Before tackling the question as to why should you switch to accounting software, here are a few lines about accounting first.
Accounting in business helps in proper management of revenues and expenditures that ultimately decide whether a business is heading towards failure or success. It is a process of collecting, summarizing and analyzing the financial data of an organization.
To manage all these, you can either hire an accountant or invest in a good accounting software. And the growing popularity of accounting software suggests that the latter option is a better investment. So, do not be discouraged if you do not have any knowledge about accounting. Just invest in a good accounting software which in turn will take care of your accounts.
In fact, it is becoming a norm to purchase an accounting software application before starting a business. You can find accounting software for both small as well as large businesses. You can choose from a basket of multiple accounting software programs. Depending on the type of business you have and how you run it, you have to choose the software package that compliments your business, instead of being a limiting force.
Simply put, the main advantages of switching over to accounting software are that it saves time as well as money. No doubt, your accountant(s) may be the best in business, but the following points will make it clear why an accounting software scores over any of them:
To remain competitive in this age, your business needs all the information quickly. You can not wait for the paper works to get finished. You must be aware of what is happening in your company. Accounting software can do all these things for you.
Modern businesses are all about managing time. To smoothly run your business, all you should look for is time management.
Accuracy is another thing where you can not let your guard down. While human beings can never be error free all the time, you will find that accounting software can be 100 percent correct at almost all the times.
Another advantage of accounting software is that it will keep you updated. It works great when applied to tracking tax codes changes.
All the current accounting software are easy to use, set up and navigate. And with the advancement of technology, they are becoming more specialized, catering to the needs of specialized businesses.
Last but not the least, an accounting software helps you save money as it is a one time purchase. Also, it can grow with your business thus minimizing your future cost.
All the above mentioned points are reasons enough to make you shift to an accounting software. An accounting software will make your business management better, more efficient and easier. But, choosing the best software is the most critical thing. By looking at the websites, reading reviews and talking to former users, you can apprise yourself about different accounting software. In fact, the accounting software market is full of different types of accounting software with many different features. You just need to calculate your needs and zero down on the product that suits you the best.
Wednesday, January 24, 2007
Monday, December 25, 2006
When Money Matters Call Accounting Software Can Ensure Your Business Success
Call accounting and telecom billing software provides many business benefits that can both save money, as well as help businesses generate revenue
Call accounting and telecom billing software provides many business benefits that can both save money, as well as help businesses generate revenue. A feature-rich call accounting software can provide many business benefits, such as:
· Long Distance Bill Verification: Was the bill from your chosen long distance phone company accurate? Mostly, it isn't. Using a call accounting system to check your long distance gives you some peace of mind - and documentation to back up your request for a refund of overpayments you may have made.
· Motivate sales people: The more phone calls they make, the more they sell. Keep track of their call volume and manage them accordingly.
· Bill Clients and Projects back for telephone charges incurred on their behalf: Every lawyer, government contractor, etc. does it. It makes sense.
· Allocate telephone calling costs among departments and divisions: Telephones - voice, data, video and imaging - are some of your biggest expenses. They're a cost that should be allocated to the products you are making, or the departments and divisions in your company. Telephone costs can determine which product is profitable. Which isn't. A software company recently dropped one of its three "big" software packages because phone calls for support got too expensive.
· Control Telephone Misuse: The rates for calling can vary widely depending on your carrier rate, the route the call takes, who makes the dialing decision...a call accounting system is a good check to see if you are spending money needlessly.
If your business isn’t using a call accounting or telecom expense management software, you could be losing money.
Call accounting and telecom billing software provides many business benefits that can both save money, as well as help businesses generate revenue. A feature-rich call accounting software can provide many business benefits, such as:
· Long Distance Bill Verification: Was the bill from your chosen long distance phone company accurate? Mostly, it isn't. Using a call accounting system to check your long distance gives you some peace of mind - and documentation to back up your request for a refund of overpayments you may have made.
· Motivate sales people: The more phone calls they make, the more they sell. Keep track of their call volume and manage them accordingly.
· Bill Clients and Projects back for telephone charges incurred on their behalf: Every lawyer, government contractor, etc. does it. It makes sense.
· Allocate telephone calling costs among departments and divisions: Telephones - voice, data, video and imaging - are some of your biggest expenses. They're a cost that should be allocated to the products you are making, or the departments and divisions in your company. Telephone costs can determine which product is profitable. Which isn't. A software company recently dropped one of its three "big" software packages because phone calls for support got too expensive.
· Control Telephone Misuse: The rates for calling can vary widely depending on your carrier rate, the route the call takes, who makes the dialing decision...a call accounting system is a good check to see if you are spending money needlessly.
If your business isn’t using a call accounting or telecom expense management software, you could be losing money.
Accounting Positions
When most people think of accounting, what comes to mind is usually basic information that's not particularly interesting or beneficial. But there's a lot more to accounting than just the basics.
Computers have changed the way accountants and auditors do their job. Accountants can use special software packages to do transactions in basic formats for financial records. Using software they can organize data in financial analysis. This greatly reduces the amount of tedious manual work of recordkeeping and data management. Accountants can use computers to receive their clients' information by using the internet. Because of this accountants and auditors can utilize these computer skills in correcting problems with software or in developing specific software for data management and bookkeeping. This allow accountants also to perform more technical duties such as analyzing and devising budgets.
Nowadays, many accountants are also taking on the role of a personal financial advisor. They help their clients with their personal budgets. They can help them manage their assets and investments so they can plan for retirement. It is almost like having a personal fitness coach but instead of getting your body in shape they help you get your finances in shape.
With the help of accountants and auditors our Nation’s firms are run more efficiently. The public records are kept more accurately, and they can help them to pay their taxes correctly and on time. Accountants and auditors can offer services which include budget analysis, financial and investment planning, computer software for recordkeeping and limited legal services.
Once you begin to move beyond basic background information, you begin to realize that there's more to accounting than you may have first thought. Specific job duties vary widely among the four major fields of accounting: public, management, and government accounting and internal auditing.
Are you looking for some inside information on accounting? Here's an up-to-date report from accounting experts who should know.
Some public accountants specialize in forensic accounting—investigating and interpreting white-collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and sometimes criminal financial transactions by organized criminals in money laundering. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques in order to determine whether an activity is illegal. Law enforcement personnel and lawyers often work closely with forensic accountants during investigations and many times they appear as expert witnesses during trials.
The only way to keep up with the latest about accounting is to constantly stay on the lookout for new information. If you read everything you find about accounting, it won't take long for you to become an influential authority.
Because of the internet many self-employed accountants may be able to do part of their work at home. Public or government accountants and auditors may have to travel frequently to perform audits at branches for their firms, clients’ places of business, or government facilities.
Most accountants and auditors usually work a standard 40-hour week, but self-employed accountants may work longer if they have many clients. Tax specialists often work long hours during the tax season.
Because of recent accounting scandals, new Federal legislation restricts the nonauditing services that public accountants can provide to clients. If an accounting firm audits a client’s financial statements, that same firm cannot provide advice on human resources, investments, technical, or legal matters, although accountants may still advise on tax issues, such as establishing a tax shelter.
As you can see there are many different accounting positions in public, private, and government areas.
Computers have changed the way accountants and auditors do their job. Accountants can use special software packages to do transactions in basic formats for financial records. Using software they can organize data in financial analysis. This greatly reduces the amount of tedious manual work of recordkeeping and data management. Accountants can use computers to receive their clients' information by using the internet. Because of this accountants and auditors can utilize these computer skills in correcting problems with software or in developing specific software for data management and bookkeeping. This allow accountants also to perform more technical duties such as analyzing and devising budgets.
Nowadays, many accountants are also taking on the role of a personal financial advisor. They help their clients with their personal budgets. They can help them manage their assets and investments so they can plan for retirement. It is almost like having a personal fitness coach but instead of getting your body in shape they help you get your finances in shape.
With the help of accountants and auditors our Nation’s firms are run more efficiently. The public records are kept more accurately, and they can help them to pay their taxes correctly and on time. Accountants and auditors can offer services which include budget analysis, financial and investment planning, computer software for recordkeeping and limited legal services.
Once you begin to move beyond basic background information, you begin to realize that there's more to accounting than you may have first thought. Specific job duties vary widely among the four major fields of accounting: public, management, and government accounting and internal auditing.
Are you looking for some inside information on accounting? Here's an up-to-date report from accounting experts who should know.
Some public accountants specialize in forensic accounting—investigating and interpreting white-collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and sometimes criminal financial transactions by organized criminals in money laundering. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques in order to determine whether an activity is illegal. Law enforcement personnel and lawyers often work closely with forensic accountants during investigations and many times they appear as expert witnesses during trials.
The only way to keep up with the latest about accounting is to constantly stay on the lookout for new information. If you read everything you find about accounting, it won't take long for you to become an influential authority.
Because of the internet many self-employed accountants may be able to do part of their work at home. Public or government accountants and auditors may have to travel frequently to perform audits at branches for their firms, clients’ places of business, or government facilities.
Most accountants and auditors usually work a standard 40-hour week, but self-employed accountants may work longer if they have many clients. Tax specialists often work long hours during the tax season.
Because of recent accounting scandals, new Federal legislation restricts the nonauditing services that public accountants can provide to clients. If an accounting firm audits a client’s financial statements, that same firm cannot provide advice on human resources, investments, technical, or legal matters, although accountants may still advise on tax issues, such as establishing a tax shelter.
As you can see there are many different accounting positions in public, private, and government areas.
iCatchITs Expanded Accounting Outsourcing Services
Cebu City, Philippines (PRWEB) May 7, 2006 –- There is fragmentation in the way accounting services are outsourced and the American BPO firm, iCatchIT , led by CEO Jonathan Corners, is doing something about it. iCatchIT announced the expansion of their accounting services, adding A/P, A/R, Payroll and Tax Accounting Outsourcing to their existing G/L services. Making the statement last May 2 at their site in Nasipit, Cebu, Mr. Corners said, “We will transform our offshore outsourced bookkeeping services into a One-Source Accounting Solution for a broad range of accounting needs.” He said, further, “Our success in offering General Ledger (G/L) services and client demand have prompted us to add these additional services.”
ICatchIT is an offshore outsourcing firm that also now offers Six Sigma Quality Control in all of its accounting packages. Jonathan added, “Six Sigma is a robust technology that gives the client essentially error free accounting and we are happy to add this to our collection of tools to service the Accounting Community.” ICatchIT has hired additional personnel, including new CPAs as well as bookkeepers, anticipating increased demand.
The new services will be a one-stop resource for account managers and accountants. Currently, many organizations need to use different vendors to do various accounting functions: one vendor does Payroll, another Receivables, and yet another Payables. There is a definite need in the industry to consolidate these functions in a single shop, making accountability, dependability, and account maintenance streamlined and more flexible. iCatchIT offers SLAs that can incorporate any or all of these sometimes problematic processes.
ICatchIT is an offshore outsourcing firm that also now offers Six Sigma Quality Control in all of its accounting packages. Jonathan added, “Six Sigma is a robust technology that gives the client essentially error free accounting and we are happy to add this to our collection of tools to service the Accounting Community.” ICatchIT has hired additional personnel, including new CPAs as well as bookkeepers, anticipating increased demand.
The new services will be a one-stop resource for account managers and accountants. Currently, many organizations need to use different vendors to do various accounting functions: one vendor does Payroll, another Receivables, and yet another Payables. There is a definite need in the industry to consolidate these functions in a single shop, making accountability, dependability, and account maintenance streamlined and more flexible. iCatchIT offers SLAs that can incorporate any or all of these sometimes problematic processes.
Payroll Accounting Options for the Small Business
Payroll accounting is often a source of great stress for small business owners. There are several options available to small businesses when it comes to computing payroll, but one option far outshines the rest.
Luckily for us that day will never come. Software programs can do amazing things, but they are still limited and usually still require a human to operate them. They are also limited in the fact that they are sometimes difficult to use. This can be especially true with payroll accounting software that often requires some accounting knowledge to correctly operate it.
Once your information has been sent your payroll is calculated for you, including all deductions and tax withholdings. All pay vouchers, checks and reports are then sent to your business and are also available for online viewing. If errors have been made the company you have outsourced to usually pays the fees and answer any questions regarding your payroll that may be posed by taxing agencies. Internet based payroll is an excellent solution to any small business payroll accounting problems.
- Hire an Accountant
- Payroll Accounting Software
Luckily for us that day will never come. Software programs can do amazing things, but they are still limited and usually still require a human to operate them. They are also limited in the fact that they are sometimes difficult to use. This can be especially true with payroll accounting software that often requires some accounting knowledge to correctly operate it.
- Outsourcing
Once your information has been sent your payroll is calculated for you, including all deductions and tax withholdings. All pay vouchers, checks and reports are then sent to your business and are also available for online viewing. If errors have been made the company you have outsourced to usually pays the fees and answer any questions regarding your payroll that may be posed by taxing agencies. Internet based payroll is an excellent solution to any small business payroll accounting problems.
Call Accounting Big Brother or Big Benefits
While some employees might feel that a call accounting system means they are being watched, when properly implemented and applied, a call accounting system can actually be a career booster. It can produce valuable reports that benefit virtually every department in the company.
Here are few ways your business could use this data:
Finance
Many organizations would like to allocate or “charge back" each department their costs based on their actual usage. A good call accounting system can allow the finance department to do just that.
Customer Service
Good customer service depends on communication. Most call accounting systems can tell you whether your sales reps or customer service reps are calling their accounts frequently enough.
Telecom
The right call accounting system will track telephone call activity generated by any type and any number of PBX's from the source of the call record to the assignment of accountability. It analyzes call activity (CDR) for your entire enterprise, domestic and international, from a single centralized system. All information is collected in real-time and is immediately available for viewing and reporting – an essential support for telecom expense management throughout the enterprise.
Your call accounting reports can be very valuable in tracking phone billing. It can help explain anomalies in phone bill amounts and show call activity increases in a department.
Toll fraud
In this day and age of corporate espionage, the importance of tracking the call accounting to get at the source of a call, and detecting internal or external toll fraud has escalated in priority for many CEOs in today's heightened security-conscious climate. According to a study by the American Society for Industrial Security, industrial espionage could account for potential losses for all American industry of as much as $63 billion. The actual dollar amount is heavily debated, but everyone agrees that the problem can't be taken lightly. Toll Fraud alone costs the American economy $5 billion annually.
The security module of your call accounting system can manage access to system features and database data. An administrator can limit the options available to a specific user and can place restrictions on data records that a user can view and/or edit minimizing the risks of toll fraud.
Here are few ways your business could use this data:
Finance
Many organizations would like to allocate or “charge back" each department their costs based on their actual usage. A good call accounting system can allow the finance department to do just that.
Customer Service
Good customer service depends on communication. Most call accounting systems can tell you whether your sales reps or customer service reps are calling their accounts frequently enough.
Telecom
The right call accounting system will track telephone call activity generated by any type and any number of PBX's from the source of the call record to the assignment of accountability. It analyzes call activity (CDR) for your entire enterprise, domestic and international, from a single centralized system. All information is collected in real-time and is immediately available for viewing and reporting – an essential support for telecom expense management throughout the enterprise.
Your call accounting reports can be very valuable in tracking phone billing. It can help explain anomalies in phone bill amounts and show call activity increases in a department.
Toll fraud
In this day and age of corporate espionage, the importance of tracking the call accounting to get at the source of a call, and detecting internal or external toll fraud has escalated in priority for many CEOs in today's heightened security-conscious climate. According to a study by the American Society for Industrial Security, industrial espionage could account for potential losses for all American industry of as much as $63 billion. The actual dollar amount is heavily debated, but everyone agrees that the problem can't be taken lightly. Toll Fraud alone costs the American economy $5 billion annually.
The security module of your call accounting system can manage access to system features and database data. An administrator can limit the options available to a specific user and can place restrictions on data records that a user can view and/or edit minimizing the risks of toll fraud.
The Accounting Equation
As an entrepreneur, who are thinking of going into business, or who is already conducting business, you have to start learning about the basic concepts of Accounting because they are the concepts that are used in reporting your business activities to the government come tax time. It is time you must know about one of the most fundamental concepts in accounting.
Accountants process data into documents called financial statements. It is the accounting equation that is the basis for the entire accounting system.
So what is this magical equation?
The Accounting Equation is:
ASSETS = LIABILITIES + OWNERS' EQUITY.
In crude definition,
ASSETS are economic resources of the business that are expected to bring benefits for the business in the future.
LIABILITIES are economic resources borrowed by the business from another person or an organization.
OWNERS' EQUITY is the economic resources that was contributed by the owners of the business to the business.
One way of thinking of this equation is that the left side is what the business has including its money, equipment, building, land, furniture, etc... The right side indicates where these assets had come from. Were they borrowed from parties outside the business, or were they contributed by the people who own the business.
The other version of this equation, that you might bump into is the:
ASSETS - LIABILITIES = OWNERS' EQUITY.
In other words, if the business's assets pay off all its liabilities, you are left with a figure that indicates the economic resources that belongs to the business's owner.
It is pretty much the same thing, a concept of transposition in algebra.
If you take a look at a business's BALANCE SHEET - or what is now modernly called as A STATEMENT OF FINANCIAL POSITION - you'll notice that all the items in there are arranged following this accounting equation in either one of its versions.
Of course in a BALANCE SHEET, it is written vertically, instead of horizontally as it is in the equation.
You'll see the items arranged somewhat as:
ASSETS XXX LIABILITIES YYY OWNERS EQUITY ZZZ
Where, XXX = YYY + ZZZ.
So, next time you see a balance sheet aka statement of financial position, take the time to recognize this logic.
Accountants process data into documents called financial statements. It is the accounting equation that is the basis for the entire accounting system.
So what is this magical equation?
The Accounting Equation is:
ASSETS = LIABILITIES + OWNERS' EQUITY.
In crude definition,
ASSETS are economic resources of the business that are expected to bring benefits for the business in the future.
LIABILITIES are economic resources borrowed by the business from another person or an organization.
OWNERS' EQUITY is the economic resources that was contributed by the owners of the business to the business.
One way of thinking of this equation is that the left side is what the business has including its money, equipment, building, land, furniture, etc... The right side indicates where these assets had come from. Were they borrowed from parties outside the business, or were they contributed by the people who own the business.
The other version of this equation, that you might bump into is the:
ASSETS - LIABILITIES = OWNERS' EQUITY.
In other words, if the business's assets pay off all its liabilities, you are left with a figure that indicates the economic resources that belongs to the business's owner.
It is pretty much the same thing, a concept of transposition in algebra.
If you take a look at a business's BALANCE SHEET - or what is now modernly called as A STATEMENT OF FINANCIAL POSITION - you'll notice that all the items in there are arranged following this accounting equation in either one of its versions.
Of course in a BALANCE SHEET, it is written vertically, instead of horizontally as it is in the equation.
You'll see the items arranged somewhat as:
ASSETS XXX LIABILITIES YYY OWNERS EQUITY ZZZ
Where, XXX = YYY + ZZZ.
So, next time you see a balance sheet aka statement of financial position, take the time to recognize this logic.
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