Real Estate Accounting - The Simplest Way to Understand

By Alvis Brazma

For the real estate business accounting procedures are often confusing. People who have their share in real estate also need to know about real estate accounting. There are lots of changes in the real estate field and the real estate firms need to adapt to these changes quickly. The real estate accounting software helps firms maintain their data on a daily basis and manage their monetary transfers. With so much work load the firms can filter their accounts quickly and the need to outsource work gets reduced. However sometimes the work requires more than software, it needs a professional accountant.

Real estate accounting comprises of maintaining data, documentations, journals, book keeping, ledgers balance sheet, tracking credit and debit transactions, and all sorts of bills. There have been a lot of real estate firms emerge in the market but very few of them have succeeded. The reason for their failure is the state of business and the unmanageable activities. The accounts department should be proficient in tracking the daily changes and record them correctly. The failure to do so would lead to the failure of the company. The kind of attention and sincerity required needs to be very high skilled.

The trend of real estate to get outsourcings has made the industry even more volatile. These outsourcing projects go to countries of the third world that have cheap labor. The vendors recruit qualified accountants who manage the accounts well with the latest software available at cheap prices. This would give the real estate firm a lot of assurance in the accounts department and that in turn would help them to succeed. The real estate firms save time and money in one significant decision.

The firm however needs to make sure the outsourcer is a reliable firm with good past performance. He also needs to make an intelligent decision on the price that he is about to pay for the accounting work. The outsourcer's previous clients and projects should also be duly checked by the firm. It is important for the firm to keep the outsourcer know about the important secret data of the firm since nothing should be hidden from accounts. Also the outsourcer should not divulge this information to anyone. Therefore the firm needs to research a cheap as well as a reputed outsourcer who can handle its accounts and make sure the balance sheets keeps showings profit.

There is lot of competition going on in the outsourcing market. Almost every outsourcing form is equipped with highly advanced tools and software along with expert professionals who are trained to meet the urgent demands of the clients. In such a scenario it becomes essential to make a well thought decision. You cannot just go for any other real estate accounting firm. Check the price list and the services they are offering. Take the demo of the work and once satisfied with all requirements then sign a deal. Definitely you are going to reap great benefits is major chunk of accounting work will be done by your outsourcing firm.

Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about accounting outsourcing, Real estate accounting, accounting help and retail accounting visit http://www.impacctusa.com.

Article Source: http://EzineArticles.com/?expert=Alvis_Brazma

Business Bookkeeping Blunders & Accounting Errors

By Stephen Nelson

As tax season approaches, many small business accountants, CPAs and bookkeepers find their anxiety levels increasing.

In only a few short weeks, these accountants know they'll see silly bookkeeping errors in many of their small business clients' books--errors that have meant the business owners have paid too little or too much in taxes. Errors that mean the business owner hasn't really been able to effectively manage the finances of the business.

Fortunately, these common bookkeeping blunders are easy enough to fix--if you know what they are and if you know the simple steps you can take to avoid making them.

Bookkeeping Blunder #1: Pretending No Accounting System is Needed

The first--and perhaps most serious blunder--is especially common with new business owners. The neophyte business owner sometimes pretends he or she can make do without a real accounting system.

In place of a real bookkeeping system--something like Microsoft Small Business Accounting or Intuit's QuickBooks--the business owner simply collects receipts in a box or keeps a check register by hand. Or maybe the business creates the illusion of an accounting system by using something like Microsoft Excel to, at least, add up some of the numbers.

Unfortunately, the "no accounting system" doesn't work. Before you have your tax return prepared, someone (perhaps your tax preparer) will need to cobble together some sort of makeshift system. And that's too bad, really. Such a system will allow your tax return to be prepared. But such a system almost surely won't capture all your tax deductions. And the information that this crude "system" provides will be too late to help you better run your business.

Bookkeeping Blunder #2: Slow Entry of Accounting Data

Another common blunder? Taking too long to enter the accounting data into your system. Which is surprising, in a way...

You would think that people who've gone to the modest effort and expense of having a real accounting system set up would keep the system up to date. But often they don't.

The problem with pokey data entry is that any useful insights that come from your accounting system, come too late.

Whoever is doing your accounting should keep up to date on the data entry. Within a few days of some transaction actually occurring, the accounting system should reflect the activity.

Bookkeeping Blunder #3: Skipping Account Reality Checks

An important yet simple point: Of course people make errors in using their accounting systems. But the nature of double-entry bookkeeping means that it's usually relatively easy to catch errors. How? You need to reconcile your bank accounts at the end of each month when the bank statement arrives.

Furthermore, if you hold other valuable assets like inventory or investments, periodically you should compare what the accounting system says to an actual physical count or statements from an external source.

Regularly performing reality checks on key accounts (especially cash) cleans up all sort of easy-to-miss errors.

Bookkeeping Blunder #4: Financial Complexity Beyond Bookkeeping Skill Levels

One common bookkeeping blunder makes for awkward conversations between accountants and their small business clients. But you deserve to know what the blunder is...

Unfortunately, accountants regularly encounter business clients with finances that are too complex for their bookkeepers. And that's a huge problem. If the business gets too complicated for the in-house bookkeeper (often the owner's spouse), the accounting system slowly becomes more and more unreliable. And this accounting unreliability usually means the business will shortly get into big trouble. (How can someone successfully manage a business if they don't know when they're making or losing money or how much cash they have in the bank?)

By the way, you'll easily be able to determine if the accountant or bookkeeper is overwhelmed. She will be falling further and further behind on the data entry. She will be producing reports that make less and less sense. And, often items, the profit and loss statement or the balance sheet will include a suspicious catch-all account named something like , "Ask the Accountant," "Suspense," or "Intercompany Transactions" that keeps increasing in size.

Only two true solutions exist for the "too much complexity" problem. You can simplify the business (probably the best idea). Or you can find a more experienced (and probably more costly) bookkeeper or accountant.

Bookkeeping Blunder #5: Co-mingling Personal and Business Assets and Liabilities

One final bookkeeping blunder should be mentioned given the approaching tax season.

Many small businesses don't clearly separate their business finances from their personal finances. For example, the businesses may use a single checking account for both personal and business banking. The business may regularly borrow personally to pay for business expenditures--and vice versa. And the business owner may too frequently mislabel personal expenses as business deductions.

Sadly, rampant co-mingling of finances makes financial records and books pretty much useless for tax preparation and for use in managing the business's finances.

Seattle accounting firm Stephen L. Nelson, CPA serves small businesses and publishes the popular limited liability company explained web site.

Article Source: http://EzineArticles.com/?expert=Stephen_Nelson

Growing Your Small Business With Accounting Software

By Matthew Bowes

Growing your small business is an all-consuming process. Statistics show that the most common reason for failure is loosing control of your businesses financial health. Day to day bookkeeping tasks alone take up most of your free time and using your time wisely is crucial to the success of your business. Government forms, tax calculations and payroll are tasks that must be completed on regular intervals. Failure to do so can cause great problems and take away even more time that could be spent growing your business or spending some much needed time with your family. Small Business Accounting Software can be the answer to all your financial questions. They are easy to use and many functions and reports can be automatically generated by the click of a few buttons on your computer.

Can you afford that expansion you have been wanting? Is hiring that extra staff person within your budget or do you need to wait? When will you have time to check the inventory in order to place your next order? Finding the answer to these and other critical questions will most certainly involve a great deal of your time. With the right Small Business Accounting Software you will have all the answers in a matter of minutes. In many cases forms for ordering inventory will automatically be filled out and all you need to do is print it out or send it off right from your computer. You will never have the headache of running out of a certain item because you forgot to order it.

When deciding what direction your business should go in next to stay ahead of the competition, it is crucial for you be able to view your bottom line at a glance. Generating the right reports will help you make these decisions. You will be able to automatically create the budgets and forecasts you need to make the best financial decisions for your business giving you time to do what you need to do - take care of your customers and grow your business!

Be confident that you will always know where your money is coming in from and going out by customizing personal charts of accounts. You'll never need to spend hours learning new procedures or special accounting terms. The best Small Business Accounting Software will always use terms and forms you are already familiar with. You will be able to access and process all your client files quickly and easily.

If you could use more time building your business rather than filling our forms to keep track of required government paperwork take a few minutes right now to research the many Small Business Accounting Software packages available. It takes only a few minutes of your time to go online and choose the right one for your business. It will be one of the best investments you will make for your business. Give yourself the luxury of watching your business grow and relaxing with your family while being confident that the financial health of your business is being taken care of by choosing the best Small Business Accounting Software available online.

Setting and Sticking to Your Restaurant Budget

By Stephanie Hayes

When you are managing or opening a restaurant, the restaurant budget will be very important. Sticking to the budget and building a successful business will help you to see profits much quicker. But there are tools available to help you. These are usually made up of successful restaurant information. They are extremely useful in helping you build your business into a profitable and thriving one. With the right knowledge, you will be able to set a restaurant budget and stick with the budget you have set to help increase your profits.

If you decide to use one of these specialty tools, you will be more knowledgeable about what to include in your restaurant budget. All of the details that go into a restaurant business are carefully laid out in such a system to allow you to make your budget with greater certainty. An example of a tool to help you would be an essential module for cost control. You have to be organized when it comes to cost control if you want to be successful. Such a module would help you stay on a laid out budget. All the information you need to compile and set for your budget is included. It will give you a bigger chance of success.

If you want to make a profit, controlling your costs is a priority. This is especially so in the restaurant business. Not only must you cover the cost of your food and beverages, but you want to see a profit. With the right help controlling your cost, you will be able to decrease your food and beverage outlay by as much as seven percent to help make your profits stronger.

Staying within your restaurant budget is essential to having a profitable and successful restaurant. By making the most of your staff to reducing food and beverage costs to taking all of the details into consideration when making your budget, you will find all of the information that you need in our system to make your business profitable.

Stephanie Hayes is the director of popular blog RestaurantManagementToolsOnline.Com Stephanie is a restaurant management expert and her blog contains important information about sticking to your restaurant budget Check out her blog for more info!

Article Source: http://EzineArticles.com/?expert=Stephanie_Hayes

Tips When Employing a Collection Agency For Your Company

By Mike Selvon

Owning a business or even managing one is a great deal of work. If you have to worry about bad debt recovery too, then it is a great deal more stressful. That is one reason why already having a collection agency for your accounts is helpful. An agency is able to focus on collecting the bad debts so that you can concentrate on running your business.

Some people feel that if they are a relatively small business, then a financial collection agency will not put forth the same effort as they would for a larger company. In order to make sure that you feel comfortable with an agency, you need to check them out prior to hiring one to recoup money owing on overdue accounts. Naturally, professionalism is a key factor when deciding on an agency to handle your collection accounts.

Although it is a stereotype, it is true that not all agencies have the best ethics and professional attitude. That alone is a good reason to ask for references and then be sure to check them out. And, of course, a good way to check on a company is through the Better Business Bureau; however, just because they are not listed does not mean that it is a reputable company. It can also mean that no one has bothered to file a complaint against them, which is another good reason for contacting their past and existing clients.

There are several questions you should ask when you are interviewing collection agencies, including whether or not they can collect locally, nationally and internationally, depending on what you need. Finding a collection agency for your company is imperative if you have customers who have defaulted on their accounts. Since many of these companies specialize in different forms of collections, make sure that they are able to collect as a commercial collection agency if you handle any commercial accounts.

Locating debtors, or skip-tracing individuals, is something that most collection agencies offer, as well as just collections. However, they will charge more depending upon the services that are needed, so you want to be clear about any additional charges that may be incurred while handling your bad debt collection issues. Be sure that they are clear on the fact that any charges over the agreed amount need to be approved by you first. The better collection agencies will offer ongoing support and professional services, as well as offering you a point of contact that is familiar to you and your business.

Does the collection agency for your accounts provide detailed status reports that keep you updated on all of their collection activity? The collection agency should provide you with reports on a regular basis, yet the frequency of those reports is pretty much up to you. Most companies request 2 or 3 reports a week and with the internet, companies have started offering 24/7 digital collections reports, available online. Some companies even have collection attorneys available for legal advice, etc.

A free collections debt agencies audio gift awaits you at Mike Selvon portal site, where you can enrich your knowledge further about collection agency for your company.

Article Source: http://EzineArticles.com/?expert=Mike_Selvon

International Financial Reporting Standards - Advantages and Disadvantages

By Brandon L Miller

Globalization is a trend businesses cannot ignore. The transformation to International Financial Reporting Standards (IFRS) from U.S. GAAP began in early 2005, with numerous states in the European Union adopting techniques to prepare their financials in accordance with the new standards. Since 2005, many states that were planning on converting to U.S. based Generally Accepted Accounting Principles (GAAP) have switched their focus to adopting IFRS. Countries like New Zealand, Canada, and Australia have already implemented IFRS, while Japan plans to do so by 2011 and the United States by 2014; a huge change that will affect everyone.

Now that a little background has been brought to the table on the history of International Financial Reporting Standards, it is important that you know the key differences when comparing U.S. based GAAP with IFRS. To begin, IFRS does not permit Last in First Out (LIFO) as an inventory cost method. However, it is to my knowledge that only a small number of companies, about ten percent still use LIFO. IFRS ideas regarding revenue recognition are more widespread than GAAP containing very little instruction specific to each industry. IFRS uses a single-step method for impairment write-downs compared to the two-step method U.S. GAAP supports. Under the single-step method, write downs are far more likely to take place. Overall, the main and most important difference is the fact that IFRS provides much less specific detail and has fewer requirements to adhere to in reporting than GAAP does.

The main differences in International and U.S. standards create certain advantages and disadvantages. Detail has been the key factor that has made GAAP successful for so many years. Eliminating required specifics may cause uncertainty and distrust in auditing and more fraudulent scandals in the accounting world. Stockholders and lenders may lose faith as a result of this with full detail not being shown. Frightening enough, this could affect many other areas of our economy. I have never heard of anyone wanting to invest in something they do not know almost every piece of information about; the rock investments have been made on. To put it in perspective, the 'book' on Generally Accepted Accounting Principles is almost ten inches thick, while International Reporting Standards measures only between two and three.

No matter how you look at it, the main goal and reason to convert to IFRS is to put everyone globally on the same level with respect to preparing financial statements. This being said and done will allow domestic companies to present their financials on the same level as foreign competitors. Furthermore, companies with subsidiaries on other continents will be able to prepare statements in one, worldwide, universal accounting language understood by all. While it all sounds easier and less confusing, the only way IFRS will work is if firms comply one hundred percent. Not fully converting will eliminate the main goal- global comparability.

The main goal of global conversion may be hard to achieve. Many believe that U.S. Generally Accepted Accounting Principles is a tried and true standard, the foundation of U.S. accounting success. We have to question if something will be lost with the acceptance of International standards or if it could even work without complete convergence. Two problems exist that may present an issue to certain firms facing the question of whether to convert or not. Some companies may have to stick with GAAP by request of certain authorities or regulators. One would think regulations and authorities would change stance as well, but for now it is uncertain. Also, there will hardly be an incentive for companies to convert if they have no market incentive to prepare their statements this new way. For example, maybe the company deals solely in a small domestic industry. An incentive must be created. Hopefully, once a handful of firms convert, all others will follow for one reason or another.

Overall, the idea of instituting a worldwide set of standards is a bold and well thought out idea. If properly implemented, the global accounting language could entice foreign investors and create a greater interest in our economy possibly providing a stimulus. The advantages and disadvantages are quite clear; the only thing left to do is complete a global transformation. If IFRS fails and GAAP is readopted, economic instability may result. Certainly no one wants to invest in an unstable market.

Brandon Miller

IFRS FAQs
http://www.ifrs.com/ifrs_faqs.html

International Financial Reporting Standards (IFRS) - An AICPA Backgrounder
http://www.ifrs.com/updates/aicpa/Backgrounder_pdf.html

Article Source: http://EzineArticles.com/?expert=Brandon_L_Miller

Cheap Accounting Software - 5 Tips For Choosing

By Al Bullington

Cheap accounting software is all many people need. Many small businesses can keep accurate records and meet your reporting requirements with simple software. Now some companies have very complex requirements and need powerful solutions. But many companies just need a simple, easy to use system. Consider your options.

Free is good.

Why even free may work. Even Microsoft has a free accounting package. It is best suited for small home businesses and individuals. But it may be good enough. But remember there really is no free software. See you have to learn to use it and that's not a small task. Make sure your learning investment is done on a product that will really do what you need. Otherwise you're wasting time and your precious energy.

But is it good enough?

Buy enough accounting power to get the job done. But don't buy needless complexity. Powerful software may be what you need. But powerful software is harder to learn and more difficult to use. Get enough power to do the job but not far more than you need.

The major software choices.

Major players in easy accounting software include Microsoft, Peachtree and QuickBooks. It's amazing how much power you can get for a small price right out of the box. You can even get industry specific solutions too. But don't be fooled into buying more power than you need. With more accounting power comes more complexity and more learning difficulty. Simple is good if it'll do the job.

Help When You Need It.

You will need help! Do you get it for free? Is it just a toll free number? What if you need more? There may be local help at a local accounting firm. That's especially true if you pick a major brand of software. Pick a product that nobody's ever heard of and you may be stuck. Imagine a locked up accounting system that stays stuck!

What about upgrades?

If your need grow, it's a plus if the software has upgrades. Choose a software package with no upgrades and you'll switch vendors for an upgrade and the learning starts all over. Learning isn't cheap in time, energy and money either. Be sure there's an upgrade plan.

You need a system that will handle every task you require. First decide what you need. Then buy just what you need, but with an eye for your future accounting needs. Buy enough accounting power to do the job, but more power comes with a cost. Simple is often best.

To learn much more about cheap accounting software, visit http://AccountingSoftwareTrends.com where you'll find help for choosing the best system for you.

Article Source: http://EzineArticles.com/?expert=Al_Bullington

Business Accountants Are Not Just Number Crunchers!

By Wayne Messick

Because of their importance to business owners for their insights into virtually everything financial, accountants are no longer considered solely someone who oversees the bookkeeping. Most enlightened business owners consider their accountant's opinions on everything from tax issues, to financial planning, to their ultimate objective of total business and personal asset protection.

If your business accountant sees themselves as simply a tax adviser, someone immersed in the traditional technical accounting roles usually attached to their profession, that's fine for them, and for you too as long as they are conversant in issues more typically referred to a tax planning for the future and if they are part of a network of business accountants who offer these other vital services.

Business accountants, whether they specialize in tax preparation, tax controversy, or tax law - can not know everything you need them to know in order to provide you with the range of services required of a growing evolving business. The business accountants whose broad based education and experience allows them to understand when there are issues that are outside their areas of expertise, in other words they know what they don't know, and who are not so propriety in nature that they will let their clients suffer rather than referring them to a specialist - are the preferred professional for you on several levels.

For example if your accountant realizes that, through their questions and their understanding of you and your business, that your bookkeeping system needs upgrading - and they are willing to recommend a bookkeeping, your business is the beneficiary. Their reputation is at stake when the recommend the bookkeeping firm, so they will choose carefully on your behalf. And since the bookkeeping firm wants the business to keep coming in from several business accountants - they are more likely to treat your engagement more seriously than if you just dropped in off the street.

The same holds true of financial planners, insurance agents, lawyers, and other professionals recommended by your business accountant. It creates a win, win, win relationship between each party.

Many of the best business accountants, while they may have started out doing the write-up work typically associated with an accountant, filing taxes and other required forms to the state and federal government - have taken serious steps through continuing education in accounting and related fields.

Most do so to enhance both their understanding of the options and opportunities available to you and so they will recognize these options and opportunities earlier rather than later, so they can steer you toward the experts in these areas. For example becoming a Certified Financial Planner does not mean they want to dole out financial planning advice - it could mean they want to know more about the benefits available, to put dollars and sense in their discussion of the importance of their recommendations, so you'll be more proactive than reactive when it comes to financial matters.

So, if business accountants are becoming more well rounded as overall financial advisers for your business, where do you find one if you are not happy (or not sure you're happy) with the one you've got? How do you go about looking for a tax advisor and what's the benefit of beginning the search today rather than next week or next month?

The best place to start, as usual, is where you are right now. For example if the business accountants you know seem willing to have an open discussion about their areas of special interest and if they are interested in the team concept - where planners and advisers from several disciplines collaborate together on your behalf - I'd say you were half way there.

The other half really comes down to which of the business accountants you know or know of that you feel the most comfortable with. Let's face it, talking about the details of your business, why you have made the decisions you've made in the past, and what's important to you in the future - is not easy and you will only have those key strategic conversations over the long haul with people you are comfortable with.

And you can learn a lot by interviewing them. That's right, business accountants should be interviewed - just like you interview other professionals. It's interesting that you have never interviewed an accountant or lawyer - unlike your daughter's piano teacher, or your son's camp counselors or tennis coach.

If you do not interview perspective professionals - then you have to live with their results, and pay for their mistakes or decisions they make on your behalf without knowing you as well as they should when then are acting for you. And if you don't interview them you will never know if they are terminally afflicted with the NIH syndrome. The NIH syndrome will stifle the scope of knowledge available to you, cause you to miss opportunities, and live in fear that you are missing other important benefits available to business owners whose business accountants and other advisors are not infected by the NIH syndrome.

What is the NIH syndrome? It's the belief by your advisers that the only good ideas are theirs and anything "not invented here" is to be discounted and most likely discarded. Who becomes infected with the NIH syndrome and is it a symptom of other issues you should know about. In short, those infected with the NIH syndrome are so insecure of their past and present advice that they want to keep you away from others who might, with good reason, question that advice. They may offer suffer from severe financial proprietary disorder, a constant fear that if you talk to another adviser you may take your business elsewhere. Or they may be manifesting an advice-deity complex that assures them that they have all the answers.

Business accounts or other professional advisers who suffer from one or more of the variations of the NIH syndrome should be avoided at all cost, and if you already have one - get rid of them immediately.

Where can you look, today, to start the search and interview process that will help you select the best from a range of business accountants? Simple, call three successful business owners in you industry that are 20-50 miles away from you. Ask them if they are really really pleased with their business accountants and if so will they introduce you. If you live in a remote area you may have to ask that question of successful business owners that are not in your industry, but hopefully that won't be necessary.

When you interview the business accountants whose experiences are in the same industry as you are - they are likely to be conversant with the issues you and your peers face and no doubt will be able to recognize problems that you will face in the future and can do something about because they were brought to you by them in advance.

The savings, not only if fees for the time they would otherwise have to spend to learn about your industry, will come from the fact that someone else has already paid for the research that won't have to be done for you and they will be able to illustrate the costs and penalties they have experienced when people in your industry did not act proactively to head off these inevitable problems.

Business owners who think strategically, plan comprehensively, and execute flawlessly will almost certainly eclipse those who simply set goals and hope for the best. When these successful business owners interview business accountants one of their key objectives is to put together a team of professionals who can help them navigate the complicated nuances of existing and evolving tax laws.

If you want to be successful, you must put together a successful team of professionals to help you. Often the people who manage the progress of the team and its planning are the business accountants you have on board. Visit http://www.FamilyBusinessAccountants.com and contribute to the conversation based on your experiences as a business owner or as a business accountant.

Just like you, Wayne Messick is concerned about the continuous refinement of his strategies for productivity in these challenging times. He is the author of dozens of articles for mainstream businesses, emerging professionals and association executives and now in phase III of his career spends hours each week creating articles from his experiences.

Article Source: http://EzineArticles.com/?expert=Wayne_Messick