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That is right folks; tax season is almost upon us. It is time to start organizing your paperwork again. How much time will you spend gathering your accounts receivables, accounts payables, receipts, mileage reports, W-2s and 1099s? And that is only the beginning. More of your time will be spent to meet with your bookkeeper, and then your accountant, each of them reminding you of what information you forgot to get to them, and each of them letting you know what they still need from you. Just how much time will you spend on a topic you really dont want to think about?

Imagine how much time you could save if you were paperless. Imagine if you could take care of everything by e-mail, without fussing with a bookkeeping program. Imagine if there was a virtual accounting office that would take the aggravation out of your bookkeeping and make preparing your tax return as easy as writing a check. What could be better than an accounting office that you never have to visit?

Better yet, how about a virtual accounting office where you access to your books anytime you want? How many times do you get a call from a customer wanting to know his balance and you have to wait to give him an answer until your bookkeeper can look that information up for you?

With a virtual accounting office your books are available to you 24/7. With a secure login you, your bookkeeper or accountant can pull up company records wherever there is Internet access. In real time, you have access to your books and are able to answer that customer’s question about his balance when he calls.

Want to know how much you have paid a vendor this year but dont want to wait to ask your bookkeeper for that report?

With a virtual accounting office you could run a report to give you that information anytime you wanted. A virtual accounting office can give you instant access to your accounting information, including your taxes, profit/loss reports, balance sheets and bank statements, all from the comfort of your own office, home, or anywhere in the world you may be.

Are you tired of printing paper checks you have to sign, stamp and then mail? Do you currently pay some bills through your online banking system, some bills with paper checks, some bills with credit cards, and some with automatic withdrawals, all the while never quite knowing your cash balance?

A virtual accounting office will save you time by locating all of your payables, all automatic withdrawals, and all deposits into one accounting system. You can pay your bills when you want, easily and directly through your online accounting program. You can also track any payment quickly and easily since you have only one place to look.

A paperless bookkeeping system though a virtual accounting office will streamline information into one accounting program. Now you will always know your available cash balance.

How much better would your business be if all your accounting needs were handled without the clutter of paper, through a Virtual Accounting Office, giving you more time to focus on your business? I would cut this sentence, repetitive. The last sentence is a strong close.

As a wise man once said, Dont sweat the small stuff. Let others do it for you. A paperless Virtual Accounting Office can do exactly that.

Debby Jones is a freelance writer who is known for writing his reviews on diverse topics & industry. In this article he proposes to take help from a virtual accounting firm to file your taxes. To hire one for your business visit MyVao.com & DawsonCPA.com

Business owners should know that they are required to record all financial aspect of their business and this is according to the law. The books that you record it in will be for the purpose of taxes and this figure must be accurate. Considering the fact that you have an online business, there will be many things in your mind and you may often tend to forget doing the books. Neglecting on this part can incur serious penalties. If there is not enough time for your book keeping, then you can try outsourcing book keeping for your online business.

These days, many companies are outsourcing book keeping jobs which can save time and to be more efficient in managing their business. If you let other people handle your books, this will mean that you are able to concentrate more on your business. Outsourcing book keeping is very popular and can be very cheap.

You should consider outsourcing has become a trend in the business world. This is because it is cheaper to outsource than to have a full time book keeper or accountant and many businesses today have now outsourced their book keeping jobs.

The advantages of outsourcing your book keeping, it will give you more time to concentrate in running your online business and it will also save you money. Before hiring a book keeper to do this job, you must remember that you must choose the right book keeping service first.

The qualifications of a book keeping outsourcing company must first be in its staff, they should be knowledgeable in the field of book keeping, and they must be certified professional book keepers. Besides these, they also need to have experience in the field of book keeping and knowledgeable in the inner workings of businesses most especially on financial transactions in businesses.

There is no need to hold a degree in accounting to become a good book keeper. Everyone can become a book keeper the most important thing you should look in a book keeper is their experience. The portfolio of the book keeping outsource company should also be good. The more clients you see will mean that they are trusted by people. Besides, as business owner understanding the fact that people only buy the services of businesses that they can trust.

These tips will be able to help you have more time on running your business and saving a lot of money. When outsourcing book keeping for your online business, you are sure that you will have nothing to worry when tax time comes. Just remember that you have to give the book keeper you hire all of the needed information about your business and your financial records.

The author is a freelance writer and also writes about business topics such as call centers in the philippines and philippine call center .

For the accounting firms which are responsible for bookkeeping, this has been a monotonous job. It usually takes long hours of tedious working and maintaining the processing of the accounts properly. Bookkeeping can hurt the pockets of the companies-in-charge of a job like this that requires massive patience. Some companies have trained accountants on being very adept with their job. The downside would be amount of salary which is being asked which is too high to continue their employment.

This is the case in small businesses the hiring of several competent people that will compose of the staff that is fit for bookkeeping would be a good option that fits the budget perfectly. Charging of incredible amounts to the companies by bookkeeping employees has forced them to outsource. Companies have now device a strategy to give entirely a part of its work to the company which is outsourcing.

The benefits have now become large. The time has been given evenly to the different sections of the business and had opportunity to expand. Bookkeeping online can save a lot of a business owner’s or a company’s valuable time which could have been wasted if they are still stuck on the idea of searching for professional firms responsible for bookkeeping.

Online bookkeeping has many benefits that even small businesses are going to agree on how they have been saved from tons of paperwork and the long hours of finding the right documents when the IRS comes. The following are some benefits of online bookkeeping.
Bookkeeping should be cost efficient. This is being able to practice online bookkeeping which can help accounting business firms to save a lot of money and cut the cost in training the entire staff of bookkeepers.

Hiring an accountant is already a pain while hiring several can hurt big time, not only in the training but also in financial matters. It would really help the company if the budget would go with less business capital expenditures. The money saved will help in investing on more areas that are vital for business and can definitely boost business opportunities.
The efficiency is improved. If the person on the company itself couldn’t cope up during emergencies, probable reason would be work overload. And when coping can no longer work, the entire venture is bound to fail. That is why accounting firms would prefer to outsource it to other companies that are willing to take part.

Small businesses should not worry about their bookkeeping problems. They have already invested in so many things and bookkeeping must not burden them anymore. Imagine, putting massive blocks of paperwork to other people can save you from so much stress, time and will help business owners to perform efficiently.

You can save a lot. Cost on maintenance and training while forming a very advantageous business with all the benefits. This only proves that online bookkeeping is good for your business no matter how small it is.

The author is a freelance writer and also writes about business topics such as philippine call centers and call center philippine .

The main reason for evolution and development of many things is modernization. Even the simplest test can be made to be more modernized. Business must stay updated. With the different modern possibilities, even the companies are redefining the way they are organizing the document and date into a much simple context. This is how online bookkeeping for any type of business comes.

This can be seen as overrated if thought that everything that physically can be done, this virtual gadget will do a lot faster and better. This is why most businesses are either big or small scale, this depends on the bookkeeping forms in the convenience of accessing the history or any kind of documents rendered.

Business owners should take this advantage of bookkeeping services online which are largely available. Transactions are mostly done through the internet which you need not go out. What is good about online book keeping is that, it lessens the company’s problem on a lot of paperwork and when the need arises, every single financial report is going to be there right at your doorstep. The competitiveness of online bookkeeping is the same compared to physical ones.

Redefining the online bookkeeping services can be accounted for the good things it can do to the company. Through efficient recording, it easily traces the company’s loss and gain. It can clearly predict if the company has a financial crisis or development through the strict monitoring of data being given by the company. Since financial records are updated on a regular basis, it is made easier on the company’s part to determine how their current status is working out.

A very effective financial book keeping system is the perfect basis for foreseeable success and the development of any business. Because online book keeping services are always available, it can be day or night the business owner will not necessarily hire anybody in doing the tedious task. He just needs an internet connection that is secure to keep track on all records.

One good reason why online bookkeeping service has become popular these days is the fact that it is helping provide information and advises that will greatly affect the company’s decisions. Business owners can then easily acquire sources for capital and bank financing with the proper bookkeeping. This happens when the time comes that the company needs a loan.

It will need to gather all projected statements for the prior and current years that will have an additional impact. A clear financial picture is that online bookkeeping services can offer will help the business be associated with other investors or companies through having firm financial records that will encourage associates.

The author is a freelance writer and also writes about business topics such as call center philippine and call center outsourcing .

Financial forecasting reminds me of the weather - you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast. But then, the information changes, now it’s raining, and you’re caught without your umbrella!

Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either. It is a combination of:
- knowing your business;
- understanding your marketplace;
- setting goals; and
- using common sense.

As a business coach, I know that every small business needs to make reliable financial projections at one time or another. Forecasting is critical during the following stages of a company’s life span:
- when seeking financing
- gauging the profitability of a new product or service
- determining the impact of staff expansion or cutback
- assessing other business decisions

The many components of forecasting boil down to the following five bookkeeping business tips that for years I’ve shared with business coaching clients:

Bookkeeping Business Tip #1: Review Actual Year-To-Date Results

Start by looking at where you’ve been. If you use an accounting program like QuickBooks you can print out a Profit & Loss statement showing year-to-date results. Check the statement for all financial transactions that occurred up to the date of the report. Reconcile the report to your bank statements. (If you don’t use an accounting program or bookkeeping service, then take the difference of the total year-to-date cash receipts and total expenditures. This should equal your profit or loss.) Examine each line item to make sure that it makes sense - is your year-to-date revenue figure where you anticipated, or has it fallen short? Are expenses higher than expected?

Bookkeeping Business Tip #2: Establish Goals and Incorporate into Your Forecast

What do you wish to accomplish by year’s end? Do you want to introduce a new product or service, increase revenue on existing products or services, decrease spending, hire a new employee, outsource a bookkeeping service, or launch a marketing campaign that will position the company for the beginning of next year?

Write out your objectives and then choose three to five which are the most important to accomplish by the end of the year. Determine the needed steps to achieve the objectives. Which Profit & Loss line items will be impacted? Adjust your forecast accordingly. For example, your goal may be to increase revenue 10% by year’s end or to launch a marketing campaign now so its benefits will be felt in the first quarter of 2009.

Bookkeeping Business Tip #3: Forecast Variable Costs

Variable costs are costs that change in step with revenue change. For example, you are selling more widgets; therefore, your labor costs and materials costs will increase in relation to the revenue increase.

Using the concept that Forecast = Projections + Predictions, combined with the knowledge that variable costs change in step with revenues, forecast each month’s variable costs. Forecast each line item separately. Look for opportunities to reduce costs, and be aware of likely future influences on each cost.

Bookkeeping Business Tip #4: Forecast Fixed Expenses

Fixed costs are relatively stable costs that recur every month. Examples of fixed costs are rent, telephone and bookkeeping service fees. Forecast the month’s fixed expenses by using the same concept used to forecast variable costs (Forecast = Projections + Predictions) and the knowledge that fixed expenses tend to be relatively stable and do not change in step with revenues. Again, forecast each line item separately, looking for opportunities to reduce costs, while keeping in mind any likely future influences.

Bookkeeping Business Tip #5: Forecast Net Profit

The final step is to evaluate your forecast for net profit. Is the profit forecast is reasonable and acceptable? If not, re-evaluate each line item including revenues and make appropriate adjustments. Also, anticipate non-operating income and expense items, and include them in your forecast.

Your financial projections may not be perfect at first, but we didn’t learn to walk without falling down. As a business coach I’ve seen others get a few bumps along the way. But I guarantee that if you follow these bookkeeping business tips, set your financial projections on paper and revisit them frequently, you will achieve your goals faster.

Laurie O’Neil is the co-founder of The Bookkeeper’s Referral Network Inc., the place where business meets great bookkeepers. To get your copy of The 9 Disastrous Mistakes Most Freelance Bookkeeper’s Make in
Business (and How You Can Avoid Them!) visit http://www.bkpr-network.com

It is possible that bookkeeping can be diligent and effective if you know how to start. Make this numbers and dates work for you. Try following these basics and you can setup an interesting bookkeeping system. You must choose an appropriate bookkeeping system. You can choose between a single-entry and double-entry.

Difference between this two is that when it comes to the single-entry bookkeeping system, this is considered as a rudimentary system that is suitable for personal financing. One very good example of this is checkbook balancing where it involves a single checking account and is being credited or debited.

For the double-entry bookkeeping this is something that is more appropriate for businesses this is because it can track two accounts at the same time. It can do efficient multi-tasking. As you sell a product, the recording of transaction as debit on inventory and then credit on the account, this will automatically be done by double-entry bookkeeping.

Business owners, especially those who own small businesses, have one thing in common they lack the time and enthusiasm to have a detailed ledger. To make life easier, get a trusted CPA or be wise and find a bookkeeping program. You would still need to ask for professional help if the business is largely dependent on precise and timely records or is operationally complicated. If you will be expecting more than a $100,000 worth of sales or an inventory that is very much considerable, you need not wait for someone to advise you to get a bookkeeping system. This is the right time.

If you are going to rely on a bookkeeping software or CPA to work this out for you, you must have every single document, receipt and data that they need to organize. See to it that all is still intact: sales receipts, purchase orders, bank statements, and so on. The lost receipts and important documents are going to leave blanks and uncertainties on the system’s part. Dedicate yourself to filing all the data needed to make the bookkeeping system possible.

Employing the assistance of your bookkeeping software is not an excuse to separate from all the important financial details of the entire business. You are professionally and legally responsible in every single activity your business has conducted.

Therefore, this is a must for you, as the owner, you must understand the bigger picture, following the business trends. This is where bookkeeping comes to the rescue. Through the software, this can give you a clearer view of the financial records you have. Because this bookkeeping software, can let the owner decide to refresh and run basic reports on a daily basis.

Bookkeeping will eventually reveal data captures such as loss and profits, overdue accounts, and the business’ monthly expenses at a glance.

The author is a freelance writer and also writes about business topics such as call centers in the philippines and call center philippines .

Book keeping can be a full time or part time job this can be perfect for anyone that wants to earn extra money in their homes. What is great about book keeping is you need not buy expensive equipments or even worry about the insurance for your business and planning consents. Book keeping is not really hard to do, knowing simple arithmetic then you are able to easily learn in becoming a book keeper. If you want to earn extra cash, you can do book keeping as your online business.

There are a lot of people that have no formal book keeping training or people who have no degree in accountancy who have become successful in book keeping the same with their online business. You have to consider the fact that many business owners are doing their own book keeping at home to their annual tax returns.

You must first need to know and apply the taxation rules and its other factors. Keeping that clear record of income and expenses of the business that you are book keeping for is very important. Although book keeping for others is a small online business that can earn you some cash, you have to take in consideration that you may want this to be a full time career. You have to study about book keeping first in order for you to become qualified as a book keeper.

Here are some of the things you should know about book keeping. First, remember that every type of business even if it is large or small will be required by law to keep books this is where everything financial is recorded. What this is going to mean is that all the financial transactions of the business are to be recorded. These things can be done through manual input in ledgers.

This can also be done with the help of a computer, using spreadsheets or a dedicated software just for book keeping. Most of the business owners who rely on using manual books will tend to keep receipts, invoices, utility bills and other scraps of paper that have affected their business financially is in a shoe box. During tax time, the box will be handed over to the book keeper, and should be able to transform the data from the shoe box in a more formal looking record of the financial dealings of the business.

Book keeping can be a rewarding career. You may want to do it as part time work or as a full time career, you will see that anyone can be a book keeper and even work from home as a freelancer. You can even set up a website where you can offer your book keeping services and start that online book keeping service.

The author is a freelance writer and also writes about business topics such as call center philippines and philippines call center .

The law requires that all businesses, whatever its size must keep a record of each financial transactions done through the business. These records will be presented to the government during tax time and this determines how much tax businesses must pay and how much tax returns they will get. If you are the owner of an online business, then you should find book keeping services for your online business because this will make it a lot easier for you to run your business.

Looking for the right book keeping service can be hard. There are several companies that can offer book keeping services but you have to remember that there are only a few that can offer the service that you want. Even if you are a small online business owner, you should remember that you deserve nothing less. Having a good book keeping team, will give you a chance to bring your business to succeed. If you choose a company that doesn’t provide high quality book keeping service this can lead to losing money, even complete bankruptcy.

If you are not familiar on what you are looking for in a book keeping company, here are some of the basic things you should look for. First, the book keeper or book keeping company you will outsource the book keeping jobs should be qualified.

The online business owner will be the only one who is able to judge if the book keeping company will be capable of doing the job well. However, you need to remember that there are general qualifications that you must look for. An example is that a good company can offer you good services will not only have qualified people to do the job, but they also have people that are experienced enough to do it.

Always remember a book keeper is not required to hold a degree in accounting. He or she should have experience in this kind of job and must also understand the mechanics in the business, especially about the financial transactions.

A second would be that the book keeping company must have the right technology. It means that they should already have the program or software designed for book keeping. This will then save you a lot of time and money, also a big plus to your business as the book keeping programs were designed in giving comprehensive reports and services. More importantly, the staff in the book keeping services company is able to know how to work them.

Remember these suggestions and surely you will find the right book keeping service for your online business. With these things, you are sure that you are able to save time and money which will translate to focusing more on the business.

The author is a freelance writer and also writes about business topics such as call centerand call center in the philippines .

When it comes to business, outsourcing is always a tough call to be made. It is never easy to convince yourself or your partners that you are going to entrust a service provider with the internal business operations responsibilities. Especially for accounting, it involves the transfer of confidential information to a third party whom you have never met before. So before you make any decision to outsource your accounting, the following points should be taken into consideration first:

1. Conduct a background check of the company. As it is your first time entrusting confidential data to a company, it is always wise for you to do a background check first. Search for the company’s details on search engines and you should be able to get a fair idea about the background of the company. You should also try to get details of the vendor’s clients. Ask for their feedback on the service before you make the final decision.

2. Sign a contract with the vendor. The contract is the basis of any business relationship you have with another company. On the contract, it should states very clearly about the accountability of the outsource provider so as to avoid any confusion on the deliverables. The contract should also list down the tasks that the service provider will perform and these tasks should be open for revision for both the parties.

3. Request for an evaluation period. If you want to know whether you can work well with the service provider and are they going to meet your expectation, the performance of the service provider needs to be gauged during the evaluation period. The service provider should allow internal oversight by you so that all parties will know the progress of the account and ensure that the contract is being upheld.

4. Write a performance appraisal after the completion of the assignment. Once the assignment is completed, conduct a performance appraisal on whether the service provider has performed the necessary desired tasks. In the appraisal, also list down areas that you think the service provider can improve. This is to ensure that improvements can be made for future outsourcing assignments.

Outsourcing your bookkeeping to a service provider is definitely beneficial to your company. It is Time VS Money. When you outsource your accounting, you will save money on recruiting and training your staffs to do the accounting work for you. Last but not least, remember to conduct your background check of a company before making any decision.

For more information on Bookkeeping Service and other Accounting Service, visit the link below:

Click Here: www.361dc.com

With today’s technology everything is very much available with a click of your mouse. For those running an online business there is still the financial side that has to be taken care of just as in the traditional business setting. Keeping a record of the financial aspect is a must. This includes all the expenses and the income of the business.

This procedure is called book keeping. If you have no basic knowledge of book keeping then this can create problems to your business. Employing an in-house book keeper is the way most of the businesses do to be able to keep track of their finances. This can be costly and very impractical since tax sessions are not done monthly.

There are now many book keeping services offering their expertise to small businesses. Outsourcing for book keeping services is going to save you time and money. These days outsourcing has become a very helpful alternative to a lot of business.

Choose companies that will handle your books and make sure the inputs are correct and accurate. If there are mistakes that the person or company makes this will put you into a lot of trouble with the government and its tax agency. All the figures should match and if there is any negligence then there will be an investigation and even audited by the government.

Since there are a lot of things to consider in book keeping it is a lot better that a professional will handle this and that you can concentrate more on your business.

There are book keeping services that are seen online. Some would provide you outsourcing services while others can be hired as fulltime employees in making the books. The book keeping company should be reputable in being able to get the job done. The staff should be professional book keepers and they are experienced in this field.

Check if the book keeping company has a lot of clients. Having a lot of clients can mean that there are a lot of companies that have trusted their services. You can also ask other businesses what book keeping company they are using and do they recommend it.

Remembering these things when outsourcing the book keeping part of your business will help you better concentrate and to have more freedom. This will not only help in running the business but also saving you a lot of money. Following some of the suggestions you can get the right book keeper.

The author is a freelance writer and also writes about business
topics such as call center
and call center in the philippines.

The recently published Irish budget for 2009 will require a number of changes to be kept in mind by Irish payroll companies. The most relevant of these are as follows:

INCOME TAX CHANGES
Personal Tax Package
The main elements, including associated costs, of the personal tax package, which take effect from 1 January 2009, are as follows:
Changes to Income Tax
Full Year Cost
Eurom
New Standard Rate Bands from 1 January 2009:
Changes to Income Tax Full Year CostEurom
New Standard Rate Bands from 1 January 2009: Current Proposed
Single Euro35,400 Euro36,400
Married One Income Euro44,400 Euro45,400
Married Two Incomes Euro70,800 Euro72,800
*With a maximum transferability between spouses of Euro44,400 in 2008 and Euro45,400 in 2009 200
Income Levy Full Year YieldEurom
Income levy of 1% on income up to Euro100,100 (Euro1,925 per week) and of 2% on income in excess of Euro100,100 (this levy excludes social welfare payments, contributory and non-contributory pensions) 1,180
Total (yield) 980

Income Levy
Full Year Yield
Eurom
Income levy of 1% on income up to Euro100,100 (Euro1,925 per week) and of 2% on income in excess of Euro100,100 (this levy excludes social welfare payments, contributory and non-contributory pensions)
1,180
Total (yield)
980

Income Levy
A new income levy is being introduced that will apply at the rate of 1% to gross income up to Euro100,100 per annum or Euro1,925 per week. A rate of 2% will apply to income in excess of that amount.
The levy is paid on gross income, before deductions for capital allowances or contributions to pensions.
The levy does not apply to social welfare payments including contributory and non-contributory social welfare pensions.

This measure is expected to yield Euro815 million in 2009 and Euro1,180m in a full year.

OTHER INCOME TAX
Mortgage Interest Relief
The current rate of mortgage interest relief is being increased from 1 January 2009 for first-time buyers from 20% to 25% in year 1 and year 2 and to 22.5% in years 3, 4 and 5. The additional relief will be available to new first-time buyers and first-time buyers who have bought a house in the last 4 years.
The rate of mortgage interest relief for non-first-time buyers is being reduced from 20% to 15% from 1 January 2009.

It is estimated that this measure will be broadly revenue neutral.

Health Expenses Relief
Health Expenses relief will be granted at the standard rate only from 1 January 2009, with the exception of nursing home expenses which will be standard rated from 1 January 2010.

This measure is expected to yield Euro120 million in 2010 and Euro150m in a full year.
Levy on car parking facilities provided to employees by their employers.

A flat rate levy of Euro200 per annum will be charged on employees whose employer provides them with car parking facilities. The levy will be confined to employer provided car parking facilities situated in the main urban centres.

The estimated yield from this measure is Euro5 million in 2009 and Euro10 million in a full year.

Cycle to work scheme
From 1 January 2009, the provision of bicycles and associated safety equipment by employers to employees who agree to use the bicycles to cycle to work will be treated as a tax exempt benefit-in-kind. The exemption may only apply once in any five year period in respect of any employee. There will be a limit on the value of such purchases of Euro1,000 for each employee. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of his/her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented, they must be completed over a maximum period of twelve months.

The estimated cost of this scheme is Euro0.2 million in 2009 and Euro0.4 million in a full year.

Increase in the Specified Rates for Preferential Home Loans and Other Loans
An employee in receipt of a preferential loan is charged income tax on the difference between the interest actually paid and the amount which would have been payable at the specified rates of interest for the loans. To reflect changes in interest rates, the specified rate in respect of loans (other than home loans) is being increased from 13% to 15%. These changes will take effect from 1 January 2009.
The expected yield from this measure is Euro1.5 million in 2009 and Euro2 million in a full year.
Tax relief for the donations of heritage items
The tax relief in respect of the donation of heritage items to approved State institutions is being limited to 80% of the market value of the heritage item donated.

The tax relief in respect of the donation of heritage property to the Irish Heritage Trust is being limited to 80% of the market value of the heritage property donated.

The ceiling on the aggregate value of donations qualifying for each of these schemes in any one year will remain at Euro6 million.

Change in basis of Benefit-in-Kind (BIK) charge for company cars to relate it to the cars level of CO2 emissions
The Finance Bill will contain provisions to change the basis of the BIK charge on company cars to relate it to the cars level of CO2 emissions.
It is estimated that this measure will be broadly revenue neutral.

PRSI CHANGES
Employee PRSI annual ceiling
As from 1 January 2009, the PRSI contribution ceiling will increase from Euro50,700 to Euro52,000.
VAT
Increase in standard VAT rate from 21 per cent to 21.5 per cent.
The standard rate of VAT will be increased from 21 to 21.5 per cent with effect from 1 December 2008. This increase will apply to all goods and services which are currently subject to VAT at 21 per cent.
This measure is estimated to yield Euro208 million in 2009 and Euro227 million in a full year.

EXCISES
Increase in Mineral Oil Tax on Petrol
The mineral oil tax on petrol will be increased by 8 cent per litre (including VAT) with effect from midnight on 14 October 2008.
This measure is estimated to yield Euro22 million in 2008, and Euro166 million in 2009.

Tobacco Excise
The Excise Duty on a packet of 20 cigarettes is being increased by 50 cent (including VAT) with a pro-rata increase on other tobacco products, with effect from midnight on 14 October 2008.
This measure is estimated to yield Euro16 million in 2008 and Euro105 million in 2009.

Alcohol Excise
Excise Duty on a standard bottle of wine is being increased by 50 cent (including VAT) with effect from midnight on 14 October 2008. Pro-rata increases are also being applied to other wine, and certain other fermented and intermediate products.
This measure is estimated to yield Euro5 million in 2008 and Euro31 million in 2009.
A reduced rate of excise duty, at 50% of the full appropriate excise duty rate for beer and cider, will be introduced for low alcohol beer and cider (beer and cider products with an alcohol by volume content of 2.8% or less), with effect from midnight on 14 October 2008.
This measure is expected to cost the exchequer Euro2 million in 2009 and Euro3 million in a full year.
Excise Licences
A range of alcohol-related licensing fees, including off-licences, but excluding pub licences, are being increased to Euro500 in each case. These increases will apply from the appropriate annual renewal dates in 2009.
This measure is estimated to yield Euro2 million in 2009 and Euro2.2 million in a full year.

Michael Kelly is Managing Director of Irish Payroll Company Irish-Payroll.com. The company provides a range of payroll services as well as bookkeeping services. Further information http://www.irish-payroll.com .

Many years ago when I first began to operate my own small business I learned the hard way what the difference between the two methods of accounting were. And I only learned the difference when I made the decision to hire an outside bookkeeper to handle my accounting functions. In fact I learned the difference because I had been using the accrual basis method and the accountant tried to switch me over to the cash basis method. Without bothering to tell me!

You see because my business at the time involved billing customers and then waiting to be paid I had automatically adopted the accrual method. If I hadn’t then I would have had difficulty tracking my monthly sales figures and expenses. This is because when you use accrual basis accounting you bill a customer and record the transaction immediately. Whether you have been paid or not. The same goes for your own bills. When you receive the bill you record it and later when you actually pay the bill you go back to it and mark it as paid. This allows for a more even tracking of sales and expenses on a monthly basis.

The other way is called the cash basis method. Quite simply you record the transaction when you are paid for your goods or services. This method is good for a number of businesses such as restaurants and convenience stores. In fact it is fine for any small business that does not have to invoice its customers. Paying your bills works the same way as well. You record the bill when you pay it.

The two methods are actually very simple to understand but for reporting purposes to the IRS as an example they are very different. The IRS generally prefers the accrual method but you don’t have to use it. But some businesses use the cash method even though they have to wait for payments. They do this to avoid paying some taxes for the year at least temporarily because the revenue didn’t get recorded when the job was completed. It was recorded when it was paid which allowed it to be carried over into the next year. That’s one reason some businesses prefer the cash method.

So what happened with the accountant? Well I thought at the time that handing over the accounting functions to an outside bookkeeper would be a prudent move. In my case it wasn’t. I had been using the accrual method and once I had handed over my books they basically started me off from scratch using the cash basis method. The first time we sat down to go over the books I realized the problem. I had no idea how well my sales were doing because I hadn’t been paid for many of the jobs I had completed. And I didn’t know my total expenses either because the bills hadn’t been paid yet.

Of course this wasn’t going to do at all. And to top it off I hadn’t been asked which method I preferred. Once I recognized the problem I thought it could be worked out. But the person that was doing my accounting work told me she only used the cash basis method and wouldn’t make any exceptions. So in the end I fired her and spent the next couple of weeks straightening my accounting books back out. So that I could get the information I needed. So knowing the difference between cash and accrual accounting is very important.

Cash Miller is an expert in small business affairs. To receive more tips that can help your business and allow you to crush your competition you can sign up for his FREE Newsletter. Once you’ve signed up your going to receive access to 5 FREE E-Books that can help your business prosper. And as a Bonus FREE Newsletter Members can expect to receive an additional FREE E-Book each week.

Several factors should be considered in choosing a bookkeeping system that can cater to your online business. Having a bookkeeping system can help in a number of ways like quoting off-hand your bank balance.
Also, you can make better decisions in your financial statements involving your online business.

The bookkeeping system can guide you to properly set-up the books you will need. You are able to keep track your credit card usage and outstanding debts. It can also process the refunds quickly and efficiently.
Organizing the business receipts and understanding tax time preparation and its importance. It is important that you can track products you have sold or the services that were offered in the past months.

As the owner of an online business there should be an established set of specifications before you decide on what bookkeeping system you are going to use. Based on the mentioned tasks that a bookkeeping system must possess you can narrow down your search for the best.

A bookkeeping system must have a complete online document and data management this includes bank account reconciliation, credit cards, taxes, payroll services, financial reviews and overviews. The bookkeeping system can also give you advice on generalities.

Determining the Right Bookkeeping System

1. Cost Effective. Finding the right bookkeeping system for your online business should not be expensive. Look for the best one that will not cost you a lot. If the service is not too high it does not mean it is less reliable and that the processing is compromised.

2. Supportive. A bookkeeping system must be able to give good information about your financial status. It should explain what is happening to the present financial report and give good business advice. The whole system should work with you for the success of your online business.

3. Standardized. Work with professionals that are well-trained to convey an outstanding performance in the industry. The services given must have guidelines that are well-developed because of the communication, quality and process.

4. Timely and Accurate. There should be a strictness that is going to ensure accurate and timely reporting. The software should have a certain quality that can identify bookkeeping errors. This should be updated regularly to avoid any problems.

5. Convenient and Seamless Service. Documents are arranged in which it is convenient for the business owner to drop it off in the nearest city. The documents will be indexed and ready to be used making it easier to access with a click of the button.

Getting the bookkeeping service that will suit your budget and at the same time solving your problems in taking care of the books. Having the best bookkeeping service will help you succeed in the long run.

The author is a freelance writer and also writes about business topics such as call center in the philippines
and call centers in the philippines.

The Profit & Loss Statement describes you how your business is performing at that particular time and the Balance Sheet is the statement that tells you about the long-term health and strength of your business. The balance sheet shows whether you can meet your obligation as they come due, how much you are indebted to others and your prospects for staying in business.

Assets = liabilities + equity. This is the accounting equation. Assets = your stuff. Liabilities and equity = how you paid for your stuff. Liabilities indicate how much of your stuff that you have paid for with other peoples money. Equity shows how much of your stuff that you have paid for with your own money. Retained earnings are exactly what they sound like: how much of previous years profits you have retained in the business.

The terms current assets and current liabilities have a special meaning in the Balance Sheet. Current, in this case, indicates any asset or liability that will convert into cash within the next 12 months. Accounts receivable is current because when your customers pay you (hopefully within 12 months), that asset will become cash. Same with inventory: when you sell your product, that asset converts to accounts receivable and then to cash, typically within 12 months. On the liability side, accounts payable are typically paid within 12 months. So are credit card bills and your bank credit line.

Another interesting feature of the balance sheet is that the assets and liabilities are listed according to their liquidity. So cash is the first asset, accounts receivable the second, inventory the third and so on. Fixed assets and investments are listed toward the bottom of the asset side of the balance sheet because they are not expected to convert to cash anytime soon. The same holds true for liabilities: accounts payable first, credit cards next with long-term debt coming in lower on the liabilities side of the Balance Sheet.

Financial ratios are very helpful in assessing the strength of your business. The current ratio (current assets minus current liabilities) indicates how much free cash that you have. A current ratio greater than one indicates that you have sufficient current assets to meet your current obligations as they come due.

The debt to equity ratio (total liabilities divided by total equity) indicates how much of your creditors money as compared to how much of your money is supporting your assets. A debt-to-equity ratio greater than one is a strong indicator that you have borrowed too much. Too much debt is not a problem during good times, but it can wreak havoc when your business dips.

So take a few minutes and look at your Balance Sheet. Compare it with last year and see how your business is progressing. Compare your current ratio and debt-to-equity ratio to last year and see if your business is becoming strong or weaker. You will be surprised at how much valuable information is contained in your Balance Sheet, which otherwise you may not have known only because of being ignorant about some of the basic rules of a Balance Sheet.

Debby Jones is a freelance writer who is known for writing his reviews & thoughts on diverse topics & industry. His current article features his tips on how you can apply various accounting formulas to your Balance Sheets & compare your business success of the past years. To hire your own Virtual Accounting firm Visit DawsonCPA.com

The Cash Flow Statement is made up of three sections. The first section is operating activities. Operating activities include your companies profit or loss and non-cash items that affect your profit without affecting cash. Examples of these types of non-cash expenses are depreciation and bad-debt expense. Also included in this section are changes to your operating assets and liabilities. Operating assets and liabilities include accounts receivable, prepaid expenses, accounts payable and accrued liabilities. A common feature of operating assets and liabilities is these items have been reflected in the Profit & Loss Statement in a period different from the period in which they were paid.

The second section of the Cash Flow Statement is investing activities. Investing activities are items such as property and equipment or loans receivables. An interesting aspect of investing activities assets is that they, unlike operating assets, generally do not affect the companies profit. In other words, investing assets do not represent revenue or expense items.

The third and final section of the Cash Flow Statement is financing activities. Financing activities are debt and equity items. If you increase or decrease your debt, that change is included in financing activities. Equity changes such a capital contributions or shareholder distributions also are reflected under financing activities. Like investing activities assets, financing activities liabilities and equity do not represent revenue or expense items.

The sum of the three sections: Operating activities, investing activities and financing activities is your cash flow for the period being reported. A positive number indicates an increase in cash and decrease indicates a decrease in cash. Now it is time to take a closer look at the Cash Flow Statement and see why your cash flow is different from your profit.

Compare your cash flow to your profit. If your cash flow is higher than your profit, you are either liquidating assets or increasing your debt, which is negative for your business. On the other hand, it could be that you are increasing your capital, which is a positive for your business.

If your cash flow is less than your profit, you are increasing your assets, such as purchasing property and equipment for future growth or paying down your debt. These are both positives for your business. But it could mean that your money is being tied up in accounts receivable because collections have deteriorated and your business is weakening. Or it could be that you are decreasing your capital, which is a negative for your business.

Cash flow is an indicator of where you are spending your money and the future strength of your business. Small business owners generally do not realize the importance of comparing their past years Cash Flow Statements to measure their business growth. Some of them are ignorant of the basic rules that one should follow to compare their past Cash Flow Statement with the current one. So now that you are aware of these formulas take a few minutes and review your Cash Flow Statement. Compare it with last year and see how your business is progressing. You will be surprised at how much valuable information is contained in your Cash Flow Statement.

Debby Jones is a freelance writer who is known for writing his reviews & thoughts on diverse topics & industry. His current article features his tips on how you can apply various accounting formulas to your Cash Flow Statements & compare your business success of the past years. To hire your own Virtual Accounting firm Visit DawsonCPA.com

If you are a business owner like me you will know good help is hard to find. In these turbulent economic times finding good staff at a reasonable price can be very challenging. Some colleagues say impossible. However, the use of business process outsourcing (BPO) staff can be used at a fraction of the cost. This could be your path to having all those low level tasks you have been meaning to get done but never have the time. The reality is there are not enough hours in the day. But now BPO staff can do the job extremely well and is relatively inexpensive.

There are several types of BPO. You can BPO staff offshore or you can simply outsource on site or within your country. There are a number of BPO companies which can provide you with the security measures to ensure your investment is ‘less risky’. The purpose of outsourcing is to save money with very little overhead costs or benefits such as sick leave and superannuation (or retirement plans such as 401K). BPO staff can do some of the following job roles as well as much more.

Entering Data: For the majority of businesses the manual entering of data is a time consuming and expensive task. Storing data such as emailing lists and stock control is a full time job particularly if you have a business turning over large amounts of goods and/or services. It is great if you have the time and patience to enter data but if you do not BPO staff could be considered.

Telesales and Call Centers: Do your marketing strategies include the use of the phone? Outsourcing BPO staff can do all your lead generation, sales or manage your incoming calls. You can diversify your marketing strategies by using BPO staff to call business prospects. Direct marketing via telephone is a very effective marketing strategy.

Client Support: All businesses require customers or clients. The power of BPO staff can be seen in the areas of customer service. By outsourcing staff you are able to offer unparalleled customer support for all your products. Improve your businesses productivity by employing BPO staff to manage help desks for products, appointment confirmation and much more. This is all possible with out the expense normally associated with employing local in house staff.

Offshore Admin Assistant: BPO Admin assistants are able to do a number of jobs including data entry, telephone (inbound and outbound), respond to emails, organize meetings and much more. Perhaps the workload for your current receptionist is too high and you can not justify another receptionist. You could employ a BPO staff member to complete these tasks and let your current receptionist do the meet and greet as well as other activities which require a physical presence. This could unleash your companies level of productivity and profits.

Accountants/Bookkeepers: Keeping your financial records and books up to date does not have to be a stressful and time consuming issue (not to mention expensive) with BPO staff. There are many financial reports to be completed in the financial year. By outsourcing you can employ a bookkeeper at fantastic rates,save time and take away all your bookkeeping stresses.

If time is an issue for you and your business the use of BPO staff to complete those annoying jobs you have been meaning to finish is critical. Outsourcing staff could be the edge you have been searching for to increase your businesses productivity and capabilities.

Money is an issue on everyone’s minds: from the CEO sitting at the top to the entry level employee living paycheck to paycheck. This is why it is so important for those who are struggling in these hard economic times to be able to afford the basic essentials. In order to do that, you must create a budget you can stick to.

Creating a budget is probably the easy part. Sticking to it make take getting some used to, because many people on a budget will have to cut out many of the little extras and comfort items they have grown used to, such as the daily latte or the morning paper. But with personal finance software, it can be easier than ever to create a budget that works for your life and one that you can easily integrate into your life.

You will have a chance to buy of download personal finance software from a variety of different companies. Instead of just blindly picking a software program that sounds good, you will want to do your research on which program will best suit your needs. First, you will want to check out the special features in the program, such as online access to your bank accounts, tools to manage everyday spending, bill payment reminders, and connecting to those other accounts that you put money into, such as a 401(k) or mortgage accounts.

Personal budget software varies in price range, but you can find programs that are relatively cheap and will help you with all of your budget balancing and bill payments. And with a proper budget, you will not only be able to pay all of your bills(and on time) but you will also be able to save money for the future, even if it is as little as putting back ten dollars a week into a savings account. There’s only one way to find out if a budget can work for you, and that’s to get a program that will set it up and help you stick to it.

And if you work a different operating system such as Mac of Linux, you can still find compatible personal finance software. All it takes is a little shopping around to find the perfect program for you. You will want to pay attention to all of the money management tools and features that the program offers, plus you will want to look to see if you can get access to all of your online accounts through the program. This will allow you to make real time transactions and see the final balance on any account linked to the program. This helps when you have a lot of bills to pay and only a little time to do it.

And if you are worried about linking your online accounts to your program, you will find that many programs will offer a protection guarantee that keeps your personal information from being shared to the software company or any other third party that is associated with the software program. So all you have to do is enter the numbers and watch your budget work for you.

Jordan McPelt is writer who specializes in green office solutions. Go to www.software.com for more info.

In this article, we will discuss some of the most common bookkeeping mistakes made by small business owners that you absolutely need to avoid if you want grow your business:

1. Handle all bookkeeping work by yourself. Especially for a small business, it is very common for the owner to have a self-employed mindset. The owner will try to do it all by himself because of budget constraints. Although it does not seems like there are a lot of bookkeeping to be done at the beginning, you must develop a habit to record your book frequently so as to make your job easier in the future.

2. Do not tally your book with your business bank account. It is very important to make sure that what is on the bank statement is the same as your books. As long as the numbers tallied, you can be assured that there is no bank payment or receipt that have been missed out by you.

3. Forget to update your books. Sometimes, it is very easy to forget updating your book if you buy goods or services with cash or your company credit card. This will create trouble in the future as the numbers on your book will not tally with the numbers on the bank statement.

4. Not using the right bookkeeping software. Bookkeeping software can help reduce your workload and make your recordings more accurate. You should invest on the right software for your industry and train your staff to use it.

5. Forget to backup your data. You should backup all the data in your computer in case of any emergency. It only takes you very little time so there is no excuse for you not to do it.

6. Not organizing your information properly. You need to organize your information into the right category for easy reference. This will keep your recording simple and consistent for anyone who takes over your bookkeeping work.

7. Not registering for taxable sales. If your company’s total sales reaches a certain amount (depending on your country of residence), you need to file for registration. Failure to do so may result in fines.

8. Do not have a separate business bank account. Even though you are a self-employed, it is a good practice to open a separate bank account solely for business transactions. This will make your bookkeeping job easier and makes everything much clearer.

These are 8 common bookkeeping mistakes made by many small business owners. Hope that with this article, you can avoid making the same costly mistakes.

For more information on MYOB Software and other Accounting Software, visit the link below:

Click Here –> www.361dc.com

Starting your own business can be a very rewarding experience. You will enjoy freedom and flexibility you never imagined. You will also work harder than you ever have before but it feels completely different when you are working for yourself. Here are some tips to help you get off on the right foot with your record keeping.

1. Keep Receipts For All Transactions From The First Day Onword. If you pay for everything with a check, debit card, or credit card this may not seem necessary. As a tax accountant I can assure you that it is. The IRS will disallow deductions if you do not have receipts to accompany your bank and credit card records.

2. Avoid Cash. I can tell you the easiest way to get into hot water with the IRS is to pay for things with cash and then not have a receipt. For many of us we are in a habit of using cash from the time we were kids. For your own business though, you need to avoid cash.

3. Deposit All Your Income. It is very tempting to withhold cash from your business receipts but I advise you do not. Instead be aggressive with your expenses. If you are in an industry where cash deals are common the IRS will look for evidence of cash deposits in your checking account. If they are absent you will have a lot of questions to answer.

4. Use QuickBooks. Inuit owns 80% of the small business accounting software market and for good reason. Their software is easy to learn and easy to use. Within a few hours after installing you can be producing your own professional financial statements. It is the software I use for my own accounting/tax business and also what I use to produce client Financial Statements and Payroll Reports.

5. Report Employee Earnings Timely. There are several services on the market that will be glad to do your Payroll Reports and process your employee checks. Shop around and get the best deal. This market has become more competitive which means there are some good deals out there for you. For example, if you are in a high risk industry you can get a reduced WCF rate with a company like ADP. With the amount you save in disability insurance for your employees your Payroll Tax preparation expense is essentially free.

6. Use A Business Credit Card. Using a business credit card has many benefits. You can usually find one with no annual fee, 0% introductory interest rate and even cash rewards. But for the purpose of this article one of the primary benefits is for your record keeping. At the end of the year you will receive a summary of all your expenses by category. Give this to your accountant along with your other records at tax time. This will make your accountant’s job easier which should lower his/her fees.

There are many other items to consider when starting your own business and I recommend you speak to an accountant as soon as possible. If you already have someone preparing your tax returns then you can start with them. Make sure they are familiar with hiring your spouse and children, medical reimbursement plans, business plans and entity structuring. Do not stay with an accountant who is not familiar with these because you cannot afford to.

Zach Allred is a tax accountant with a desire to provide tips about good credit card practices. You can visit his site to compare business credit cards. You can also visit his home based business site for other resources and free articles.

Essentially bookkeeping is the act of monitoring and recording the various financial transactions which are made by an individual, business or company. Bookkeeping has been around for a long time, and there has been a great deal written on what is essentially the ideal bookkeeping system. This article will demonstrate 2 examples of what are in my mind, the most ideal bookkeeping systems ever documented. Obviously the exact path to follow in forming your ideal bookkeeping system will vary depending on your business size and needs.

The following are the 2 examples of what could be could be considered an ideal bookkeeping system. Both books are commonly available in book stores throughout the US, and definitely worth pursuing.

Organize Your Books in 6 Easy Steps: A Workbook for the Sole Proprietor Service-Oriented Business By: Donna M Murphy

As the title of this book suggests, this book shows how a sole proprietor of a service-oriented business can create and organize their bookkeeping system in series of basic steps. The proof of this system lies in the testimonials provided- by people such as James C. Smith, the president and CEO of SEMA- who could not praise the content of the book enough. In the 13 years of operating their business, SEMA inc analyzed practices and shortfalls which could have been avoided had they followed the steps outlined in the book.

‘Organize your books in 6 easy steps’ specifically focuses on cash flow management and understanding and dealing with the IRS to create the ideal bookkeeping system which is appropriate for your business.

Setting Up and Running a Limited Company: A Comprehensive Guide to Forming and Operating a Company as a Director and Shareholder By: Robert Browning

This book not only focuses on creating the ideal bookkeeping system within your business, but shows how success for your business will flow on from the basic cash flow management and organization of your bookkeeping. This book is ideal for a business operator looking to solidify a solid bookkeeping system, and to drive success from the foundation of this bookkeeping system.

Whichever bookkeeping system you decide to implement in your business, there are certainly some universal characteristics you should want to include:

Utilize Bookkeeping Software - The days of manual bookkeeping are long gone. Bookkeeping software allows for easy management and fast updates of your financial transactions.

Choose Your Bookkeeper wisely - You should select a focused and dedicated member of staff with a vested interest in the business to take care of your bookkeeping system (you may be the only person suitable for this role).

Stay on top of your bookkeeping- Never put off your bookkeeping! Record every transaction and keep every single receipt- don’t let it mount up. The last thing your business needs is to be audited and to be found negligent.

If your business adheres to these basic principles your bookkeeping system will run as smoothly as possible, and success in your business will more than likely follow.

Want to develop your own bookkeeping system for your business? Unsure where to begin? Look no further… Discover the latest information and tips on bookkeeping. Please visit: http://www.book-keeping-tips.com (Visitors receive FREE ‘Bookkeeping Business Tips’ eBook)

It can be difficult for a business to give up control of important functions such as accounting services to an outside agency. Although the argument in favor of outsourcing may look good on paper, there is always the worry that some inept or even dishonest bookkeeper could damage the business.

Once a company has made the decision to contract outsourced bookkeeping services, the decision of which company to work with is more than a matter of throwing a dart at Yellow Pages listings. Finding the right accounting services organization will make all the difference.

What Service Does the Company Offer?

Avoid companies that are just starting out. Although as a business owner you might be sympathetic to the struggling startup, do you really want to deal with getting your books back if their business should fail? Stick with businesses that already have a proven track record of success.

Today’s accounting services are all computerized. Even if keep all your financial records written on cocktail napkins and the backs of envelopes, your bookkeeper should be using an accounting software package. They should offer online account services including 24/7 access to your books through a secure internet connection.

Ensure that your books will be handled by the same person all the time and not just whoever is available at the moment. You will build a relationship with this bookkeeper over time and want to have someone who can focus on your business.

Interview Your Future Bookkeeper:

Don’t be afraid to quiz your bookkeeper on experience and education. There are a few people out there who offer bookkeeping services and yet don’t know an asset account from a cash flow statement.

Continuing education is as important as past experience. It may seem as though fundamental accounting skills haven’t changed much, but new skills and technology are surfacing all the time. You want your bookkeeper to maintain skills and knowledge, perhaps even finding new ways to help maintain your company’s financial records.

Will the bookkeeper be available during normal business hours? The surge in telecommuting has given rise to bookkeepers who are trying to do their jobs in between personal commitments. While that may work in some fields, accounting services personnel need to be available to their clients during standard hours.

Ask how you will be communicating with each other. Telephone, email, instant messaging, and online project management tools are all common methods. You should also find out what kind of reports you can receive and when to expect them.

If possible, find someone who has specific experience with your industry. Although each industry uses the same financial basics, details such as industry jargon or best industry practices may confuse someone who has experience with other industries. If you can’t find someone with specific industry experience, find someone who is willing to learn.

Author is a freelance copywriter. For more additional information on Controller
Services, visit http://www.OSIBusinessServices.com.

Goal setting is crucial to the success of any business, but is particularly important for entrepreneurs in the bookkeeping service business who can become distracted with multiple priorities. Goal setting allows us to be proactive, instead of just being reactive. We’ve all had days where we leap from one crisis to another, but we know that’s not a preferred mode of operation for our bookkeeping services! Goals direct actions, give us something to aim for, and serve as a yardstick for measuring our bookkeeping business’s success.

When setting business goals, I use a successful goal-setting formula that a business coach
mentor taught me. The formula incorporates a strategy or strategies for accomplishing the goal: “I will (goal + performance measure) by (specific actions).”

For example, suppose that you want to increase revenue. First specify the goal: “I will increase revenue this month by twenty-five percent.” Setting a specific goal builds in the criteria you will use to evaluate your success.

In this case, at the end of the month, you’ll either have increased sales by twenty-five percent compared to the previous month or not. Then, specify the strategy that you will use to work towards accomplishing the goal: “I will increase sales this month by twenty-five percent by offering a ten-percent-off sale on all inventory and advertising this sale in the local newspapers.”

This makes evaluating your success or failure easy because your goal is specific rather than general. Suddenly, instead of just having a goal that you may or may not achieve, you have a specific plan to follow to achieve the goal you have set.

If you avoid setting goals, here are a few bookkeeping business secrets for goal-setting success:

Bookkeeping Business Secret #1: Have Short-Term and Long-Term Goals

The first thing I do when setting goals is to consider where I would like to be five years from now. Once I have determined my long-term goal or ideal scene, I work backwards by breaking this ideal scene down into short-term goals and specifying milestones that need to be achieved along the way.

If the task seems too daunting with a five-year plan, establish 90-day goals. Limit goals to three specific things that you want to accomplish. Write out each goal and put a due date next to it. Then write out each step that needs to be taken, by when, and what type of support you need to accomplish that goal. Then schedule in your calendar time to honor the commitment you just made to yourself.

Bookkeeping Business Secret #2: Be Relevant

Goals should help you attain a specific aim. Beware of goals that keep you busy but do not contribute directly to the overall goal you have set for yourself and the success of your bookkeeping business. If you don’t believe your goals are worthwhile, you won’t make the necessary effort to achieve them. For example, several years ago I wanted to work a four-day work week. I set the goal, but did not really believe that I could or should work only four days a week. Guess what? It never happened because I was not truly aligned with the goal.

Bookkeeping Business Secret #3: Review Your Goals Constantly

Review your goals daily. Keep them in plain view - by your desk or next to your computer. Goals are not something that you write down and file in a drawer. The more you embody your goals, the more real they become and the more aware you are of opportunities that cross your path to help you achieve those goals.

I write my goals on colorful 4×6 index cards and keep them by my bedside. I read them first thing each morning and then again before I go to sleep at night. This keeps me focused and moving toward my goals.

Bookkeeping Business Secret #4: Stay on Track

Once you establish clear goals you will begin to notice that opportunities begin to present themselves. When this happens, I ask myself a very important question which helps me to decide whether I should look further into the opportunity or let it go - “Does this opportunity bring me closer to my goal or further away from it?”

By asking yourself this simple question, you’ll be able to take decisive action towards accomplishing your goals. For example, a lovely salesperson from ADP has been calling me to schedule a meeting to show me their services and how they have changed. By asking myself, “Does this opportunity bring me closer to my goal or further away from it?” I have no problem deciding whether or not I should schedule the meeting.

Linda Hunt and Laurie O’Neil are the co-founders of The Bookkeeper’s Referral
Network Inc., the place where business meets great bookkeepers. To get your
copy of The 9 Disastrous Mistakes Most Freelance Bookkeeper’s Make in
Business (and How You Can Avoid Them!) visit http://www.bkpr-network.com

Book Keeping and Accounting is something foreign to many, maybe because they never cared to learn it thinking it is just a dull game of recording transactions using unnecessarily complicated terms and methods. Far from it, book keeping and accounting is a logical way of recording transactions in a professional manner so that the information could be used in the ascertainment of many other vital business criteria such as the profits or losses made, who owes you and how much; how much you owe others, or are you carrying enough cash in the business for meeting immediate commitments etc., just to name a few.

Accounting is something that is useful in your personal as well as professional lives, and it would be worth your while to shed your prejudices and listen! Accounting is nothing complex as you have mistakenly imagined. It is based on one of the most fundamental concepts that if one receives something, then obviously another has to give; and therefore every transaction has a two-fold aspect called debit and credit in accounting terms. Maybe this reminds you of one of Newton’s Laws that action and reaction are always equal and opposite.

Fundamentally, the study of accounting is built on (i) The Accounting Equation, and (ii) Double Entry Book Keeping.

(i) The Typical Accounting Equation:
Assets = Liabilities + Equity

(ii) Double Entry aspect of Book Keeping:
The perfect balancing of the accounting equation is guaranteed by this system.

I think it pertinent now to define Accounting as a system of summarizing financial transactions and recoding in such a manner as to facilitate using such records for later analysis, preparation of further financial statements, interpretation of accounts and communication as required.

Now let’s go a little further with the Accounting Equation enunciated above, and move on to its practical implications:

Assets are your possessions (including what others owe you) while liabilities are what you owe others. The difference between the two is called Equity, which includes capital introduced by you (if it is a sole proprietorship) or by shareholders (in the case of a limited liability company) plus or minus any retained profits or accumulated losses respectively. May I also just state in passing that capital introduced is not refundable to anybody and as such it is not a liability. Hence it is called Equity.

Say, you buy a Motor Vehicle for $40,000 for which you pay $25,000 out of your retained profits (or personal savings) and for the balance you take a loan of $ 15,000 from an outsider.

Substituting these values in the Accounting Equation, we have:

Assets (Possessions) = Liabilities (what you owe others) + Equity (Capital/Personal Savings)
$ 40,000 = $15,000 + $25,000

You see one debit of $40,000 is equal to two credits added together ($15,000 + $25,000) = totaling to $40,000.

There could be more complex transactions requiring distribution to more ledger accounts as well as transactions involving only two ledger accounts. Every equation comprises of the double entry with one or a series of debits on one side of the equation equaling one or a series of credits on the other side.

In the two examples given below you will see how the two concepts of Accounting Equation and Double Entry are synchronized:

(i) Settlement of a liability by paying cash $50.
The liability represented by a creditor receives while your cash account gives.
Creditor (debited with) $50 = cash account (credited with) $50

(ii) Receipt of a debt from a debtor who owed you $75.
Your cash account receives while the debt represented by a debtor gives
Cash (debited with) $75 = Debtor (credited with) $75

Earlier we sited one of Newton’s laws to illustrate the concept of double entry in book keeping. At this point we would like to take you back to your algebra lessons way back in grade 8 or so where you were told that if you add something on one side of an equation, that you have to do the same to the other side of the equation too? It’s fair enough, is’t it? That is exactly what we ask you to do in book keeping too making the double entry equal and balancing.

Double entry book keeping is nothing so complex or weird as to defy fair and reasonable common sense. You can easily grasp the concept of double entry by training yourself to think logically as to who or what gives, and who or what receives in each transaction; and by framing the entries accordingly, while ensuring that the two sides of the equation are in agreement (balancing) and are consistent with common sense.

This article was written for Find This Online an online resource guide that offers a variety of articles written on different subjects. Visit us at Here for more articles on accounting information.

Company owners are often confused by the tangled web of business and financial regulations. To simplify the complicated financial part of the business, many of them choose to protect themselves by contracting for outsourced accounting services. On the other hand, some companies are still trying to handle their own bookkeeping or hiring non professionals to tackle the job in an attempt to save time or money. However, not using a professional is one that can cost a business owners more time and money than they realized they were gambling.

There are several reasons why choosing professionals to handle online bookkeeping services is one of the most cost-effective investments that a company can make.

Navigating the Regulatory Maze
The legal landscape changes quickly and businesses struggle to keep abreast of the latest developments. In our increasingly litigious society, ignorance of the law is no protection from significant financial liability.

This is one of the many reasons companies chose to employ outsourced accounting services. Unless a business is primarily involved in financial services, it is difficult to keep track of the changes. By hiring an experienced professional, not only does a company get its books in order, but it also gets financials done in compliance with the law.

Recent Changes Turn the Financial World Upside Down
The past few years have seen some of the most sweeping business reforms since the Great Depression. High-profile financial disasters like Enron and Worldcom have fueled public outcry for legal protection that has put a burden on all companies, public and private. It is harder for companies to use the casual internal bookkeeping services that have served them in the past. They need dedicated, full-time specialists that are familiar with today’s proper accounting practices, not the practices of ten years ago.

Using online bookkeeping services that use highly specialized accountants relieves the company of much of the burden of following frequent regulatory changes. These firms do nothing but financial work, so they can focus on using the correct practices and that protects their client companies.

You’re in Control When Using Online Bookkeeping Services
Although hiring an outside firm to do financial work can provide protection against liability, it doesn’t absolve the company of responsibility. For that reason, some companies are hesitant about using outsourced accounting services. They fear losing one of two things: control or security. If you choose the right service provider, neither of these will be a problem.

Online bookkeeping services give you full, real-time access to all of your financial data. Nothing is done without your permission or behind your back. You get regular financial reports that allow you to keep an eye on the company’s financial health. The service is there merely to process the data; all financial decisions are still yours.

That unlimited access doesn’t mean there is no security. In fact, your data is probably more secure if handled by online bookkeeping services. Professional companies have dedicated systems have hacker defenses, virus protection, and backup capabilities that small or even mid-sized companies can’t match.

Few companies need or can afford to hire a full-time, dedicated accounting staff and yet all companies need those capabilities. Outsourced bookkeeping services give you the benefit of expert financial services at far less cost.

Author is a freelance copywriter. For more information on Online Bookkeeping
Services, visit http://www.osibusinessservices.com

The times we live in are quite convenient in terms of communication whether you hail from a cubicle dwelling or man an oil rig in the gulf. Communication happens at the speed of a key click and the office vernacular these days typically revolves around abstract virtual talk. When someone means folder, typically they’re speaking of something found on a computer hard drive rather than on a shelf. Yet we still find the need for hard copies though. And some artifacts simply can’t be stored and still retain the same value at the same time. So, proper record storage facilities are in demand.

The following will be a bit of a brief on what kinds of records are often stored and, if those records are to be archived, where many companies choose to put the overflow.

Record Storage: What it is and Where

It probably seems like a no brainer thinking that if one has a stash of records that they should simply get a big old file cabinet and to assume that is going to be home for the stuff — out of sight out of mind. Well it may still be on someone’s mind, just that certain someone may be an untrustworthy sort who can do some serious damage to your business or lives whose personal data is printed on those pages. Also, in some industries keeping records in a typical building atmosphere will most certainly destroy it physically (think of the yellowed and crumbling U.S. Constitution left in a library drawer for 200 years unshielded).

Records that are stored long term tend to be because of their value. So, first off it’s necessary before archiving to identify if the document is worthy of storage. The record needs to be verified for its relevance and authenticity. Museum record storage is a prime example. It’s not usual to get a radiocarbon date on some of that stuff to ensure it’s the real deal.

To touch again on where records storage is in relation to environment, it’s necessary to determine how well the records will fare if left in a typical open air setting. Some documents do not do well in a file cabinet. Where the records are stored hinge strongly on two points: the ease of access to retrieve them and to make sure they are well kept from environmental forces. Temperature and humidity controls are often a factor to determine and well as disaster proofing the storage facility. Many private companies are employed to manage these tasks in their warehouses.

Another point is that records will often simply not be needed again or a security issue comes up where the information needs to be disposed of. Simple shredding of documents can lead to incriminating circumstance (Enron rings a bell). So standards are a big issue that companies have to comply with before paper is fed to the blades.

North Western Warehouse (http://www.nwwcom.com/records/records.php) is a private record storage group who provides secure space for storing a variety of records material as well as adequate shredding options for businesses both public and private. The author, Art Gib, is a freelance writer.

If you operate your own home business, then you are probably aware that there a few drawbacks to being self-employed, just as there are a few drawbacks to any major decision you do in your life.

Being an entrepreneur and self employed often means that you lose some workplace benefits, such as group insurance, sick leave, paid vacations, etc. However, the government does provide solace balance to those who have an entrepreneurial spirit, and this solace comes in the form of tax breaks, because you the home worker small business owner, are the largest source of employment in America.

There are many possible tax deductions for home businesses; you simply have to be well-informed about them to make use of them.

There are good reasons for you to go through the trouble? Because you?ll earn more money that way. By knowing all the possible tax deductions, and more, that you can take, you?ll come away with more of the benefits that your business generates, instead of getting cleaned out by the government. When it comes to taxes, make no mistake about it ? knowledge is power. The government needs you to have this power to keep it working also so they will help you when they can.

If you run a home business, some of the possible tax deductions for you are:

Home office costs, such as those that involve office repairs and maintenance. Expenses racked up through janitorial services, for example, when shown to be needed by the business, are deductible, as are waste management and garbage disposal services. Business furniture and equipment may also qualify for deductions in their year of purchase, as long as the amount does not exceed a certain limit.

Utility costs, such as electricity and water. The deduction applies to those areas that are used regularly and exclusively for business.

Telephone costs. This only applies if you have a separate line for use in business. A single line that is used for both business and personal calls does not qualify. However, if you make long distance calls and/or incur fax transmission fees, those expenses are deductible no matter which type of phone you use. You need to make honest percentage estimates of how much is used and keep good records based on your bills.

Rent or lease payments. A percentage of your rent, lease, or mortgage interest payments can be deductible provided that you are using the property regularly for business purposes.

Employee wages and employee benefits. If you are an employer of labor, you can deduct a portion of your salary and benefit expenses. Employee education and training costs are also deductible.

Education costs necessary in your line of work. This applies especially to professionals. Those who need continuing education to maintain their expertise may deduct the cost of this education from their tax returns.

Real estate taxes on business property. A portion of real estate taxes are considered deductible by the IRS.

Personal expenses. Some personal expenses, when conducted in conjunction with business affairs, are deductible. A portion of your automobile expenses, meal allocations, and travel and entertainment cots may qualify for deduction, as log as they are related to your business.

A final reminder: Try to maintain as accurate records as is possible. Document your deposits, income, expenses and deductions. This way, you will have proof validating your tax deductions. Because tax laws are complex and often changed, it is often advisable to consult a professional. This will allow you to claim as many possible tax deductions for home businesses as you can. Keep a stenographers notebook with separate pages for every deduction you feel you might have coming. Even if you don’t know if it is a deduction, for now, record it.

The above is very powerful. If you think something might be a deduction, write it in your notebook.

Have a CPA do your taxes for you. They cost more but you will get more back and have less trouble with the irs.They will find deductions you did not know you have coming from your possible list of deductions and they will also take off deductions you do not have coming. Some things they will be able to carry over for years in the future.

Your CPA will give you tips that will save you time and money and make your business better. They have software that will make your tax work far more efficient. If you get called in for an audit your CPA will do all the talking and you say nothing. I let the IRS call my CPA, regarding my taxes, if they have any questions.

You are less likely to get audited directly by the IRS because your CPA has a reputation to keep up and will keep your taxes straight. You will even save the IRS some money because they know your CPA will do better tax work than you.

Overseas tax services cannot go to an audit with you. This is a very important benefit of a CPA for you. Even though their charges are less they cannot know your business as well as your CPA to help you with many problems and questions. Buy Americans when it comes to taxes.

If you are going to be an entrepreneur the CPA will serve you better than an automatic tax software program and yes the software programs will result in mistakes. By the way, I am not a CPA or trying to sell you any tax services.

references; irs, cpa and 40 years of tax record business experience

James M. Lowe writes original articles about home business opportunities.

It seems almost cruel to bring up the topic of taxes this far in advance of year-end, but now is the time of year when smart business owners are thinking ahead and making adjustments that will minimize the number of dollars that go into Uncle Sam’s pocket on April 15.

Yes, taxes are complicated. Everyone knows that, but unfortunately, they still have to be done. It can help make this arduous task simpler, though, if you have someone who can give you the advice you need.

Here are some things to ask yourself as you go throughout the year, so that taxes will be much simpler come tax time.

Is someone sitting down with you regularly to make sure you’re well aware of the tax impact your key decisions are making, including any major purchases you make and how much you’re taking as a personal salary?

You can deduct more money than ever before for equipment purchases. You can also take tax deductions on expenditures that your company would usually need to write off over the next several years, and get an immediate tax deduction. Depending on what tax bracket you fall into, your tax break could be anywhere from $15,000-$39,000.

Do you have someone advising you on a good strategy so that you tax-optimize your year-end income and expenses?

The golden rule of end-of-year tax planning is “increase expenses and delay income.” That can be as easy as paying your January mortgage early or prepaying for subscriptions to keep the tax money in your pocket for an additional year. But if you’ve had a bad year, and expect next year to be better, you may want to take the opposite approach. We can help you make a smart choice.

Do you have someone advising you on ways to save taxes you might not know about?

Take care in check for those frequently missed deductions. For example, you could set up what’s called af “Dependent Care Assistance Program.” You can put more money in your employees’ pockets this way. Every year, you can reimburse employees for up to $5,000 in childcare expenses, tax-free. They don’t pay income taxes on the reimbursement, and you don’t pay payroll taxes on that amount, either.

Your CPA can help you take advantage of every tax opportunity when he or she prepares and files your actual returns. However, isn’t it nice to know that somebody who knows your business is working with you throughout the year to develop a long-term tax strategy?

Taking legitimate deductions is simply smart business, but you have to make decisions based on what is good for the long-term health of your company, not just on what reduces your taxes.

If you want to be successful in business, your customers have to pay you on time. If you’re like most businesses, you sell products on a credit basis, and then ask your customer to pay you later, such as within 30 days. During this time, you essentially lend money to the customer, and expect that you are going to be paid back. Only when the invoice is paid do you have the money you need to successfully run your business.

Unfortunately, getting the money you’re owed isn’t always as easy as just sending an invoice. Almost all businesses have customers who are slow-paying or don’t pay at all. If you’re not proactive in managing your receivables you can quickly deplete your cash. Here are some of the best practices you can implement to protect your company from late payments and delinquent accounts.

1. Make sure your customers are creditworthy. Perform credit checks and require credit applications to be completed before accepting orders. If the purchase amount is large enough, you can even ask for and review financial statements. Set credit limits and enforce them.

2. Run aging reports and take a look at them regularly. Aging reports will help you know what the makeup of your accounts receivable is, and show which invoices are less than 30 days old, then those that are 30 to 60 days old, 60 to 90 days old, and later. Make sure you know how you should interpret these reports so that you can spot problems early. Have someone specifically on staff to follow up with late payers. As invoices get older, they become much more difficult to collect on.

3. Send out invoices immediately. The sooner invoices go out, the sooner payments can come in. Your bills should also be detailed, clear and accurate. The more detail you include, the less likely it is that a customer can dispute charges.

4. Reward and penalize. Implement a plan whereby you provide incentives for prompt payment and penalties for late payments. For example, you could give customers who pay within 10 days a 2% discount. You can also automatically assess a penalty fee if a customer is more than 30 days late with payment, for example. Make sure you stay within any limits set legally, so that you don’t get yourself into trouble.

5. Monitor your growth. If you have a sudden significant increase in sales, this can greatly impact your company’s receivables and cash needs. Use the advice of a seasoned professional to develop a strategy for growth. You might want to consider additional financing such as a line of credit from the bank, or consider adjusting your prices. You may need to deter growth short-term to make sure that you don’t outpace your ability to pay your own bills.

When companies are successful, they seek new ways to improve Accounts Receivable functions. By improving this process, they know they can reap significant financial benefit. If you have fewer outstanding, balances, this means you can have fewer bad debt write-offs and greater profitability. If your portfolio of receivables is well managed, this can also boost your cash flow and expand your working capital.

The basic advantages of a computerized accounting system are effici