Avoid These 10 Bookkeeping Mistakes By Automating

Poor financial health is often a major contributor to the failure of many small businesses. Financial health is directly linked to efficient and accurate accounting. Particularly for small businesses, where resources and budgets are tightly rationed, automation often proves to be the best way to ensure efficient accounting and subsequently timely, updated financial reports.

Why automate?
Automation reduces dependency on trained and skilled manpower. Therefore, over time, automation can also impact a company’s bottom line. Following are 10 mistakes that can be avoided with the judicious use of automation.

1. Not tracking expenses diligently
It is easy to forget about recording an expense once a transaction is complete. Automation can help resolve this by ensuring all expenses are tracked. This strategy also applies to reimbursements, especially when small business owners may be covering expenses from their own funds without applying for reimbursements from the company.

2. Doing it all yourself
Most small businesses do not hire a trained bookkeeper for fear of incurring higher costs. Automation solutions can assist in effectively ensuring expenses are tracked and books updated.

3. Delaying account reconciliation
Account reconciliation is a critical step in the bookkeeping process. For business owners performing this function themselves, it is often relegated as a task to complete later. However, this opens the door for small errors to snowball into larger accounting mistakes. Automation can reconcile business books with bank and card accounts on a regular basis, thus highlighting discrepancies that may arise.

4. Tracking small 'incidental' purchases
Oftentimes, expenses which are smaller than those stipulated by the IRS guidelines remain unrecorded by business owners. However, these small expenses accumulate and could be beneficial to track for tax purposes. Even small expenses add up to help you qualify for effective tax deductions.

5. Reduced human interaction translates to reduced chance of fraud
Bookkeepers have the opportunity to commit fraud, especially embezzlement. For a small business, such losses can have huge impacts on profitability, as well as morale. Apart from implementing failsafe controls, automation also reduces dependency on human beings, therefore reducing opportunities for fraud.

6. Ensuring back up
Automation helps create updated reports and more importantly, accounts that are tracked and contain recorded data. As opposed to manual bookkeeping, automation can generate reliable trails and ensure accurate financial data.

7. Misclassification of employees
Once configured, the chances of misclassification of an employee are greatly reduced in automated systems. A small business could have a number of different resources, including part time employees or those working remotely. The IRS has various rule classifications for each employee category when it comes to calculating tax. An automated system leads to reduced errors and more accurate tax filings, regardless of the number of employees in the business.

8. Not making the appropriate deductions
Only a trained accounting professional knows for certain which tax deductions to take. Forgetting to deduct sales tax from a sale is a common error. For business taxation purposes, this error can prove costly because it displays a higher amount of sales.

9. Creating wrong categories
Bookkeeping is all about creating categories and ensuring the right figures are assigned to the right categories. Automated solutions can help by creating the correct categories and ensuring these are updated accurately. Updating the wrong category can result in larger issues at fiscal year-end.

10. Stronger management of petty cash
Most businesses maintain a petty cash reserve for minor expenses. However, it is easy to lose track of the money withdrawn from this reserve. With automated bookkeeping, expense tracking can ensure updated records of withdrawn funds and balance the remaining reserves.

Consider automation for your business to help ensure the integrity of your accounting.

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.

Common Errors in Financial Reporting

Financial reports provide insights into a company's health and financial status for a particular time period. Financial reports are designed to provide data to the company's shareholders, including potential shareholders or investors. Thus, financial reports must provide accurate and relevant data to enable decision making. Relevant financial reports should contain enough data to assist investors in making key financial decisions for the business.

The International Accounting Standards Board has created the International Financial Reporting Standards (IFRS) to help bring about consistency in the standards of financial reporting. This also helps ensure uniformity in the reports that are produced. The IFRS explains how to state financial transactions within a report, thus making for a more standard format, across reports. The guidelines established by the IFRS make it easier for financial reports to be studied globally, without creating confusion due to different rules in different countries.

Despite set standards being followed in creating financial reports, there are still errors that surface and that can compromise the quality of a financial report. These can be related to errors of omission, or involve matters such as long-term debt. Errors can also occur when dealing with information accompanying the financial report.

1. Information accompanying report: When providing information including financial documents, care must be taken to ensure that corresponding references are present in the financial report, as well. Examples of accompanying information can include listings containing work schedules, accounts and expenses.

2. Long-term debt disclosure: Inappropriate disclosure of long-term debt is a common error. While the rule is that any long-term debt or borrowings must be disclosed, errors may include incomplete disclosures or debt details totally omitted out of human error or through calculation mistakes. Thus, insufficient disclosures may be made, or disclosures are not made at all, resulting in financial reporting errors.

3. Related party disclosure: When there is an exchange of money involved, there is a related party disclosure that is applicable. However, at times, this may not be reported appropriately. At times the amount or terms followed by both parties may not be correctly disclosed. This can result in an error.

4. Errors of omission: At times, reporting of costs may be incomplete, for example, expenses may be accounted for but costs involved in raising funds and revenues could get omitted in reporting. This could apply to events as well, where overhead costs are not documented properly or timesheets are not maintained.

When preparing financial reports for your business, take note to avoid the common errors listed above.

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.

Smart Financial Management for Small Businesses

How well do you know your tax and business laws? If you're an entrepreneur or a small business owner, you're already aware that laws and regulations for businesses differ from those for personal financial management. For most small businesses, providing clients with high quality products or services takes precedence over most other activities. Many small to mid-sized companies were launched to fulfill an entrepreneur's dream of running their own business or developing an extraordinary idea. Chances are, the business owner was not starting a company out of a desire to delve into the administrative and financial aspects of running a company. Therefore, it is critical for startups and small company to hire the right people for managing these aspects of their business.

What are a few ways to easily manage finances?

Find the right resource

Unless you have expertise in financial management, you are better off not managing your company's finances yourself. Hiring a good bookkeeping, accounting and financial resource can help minimize errors and ensure that reports include the essential data. The right resource can also help minimize financial losses and assist in streamlining accounts better.

Compare this with hurriedly-executed financial work completed by someone whose primary responsibility in your company is not accounting and bookkeeping. Furthermore, unless the employee managing the finances is trained on these functions, there is the likelihood for errors that can result in inadvertent fraud for your company.

Choose the right software

For most small businesses, budget crunches and constraints can pose limits on investments in infrastructure. In turn, this can impact client deliverables and therefore business growth. Alternatively, most businesses have shifted to online systems. This eliminates the need to hire and retain expensive manpower, thereby reducing the need to invest in additional office space, furniture, etc. The most important qualifications to consider when purchasing software are that the software meets your specific needs and enhances your client deliverables.

Automate and integrate systems wherever possible. This significantly reduces time spent on manual processes and costs, while improving adherence to deadlines and overall data accuracy. Most software programs eliminate time gaps between actual financial transactions and report generation, thus timely access to data and accuracy improves radically. Your basic bookkeeping or record-keeping is completed automatically.

If you are confused about what type of software is most appropriate for your business, there are many vendors who provide specialized services and can guide you in selecting the best software, as well as provide support for that program if required.

Keep costs of operation separate

A good way to ensure your operation costs remain separate is to outsource your work. When you outsource this work, you avoid locking up capital in areas such as infrastructure and salaries. Outsourcing is also available for critical functions such as bookkeeping and payroll management. In addition, outsourcing specific operational functions can provide you with the flexibility to pursue business development activities.

Following the above suggestions should assist in the financial management for your business.

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.

Why You Should Consider Moving To Online Bookkeeping Services

An online bookkeeping system can take off a large amount of load from your regular services and operations. Because bookkeeping is a largely numbers-based function and because it depends heavily on details and accurate report-making.

Automatic Invoicing And Management
Online bookkeeping can ensure you never miss out on making timely entries or skip on entering details of invoices across your business services and solutions. When you move to online bookkeeping, elements such as amount payable and receivable are updated on a timely basis while management of other essential bookkeeping entries is also taken care of. You can also customize invoicing. As a result, you're always in the know of where you stand regarding your funds.

Ease of Access
With information saved at a physical location, you may need to undertake physical data transfers as and when needed. Once you move to online bookkeeping systems, you will be able to access your data and reports from anywhere, regardless of your physical location, thus ensuring that your services remain uninterrupted. Online bookkeeping services also enforce more security as they involve limited access or access by means of passwords, etc.

Cost Saving
For small or mid-size businesses, the advantage of operating out of a remote location can translate into savings of costs since they no longer need to invest in setting up physical offices and infrastructure. An online bookkeeping system can do away with the need to spend big amounts of money in office rentals and employee hiring and retention; you can continue providing services from a remote location, for example, your home. Similarly, you can hire resources who can then work remotely as well, from their respective locations.

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 Financial Management Tips for Small Businesses

Many small business owners are driven by entrepreneurial inspiration to start their own companies. Small businesses drive new jobs and innovative ideas. However, for all the "pros" which accompany running your own business - the thrill of bringing a new idea to market, fulfilling a goal, flexible schedules - there are also challenges. Owning the business may be the simple part. Running it smoothly and profitably often can prove difficult. Following are five financial management tips that should assist in running your small business more effectively so that you can enjoy all the "pros" that influenced the decision to own a small business in the first place.

1. Develop a Budget- This is critical to the success of any business. A budget that lists your projected revenue and expenses serves as a road map in guiding business decisions and making sure you carefully consider financial decisions with the "big picture" in mind. When you create a budget, you can see the cash inflows and outflows. A budget functions as a financial barometer, allowing you to project accordingly, optimize and manage cash flow, as well as anticipate future financial needs.

2. Stay Abreast of Your Financials- As a small business owner, implement a routine practice of reviewing your financial reports. Staying abreast of your financials also equates to maintaining up-to-date accounting and bookkeeping records, as well as managing your expenses, payables and receivables. Timely and accurate access to updated financials allows you to make informed decisions quickly that could significantly impact your company's profitability.

3. Retain the Expertise You Need- Recognize that running a small company or start-up does not require you to single handedly perform every function associated with that company. Focus your attention and efforts on growing your business. Establish partnerships with companies or contractors who possess expertise in areas at which you are not adept or those to whom you can outsource non-core tasks. This will be more efficient for you in the long run, as well as allow you to avoid costly mistakes that could occur by performing functions at which you have no experience. Leverage partnerships for CFO, CMO, IT or bookkeeping services to provide you with scalable access to expertise when you need it.

4. Invest in Technology- Recognize that investing in technology can significantly impact the infrastructure of a small business making it operationally more efficient. Use technology to automate processes wherever possible to reduce manual functions that take employee focus off of value added services. Accounting systems and software programs that assist with payroll, data entry or time and billing are examples of functions that can be automated with investments in technology.

5. Anticipate Changes- Above all, embrace the ability to be flexible and make pivotal decisions that can positively impact your business. One of the biggest "pros" of running a small business as well partnering with a small business is the ability to change directions quickly when deemed necessary. Anticipate and plan for change to remain competitive in the market.

As a small business owner or entrepreneur, implementing these five steps can assist in making your business run smoother and more effectively. 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.

Bookkeeping Options: In-House, Outsourced and Everything In Between

Accurate record keeping at the most basic level provides the financial foundation for running a thriving business. When your financials are not accurate, even the most successful companies become a house of cards built on a faulty premise. Often times, this is not intentional but a result of someone performing a function in which they have little or no expertise and training. There are various options for managing your bookkeeping, but only you can determine which model works best for your company's needs.

1. Manage Bookkeeping in House - This provides you with the most control over your bookkeeping functions, as they are performed by an employee of the company. This option works best for large companies when there is enough work to keep a full-time bookkeeper busy, 100% of the time.

2. Hire a "Freelance" Bookkeeper - This option involves a temporary bookkeeper visiting your company on a regular basis to perform bookkeeping functions. This is more appropriate for small to mid-sized companies that do not have enough work to fund this position full-time.

3. Outsource Accounting and Bookkeeping to Third Party - Under this model, a company relinquishes all accounting and bookkeeping functions to a third party to fully manage. This model works best for smaller companies that do not require a full-time employee but do require skills and expertise in this area. It is also appropriate for companies that need these skills but can't afford to hire a full-time employee.

4. Hybrid Model of Partnering with an Outsourced Bookkeeping Service Provider - This option is most appropriate for those companies that do not want to relinquish complete control over their books but want to outsource non-core tasks. They partner with a bookkeeping service provider and consider them a remote extension of their team.

We are currently offering a free analysis of your accounting system and other business processes. If you would like to learn more on how outsourcing your bookkeeping and accounting can improve your profitability, 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.

Accounting and Bookkeeping Services for the Small business

Accounting and bookkeeping services function as the backbone for every business. As a small business, it is very essential to ensure you maintain your company's records in a comprehensive manner. Good accounting and bookkeeping practices include thorough record-keeping and ensuring that every bit of expense and revenue is accounted for.

If you're a small business and you're feeling overwhelmed keeping a track of your financial matters, especially your accounting services, you're not alone. Many small businesses start out with small capital. However, it is important to keep track of how this limited pool of funds is used, especially in the period before the business starts to earn revenue for itself.

When do you need help

As accurate record-keeping is vital to accounting services, you must ensure that all transactions, regardless of their size, are noted. However, this can often become a neglected area in daily operations, particularly if the business functions as an enterprise and there is very less manpower resource to spare exclusively towards accounting and bookkeeping department. This also extends to shortage of infrastructure. Most widely available accounting softwares in the market turn out to be an expensive investment. Together with hiring trained manpower resource and maintaining software infrastructure, carrying out integration, and automating systems, the costs of setting up a dedicated accounting unit can be pretty high for the small business.

Determining when you need help can be a tricky aspect, especially when considering accounting services. Even if you started as a small business, once your business starts earning revenue and building a bigger list of clients, your list of accounts payable and receivables will also increase. You may need to consider hiring accountant bookkeeping and accounting service provider.

Outsourced and more reliable

Contrary to what many people may be worried about, outsourcing your work can be a blessing. Accounting and bookkeeping services are a specialized area. If you don't have professional expertise, it is better, and much more profitable to hand over the work to someone who does it dedicatedly. Let's look at a few reasons why outsourcing requirements related to accounting and bookkeeping is a good idea.

Professional expertise: Your accounting & bookkeeping work will be executed by professionals, instead of being hastily put together by yourself after a short online self-teaching session.

A professional will also help you determine what kind of accounting is suited to your business (cash vs. accrual)

Save on costs: It is likely you have a resource in your organization who understands a bit of accounting and bookkeeping. However, it isn't profitable if this resource has to put aside his or her routine work to attend to accounting and bookkeeping tasks.

Superior quality: Accounting and bookkeeping need detail and accuracy. When your accounting work is carried out by a professional, you get reports that are comprehensive and detailed. Superior quality accounting work also helps your tax preparation.

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 Bookkeeping Tips

Irrespective of the size of a business, bookkeeping is one of the most basic responsibilities within a company. It involves tracking expenses and financial transactions that have occurred on a daily basis.

Bookkeeping differs from Accounting in that an accountant is dependent on the bookkeeper's records. The bookkeeper is responsible for making accurate records of sales, purchases, payments made, etc. These entries are recorded in designated ledgers or books that are then balanced to insure that the financial figures match.

A small business may perform its own bookkeeping to defray expenses. However, without a trained bookkeeper performing this function in-house may turn out to be a very expensive decision.

Bookkeeping is often confused with accounting work. They are different in that bookkeeping involves maintaining records of financial transactions that have taken place. Different records are maintained in different, designated books. Thus, there are separate sales ledgers, ledgers for payments receivables, and record books for functions such as sales and purchases made, as well as records of issued bank checks.

These books further contain multiple columns to indicate payments due or made, together with the balance noted at the time of the transaction.

All of these functions define a bookkeeper's areas of responsibility.

Because the bookkeeper deals with matters that reflect the financial health of the company, there is very little room for error. Finally, the company's accountant depends on the bookkeeper's work to prepare financial records and communication.

As with other business functions, there are several bookkeeping "best practices", which when implemented can significantly impact a company's overall productivity and efficiency.

1. Maintain records diligently.
It helps to maintain different records for different transactions in a timely and exact manner. When you have multiple daily transactions, it is essential that they are all recorded. The bookkeeper's work determine show easily an accountant can file the related income statements and communicate expenses to the company's shareholders.

2. Hire a trained bookkeeper.
Performing this function by assigning it to another staff member or having the business owner perform the bookkeeping may work in the beginning when your business is small. However, as your client base increases, this can become unwieldy to the untrained bookkeeper. Without a knowledge of bookkeeping practices, you run the risk of recording errors which could have long lasting negative implications.

3. Invest in high quality accounting software.
High caliber accounting software is essential to your company's financial infrastructure. Poor bookkeeping can lead directly to loss in earnings and worst cases loss of clients. For small businesses, this domino effect can be fatal. Although several off-the-shelf accounting software solutions exist, if you cannot afford to make this type of investment for your business, tap into a provider who offers you high quality bookkeeping services.

4. Keep your forms and records handy.
Make sure you are audit-ready and not remiss in filing important forms etc. When you are ready with the essentials, your bookkeeping will be better organized.

5. Back up all your data.
This is one of the most important rules. As a small business, if you are finding it difficult to maintain safe and dependable back-ups, then you should consider choosing a vendor who can manage your bookkeeping functions. Ensuring data security in times of crisis or accidents is an important factor for both your business and your clients' businesses.

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.

4 ways outsourcing bookkeeping services can help grow your business

Managing and growing your business is not an easy task, considering that you have the responsibilities of all the departments on your head. If you are looking for ways to reduce your load and dedicate time to growing your business, outsourcing bookkeeping services may be the right step for you. Business owners generally ignore the number of hours they spend in taking care of their bookkeeping functions, which they can avoid by outsourcing bookkeeping services. By outsourcing bookkeeping functions to a service provider, you can not only save on time but also ensure that your bookkeeping records are maintained impeccably.

The following are 4 ways outsourcing bookkeeping services can help in developing your business:

1. Save Time

The most important benefit for business owners of outsourcing bookkeeping services is that they can save on time, which can be used for expansion of the business. Outsourcing bookkeeping can ensure that you as the business owner can focus on your core business activities so that you can take your business to the next level.



2. Save Resources

Outsourced bookkeeping services are generally cheaper than hiring in-house bookkeepers. Outsourcing bookkeeping services to a service provider also means that you can save on office space as well as the rent associated with it. The resources saved by outsourcing bookkeeping services can then be re-invested into the business, increasing the scope of expansion.



3. Reduce Mistakes In Bookkeeping

If you are trying to complete bookkeeping yourself, you are likely to make mistakes. Even if you hire a single bookkeeper for your business, there might be errors in the final documents. On the other hand, a bookkeeping service provider has a whole team of bookkeeping professionals, who are experienced in the field and can ensure that the finished work is impeccable and without mistakes.



4. Have Impeccable Financial Records

Outsourcing bookkeeping to an expert means that you can stop worrying about the state of your financial records. The bookkeeping service provider you hire will be experienced and reputed, which means that you won't have to scramble at the tax time to update your records. Outsourcing bookkeeping services is as good as handing over your financial records of your business to an expert and then forgetting about it till March every year.

While looking to hire a professional bookkeeping service provider, check its reputation and experience carefully. When you find the right service provider for outsourcing bookkeeping, you can proceed with growing your business according to your plan.

Outsourcing bookkeeping: 5 things to check

Are you a small business owner looking for ways to save costs? Outsourcing bookkeeping is a great way to reduce costs while getting the work done efficiently. Outsourcing bookkeeping tasks ensures that you hand over all the bookkeeping activities to an expert and focus all your attention to the main business activities. But here's the catch: you need to hire the right bookkeeping firm to do the job for you. You need to make an informed decision regarding hiring an experienced bookkeeping firm, which suits your business requirements perfectly and has the potential to add to your business' growth. While outsourcing bookkeeping to a professional firm, keep the following pointers in mind:

How experienced is the bookkeeping firm?

The most important factor in outsourcing bookkeeping functions is the experience of the firm you select. While checking out various firms, ensure that you ask relevant questions about its experience. If possible, get references of past clients, so that you can speak to them yourself and know the quality of work of the bookkeeping firm in question. There are some firms which specialize in providing bookkeeping services to specific industries. If you can find one which specializes in your industry, it would be ideal for your business.

What are the qualifications of the professionals?

You should be outsourcing bookkeeping to a firm which has qualified and experienced bookkeepers. Check with the bookkeeping firm regarding the qualifications of the bookkeepers who will be working on your books of accounts. Qualified people working on your bookkeeping ensures that your finances will be maintained efficiently, without any mistakes.

Is the bookkeeping firm technologically advanced?

If your bookkeeping service is going to include online bookkeeping, the bookkeeping firm will need to be updated with the latest technology. To provide the right bookkeeping services, the firm will need the right kind of softwares and programming. Experienced bookkeeping firms are experts at handling various bookkeeping softwares like QuickBooks, Peachtree, MYOB, Great Plains etc. They also have strict measures in place for ensuring data security. Before outsourcing bookkeeping, ask questions about the kind of technology the bookkeeping firm uses.

Which services will be included? Is there enough flexibility?

While outsourcing bookkeeping, check which services are included in your package. Professional bookkeeping firms generally provide bookkeeping services including accounts payable management, accounts receivable management, bank reconciliations, inventory management, recording and reconciling payroll transactions, revenue reconciliation with bank deposits etc. Moreover, their services are flexible, so you can scale your requirements up or down at any time. This flexibility saves a lot of costs at the time when your bookkeeping requirements are minimal.

Does the bookkeeping package match your budget?

Outsourcing bookkeeping functions has the potential to save you up to 40% cost of in-house resources. However, you still have to make the most of the deal the bookkeeping firm offers you. Fix a budget that is affordable for you and stick to it when you are outsourcing bookkeeping for your business. You can also compare bookkeeping packages other firms are offering, so that you get the best bookkeeping package available.

Outsourcing bookkeeping to an expert bookkeeping firm ensures that you save costs as well as manage books of accounts efficiently. Invest some time in researching for a good firm, which can become your partner in making your business more profitable.

Merry Christmas 2009

Christmas 2009 is almost upon us! It's that time of the year when children wait for Santa Claus to bring them their gifts and adults look forward to the long holiday and the Christmas celebrations with friends and family.

Analytix Solutions wishes all its accounting and bookkeeping clients a Merry Christmas 2009.

To add to the Christmas cheer, Analytix introduces its accounting and bookkeeping offer for Christmas 2009. As a special Christmas offer, all accounting services and bookkeeping services packages from Analytix will have 10% off from today till 25th December, 2009. Avail of this special Christmas offer for your accounting and bookkeeping functions today. Email sales@analytixsolutions.com for more details.

Accounting Services: An Integral Part Of Your Small Business Growth

Are you an expert accountant? Most small business owners aren't, and that's why they need the help of a professional who provides accounting services. Hiring such professionals for accounting services can ensure that your books of accounts are in the right hands, so that you can focus on your business. Small business owners are generally tempted to take care of their own accounting. However, hiring a professional for small business accounting services holds some aces over do-it-yourself accounting.

Why a professional for accounting services?

Until recently, small businesses used to hire in-house staff to take care of their accounting for them. This was the only option available to small businesses, as there were few professional accounting service providers available. However, small business owners are increasingly starting to use outsourced accounting services due to the various advantages it offers. The number of service providers for small business accounting has also increased exponentially in the past few years.

Using accounting services can save precious resources, especially for small businesses. The cost of hiring and training an in-house accountant is huge, and an accounting service provider may help save as much as 40% of the cost of such recruitment. A professional company for small business accounting is an expert at what it does, so you need not worry about the quality of work being done. Such an accounting firm is also available 24x7 through phone, email, teleconferencing etc., so accessibility is also not an issue. If an accounting service provider is giving you a cheaper deal and taking care of all your accounting requirements efficiently, why should you hire in-house staff for accounting?

What to expect when you use accounting services?

A professional accounting service provider will be completely dedicated to maintaining your books of accounts. So instead of one single accountant in-house, you will have a whole company at your service. Most accounting service providers provide customized accounting services, which will be completely tailored as per your requirements. A company specializing in small business accounting will also have the latest software and experts to make sure the job is completed properly.

Most accounting service providers offer other services as well. For example, an accounting firm may also be offering bookkeeping services, tax preparation services etc. When you are checking out the company's service portfolio, see other service offerings they have over and above accounting services. If you see anything that applies to your business in addition to small business accounting, have that added in your package.

Accounting firms also provide completely scalable services, so you can change your package or requirements at any time you want. However, you need to discuss the scalability of services with the accounting service provider in question. You may also be thinking about the security of your financial information when you use accounting services from a third party. But you can rest assured that an experienced company providing accounting services will have adequate security measures to keep all your data safe. Ask your accounting service provider about the security measure it takes to keep all your data safe.

Online Accounting: How small businesses can benefit from it

As a small business owner, you may be facing a tough task of managing all departments of your business at once. Running a small business is a tough task as it is; add to that the responsibility of handling small business accounting and bookkeeping, and it may become an impossible one. If hiring in-house staff for handling your books of accounts is not an option for you, consider hiring the services of an online accounting service provider. Online accounting is known for its benefits, especially for small businesses. Some of the benefits of online accounting are as mentioned below:

Cost Effective
The first, foremost and most important advantage of online accounting is its cost effectiveness. Not only does hiring online bookkeeping service save you the cost of hiring in-house resources, it also ensures that additional resources like office space, rent etc. are not wasted. You can then invest the money and resources saved through online accounting into the business to ensure its profitability.

Quick Turnaround
Online accounting service providers provide a very quick turnaround as they have dedicated personnel working on your books of accounts. In many cases, the online bookkeeping service provider gives an assurance of updating your books of accounts within 24 hours of receipt of the documents. Such speedy work ensures that accounting and bookkeeping of your small business is up to date at all times.

Experts at Work
Let’s admit it: you do business well, but maintaining books of accounts like a pro is not your cup of tea. When you hire online accounting services, you can rest assured that there is an experienced professional working on your books. Such experts also ensure that the work done is impeccable and there are less chances of any mistake in your small business accounting.

Easy to Use
Online accounting services make your work very easy with a simple procedure. You just need to send your documents to your online bookkeeping service provider via email; the rest is all taken care of by online accounting professionals on the other end. You can hence stop worrying about your business financials the minute you email the document and concentrate on running your small business.

Efficient Record-Keeping
Online accounting or online bookkeeping gives a lot of importance to record-keeping. When you hire a professional for online accounting, you need not maintain separate records for your own reference. The latest and most accurate accounting information will be maintained by professionals when you decide to use online bookkeeping services. You can get access to these records 24x7, which is a facility given by most service providers today.

Online accounting has the potential of aiding you in running your business efficiently and reducing your overall responsibilities. There are many online bookkeeping service providers today which offer customized packages. You can select the one that best suits your small business requirements.

Outsourcing Accounting Services: 3 Things you Should Know

Accounting and bookkeeping for small businesses had changed drastically in the past few years. The rules for accounting remain the same; however, paper-based accounting has been replaced by virtual accounting. Outsourcing accounting services is hence a popular choice of business owners now. Using an accounting service provider and outsourcing accounting functions saves costs as well as gets accounting done effectively. Using the services of a professional accounting service provider eases a lot of burden of business owners. However, as a business owner, you need to know some things before outsourcing accounting services. The following are 3 essential points you need to know before outsourcing accounting services:

Local or Offshore
The advantage of outsourcing accounting services is that you can select the service provider you want, according to your terms and conditions. If the accounting and bookkeeping service provider is based locally, it will be easy for you to get in touch with him/her in case you need to. However, the disadvantage is that local accounting service providers may not be as cost-effective as offshore ones. Offshore accounting service providers, on the other hand, offer significant cuts in costs, but may be unavailable personally when needs arises. The ideal company you can use for outsourcing accounting services is one which works virtually but has a local presence. That way, it will be able to offer cost-effective rates as well as be available personally.

Experience
If you are thinking of Outsourcing accounting services, you will obviously look for someone who has relevant experience and has expertise enough to handle your books of accounts. Even if the accounting service provider in question has years of experience in accounting and bookkeeping, ask whether it has enough experience in your industry and cross check the references. If the service provider has a good record with past clients, you can rest assured that outsourcing accounting services to him/her is a wise decision. The kind of staff the accounting service provider hires is also an important factor in the way your outsourced accounting will fare, so be sure to ask about the qualifications and availability of accounting staff.

Add-ons
As said before, accounting doesn’t involve only debit and credit anymore. Professional service providers for outsourced accounting services now provide management reports in addition to the standard accounting and bookkeeping reports like P&L statements and Balance Sheets, which can help you take care of your business in a more efficient way. Such accounting service providers have also started providing weekly reports instead of the monthly or quarterly reports which were prevalent before. These are valuable add-ons which are associated with Outsourcing accounting services, which will help your business do well and grow.

Bookkeeping Services Is An Essential Part Of Your Small Business

Considering the fact that bookkeeping is one of the most crucial functions of your small business, finding a firm providing bookkeeping services is an important task for you. However, finding an appropriate firm for small business bookkeeping is no joke; you need to find the company that matches the standards of your business. If you own a small business, you should find a bookkeeping services firm which has a good reputation and caters specifically to small businesses. Always remember that your business's books of accounts give you an idea of how you are doing, and you can make strategic decisions based on them. A professional bookkeeping service provider is a must to get a clear picture regarding your business.

Consider the following points when selecting a firm for bookkeeping services:

1. Online Bookkeeping Services
   
   

An online bookkeeping service provider will already have the system and the processes in place. Once you send them your documents, processing times will be faster than a bookkeeper doing it in-house. Such service providers for bookkeeping also provide affordable rates. You hence save on time as well as money by hiring them.



2. The Right Kind of Technology
   
   

For online bookkeeping services, the right kind of softwares and programming is very much a necessity. The service provider you hire has to have the right technology in place so that he/she can process documents and give you reports as and when you need them. You can rest assured that your books of accounts are in the right hands when you hire a reliable bookkeeping service provider.



3. Qualifications and Experience
   
   

When you are considering hiring any firm for bookkeeping services, you need to ensure that they have the right kind of qualification as well as experience for handling your books efficiently. The staff that the firm hires should not only be qualified in bookkeeping and accounting functions, but the firm in question should also have the necessary experience to prove its expertise. You can question the bookkeeping service provider regarding its staff as well as past clients so you can get an idea regarding the professionals working for your business.



4. Support
   
   

If you are hiring an online bookkeeping service provider, you need to make sure that you will get adequate support in the form of customer care. You need access to the firm whenever you have any query or complaint. Experienced firms for bookkeeping services generally also assign an individual to answer all queries related to your business's bookkeeping and to cater to your requirements. You can get the details on what kind of support your bookkeeping services firm gives by checking out its website or contacting the firm personally.

Once you find a bookkeeping service provider that meets all of the points mentioned above, you can breathe easy knowing that your bookkeeping and accounting is in the right hands. In addition to saving you time and money, a bookkeeping services firm can become your long time partner and contribute majorly to your success.

7 Reasons Why QuickBooks is Good for Accounting and Bookkeeping Of Your Business

As a small business owner, you must be spending a lot of time on your accounting and bookkeeping functions. QuickBooks is renowned accounting software for small to mid-sized businesses which can help you save time. It is being used by many businesses for maintaining accurate business records and is a trusted accounting and bookkeeping solution. QuickBooks is also on the service offerings of many reputed firms which provide accounting services and bookkeeping services. Listed below are 7 reasons your business should not miss QuickBooks as a bookkeeping solution

1. Saves Time
   

QuickBooks automates the simple tasks of your accounting and bookkeeping of your business, so that you save the hassles of paper-based bookkeeping. You can free up valuable time from the financial functions and dedicate that time to developing your business or catering to customers.




2. Affordable

QuickBooks is one of the most efficient accounting software available today, making it a very useful tool for small and medium sized businesses. Compared to hiring a bookkeeper, QuickBooks is a much cost effective solution for accounting and bookkeeping.



3. Customized Solution
   

You can customize QuickBooks according to your business requirements. As an accounting software which is applicable to various industries, QuickBooks is designed to be flexible and adaptable to each business separately. For example, it can be customized and used for accounting and bookkeeping for a numerous business types, whether it is a restaurant, franchise, sports facility, medical practice, dentistry or salon. You can ask your bookkeeping service provider to customize QuickBooks according to the industry you work in.



4. Reduces Errors
   

QuickBooks minimizes the chances of an error that a bookkeeper might make while typing. Calculations are done automatically in QuickBooks, which reduces the chances of a human mistake in accounting and bookkeeping of a business. While using QuickBooks, data can also be shared with business applications as well as popular programs like excel sheets, word documents, Outlook etc.



5. Reliable Solution
   

QuickBooks is the most reliable accounting and bookkeeping software available for small and mid-sized businesses. Some of the most reputed bookkeeping service providers provide QuickBooks solutions to small and mid-sized businesses and help them in maintaining their books of accounts. It is one of the most trusted and reliable software, being used by thousands of businesses all over the world. You can rest assured that your bookkeeping functions are being taken care of by a proven, trustworthy software.



6. Grow your Business
   

With QuickBooks into the picture, you can grow your business with the backing of strong accounting and bookkeeping records. With up to date balance sheet, profit and loss statement, statement of cash flows etc., you can get business loans, line of credits or plan the expansion of your business easily.



7. Automates Processes
   

You can automate most payment processes through QuickBooks. No more of printing checks, going to the bank or stamping envelopes. With QuickBooks you can click a button and make the payment. Banks also allow downloading of monthly bank statements into QuickBooks for easier reconciliation. If you don't have QuickBooks software for your business, you can contact an experienced bookkeeping service provider for a customized solution.

There are many experienced accounting and bookkeeping service providers which provide customized QuickBooks integrated solutions for small to midsized businesses. You should select an end-to-end service provider who can be trusted and can provide on-demand support post installation too. Having QuickBooks to manage the accounting and bookkeeping of your business gives you a powerful tool for managing your books with complete ease.

OUTSOURCING YOUR BOOKS - The smarter way to save money

The importance of maintaining proper books and accounts is not just to file proper taxes, but essential to check the financial pulse of your business. The survival of your business depends on efficient, timely, well ordered financial reports providing timely updates and alerts on problem areas of business. Correct diagnosis and subsequent remedies depends on identifying the problem and finding right solution at the right time.

Although Bookkeeping and Accounting is not as hard as Rocket Science that would require extremely qualified professionals, it does require necessary skills, analytical ability, and complete concentration to maintain accuracy to avoid serious and expensive problems. This might translate for most of us into being tedious, boring, and time consuming frustrating task. However, this bull needs to be taken by its horns. It’s a necessary evil, which is why services of bookkeeper/accountant/CPA are sought.

But is there a smarter way to tackle your books and accounts?

It may sound noise to some ears, but Outsourcing can really work for even the small businesses too. If it means significant cost savings, you can always argue that it is a default advantage and well touted by all vendors. But there are few other not so obvious benefits too.

It is no secret that large companies have been sub-contracting or outsourcing their non-core functions to expert vendors to take advantage of economies of scale. This option was not readily available to small firms earlier. But economic slump is inducing more and more companies to look at this option. And if you have a local Outsourcing vendor who can provide an on demand one-to-one support, most of your fears regarding Outsourcing can be put to rest.

The obvious advantages of outsourcing accounting, bookkeeping and tax services are::..
· Pay only for reasonable time taken to render services. Rates are generally charged on hourly

basis
· Saves up to 40-50% of operational costs as this does not require infrastructure or related support
· Quick turnaround of work
· 24x7 online access to your books and records
· Flexible and fully scalable modules
· Move towards a paperless office
· Reduces burden of staff and who can then be channelized to other productive activities
· Last but not the least, more time to strategize and concentrate on core functions

The not so obvious benefits of outsourcing are::..
· Access to ‘on demand’ qualified talent
· Access to service and client oriented vendors, since their existence depends on satisfying you.
· Flexibility towards changes and improvements demanded by your growing business which might be difficult to implement with in-house staff who are prone to resisting changes.
· No headache of retaining staff or training newbies. Time saved equals to money saved at the end of the day
· No requirements of any additional capital investment so there is reduction in total investment risk. More opportunities to invest in income generating areas.
· Outsource additional burden during busy time without adding costs of hiring new people.
· Save on add on costs like sick leave, benefits, bonus, promotions, training, house allowances etc without compromising on quality while getting work done faster.

However before jumping the band wagon and enjoying all the fruits from outsourcing, some essential points for consideration:
· Research the vendor thoroughly. Check credentials from other clients, networking and referral sources
· Partner with vendors having ethics and integrity instead of just being cost-oriented
· Vendor must be conversant with bookkeeping and accounting standards of your country
· Check the security and confidentiality policy of the vendor
· Check the quality standards and non-performance penalty clause of vendor
· Check how and where the disputes arising will be resolved
· Check whether your liability insurance covers outsourcing

The decision ultimately depends on business owner’s choice.

Do what is more appropriate for your company and reap long term benefits. The ultimate benefit of outsourcing if done right, leads to significant improvements in efficiency, cost savings and growth in the core functions of the business.