Wiring An Accounting System

Accounting is an intrinsic part of any business, regardless of the industry in which your company operates. The same rules that apply to your personal finance also apply to running a business. More clients translate to more business, and this equates to an increase in the volume of transactions and records you need to review. At a minimum, you need sound bookkeeping to ensure that your accounting is in order. Bookkeeping practices determine how well your records are maintained, or how well your accounts and statements are balanced or reconciled. Seemingly small things such as recording receipts and invoices can be omitted inadvertently when you are in the midst of managing client needs and business matters. Often, these matters become a priority only as tax time approaches, and at that point you have a lot of things to accomplish - often with little time to spare.

Choosing automation
As an enterprise or a small business, you are likely to wonder, "Why bother taking my accounting system online?" For someone managing a startup, taking an accounting system online might seem like an expensive and time-consuming proposition. Few consider the immense benefits of taking the accounting and bookkeeping systems online. Automating your accounting could enforce better bookkeeping practices through diligent record-keeping. There are several smart programs that also help users choose different levels of accounting. Thus, you have software that does not just keep records; it also helps you track inventory and compile your tax-related information, as well.

Define your requirements
If your needs are outlined clearly, you will be better able to choose your software.

1. Assess Needs- Start by recording your needs so that you can evaluate and analyze them. If you have others working for you who will use the system, solicit their input, as well.

2. Gain Management Buy-in- What are the factors or attributes that steer the decision-making process in your organization? What are the hurdles you face in decision-making, or in the execution of an idea, or implementation of a plan? Do you see potential for improvement in this area if you were to implement automation? Based on the answer to this question, develop a list of areas that could benefit from automation.

3. List Areas that Could Benefit from Automation- Determining the actual cost savings on automating specific functions can be challenging. Don't worry - you are still in the process of assessing your needs. Check if the volume of work generated by your business currently involves manual labor for extended periods. Are those man-hours better invested elsewhere, for example, in bringing in additional revenue for the company? Compile a list of activities or chores similar to this, count the labor-intensive tasks, and analyze whether it would help to have them automated or not.

4. Leverage the Experts- Contact someone with the appropriate expertise who can assist with implementing the automation. Discuss the estimated number of saved "man-hours" with them and check whether they can help in automating certain processes of yours.

Analytix Solutions
The Company that CPAs Recommend
Analytix Solutions is a professional full-service business support solutions provider. The company offers comprehensive and scalable accounting services and bookkeeping services while leveraging its expertise, experience, and state-of-the-art infrastructure. It offers multiple services in diverse packages for companies that are seeking a trustworthy and professional partner to give their business a head start.

Accounting Systems Comparison - QuickBooks, Peachtree/Sage 50, And Intacct

As with many other industries, accounting is "going online". This is especially true for small to mid-sized companies. Fortunately, there are several software solutions on the market which are designed to simplify online accounting processes for startups and small businesses. QuickBooks, Intacct, and Sage 50 (previously branded Peachtree) are three such applications. Following is a brief comparison of these three software solutions.

QuickBooks
QuickBooks' parent company originally launched a software solution to assist with personal financial management. They soon recognized the need to offer a similar solution for small business owners. Today, QuickBooks is recognized as an essential tool to aid small businesses with their financial management. QuickBooks allows users to track their income and expenses, record bank information, organize tax-related information, and it also offers the option of data backup data for business continuity planning. QuickBooks also provides some versioning on the basis of business attributes such as General, Wholesale, Retail, Not for Profit, or Contractual. They offer programs for Accountants and Professional Services as well.

Sage 50
Sage 50, previously known as Peachtree Accounting, is another business management software program. Like most accounting software designed for small to mid-size businesses, Sage 50 also provides options for different business sizes, such as an entrepreneurship, small to mid-sized business, and a large business. Sage 50 accounting solutions include:
> Routine accounting and bookkeeping work, such as cash flow, payments and collections
> Insights for areas like cash flow management and benchmarking
> Explanations on key metrics
> Inventory tracking and purchase planning

Sage 50 solutions also offers system options on the basis of whether a business requires a full-time, dedicated, fully integrated accounting system; or one that is client or project dependent; or one that requires payroll management and necessitates the creation of budgets.

Intacct
Intacct is a cloud-based solution offering options such as accounting, financial management/reporting, as well as inventory and vendor management. Intacct offers solutions customized to various industries, including accounting, healthcare, hospitality, non-profit, and wholesale distribution.

Intacct offers many options for customizing your reports, including employee time tracking and management, vendor tracking for details like inventory management and purchasing, financial solutions like multi-currency management and global consolidations, and more. However, Intacct is a bit more complex than the previous two solutions and maybe better suited to a mid-size business than to a startup, depending upon the needs of the business.

Snapshot: Comparison

QuickBooks	Sage 50	Intacct
> Simplified and accurate financial management option, and offers significant support for bookkeeping and accounting functions such as batch entries, which save time for small businesses	> Simplified and accurate financial management options. Reliable management features and multiple inventory management methods for web-based accounting	> Offers multiple features for a wide variety of industries, including mid-size businesses.
> User-friendly navigation system; considered top cloud-based financial application	> Logical, easy-to-track workflow and reporting features	> Customizable dashboards. Provides users with options to support their clients’ accounting needs
> Inventory functionality is limited, and the program poses some integration problems; however, it integrates smoothly with most third party applications	> Robust options, although the inventory management is single location defined	> Powerful program that may contain features that are more complex than those required by a startup or a small business

No matter which solution you choose, a reliable accounting system will assist you in running your business more effectively.

Analytix Solutions
The Company that CPAs Recommend
Analytix Solutions is a professional full-service business support solutions provider. The company offers comprehensive and scalable accounting and bookkeeping services while leveraging its expertise, experience, and state-of-the-art infrastructure. It offers multiple services in diverse packages for companies that are seeking a trustworthy and professional partner to give their business a head start.

Five Key Components To An Efficient Accounting System. How Does Your System Rank?

Most businesses today have abandoned the notion of a "paper" accounting system. Although, businesses still refer to various accounting "books" and a "general ledger", these elements are all computerized. Technological advances have made accounting IT systems both feasible and affordable for even the smallest businesses to utilize. Both off-the-shelf and customized accounting solutions foster operational efficiency like never before, for any size business. These systems provide access to critical, consolidated automated reports for decision making. For any size company, there are five key components that must be considered when integrating an accounting system into your business.

1. Software Program- Today, there are multiple software programs from which businesses can select. Some are targeted towards a small business or micro business, while others are geared towards the needs of enterprise level companies. Consider what your own company's individual needs are, and select a software program that provides you with the flexibility and features you need to run your business. If you are unsure of your needs, consider working with a consultant or business advisor who can guide you in this decision. Often times, consultants and advisors have the expertise to customize off-the-shelf solutions if they do not fit your exact needs and provide the appropriate training, as well.

2. Existing IT Infrastructure- When selecting and integrating an accounting system into your business, the existing IT infrastructure component contains critical elements to evaluate. Network structure, number of desktop computers, printers, remote access, and current operating systems are all important considerations and may impact the accounting systems integration.

3. Data- Although it may appear obvious, the data collected for accounting purposes is a vital component to an accounting system. What is not always sufficiently evaluated, however, is determining what data is actually captured. Careful consideration must be given to the types of transactional or core business data that will be stored in the accounting database and the ease at which it can be accessed. Will the data be entered cross departmentally? For example, will vendor invoices requiring payment by purchasing be stored in the same database as payroll or timesheets? How will inventory be registered on financial reports?

4. Security and Internal Controls- When integrating an accounting system into a business structure, business owners must determine who has access to the system and at what security level. This includes not only password and login information or number of user licenses but also a determination on who can input data directly, cross-departmentally. Other considerations include system encryption for remote access, as well as system file back-up for business contingency planning.

5. Administration and Users- Finally, a key accounting system component which is often overlooked is the people who will actually serve as administrators on the system or as end users. The accounting system should be user friendly and simple enough so that those who need to use it every day readily recognize the improved efficiency of the system and adopt it into their daily routine. Additionally, the end users also need to be properly trained on the system so that both they and the company fully leverage the system's capabilities.

The person designated as system administrator should have sufficient working knowledge of both accounting and technology to properly train users and to make informed decisions about the previously referenced accounting system components. If they do not have this knowledge, they should consider hiring a consultant or business advisor who can assist with this so that the company can maximize a return on their investment.

Consideration of these five key components when integrating an accounting system into your business should facilitate an easy transition. We are currently offering a free analysis of your business processes and accounting system. If you would like to learn more on how Analytix Solutions can help move your business forward, please call me directly at 781.503.9004 or email me at sales@aixsol.com

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Implementing Business Process Improvements For Finance Departments

Current economic times demand that organizations and small businesses achieve more with less. The concept of business process improvement (BPI) has evolved into an operational strategy that can no longer afford to be overlooked as "optional". In order to remain competitive, a company's internal functions must be reengineered and reassessed to become more efficient. Business owners must evaluate and search for efficiency in their processes, systems and organizational structure. This type of evaluation needs to occur at the departmental level, as well as the overall business level. Within Finance departments, BPI should be assessed in five key areas.

Optimizing Cash Flow - Predictability of cash flow is critical for a small to mid-sized business. Regulating accounts payables and receivables directly impacts cash flow. Anything that is paper driven or a manual process should be evaluated for business process improvement. This avoids inconsistency of processing and allows functions to be performed at the same time each month or via a similar practice.

Improvement in Reporting - Accounting systems should provide reports that reveal key operating information which is pertinent to a specific business or industry. Systems must evolve from just reporting to adding value. They must provide information that enhances accuracy and understanding of information, as well as allow business owners to derive key pieces of operating intelligence about their business. Systems that can offer customized reports which generate key pieces of integral data should be considered in order to reduce "data crunching" thereby replacing it with usable data for analysis.

Budgeting and Forecasting - Access to reliable and timely data is critical to budgeting and forecasting, and accurate budgeting and forecasting is critical to the success of a small to mid-sized business. This process needs to be streamlined and performed on a regular basis. As with optimizing cash flow, this process should be evaluated for automating tasks, such as manual data entry, wherever possible.

Developing and Adhering to Cost Controls - Fluctuations and even small variations in costs can produce vast implications on budgets and cash flow for small to midsized companies. Creating cost controls is a process improvement from which every business can benefit. These controls ensure an alignment between costs and budget and work diligently to mitigate the occurrence of extreme corrective budgeting actions.

Organizational Structure - Personnel functions should be evaluated to ensure that expertise is appropriately leveraged and that manpower is deployed as needed. This may require business owners to reconsider their organizational structure in terms of cross functional teams as opposed to a hierarchical structure, or vice versa.

As a small business owner or entrepreneur, evaluating these five areas of BPI within a finance department allows your business to function more productively. We are currently offering a free analysis of your business processes and accounting system. If you would like to discuss BPI within your finance department and learn more on how Analytix Solutions can help move your business forward, please call me directly at 781.503.9004 or email me at sales@aixsol.com

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Accurate Bookkeeping System, Reliable Accounting

In a small business, the terms accounting and bookkeeping may be used interchangeably; but each of them has well-defined functions. A well-maintained bookkeeping system is a necessity for the accounting system to function properly, which in turn supports the smooth functioning of the business offerings and its deliverables.

Bookkeeping Functions

The range of functions that falls under bookkeeping is vast. It must be mentioned here that if you're looking for an efficient accounting system, a business must perform certain functions on a daily basis. The foremost among these being recording income and tracking expense. These are entries that the accounting system will build up on, for tracking finances as well as for tax reporting.

An ideal bookkeeping system includes the following tasks:

- Keeping track of all financial transactions of the company such a purchases, sales, payments made, and payments received
- Recording income, cash outflow, and bank transactions of the company
- Reconciling bank accounts, keep track of deposits in the account, writing check, and keeping banking reports updated
- Preparing and maintaining reports such as the income statement and the company's balance sheet

These records, collectively, provide the basis for sound accounting processes in the company. More importantly, the bookkeeper's work allows the accountant to prepare reports for declaring income and filing taxes with the government.

Small business and Bookkeeping

In a small business, resources are limited; it is possible that the business owner or partners themselves function as bookkeepers and accountants as well. A significant disadvantage with this system of accounting and bookkeeping is that because owners and partners are also concerned with managing client deliverables and ensuring sustenance for the business, they may not be able to ensure 100% accuracy in record-keeping at all times.

A viable option for small businesses or companies with limited resources is outsourcing. Locating a trustworthy vendor or accounting and bookkeeping services provider can go a long way in ensuring:

- Accuracy in accounts
- Accurate reports for tax purposes, and
- Less chances of monetary losses as a result of a recording lapse.

Outsourcing saves a huge amount of money that would otherwise go into setting up and maintaining an entire department, complete with infrastructure and manpower. More importantly, depending on your needs, a vendor will ensure high-quality work on time.

Interested in learning more about accounting and bookkeeping outsourcing? Ever outsourced your support functions previously? Share your experience with us, we would love to hear from you.

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Financial Reports vs. Operational Reports: Do You Know the Difference?

Critical to the success of any small to mid-sized business is financial stability. As a business owner, you should be able to discern which indicators determine financial stability and which indicators warn of financial challenges ahead. All of this information can be gathered from regular reviews of your financial and operational reports. Both contain key data and information that business owners need to know, but these reports serve different purposes.

Financial reports track how much money your business is making and how you are spending that money, as of a specific period in time. As a business owner, you obviously want to know this information. However, there are additional stakeholders or potential stakeholders that may need to know this information as well, such as investors or creditors. Examples of various financial reports are a balance sheet (which summarizes a company's assets and liabilities), an income statement (which indicates how much profit a company generates), and a cash flow statement (which shows a company's sources and uses of cash). Financial reports show historical data, but they provide insight into how a business spends its profits, whether they are reinvested into the business, and whether the company can sustain future growth.

Operational reports provide business intelligence on how efficiently a company performs. These reports allow companies to evaluate its current and future financial situation. With the correct systems and tools in place, operational data can be tracked real-time so that businesses are able to react and adjust their practices effectively. Business owners should review operational reports daily. These reports can vary by industry. Restaurants may need to track average time per table/meal, whereas hotels may need to track occupancy rates. Actions taken by business owners resulting from this garnered business intelligence can have an immediate, dramatic impact on productivity and ultimately profitability.

As a small or mid-sized business owner, keeping tabs on both your financial and operational reports will help you run your business more effectively. We are currently offering a free analysis of your business processes and accounting system, which could help you to better prepare and understand your financial and operational reports. If you would like to learn more on how Analytix Solutions can help move your business forward, please call me directly at 781.503.9004 or email me at sales@aixsol.com.

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Bottom Line Benefits to Automating Your Accounting System

Although not always the most exciting aspect of a business, a company's accounting system is its backbone. The accounting system is the engine that drives the machine, providing business owners with key indicators regarding their profitability and the overall state of their business. Companies that have a firm grasp of their financials are positioned to succeed in the market across industries. Essential to that success are timely and accurate accounting figures, as well as the confidence business owners can place in the accuracy of those figures.

More and more frequently, small to mid-sized businesses are recognizing the need to automate their accounting systems given the speed at which they often need to make financial decisions. Manual accounting tasks can be time consuming, mundane, or duplicative tasks, and they can be prone to human error. Fortunately, there are currently numerous dependable accounting programs on the market, such as QuickBooks and Great Plains. Additionally, with the advent of cloud computing, information such as current data and immediate access to financial reports is available online, anytime and anywhere. Business owners can access the data themselves when they need it, without having to work through another department. These programs can greatly assist small to mid-sized companies in automating their systems and tasks such as expense approval and time entry, which in turn increase their profitability.

Benefits to automating your company's accounting system include:

> Eliminating redundancies in manual data entry.
> Reducing risks of errors and duplicate entries.
> Ensuring data integrity through automation.
> Self-service, accessibility to timely financial reports.
> Up-to-date information via cloud computing technology, anytime, anywhere.
> Improved productivity.
> Motivating staff.

Analytix Solutions provides a team of accounting and technology experts with extensive experience in helping companies automate their accounting systems and integrate third party applications with various accounting systems. We can help you to run your business more efficiently by automating key processes and assisting you to select solutions which align with your unique business requirements.

We are currently offering a free analysis of your accounting system and other business processes. If you would like to learn more on how we can increase your bottom line by automating your accounting system or if you know a colleague that can benefit from our services, please call me directly at 781.503.9004 or email me at sales@aixsol.com.

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Take the Temperature of your Company's Financial Health

In any business, a clear understanding of the company's actual financial performance is critical to success. Measurement strategies and tools should be implemented to track and interpret the numbers generated by a business. An effective accounting and financial management system can provide this type of information to business owners, and the system's data can be manipulated and analyzed to provide key insights into the financial health of your company. A versatile accounting and financial management system can also enable you to interpret the status of your business to third parties, like banks and the government. The other advantages that accounting and financial management systems offer include:

Avoiding Assumptions on Financial Health: By maintaining an accounting system, you can make informed decisions about your business. Although there are multiple factors to consider, financial health should be a critical element in your decision making process for moving your business forward. Detailed accounting records and a proper financial management system reflect where the business stands financially. You won't ever need to guess about the financial position of your business.

Accuracy and Consistency in Information: Accounting plays a crucial role by offering you a means of communicating the financial aspect of a business to others. The most important function of any accounting system is to retain and present data so that managers and owners can analyze the decisions they have made. Financial status helps immensely in making profitable decisions for any business.

Aid in Analyzing Business Deficiencies: Professional and quality accounting systems generate reports that will enable you to assess the profitability and performance of your business. Accounting and financial management systems will not only allow you to make decisions, but they can also help you identify areas of your business that require improvement. Once the troubled areas are identified, you can work on those business functions to improve them.

Maintain Comprehensive Audit Trail: If your business requires loans, the lending firm will likely ask for financial reports and other relevant data so that they are able to estimate the net income and actual worth of your business. They may also assess and evaluate your financial statements to monitor your potential repayment of the loan. Availability of such information is almost impossible without any accounting and financial system in place that can provide financial statements.

Well maintained accounting records indicate where your business stands financially. Implement and retain your accounting and financial management system, and your business will find its way to success!

If you would like to discuss how I can help you plan a strategy to keep your company's financial health in the positive, please call me at 781.503.9004 or email at sales@aixsol.com.

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Optimizing Your Accounting System - Measures to Ensure Your System Functions at its Best

Accounting system optimization involves implementing software to enable quicker turnaround for accounting functions. Specifically, optimization can make for easier, faster, and more accurate accounting, such as processing payroll or resolving accounts payable. Optimizing your accounting systems also reduces the need for manual practices.

Is your accounting system optimized effectively to fully leverage its capabilities?

It's a common practice for accounting firms to rely on software programs to carry out their accounting functions. However, if the programs are not optimized well, the users cannot take full advantage of the system's benefits, resulting in a system that boasts the latest technology but one that is not leveraged.

There are many benefits to an automated accounting system, especially for a small or mid-size business.

• Computerized accounting ensures greater accuracy and speed, resulting in more dependable operations.
• Automated accounting systems save time over manual processes, enabling you to complete more in a shorter time period.
• Automated accounting systems reduce costs associated with establishing a dedicated accounting department, requiring permanent skilled manpower.

Ensuring Optimization

Optimizing your system does not mean completely overhauling your existing system or installing expensive, new software.

However, your first consideration needs to be your company's operational requirements.

Optimization involves professional software knowledge and is best managed by a professional who understands your company in terms of business offerings and client deliverables. This approach considers the importance of customization and offers solutions that are tailored to your unique business needs.

Customized solutions account for your business deliverables and client requirements, ensuring that your system is utilized optimally. These solutions also reduce time and financial expenses, while significantly increasing productivity.

Tips for effectively optimizing your system include:

• Undertaking a comprehensive assessment of your needs and requirements.
• Including non-accounting functions such as time tracking or resource allocation.
• Generating readily accessible reports in an electronic format, thus eliminating the need for paper reports. This can also include interfaces that allow you to access data and accounting information, independent of physical location.
• Reducing the need for human intervention and streamlining processes with adequate security measures in place.

If your accounting system is fully optimized, your business will run more efficiently allowing you to take advantage of significant operational improvements.

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Profitability Is Not Just "Luck o'The Irish"

In March, even those of non- Irish descent tend to hope for a little St. Patrick's Day luck. After all, who wouldn't want to find that proverbial "pot of gold" at the end of the rainbow? For small to mid-sized businesses, even minor fluctuations in cash flow can have a larger scale impact. That "pot of gold" is easier to come by if you are closely monitoring your operating reports and have a clear understanding of the levers and indicators that impact profitability and cash flow generation. Disciplined analysis of your operating reports will help you determine how well your company accomplishes these things, an important practice for small to mid-sized businesses.

1. Revenue and Sales - Perhaps the most obvious driver of increased profitability is increased revenue or sales. However, almost as important as producing the revenue is monitoring your company's revenue generating trend. Small to mid-sized businesses should have a solid understanding of their daily sales and annual sales-to-date to ensure they are on target with revenue projections and goals. By not paying attention to these indicators, small to mid-sized businesses run the risk of falling short of their goals and finding themselves strapped for cash.

2. Operating Income and EBITDA - Operating income is the profit generated by a company after all operating expenses have been deducted from total revenue. Operating income is an essential metric, as it is a clear indicator of how well a business may be managing expenses as a function of revenue. Another indicator to monitor, which is similar to operating income, is EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). EBITDA is a better measure of cash flow because it accounts for non-cash expenses, such as depreciation and amortization, which may be included on an operating report even though the cash outlay may have occurred several years prior.

3. Cash Flow - Cash flow is the amount of cash available for use by your business at various points in time. It is the manner in which cash flows in and out of your company. As a small to mid-sized business owner, you should have a solid understanding  of at what point cash is flowing into your business (via revenue and receivables), as well as how much and at what point cash is flowing out of your business in the form of monthly and annual expenses. Monitoring and maintaining healthy cash flow makes the difference between launching a business and staying in business.

4. Comparables - Monitoring all of the above indicators is critical to small and mid-sized companies. However, just as important to monitoring these items is comparing them to prior periods as a gauge to determine if your company is headed in the right direction. As a basis point, companies should evaluate these metrics as they compare to the week prior, month prior, and same quarter/ year prior. Are fluctuations in any of this data due to seasonal or economic changes, or are they isolated to your business? Analyze these figures as percentages as opposed to dollars to provide you with a better comparable.

5. Fixed vs. Variable Costs - Small and mid-sized businesses must also carefully consider both their fixed and variable costs. Fixed costs are predictable, set costs per item during a time period. Variable costs are costs that could increase as a result of increased business-cost of goods, increase in volume of materials, etc. If revenue levels remain consistent but variable costs are increasing, profit margins will erode. Although it that appears obvious, this is why business owners must closely monitor these indicators.

As a small business owner, having a clear understanding of each of these categories can help you self-generate your own "pot of gold". We are currently offering a free analysis of your business processes and accounting system. If you would like to learn more on how Analytix Solutions can help you gain a better understanding of how these things can help move your business forward, please call me directly at 781.503.9004 or email me at snpatel@aixsol.com

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Heads Above the Rest - Are You a Good Leader?

This month we celebrate the President’s Day Holiday, a holiday which recognizes the birthdays of two of our country’s great Presidents. However, it is also a reminder about the historical leadership from which this country has benefited. So, what defines a leader and what leadership skills can small business owners practice to help their company achieve success?

1. Establish a Clear Vision and Goals- In today’s rapidly changing business climate, it is easy to become easily distracted by the “next best thing” or new way of thinking. Having an established vision for your company as well as predetermined goals helps small business owners and presidents remain focused on where they are going. For example, an established revenue goal provides the barometer for you to evaluate if performing a certain function is in line with accomplishing that pre-established goal.

2. Take Holistic View of Your Company- Recognize that corporate success is not determined by a single business aspect. Revenue and profitability figures alone do not tell the complete story of whether a company is on the right track. View financial metrics in conjunction with other cross departmental metrics, key product offerings and customer satisfaction.

3. Build Strong Teams- Successful leaders have the support of strong teams. They recognize their own strengths and weaknesses and build complementary teams of individuals who can provide specific areas of expertise to help move their business forward. A small business owner may possess creativity for developing new product ideas but may need to surround themselves with colleagues that have financial expertise to execute those business plans or market those products.

4. Empower Your Employees- Empathize with your employees (and customers!) and put yourself in their shoes. Acknowledge challenges they may face and be open to suggestions on a better way to perform certain functions. You will establish trust within your organization and be able to get the most from your employees, in a positive way. Empowering employees to offer recommendations, suggestions and decisions will create internal buy-in within your organization thereby fostering realization of a single common goal.

5. Recognize and Embrace Change- Today’s business environment is constantly changing. New technologies for enhancing productivity are consistently introduced. Recognize these technological improvements and use them to your advantage to promote productivity in your workplace. Technological improvements do not replace human capital and ideas; rather, they often streamline operations and allow you to better leverage employee resources and intelligence.

As a small business, our team is striving towards implementing these same practices. We are currently offering a free analysis of your business processes and accounting system. If you would like to learn more on how Analytix Solutions can enhance your business processes in 2012, please call me directly at 781.503.9004 or email me at snpatel@aixsol.com

Satish Patel, CPA
President, Analytix Solutions
Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.

Five Emerging Trends Defining Accounting Departments of the Future

Technology has become the driver changing the way companies exist and operate. The next generation of the workforce will be accustomed to operating in a completely technologically connected world with trusted relationships shaped by social platforms and social networking. Our economic environment has become one with diminished geographical boundaries. Increasingly, clients and customers are more focused on the caliber and quality of the work being performed- not on where it is being performed.

Accounting departments are not immune to these changes, and businesses must reassess their accounting departments to adapt to these trends.

1. Cloud Computing- Also termed software as a service, (SaaS), cloud computing is a new way of providing companies with software programs, allowing users to access the programs over the internet as opposed to having to load the software on an individual hard drive or central server. Emerging cloud and mobile technologies provide companies with increasingly more flexible options and 24/7 access to accounting data. In addition, cloud computing technologies have eliminated the problematic issue of single user systems that house accounting data on a single computer, allowing multiple user access. These technologies also eliminate the need to invest heavily in IT systems and staff thereby increasing profitability. With cloud computing programs, resolution of accounting system IT issues, data security and back-up often reside with the software developer taking the responsibility off of small to mid-sized businesses.

2. Outsourcing- This practice is becoming more and more prevalent across industries and is particularly beneficial to small to mid-sized companies. It provides a greater range of access to specific skill sets that may not be required or affordable on a fulltime basis. Outsourcing specific non-core tasks such as bookkeeping allow businesses to scale back services when they are not required or ramp up services during peak periods. Outsourcing functions such as CFO level services provide businesses with a high level expertise when they need it, expertise which may otherwise be in accessible or unaffordable if they needed to hire a full-time employee.

3. Virtual Office- Geographical boundaries are slowly being erased. It is now significantly less important where a company or its employees reside. This provides increased access to qualified accounting staff with a specific skill set, as they no longer need to be physically present in an office or even in a designated city or state to successfully accomplish accounting functions. This also reduces significant overhead expenses as office space to house staff is no longer essential to performing accounting and bookkeeping tasks. Tasks can be performed anytime, anywhere.

4. Self Service- Our world is becoming increasingly reliant on self-service as a result of technology. Today’s workforce is accustomed to 24/7 immediate access to information and the ability to quickly address tasks. Accounting departments must realize that monthly revenue and profitability reports are no longer sufficient. They must mobilize to offer real time access to live data so that decisions impacting the company can be made promptly and efficiently, by key decision makers with accessibility to this information.

5. Automation and Integration- Accounting departments must look to automate key business processes such as order entries and expense approvals to increase efficiency. This eliminates duplication of data entry and human error resulting in improved profitability. In addition, with access to more and more software programs companies must learn to integrate applications for accounting, CRM, e-commerce, payroll and POS so that they possess an all-inclusive snapshot of the company's financial status. Companies that learn to effectively integrate, manage and analyze this data will be far better equipped to move swiftly and decisively on critical matters that impact their business.

Businesses must embrace these trends that impact their accounting department to remain competitive. We are currently offering a free analysis of your accounting business processes and accounting system. If you would like to learn more on how Analytix Solutions can help improve your profitability, please call directly at 781.503.9004 or email at sales@aixsol.com.