reporting. The most interesting is its inventory control module. All versions of Quasar offer comprehensive inventory controls. The module allows tracking the location and quantities of all inventory items. Beyond the simple operations, the software allows inventory management for in-house assembled products. Manufacturing companies often assemble kits using raw material components from the inventory. With Quasar, when the components are removed for assembling kits, the inventory of components is adjusted suitably. It also allows grouping of items into various categories and nesting of groups into various levels. Stocks falling below the reorder level can be replenished with automatic vendor purchase orders. Costs and selling prices can be pre-set and discounted in a number of ways. Mark up and sales figures can be easily extracted.
Sales invoicing and purchases management are the main strengths of Quasar. Customer quotes are easily converted to final invoices. Adjustments for promotional schemes and discounts can be formulated depending on period, customer profile or store location. Margins can be analyzed item-wise, customer-wise or salesperson-wise. Similarly, purchase orders can be cross-checked with vendor invoice. There are several payment options including printing a check. Miscellaneous fees such as container deposits, freight charges and franchise fees can be monitored.
Quasar has an intelligent design that allows friendly user interface to facilitate quick and easy data entry. Some accounting programs do not optimize keyboard use. They depend on selection of frequently used options through the mouse. This can be a somewhat time-consuming manner of working. Quasar's menu options are accessible through the mouse but the interface allows for development of keyboard shortcuts. Thus, data entry is speeded up saving a lot of time in the long run.
Labels: Accounting
Posted by Hartono D.C at 12:46 AM 0 comments
Select The Accounting Software That Suits Your Needs
Like any other product, you can pay for it or you can take it for free. The great majority of the free accounting software products is not very complicated and is easy to use. Although they are not suitable for large companies, they can easily be used by small businesses, because they focus on simple accounting. Many people say that with free accounting software they can perform the same tasks as with a paid version.
Anyway, either paid or free, you need to choose your accounting software correctly, a thing which, as it was mentioned earlier, can be a quite difficult thing. Here are a few pointers that should cheer you up a little bit and help you find the best solution available for you:
1. Think about and write down your needs. What's the main objective of your company? Do you plan on making it a big one?
2. Don't get carried away by product reviews, recommendations from friends, although you should consider them. First and foremost though, you need to concentrate on what's suitable for YOU;
3. Don't consider only the first few highly rated products;
4. Write down a list with all the available pieces of software. Carefully thinking about your needs, your available budget and their specifications, rule out the first few which clearly don't fall into your preferences from the start;
5. By now, you should have narrowed down your list to about 2 or 3 products that meet your demands. Make your final decision by re-checking all of their features and making sure you check out all the other available products for that specific price. Usually, it's best if you decide on a product made by a known company, rather than a more obscure one. Although it's sometimes wrong to judge by that, sometimes it's plainly safer.
Also, you may hear about a growing number of companies which are developing and providing free accounting software for marketing campaigns. Don't discard such an option and pay attention to everything, as you may find a pleasant surprise among those products. After all, what do you have to lose if it's free?
Still, a recommendation would be that it is always best to simply test the trail version, if you ever consider downloading free accounting software. It is the best way to see whether it suits you or not. This is because you don't have to commit yourself to anything, and if you decide to try another one, you can simply search for it until you find the right demo for you.
So which one is going to be your option? Whatever you should finally decide upon, remember to patiently look for the right option for you. Take into consideration the nature of your business, your plans with it, its domain of activity and all the other variables. If you do all that, you will be able to find the accounting software that best suits your needs.
Anyway, either paid or free, you need to choose your accounting software correctly, a thing which, as it was mentioned earlier, can be a quite difficult thing. Here are a few pointers that should cheer you up a little bit and help you find the best solution available for you:
1. Think about and write down your needs. What's the main objective of your company? Do you plan on making it a big one?
2. Don't get carried away by product reviews, recommendations from friends, although you should consider them. First and foremost though, you need to concentrate on what's suitable for YOU;
3. Don't consider only the first few highly rated products;
4. Write down a list with all the available pieces of software. Carefully thinking about your needs, your available budget and their specifications, rule out the first few which clearly don't fall into your preferences from the start;
5. By now, you should have narrowed down your list to about 2 or 3 products that meet your demands. Make your final decision by re-checking all of their features and making sure you check out all the other available products for that specific price. Usually, it's best if you decide on a product made by a known company, rather than a more obscure one. Although it's sometimes wrong to judge by that, sometimes it's plainly safer.
Also, you may hear about a growing number of companies which are developing and providing free accounting software for marketing campaigns. Don't discard such an option and pay attention to everything, as you may find a pleasant surprise among those products. After all, what do you have to lose if it's free?
Still, a recommendation would be that it is always best to simply test the trail version, if you ever consider downloading free accounting software. It is the best way to see whether it suits you or not. This is because you don't have to commit yourself to anything, and if you decide to try another one, you can simply search for it until you find the right demo for you.
So which one is going to be your option? Whatever you should finally decide upon, remember to patiently look for the right option for you. Take into consideration the nature of your business, your plans with it, its domain of activity and all the other variables. If you do all that, you will be able to find the accounting software that best suits your needs.
Labels: Accounting
Posted by Hartono D.C at 12:45 AM 0 comments
Sarbanes-Oxley Act And Other Measures Against Accounting Scandals
In the wake of the corporate scandals like those at Enron, Tyco International and WorldCom that ripped apart the financial interests of thousands of shareholders and retirement plan investors, lawmakers and professional bodies decided to tighten the grip on financial reporting norms.
Sarbanes-Oxley Act is the response to the malicious accounting practices that had been going on before. It seeks to restore the public's confidence in the corporate governance ethics and financial reporting guidelines.
If the public's trust has been shattered it is an issue of concern especially as all along there had been as assurance of sound accounting and auditing practices. The Sarbanes-Oxley legislation establishes new standards for all US public company boards, management and public accounting firms.
Some of the main provisions of the Act are:
A new agency, the Public Company Accounting Oversight Board, shall monitor the role of auditors of public companies.
Henceforth, CEOs and CFOs shall certify that the financial reports are true and fair.
Stringent measures to establish greater auditor independence including bans on certain types of assignments and prior certification by the company's Audit Committee of all other non-audit work
Listed companies should have fully independent audit committees to review auditor-client interaction
Significantly longer jail sentences and heftier fines for corporate executives guilty of willful misstatements
Protection to employees providing information to OSHA within 90 days, to claim reinstatement, compensatory damages, back pay and benefits and reasonable costs.
The professional regulatory bodies have also embarked on a thorough exercise of revamping the auditing guidelines and acceptable accounting practices. It is not as if the auditors colluded with the perpetrators. But, insufficient mandate for making disclosures of certain types of transactions could have led to slippages despite the diligence and due care of the auditors. A famous judge commented," Auditors are like watchdogs; they are not bloodhounds".
The disclosure requirements mainly equip the auditors to report whether there have been shady or questionable transactions.
Therefore, disclosures are an integral part of the financial statements. They provide additional information on transactions that could have significant bearing on the understanding of the information contained in the statements. Disclosures also predicate that chief executives of corporate bodies apply the GAAP in preparing financial statements.
Common forms of disclosures are:
Additional information on account balances in the financial statements, primarily with respect to transactions with top management or their relatives
Supplementary tables and schedules
Financial impact of certain decisions
The main agencies that frame the disclosure requirements are the FASB, SEC and the IASB.
Sarbanes-Oxley Act is the response to the malicious accounting practices that had been going on before. It seeks to restore the public's confidence in the corporate governance ethics and financial reporting guidelines.
If the public's trust has been shattered it is an issue of concern especially as all along there had been as assurance of sound accounting and auditing practices. The Sarbanes-Oxley legislation establishes new standards for all US public company boards, management and public accounting firms.
Some of the main provisions of the Act are:
A new agency, the Public Company Accounting Oversight Board, shall monitor the role of auditors of public companies.
Henceforth, CEOs and CFOs shall certify that the financial reports are true and fair.
Stringent measures to establish greater auditor independence including bans on certain types of assignments and prior certification by the company's Audit Committee of all other non-audit work
Listed companies should have fully independent audit committees to review auditor-client interaction
Significantly longer jail sentences and heftier fines for corporate executives guilty of willful misstatements
Protection to employees providing information to OSHA within 90 days, to claim reinstatement, compensatory damages, back pay and benefits and reasonable costs.
The professional regulatory bodies have also embarked on a thorough exercise of revamping the auditing guidelines and acceptable accounting practices. It is not as if the auditors colluded with the perpetrators. But, insufficient mandate for making disclosures of certain types of transactions could have led to slippages despite the diligence and due care of the auditors. A famous judge commented," Auditors are like watchdogs; they are not bloodhounds".
The disclosure requirements mainly equip the auditors to report whether there have been shady or questionable transactions.
Therefore, disclosures are an integral part of the financial statements. They provide additional information on transactions that could have significant bearing on the understanding of the information contained in the statements. Disclosures also predicate that chief executives of corporate bodies apply the GAAP in preparing financial statements.
Common forms of disclosures are:
Additional information on account balances in the financial statements, primarily with respect to transactions with top management or their relatives
Supplementary tables and schedules
Financial impact of certain decisions
The main agencies that frame the disclosure requirements are the FASB, SEC and the IASB.
Labels: Accounting
Posted by Hartono D.C at 12:44 AM 0 comments
The Facts About Accounting and Accountancy
Oftentimes when I meet someone for the second or third time, they say, arent you in accounting? While I am into accounting, which is the methodology and measuring aspect of my work, the profession as a whole is better labeled as accountancy.
Accountancy is the profession and accounting it the methods by which accountants measure, track and report on financial information so that resource allocation decisions can be made by, well, whoever the decision makers are.
For a small business owners personal finances, as an example, I may be measuring the finances of a few people (the family), and reporting the necessary information to the small business owner. In this situation, the decision maker is the small business owner and his decisions involve deciding how much money he has to put toward family necessities.
Generally speaking, there are two main types of accounting. There is financial accounting and there is auditing. Financial accounting typically involves processing of financial information about a business operation where information is recorded, organized, summarized, interpreted and finally communicated.
Auditing, on the other hand, is there process that an independent auditor examines accounting records and financial statements so that he or she can express a professional opinion about the financial records and answer questions about projections.
At the heart of accountancy lies the need to take stock of the day to day state of various sales and expenses. In the modern world when many contracts are partially fulfilled at varying times, bookkeeping is the only way to know where you and your business stand in the greater scheme of things.
If you operate your own small business, you may be able to do just fine with some accounting software. Take a look around for some flowchart templates. These can make monthly financial recording and reporting, dare I say it, fun. Simply enter in the various types of income and expenses, then each subsection updates the appropriate fields. Before you know it youve got proof that all bills have been allotted for and youve got your bottom line.
If you find you can manage your business finances on your own, then, by all means, stick with the system that you know works for you. If, however, you start running into complications that make it hard for you to see where discrepancies are coming from, it may be time to enlist the services of a professional accountant.
Talk with colleagues and friends. You may know someone that knows a tax accountant or other type of financial consultant who may be willing to look over your taxes for a friendlier rate than if you were to cold call them.
Accountancy is the profession and accounting it the methods by which accountants measure, track and report on financial information so that resource allocation decisions can be made by, well, whoever the decision makers are.
For a small business owners personal finances, as an example, I may be measuring the finances of a few people (the family), and reporting the necessary information to the small business owner. In this situation, the decision maker is the small business owner and his decisions involve deciding how much money he has to put toward family necessities.
Generally speaking, there are two main types of accounting. There is financial accounting and there is auditing. Financial accounting typically involves processing of financial information about a business operation where information is recorded, organized, summarized, interpreted and finally communicated.
Auditing, on the other hand, is there process that an independent auditor examines accounting records and financial statements so that he or she can express a professional opinion about the financial records and answer questions about projections.
At the heart of accountancy lies the need to take stock of the day to day state of various sales and expenses. In the modern world when many contracts are partially fulfilled at varying times, bookkeeping is the only way to know where you and your business stand in the greater scheme of things.
If you operate your own small business, you may be able to do just fine with some accounting software. Take a look around for some flowchart templates. These can make monthly financial recording and reporting, dare I say it, fun. Simply enter in the various types of income and expenses, then each subsection updates the appropriate fields. Before you know it youve got proof that all bills have been allotted for and youve got your bottom line.
If you find you can manage your business finances on your own, then, by all means, stick with the system that you know works for you. If, however, you start running into complications that make it hard for you to see where discrepancies are coming from, it may be time to enlist the services of a professional accountant.
Talk with colleagues and friends. You may know someone that knows a tax accountant or other type of financial consultant who may be willing to look over your taxes for a friendlier rate than if you were to cold call them.
Labels: Accounting
Posted by Hartono D.C at 12:44 AM 0 comments
Accounting Competition
There are numerous competitions that are currently going on around the world, but many of us don't know to life’s growth. As a responsible company, www.competearoundtheworld.com plays a vital role in bringing individuals, rich or poor, who may not have access to the global community, a chance to have an opportunity to participate, and win a competition.
Both where to find them. In this scenario, www.competearoundtheworld.com offers you a resource full of information on various categories of competitions that is going on through out the world. Whether it is on writing, dancing, painting, drawing, mathematics, science, quiz, music, photography, poetry, or no matter what it is or where it may be, if you can name a competition this site finds it for you.
In this way, anyone, from a small village to a big city, can have access to find what they want. A healthy competition is a great way to build confidence, appreciate talent, and help to create new innovative ideas, while contributing winners and losers of competitions come away with valuable experience. This experience increases interest in their chosen field or talent, as well as encourages creativity and innovation. While winners want to win more, losers strive to beat the winners after realizing their mistakes. This healthy environment gives a great boost for new talent, benefiting all of our society. Competitions also are instrumental in building a reputation for participants in their fields, both as individuals or as a group.
The goal of this site is to obtain all information about current competitions around the world, for both online and onsite competitions. This site wants to be a valuable resource for everyone in the future. The specialty of this site is that it bans all competitions that are not suitable for general audience, i.e., adult, sex, sweepstake, and lottery. Further this site follows strict guidelines and ensures reviewing of all reported competitions before making it available for the public.
It is a known fact that each and every individual has a unique talent. This site aims to play a role in bringing out that talent, providing a comprehensive resource of information to find competitions and competitors. This is purely a confidence building site; again, through healthy competitions. Practice makes perfect, people make mistakes and by correcting mistakes, improvement and success is achieved. Competition in this world is a continuous process, whether its business, studies, or career everyone has some sort of competition in his or her life, and competing with others is a never ending job. Even before our birth we competed along with other sperms to get first place into our mother’s ovary. So we all have won a great competition even before our birth! Every one of us is a winner, a born winner, but we lose that confidence as we grow older, and we forget our past successes. Competition is one of the best ways to identify the talent, innovation and growth for this world. This site aims to play a small role in that growth, by providing this rich resource. All you need it to log on to our website and join your preferred category of competition and win prizes and accolades from all over the world. This site and all its resources are offered freely to all who are interested.
Both where to find them. In this scenario, www.competearoundtheworld.com offers you a resource full of information on various categories of competitions that is going on through out the world. Whether it is on writing, dancing, painting, drawing, mathematics, science, quiz, music, photography, poetry, or no matter what it is or where it may be, if you can name a competition this site finds it for you.
In this way, anyone, from a small village to a big city, can have access to find what they want. A healthy competition is a great way to build confidence, appreciate talent, and help to create new innovative ideas, while contributing winners and losers of competitions come away with valuable experience. This experience increases interest in their chosen field or talent, as well as encourages creativity and innovation. While winners want to win more, losers strive to beat the winners after realizing their mistakes. This healthy environment gives a great boost for new talent, benefiting all of our society. Competitions also are instrumental in building a reputation for participants in their fields, both as individuals or as a group.
The goal of this site is to obtain all information about current competitions around the world, for both online and onsite competitions. This site wants to be a valuable resource for everyone in the future. The specialty of this site is that it bans all competitions that are not suitable for general audience, i.e., adult, sex, sweepstake, and lottery. Further this site follows strict guidelines and ensures reviewing of all reported competitions before making it available for the public.
It is a known fact that each and every individual has a unique talent. This site aims to play a role in bringing out that talent, providing a comprehensive resource of information to find competitions and competitors. This is purely a confidence building site; again, through healthy competitions. Practice makes perfect, people make mistakes and by correcting mistakes, improvement and success is achieved. Competition in this world is a continuous process, whether its business, studies, or career everyone has some sort of competition in his or her life, and competing with others is a never ending job. Even before our birth we competed along with other sperms to get first place into our mother’s ovary. So we all have won a great competition even before our birth! Every one of us is a winner, a born winner, but we lose that confidence as we grow older, and we forget our past successes. Competition is one of the best ways to identify the talent, innovation and growth for this world. This site aims to play a small role in that growth, by providing this rich resource. All you need it to log on to our website and join your preferred category of competition and win prizes and accolades from all over the world. This site and all its resources are offered freely to all who are interested.
Labels: Accounting
Posted by Hartono D.C at 12:41 AM 0 comments
Wednesday, July 15, 2009
Accounting Degree Benefits for Businesses and Firms
Now that you've finished your studies you are looking for accounting degree employment. Theoretically, you should not have too much trouble in this search. There are many unorganized businesses out there which could use a professional accountant. A certified public accountant does just that: keeps track of financial transactions and records in the business.
The majority of business owners ask themselves if they should hire an accountant or not. Having an unorganized business is not an option, because that would lead to bankruptcy. Of course there is also the possibility to use an accounting software, but not anyone can use that either. The best thing to do is to look for a person with an accounting degree.
The first obvious choice for a business owner would be to look for a professional in an accounting firm. This has the advantage that you can find accountants who are well trained and experienced. This is not mandatory though, and you can as well hire an accountant who works on his own. This should be your own decision based on what type of accounting job you need.
How can one become certified public accountant? In America, you need to meet a few requirements, as in most of the countries worldwide. Usually, you need about 150 accounting college hours. You will also have to pass an exam. But this is only if you want to become a certified public accountant.
If you, however, are at the other end of the deal, meaning a business owner, you have more than one option when hiring an accountant. You can do it as a long term arrangement, or, as some business owners do, with the only purpose of him paying the taxes. But why hire a professional accountant with the sole purpose of paying taxes?
The answer is simple. Accountants are the ones who know best how to increase business deductions and maximize profit. You could be familiar yourself with some of these procedures but accountants are those who know them all. In the end, it's your choice whether you permanently want to hire an accountant, hire one for short periods of time, or even learn accounting yourself.
If you decide that you want to hire an accountant make sure you check his qualifications. You can work with a local accountant or look for one in an accounting firm.
Whatever you decide, you have to make sure that the respective person has an accounting degree. And hiring a professional to keep your financial situations in order is a very wise thing to do. You need to have the correct tax returns if you want not to get in trouble with the law. After all, there are many professionals out there who are looking for accounting degree employment.
The majority of business owners ask themselves if they should hire an accountant or not. Having an unorganized business is not an option, because that would lead to bankruptcy. Of course there is also the possibility to use an accounting software, but not anyone can use that either. The best thing to do is to look for a person with an accounting degree.
The first obvious choice for a business owner would be to look for a professional in an accounting firm. This has the advantage that you can find accountants who are well trained and experienced. This is not mandatory though, and you can as well hire an accountant who works on his own. This should be your own decision based on what type of accounting job you need.
How can one become certified public accountant? In America, you need to meet a few requirements, as in most of the countries worldwide. Usually, you need about 150 accounting college hours. You will also have to pass an exam. But this is only if you want to become a certified public accountant.
If you, however, are at the other end of the deal, meaning a business owner, you have more than one option when hiring an accountant. You can do it as a long term arrangement, or, as some business owners do, with the only purpose of him paying the taxes. But why hire a professional accountant with the sole purpose of paying taxes?
The answer is simple. Accountants are the ones who know best how to increase business deductions and maximize profit. You could be familiar yourself with some of these procedures but accountants are those who know them all. In the end, it's your choice whether you permanently want to hire an accountant, hire one for short periods of time, or even learn accounting yourself.
If you decide that you want to hire an accountant make sure you check his qualifications. You can work with a local accountant or look for one in an accounting firm.
Whatever you decide, you have to make sure that the respective person has an accounting degree. And hiring a professional to keep your financial situations in order is a very wise thing to do. You need to have the correct tax returns if you want not to get in trouble with the law. After all, there are many professionals out there who are looking for accounting degree employment.
Labels: Accounting
Posted by Hartono D.C at 1:19 PM 0 comments
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