What is the Best Small Business Accounting Software

By now you probably realize that the accounting software you use for your business is a critical part to tracking the success of your business. Whether you are currently running a small business, or starting one up, you want to consider what program would work best for your business. What is the best small business accounting software out there in today's market? Let's look at some guidelines that will help you decide which software will work best for you.
Is It Cost Effective?
The biggest questions most small business owners pose when it comes to purchasing software is "Is it worth it?" Does it make sense for your particular business to pay 'x' amount of dollars for accounting software, when the owner only takes home 'x' amount of dollars a year? Well, contrary to what you may think, there are some great solutions in today's market where you can obtain accounting software for about $100-$150. It is becoming more and more affordable for small business owners to run their business with good, affordable accounting software.
Is It Simple and Easy to Use?
As you shop around for software it is important that you look at how easy the software is to use in real life applications. Sure, it may look great as a demo for some XYZ Company, but will it work for you? You don't want to get stuck with software that will take you weeks, or even months, to master. What kind of support is there with the software packages you are looking at? This is an important part of learning the software. Do they have support available to walk you through and to help you better understand the applications and how to get around. Some software programs charge quite a bit of money to train you on their software. Some use modules, which break up the different cycles of accounting into separate programs, which I have found makes it more confusing and difficult to use. The key here is simplification. You want something that is simple.
Does It Have All the Information You Need To Run Your Business Accounting?
You want software that will provide the tools for you to create the reports necessary for you to keep track of your businesses performance, prepare for taxes, payroll, accounts payable, accounts receivables and invoicing, and inventory control. Again, it should be simple and easy to create these things and navigate. Some programs get you the information, but it is a little more difficult to obtain, or even manipulate to look at different aspects of different reports.
All in all, in today's world it is critical that your small business utilizes the best accounting software available so that you can run your business effectively and efficiently. It is important that you stay informed at all times as to how your business is performing so that you can make any course corrections, improve cash flow, and make adjustments to your business model to out perform your competition. The best accounting software is available for you, but it is something unique to your situation and needs. Thus, you will want to take into consideration these three components as you search for the software that will help you control your business.

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8 Things to Know Before Selling Your Accounting Practice8 Things to Know Before Selling Your Accounting Practice

Understand why you are selling the practice. Buyer's want to know that you are committed to the sale and not just testing the waters. I would say one of this is one of the most common questions buyers ask and for good reason.
2. Have a plan for after the practice closes and the deal is done. Will you be helping the new buyer with transiting the client base or are you headed to sunny Florida. This will affect the purchase price as the buyers will be looking for support and guidance in the beginning.
3. Understand the purchase price and what you are asking for the practice. Selling your accounting practice is simple supply and demand economics. Price too high and it won't sell, price too low and you could leave some money on the table.
4. Understand your debt obligations and leases. Make sure you are up to date on all payroll taxes, debts, etc. Buyers will want to know what liabilities they will be taking over such as a copy lease, rent, etc.
5. Provide employee records and policies if available. This will instill confidence that your practice is running as a well oiled machine and organized.
6. Identify key employees. Make sure the buyer understands which employees are vital to the success of the practice once it is sold. Also, do the key employee(s) have non-compete agreements in place?
7. Keep organized financial records. This is fairly obvious, but make sure your financials are up to date and "clean." Make sure that all non discretionary expense are taken out or identified. This will help add back cash flow to the bottom-line but may not be accepted by the lender. Kind of a double edge sword.
8. Keep an open mind. You may have decided exactly what and how much you want for the business. An open mind will help in getting the deal closed. You may or may not get the exact price and terms you are looking for but if the deal closes that is end result you were seeking. A little flexibility can help the deal run smoothly for both sides in the end.

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Posted in Accounting

Diversified Funds - Gain More Profit

Financial institutions today have come up with a wide range of financial services and packages that help in managing risk. Examples of these financial institutions are the different banks found worldwide, insurance companies, and other similar financial companies.
Diversified funds is one of the demands that these banks offer for its clients put aside funds that are in form of investments to different financial instruments that will relatively generate income and profit.
The concept of diversified funds lays solely on the idea that each and every investor should invest in different financial instruments. Needless to say, this means that no investor should put their eggs in one basket; thus the term diversification funds.
These investment options come in different forms such as savings accounts, mutual funds, equity funds, and time deposits. In terms of other financial institutions such as insurance companies, they have different kinds of investment tools such as insurance packages and bank assurance investments.
Diversified funds allow you to invest your money on many things, making you earn more profit. These funds come in two types namely horizontal and vertical diversifications. Horizontal diversification lets you invest your money in similar investments while vertical diversification deals with investing in all kinds of securities.
One thing to take into consideration is the credibility of the financial institution any investor plans to diversify their investments in. This means that investors should choose institutions that are trustworthy and hold a wide portfolio that one can trust with their money. In order to find the ideal financial institution, you should take your time knowing and researching about them.

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Posted in Accounting

Accounting Procedures of Non-Trading concern

Like trading organization, non-trading concerns also maintain some usual books of account like, journal, ledger cash books, trial balance etc. However, it is difficult to keep full set of books by a small organization. Therefore, most of the non-trading organization, prepare cash book only before the preparations of final accounts. These organizations have to prepare the final accounts more or less similar to that of trading organization by following double entry book keeping systems to answer on the following three points.

1. What is the summary of the cash transactions of particulars period?
2. Is the income of the year sufficient to meet the expenditures?
3. What is the financial position of the organization?

The final accounts of non-trading concerns are as follows:

• Receipts and Payments Account.
• Income and Expenditure Account.
• Balance Sheet.

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Receipts and Payments Account

According to J. R. Batliboi, "A Receipt and Payment Account is summary of actual cash receipts and payments extracted form the cash book covering a particular period."

From the above definition, it can be concluded that receipts and payments account is summary of cash transactions. It is prepared on the basis of cash book. It also records the banking transactions. It starts with opening balance of cash and bank. All the cash or cheque receipts are entered on the debit side where as all incomes through cash or cheques are credited. It ends with closing balance. It records all the cash transactions whether they relate to current, past or coming year and whether they are of capital or revenue nature. However, it fails to record the outstanding amount of incomes and expenditure. It is generally prepared to find out the closing balance of cash. Receipts and Payments is the basis of preparing Income and Expenditure Account.

Features of Receipts and Payments Accounts:

1. It is a summary of cash book where the cash and bank transactions are grouped, classified and analyzed under suitable heading.
2. It begins with opening balance and ends with closing balance of cash and bank.
3. All the cash and cheque receipts are recorded on the debit side where all cash and cheques payments are recorded on the credit side.
4. It does not records non-cash items like depreciation, outstanding expenses and incomes, prepaid expenses etc. Only actual receipts and payments are entered.
5. All the cash receipts and payments relating to current, past and coming years are entered in it.
6. All the cash receipts and payments whether they are capital or revenue nature, are recorded in it.

Limitations of Receipts and Payments Account:

1. It does not show profit and loss of the organization.
2. It does not disclose the positions of assets and liabilities other than cash and bank.
3. It fails to distinguish between capital and revenue payment and receipts.
4. It does not follow "accrual concept" of accounting as a result it does not show the outstanding incomes and expenses, prepaid expenses, depreciation or appreciation of fixed assets etc.

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Posted in Accounting