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Cash Flow – The Key to Make A Business Successful!!

17 Jul

A young business is characterized as being a “venture” and entrepreneurial” in nature. To take a viable venture and make it a growing concern, the entrepreneur must employ effective management strategies. If you run out of cash, you basically are out of business. Therefore it’s a smart idea to pay attention to it. In financial accounting, there is a concept called cash flow statement or statement of cash flows. It means a financial statement that shows a company’s incoming and outgoing cash during a time period.

For decade, both investors and lenders have used a company’s cash flow statement as a determinant of it’s financial health. This is part of Generally Accepted Accounting Practices. A cash flow plan consists of three parts. The first two parts everyone knows: income and expenses. It is the third part which holds out hope of improvement. The third part is the difference between income and expenses. It goes under several names, from discretionary funds to savings to free money. Cash flow statements format planning involves forecasting and tabulating all significant cash inflows and analyzing the timing of expected payments in detail.

Some advantages of the cash flow statement:

  • Helps the startups to know their inflow and outflow of cash and helps to prevent cash shortage
  • Helps the investors to judge whether any company is financially sound or not.
  • Helps the company to know whether it will be able to cover payroll and other expenses
  • Highly helpful for planning and management of future financial commitments
  • Sustainable profits come from good Cash Flow Analysis and Cash Flow Management.

Using financial or accounting tools such as software can help to manage Cash Flow well. Good accounting software will also let you budget income & expenses and will in exchange budget your cash flow. This makes it easier to make wise spending decisions, and not to overspend. Using your financial and budgeting software to help you run ‘what-if’ scenarios can be helpful for your bottom line, and can therefore help improve your cash.


Why We Need a Tax Consultant

5 Jul

If you are an independent contractor, consultant or an expatriate working offshore it may be advisable to get a reputable tax consulting company to look after all your taxation and social security needs. As a wag once famously said, “The only things certain in life are death and taxes.” Though this remark was aimed at individual men and women, it applies equally well to all business enterprises, big or small. Paying your tax in time is important for both your company and the country.

If you are not comfortable with doing your tax calculation on your own, you can outsource it to Public Accountants or Tax Consultants for better accuracy and thereby avoid over or over taxation. Taxation regulations can differ greatly form country to country, as with the legal regulations relating to managing income. To make your life easier and legitimate, choose a reputable consulting firm who can ensure you to get top tax consulting services.

To find a suitable taxations consultant specialist, research the internet and visit tax consultant’s websites to review the services and products offered. After making a short list of potential firms, get more specific particulars from each of these entities. Follow up on this with personal interviews with the firms and verifying their references. You can also check up on their previous history and performance by referring to professional bodies like NATC and the Better Business Bureau.

The cost of hiring a consultant varies depending on the type of consultant you choose to hire. A Certified Public Accountant who is not on your regular payroll will charge you an hourly fee. A tax consultancy firm on the other hand will charge a flat rate depending on the amount of work. If you are planning to work across borders choose a top taxation consultant to handle all the day to day management. Rid yourself of legal headaches and burdens; use a professional tax consultant company to organize your financial affairs.


Online Tax Consultants

16 May

When you say taxation, it means an imposition of taxes upon an individual or an organization of which they are very knowledgeable about. Tax consultants are professionals who are equipped with the knowledge of taxation. As a wag once famously said, “The only things certain in life are death and taxes.” Though this remark was aimed at individual men and women, it applies equally well to all business enterprises, big or small, who have an obligation to file their tax returns year after year with the IRS.

Although some countries require companies of a certain size to verify their balance sheets, many people use tax consultants to minimize the amount of taxes they pay, avoid learning in depth tax laws, or to become more familiar with the laws. Before hiring a firm you need to check their references. If the firm is established and well liked, they will have some for you to contact. If you are satisfied, once they are checked out, then you can start using the firm to help you with your taxes.

Things you need to check before hiring are:

Ask them how much do they charge.
Find out what you should be able to expect by using their service.
What is their schedule of availability?
Ask them for references.
Ask to see their credentials.

Safeguarding your current financial situation is perhaps the most pressing reason why you should work with tax professionals. However, getting tax help from these experts is also important when it comes to your financial future. Rather than hire a consulting firm at the end of each financial year, you should consider making a long term contract with it so that tax planning becomes a part of your business strategy. This will help you to take advantage of tax savings wherever possible and keep a check on your tax liability, which will ultimately maximize your profits.

The top five accountants’ website mistakes

11 May

I’m frequently intrigued to see that while a few accounting firms adopt an innovative approach to their website, others use a standard template and many more make some quite fundamental mistakes. If your firm has a website and you’re happy that it’s delivering all the things you want to achieve from it, that’s fine. If you don’t yet have a website or doubt the value of spending time updating or upgrading it, you may find that what follows offers some food for thought.

Who is this website for?
It’s essential to ensure that your website contains appropriate messages targeted at your key audiences, but you’d be surprised how many get this basic element wrong. Existing clients are rarely a key audience for any accountants’ website – in most cases clients will contact you directly when they need your help and will only go to your website if you have directed them there. The real target audience for an accountant’s website normally includes:

  • Prospects who have been recommended to the firm
  • Prospects who have found the site when searching online
  • Ambassadors and advocates of the firm and the partners e.g. bankers, solicitors and other networking contacts who want to check out what the partners have told them about the firm
  • Suppliers and prospective suppliers
  • Finally – and this is a commonly overlooked but often very important audience – prospective staff

Basic information
Once the website’s target audience has been identified, the next step is ensuring that they get what they came for. Is it easy enough for visitors to find that information or will they be sidetracked by numerous other pages and unable to find their way back to the key data?

As a bare minimum your site should identify what you do, who you do it for, what makes you different, where you’re based and how visitors can get in touch with you using their preferred method (phone, email, or post) or, if you are able to persuade them as to how it benefits them, your preferred method (i.e. filling out a form online to receive a quote without talking to anyone first).

Do you or colleagues waste time or lose prospective leads because they speak to the ‘wrong’ person when they call? It might be worth considering how best to direct them to the ‘right’ person through your website.

Am I in the right place?
The main objective for many firms’ websites is to help generate new clients. Some invest in search engine optimisation (SEO) or arrange a ‘pay per click’ campaign using Google adwords. This article won’t go into too much detail about these, but suffice to say that such efforts are a waste of money if the landing page on your website fails to provide the information being sought by the web user. There are a couple of points to remember in each case:

SEO– It doesn’t matter that you feel comfortable to service new clients across the UK. Most people who search the web for a new accountant are looking for someone local to where they are based. Your website will never rank highly for SEO purposes unless it incorporates key search terms on the home page and in the title tags. Remember that few new clients will come from people searching for your practice’s name. They will be searching for generic terms and your site needs to be optimised to beat the local competition.

Adwords– In this case you’re hoping that the advert catches someone’s eye while they are searching for an accountant. Instead of clicking on a search result you want them to click on your advert. If they do, you will ‘pay per click’. However, bear in mind that you’ll be wasting your money if the advert leads to a generic page on your website that makes no specific reference to the subject matter of the advert.

Who should I ask for?
It’s astonishing how many accountancy firms websites fail to provide visitors with the name of the principal or indeed of anyone in the firm. Even where there is a list of partner profiles, the ‘contact us’ page often simply has a phone number and an info@ style email address. I think it’s a fundamental mistake to omit the use of a name on the ‘contact us’ page. People buy people. However many (or few) calls you get at the moment, you will get more once you identify yourself.

If you have security concerns or ‘size’ issues, use your secretary’s name or the name of the secretary you would engage if you were big enough or bothered enough to have one. This also enables you to immediately identify callers who have come via your website as they are the only ones to ask for that person when they get through to you.

Some accountants prefer email rather than phone as they are often out of the office. Others provide only an office number and hope that visitors will leave a message if there’s no answer. Relatively few strangers will leave a message on their first call to a prospective new accountant. If a real person doesn’t answer the phone, the visitor calls someone else.

If you’re unable to answer the phone personally when a new prospect rings, consider engaging a virtual reception service. You can’t force people to leave messages on an answerphone or to make their first contact with you by email. You can try and some may do as you want, but many others will simply chose to move onto the next accountant’s website.

Losing prospective staff
Imagine for a moment that your firm has placed a recruitment advert in the professional press. What do you think is the first thing that any half decent candidate is going to do these days if the advert catches their eye?

Anyone worth their salt is going to check your website. Firms tell me that they can’t recruit enough good staff. There are more vacancies than good quality candidates. Which firms do you think the good quality candidates choose to visit? I suggest it’s those whose websites make the firms seem attractive places to work.

However effective your website is at converting visitors, will it present the necessary information to a good quality candidate? For example, does it have a ‘careers’ page or a bland ‘vacancies’ page, as if you were a supermarket with vacancies for additional cashiers or cleaners? To my mind, a professional services firm should be enticing new recruits by talking about their potential careers with the firm rather than simply the positions the firm wants to fill.


Importance of Financial Accounting Services for Business

5 Apr

As complexities increase in the business world, measuring and managing finances becomes a critical task. Without an efficient system to look after the accounting/ bookkeeping, payroll processing and back office transactions, the management of finances becomes ineffective and to fix the poorly done work, it costs time, resources and money. It is pragmatic to avoid all these hassles by availing expert Financial Accounting Services.

Financial accounting services include only the monetary aspects of the business. In the company’s financial year end financial accounting is handled by certified accountants who produce two fundamental financial reports such as the balance sheet as well as the profit and loss statements.

Business financial accounting services management needs skilled person to take care of it. Accounting management is the most complex amongst the rest. A minute mistake can result into the demolition of large infrastructure. The finance is that particular entity which helps in running the business.

Accounting services for small businesses are needed for dealing with all financial transaction and tax matters such as cash flow management, account reconciliation, ledger maintenance, payroll tax planning, preparing and documenting tax records, returns, dealing with state income and managing taxes, estate planning, book keeping, for preparing loan applications etc.

If finance & accounting is noncore to your business, it is wise to off-shore your accounting operations to a high quality professional accounting firm from a low cost country. This will optimize your operational costs vis-a-vis having an in house team on account of currency and labor arbitrage, enhanced efficiencies, conversion of fixed costs into variable costs, time zone advantage, standardization of processes and savings on the cost for training and ongoing benefits administration.

Another accounting service that is vital is corporate tax returns. Businesses are sometimes able to minimize the amount of tax they pay, and even qualify for tax refunds. The last thing you want as a business owner is to bleed money through heavy taxation. This service identifies the areas where you can make substantial savings thus reducing recurrent costs and sustaining cost-effectiveness.

There is lots of accounting services provider in market. But it is too difficult to finding the best and trustable accounting services provider or firm. Outsourcing bookkeeping services is one of well-known online accounting, book keeping, and financial services provider in accounting field.

Certified Public Accountant to Maximize Your Tax Benefit

4 Apr

If you run a small business or have an unusual tax situation, it can be highly beneficial to hire a Certified Public Accountant (CPA), not only because he or she can get you more deductions, organize your bookkeeping and identify weak areas in your businesses finances, but also because they can reduce your chances of triggering an audit. Tax filing and preparation is not an easy business, but it needs profession services of a tax accountant or a CPA.

Having your tax returns prepared by a CPA accounting firm dramatically reduces the chances of errors or omissions. CPA firms typically employ experienced tax accountants who have earned an accounting degree and have passed a rigorous certification process.

Having a personal accountant from a CPA firm also increases the chances that you’ll get all the tax credits and deductions that you’re entitled to. That translates into not having to pay more taxes than necessary, which can result in substantial savings over a period of time. An experienced accounting firm or CPA will also provide tax planning guidance to help you avoid future IRS problems, such as owing IRS back taxes.

Find a CPA tax accountant which can go a long way into helping your business succeed. If you want to hire a local CPA you can check at your city’s Better Business Bureau and with your local Chamber of Commerce as they will likely have any information on all the professionals in your area. Ask your network of family and friends, plus any acquaintances for a good Certified Public Accountant recommendation.

Services a CPA can offer you or your business:

  1. Help Setting up your business accounting general ledger
  2. Assist you in getting personnel or business financing
  3. Analyzing your business operating results
  4. Generate budgets and business forecasts
  5. Put together and store your business tax returns
  6. Examine or compiling financial statements as required
  7. Assessing compensation plans for you and any employees
  8. Recommend CPA tax help strategies
  9. Minimizing tax liability and help avoid IRS fines
  10. Representing you before IRS authorities

With the year end round the corner, it is best to plan your taxation for this year end and the new financial year beginning. By calculating the total income for this year and getting an estimate on your remaining taxable income, you can calculate the due tax and investment measures that can help you save tax. Having a CPA or a tax advisor can help you save thousands of dollars that you can invest in your own business for added profits.

Online Financial Accounting Services for Small Business

3 Apr

Recording the movement of funds in any business is an essential task that is regulated by government agencies such as the ATO and ASIC. Thus every business is required to keep accurate and updated financial records for purposes of tax compliance. Records relating to income tax, GST, payroll and other business transactions must be kept either on paper or electronically. Maintaining a regular team of accountants can be expensive which is why online accounting services are necessary and practical for small business.

Large companies typically hire bookkeepers, registered accountants and a team of accounting clerks to keep business records accurate, accounts up-to-date and financial statements timely lodged. While small businesses still need the same bookkeeping support, the associated costs make it unfeasible to maintain a regular team for accounting and services.

It is quite a challenge to run a small business these days and owners have to wear many hats in order to get the job done. Owners often face a dilemma as they cannot afford to hire a full-time professional accountant with their limited resources. This is the precise reason that Online Business Accounting Services are becoming more and more popular with small business owners.

Functions of online accounting services include Payroll services, Financial analysis, Bank reconciliations and Record keeping. Other features offered by online accounting services include preparation of end of year accounts, BAS preparation and lodgement. Advanced accounting systems now provide these services either online or remotely through an Internet connection. These are the latest and most cutting edge systems showcasing superior data security, user friendly features, easy collaboration and hassle-free upgrades.

The online accounting services provide solutions to a large number of clients reducing their costs per client and making it more affordable to the marketplace. This is a classic win-win scenario for small business owners as they can get quality, reliable services at reasonable prices. One added advantage of this service is that they are less complicated than your everyday accounting software which at times can be overly complex for the average business owner.

When choosing an online accounting service, a business owner must consider important factors such as the scope of services, reliability of the accounting system, professional support, related services and cost. For remote services, the provider should be able to extend additional support in the form of video conferencing, email communications and electronic document transfers.