Author: Pamela Swift

Categories
Finance & Capital

Accounting Software Can Be Sophisticated Or Simple Bookkeeping Software

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Accounting software records the financial transactions of a business and provides financial control to achieve the profit and loss performance required. The correct choice is dependent upon the size of the business and degree of sophistication and financial control required.
Accounting software is a system of recording financial transactions on a computer across a full range of accounting options almost invariably dependent upon the size of business being catered for. Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses.
The requirements from accounting software are diverse with the most complex and comprehensive financial accounting packages incorporating financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.
Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.
Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.
The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.
In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Similarly the accounts payable function might be split between the purchasing department, accounts purchase invoice department and a legal function for overdue payments.
Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.
Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.
The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.
In addition to inputting the prime income and expenditure details the most benefit of a database accounting system is the level of financial control the information it contains can provide the company management and financial directorship. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.
Accounting software packages requiring little or no accounting knowledge are available.
Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.
Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.
There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.
Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.
Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.

TerryCartwrightPhoto.JPGTerry Cartwright qualified as a Chartered Management Accountant and Chartered Company Secretary in 1971. A successful business career followed as Head of Finance for major companies in the UK and several consultancy appointments. In 2006 he created DIY Accounting producing Accounting Software for self employed and small companies that use simple accounts spreadsheets to automate tax returns.

Categories
How-To Guides

How to Find Your Next Executive Level Position in 90 Days

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Article Contributed by Karen Armon
Doug Compton, a laid off 43-year-old operations executive, was frustrated. His efforts to find a new six-figure executive role had resulted in only two interviews in six months. And, although he’s growing his list of contacts, Doug’s networking hasn’t resulted in any real job leads, either.
Doug always landed a job quickly but that was over 10 years ago. Based upon his results this time around, he knew he had to change his job search strategies. “But to what?” he asked himself.
Top executives, like Doug who were upper-level managers, Presidents, Vice Presidents, Directors and CEOs, and who are looking for their next position often experience these same results. Many like to blame the economy, their age, or their networking efforts. However, none of these factors are the main cause behind their lack of results.
Now, $100k+ executives must shift how they approach their executive-level job search campaign.
Landing a top role in a company is tricky. It entails presenting your potential, not your past. It includes defining yourself within your network as a top talent. There is a mix of elements in an executive presentation – both in print and in person– that “gets the ear” of the top CEO or President.
The New 7 Elements of an Executive-Level $100K+ Job Search Campaign
– Being Tops in the Industry: A CEO wants to hire only the best. When CEOs are looking to fill their top ranks of decision-makers, they want to know that the executive they hire is at the top of his or her game.
– Had Name Recognition: Top decision makers looking for thought leaders first look within their network. Rarely is a $100K+ executive level position filled through traditional job banks. Even if a company hires an executive search firm, the recruiter still looks to find the candidate that has name recognition in the industry,
– Easily Found, But “Not Looking”: 100K+ executives who can be wooed away from their current positions are the most desirable. Leaders who distribute their resumes or profiles on every available job board give the impression that they are “damaged goods.” The trick, then, is to be easily found through their network or on the Internet but give the appearance that they are NOT looking for a position.
– Considered a “Thought-Leader”: Presidents or Boards of Directors who offer positions to high-level $100K+executives want leaders who have a persona with a point-of-view. This does not mean that an executive must go out and try to be a celebrity. But, as I state in my book, Market Your Potential, Not Your Past, having a point-of-view means that one is known for having an opinion about how to move forward in a crowded industry. They have unique opinions on how to find new markets to offer products and services, and/or gather new potential customers to a brand.
– Distinctively Different than Others: Do you know the number one reason why high-level executives fail in their positions? It’s because their leadership style can’t or won’t fit the culture of the company. Offers given to top executives include those who not only do their job well but also those fit the cultural style of the company.
– Message-Ready and Visible: Today everyone checks everything out on the Internet. To “Google” is now a verb as well as a noun. Yet getting visible on the Internet requires a strategy and a thematic message. You must also execute that strategy consistently. It is well known that top ranking executive search firms first search the Internet thoroughly before presenting a candidate to a company. Therefore, if you are invisible your chances of finding that next $100K+ executive level position will be significantly reduced.
– Extensive, Engaged, and Active Network: Finding a top executive-level position quickly depends on how large one’s network is and how active it is in helping you find that next 100K+ career. If your network is small, then you are asking each member to do a lot on your behalf. But if your network is large, then a small amount of effort from each individual can yield lots of leads.
These seven elements should be part of every executive’s game plan when trying to find a new $100K executive-level position. For most, however, building these elements into an executive career campaign takes time.
What can your do if you need a job right away?
Landing a $100K+ Executive Level Career Position
The answer is to begin where you are. It’s what I call, “building the wall and fighting the battle at the same time.” There are no short-cuts. But you can improve your odds by just beginning to incorporate these elements. Even a little movement in this direction begins to set you apart as a “must-have” executive.
And that’s the point, isn’t it?
About the Author
$100K+ Executive-Level Career Coach Karen Armon prepares leaders around the world for their next move. Her popular book, Market Your Potential, Not Your Past, is a hit among executives who desire a clear-cut, systematic game plan that drives their careers forward. Now get her new FREE eBook, “Ten Micro-Trends that Impact Executive Careers Today,” and take a critical look at today’s marketplace at: http://www.marketyourpotential.com/ebook.asp

Categories
Finance & Capital

Accounting Periods And Basis Periods For Self Employed Business

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Accounts are required each year for tax and financial control purposes with preset dates by which those accounting records must be submitted and penalties for failure to deliver on time.
While in the UK self employed business can use its own accounting period the tax position can become more complex if the accounts use a basis period rather than the standard financial tax year.
Self employed business in the UK is required to produce a set of financial accounts for a 12 month trading period. The format of the accounts is the personal decision of the proprietor and can be a full set of annual accounts including profit and loss account and balance sheet including using control accounts and cash and bank records and the self assessment tax return.
An appropriate accounting system for many self employed business would not be to prepare a full set of annual accounts but instead to prepare a simple income and expenditure account. Preparing an income and expenditure account allows a much simpler accounting or bookkeeping system where simple accounting software can be used.
The objective of any bookkeeping software being to maintain accurate financial records and produce the accounting records and totals required to complete the inland revenue self assessment tax return each year. Financial control is very important and the bookkeeping software should also produce regular financial statements showing the profit and loss of the business throughout the accounting trading periods.
The financial tax year varies depending upon which country business is conducted. In the US accounts are prepared during an accounting period from 1 January to 31 December each year. In the UK the standard financial year adopted by the inland revenue is from 6 April each year to the 5 April the following year.
In the UK tax rules are set for each financial year and by adopting the standard tax year a small business can benefit by preparing the financial accounts under a single set of tax rules and preparing the self assessment tax return accordingly. Adopting a different financial period involves straddling the official tax year and more than one set of tax rules might be applicable to the tax calculation resulting from the net profit being declared.
After choosing the April to April financial tax year accounts are required to be submitted by the submission deadline of 31 January the following year. Earlier submission is recommended as by submitting the final accounts and tax returns online by 31 October each year the inland revenue will calculate the income tax and national insurance payable.
When a self employed business has been in business for two or three years and has chosen a different 12 month accounting period to the financial tax year the 12 month tax is calculated according to a basis period. Up until that point the accounts may be subject to apportionment to calculate the tax due.
The basis period under which the business tax is calculated is the 12 month accounting period ending in the specific tax year. A business which has a 12 month trading period ending 31 December 2007 would be taxed under the basis period 2007 to 2008 being the basis period 6 April 2007 to 5 April 2008. The same rules apply if the accounting periods are shorter or longer than the standard 12 month period.
If the accounting date is changed by a sole trader the inland revenue are informed of the change on the self assessment tax return and the reasons for the change. If as a result the self assessment tax return arrives late the tax will be assessed on the previous basis period.
Changing an accounting date that overlaps two basis years results in the business being taxed twice for the same accounting profit as the business would be taxed under both basis years. The extra tax paid can be highly unwelcome but can be reclaimed at a later date through the self employed tax return.
The penalty for late submission of the self assessment tax return in the UK is 100 pounds and interest is also charged on any outstanding income tax and national insurance from the first day after submission was due.

TerryCartwrightPhoto.JPGTerry Cartwright qualified as a Chartered Management Accountant and Chartered Company Secretary in 1971. A successful business career followed as Head of Finance for major companies in the UK and several consultancy appointments. In 2006 he created DIY Accounting producing Accounting Software for self employed and small companies that use simple accounts spreadsheets to automate tax returns.

Categories
Human Resource

How Virtual Assistants Can Amplify Your Business Marketing

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Article Contributed by Stephanie Fish
Let a trained and experienced virtual assistant handle the small but tedious marketing and research tasks of your business. Then you can focus your mind and energy on the aspects of your business that you enjoy, are good at, and can ultimately increase your profits.
Perhaps you’ve got a small business and it’s been thriving with your own marketing and research efforts. But if you want to boost your business marketing, consider the services of a virtual assistant.
Virtual assistants who’ve been trained and experienced in marketing research and business marketing — particularly through the Internet — can be invaluable to growing your business. It would take time for you to learn and do everything yourself, time that you could put to better use by focusing on the aspects of your business that you enjoy and are an expert at.
For example, not everyone is adept at using Web 2.0 for business marketing. Besides, it can eat up a lot of your time every day. Wouldn’t you rather use that time to develop your business in other ways or even relax and enjoy your family?
Here are a few marketing and research tasks that a virtual assistant can perform for you:
* promote your business in social networking sites, a very time-consuming task
* produce a podcast which will expand your business’ web presence
* look at competitors’ websites and report on what they’re doing – so you can analyze what your competitors’ approaches and come up with strategies to outdo them
* find information you need to grow your business, such as identify affiliate programs that are relevant to your business and could increase your market reach
* look for websites or blogs relevant to your business where it might be profitable for you to advertise your products or services
Could you do all this yourself and still live the life you want? Probably not. Yet these things could take your business to the next level and ultimately increase your income. You should certainly be familiar with these processes in order to effectively hire and supervise somebody to do them for you. However, you don’t have to do them yourself.
Let a virtual assistant declutter your mind of the minute but essential details of business marketing and research. Then you can focus on work that have greater impact on your business, such as monitoring and evaluating your marketing efforts and those of your competitors, formulating strategies, and mapping out growth directions.
About the Author
Stephanie Fish is the owner of Buckeye V.A, she works from her home office in Ohio. After completing her Associate of Applied Business Degree from KSU,she launched her own virtual assistance business. To learn more about the VA industry or how Buckeye V.A. can help your business please visit http://www.buckeyeva.com

Categories
Online Business

How to Start a Home-Based Information Marketing Business

Article Contributed by Robert Skrob

There have never been greater, more diverse, more lucrative opportunities in the field of information marketing for everyone from experienced, successful entrepreneurs to beginners with little start up cash.
If you can name a topic, there is a market for providing information and solutions simply by creating an information marketing business. You can even work from home.
The key is to find a responsive market and then package information that customers want in convenient forms such as DVD’s, books, ebooks, CD’s, magazines, Web sites, teleseminars, webinars, coaching programs, seminars, and conferences.
And that’s exactly what “The Traffic Guys” Ethan Kap and Brett Kitchen did with unprecedented successes. That’s why the Information Marketing Association recently selected them to be two of the 12 experts featured in my new book, “Start Your Own Information Marketing Business.” This book is an easy-to-follow manual that gives the steps to building a successful info-business from the ground up.
3 Myths Ethan & Brett Debunk
Myth 1: You have to be a certain age to start your own business and be successful.
Truth: Ethan and Brett are proof that you do not have to be a certain age. They are in their 20’s.
Myth 2: You need experience with a niche.
Truth: You don’t need experience or affinity with a niche. Ethan and Brett were in the insurance business before they started working with furniture retailers
Myth 3: You need a lot of money to get started
Truth: The pair built a million-dollar business in 11 months and they had very little start-up cash.
After growing their business from zero to $100,000+ per month, Ethan and Bret can tell you that there are six main advantages of starting an information marketing business:
6 Reasons Why You Should Start an Information Marketing Business Now
1. Replace Manual Labor
With an information marketing business, you create a product once, and you’re done. It takes a lot of work to create the product, but you can sell it many times, often over a period of several years, without having to do additional work.
2. Buyers of Your Information Products Will Buy More
People who buy your information products are much more likely to hire you to perform services than any other customer you market to. Quite simply, having your own published information product makes you the obvious expert. It shows the customer the complexity of the services and the special ability you have to perform them. The only possible conclusion for the buyer is that he should hire you when he needs help with his business or hobby.
3. Limited Interaction with Customers
This means you can work from home with your computer in a closet or build your information product on your kitchen table. As long as you’ve got a way to create a product, you don’t have to be in any particular location for people to buy it.
4. Few Staff Members Are Necessary
The information marketing business is a terrific business because you don’t need a lot of people to run it. Many info-marketers have no employees and instead pay an independent contractor to help maintain the customer database, ship products, and handle customers’ questions.
5. Small Investment to Get Started
The information marketing business does not require fancy offices, furniture, or multiple computers. It doesn’t require special licenses (in most cases). And it doesn’t require special education or degrees.
6. Large Profit Potential
Many info-marketers just like Ethan and Brett are making million-dollar incomes through their information marketing businesses. This is a completely scalable business. This mean you can make it as small or as large as you want.
What You Need to Get Started in Information Marketing
To get started in information marketing you need something of value.
Ethan and Brett knew how to generate traffic.
They also knew how to evaluate a prospective niche. In my “Start Your Own Information Marketing Business” book, they share these five criteria that they used to decide where to build a profitable info-marketing business:
1) Is there competition in the niche?
2) Does your product help you prospects more money?
3) How large is your prospect’s transaction size?
4) Do your prospects currently spend money on products and services similar to what you offer?
5) Are your prospects in pain?
Once you have the answers to these five questions, you will be ready to decide if a niche is a good fit for what you have to offer.
Follow this advice and you can grow a profitable million-dollar information marketing business in 11 months just like Brett and Ethan.
About the Author
Robert Skrob President of Information Marketing Association, and co-author of The Official Get Rich Guide to Information Marketing, reveals for the first time an easy 9-step formula to build a million-dollar information marketing business within 12 months. Go to http://www.InfoMarketingBook.com now to start getting rich in information marketing today!