Business Software » Accounting Software

Do I Need An Accountant Or Accounting Software?

admin — Sun, 27 Jun 2010 00:24:21 +0000

Accounting is the process of collecting, summarizing and analyzing the financial data of your business. Every business needs do keep on top of their accounts to ensure proper management of revenues and expenses. Failure to do so could cause your business to fail.

There are two ways of keeping accounts for your business, one is enlist the help of an accountant and the other is to buy some accounting software and manage the accounts yourself.
Lots of people are worried about accounts and tax and would rather pay for an accountant to do all the work for them, however this might suit some people but not everyone. With hiring an accountant this will be quite costly and the cost will depend on the size of your business and the amount of financial data it generate. If you are just starting up a business you could collect all of the information and hire an accountant once a year. Most accountants work on an hourly basis so depending on how long it take them to work out your accounts will depend on how much you have to pay them. If you keep all receipts and invoices in date order this could keep your accountant fees to a minimum.

Another option is to invest in good accounting software. You do not need to have any knowledge about accounting as most good software is very easy to use with simple steps that anyone can follow. More and more business are using accounting software as the price of an Accountant can be quite steep whereas accounting software is a one of payment. There are lots of different types of accounting software for small and larger business and for lots of different types of businesses. Some accounting software can work for all size businesses with modules that you can add as your business grows and your accounting needs grow.

Some of the many benefits of having accounting software are:

Saves time

Saves money

100% Accuracy

Up to date accounts always available

Quick access to information

They are just a few of the reason why accounting software is best option for any business. Accounting software will make your business management much better, much more efficient and easier. You will be able to access the up to date data with a simple click of the mouse giving you the competitive edge that all business need to have in this day and age.

Choosing the right software is a very critical. You should always do your research before you buy any accounting software. With the internet it is not a problem as you can find reviews, websites and talk to users of software to find the best one for your particular business. I would talk to many different users and read many different reviews and then weigh up the benefits of each. Once you have chosen the right one then your business can grow and expand without any worries about finances. The software will free you time up so you can get on with your job.

By: Carolyn Clayton

How To Pay Employees With Cash In Quickbooks – Best Way To Protect Your Business

admin — Sat, 26 Jun 2010 18:28:37 +0000

Sometimes businesses need to pay their employees with cash, verses issuing a paper paycheck. There are a couple reasons the business may want or need to do this:

The business is having cash flow problems, and paying employees from cash is easier to manage. The employee may not have a bank account. Cashing a paycheck is difficult and/or expensive, and direct deposit is not an option.

Businesses should never simply hand employees cash for work performed. There must some type of paper trail to prove:

in what manner the employee received the funds when the employee received the funds how the gross pay was computed what employment taxes were withheld from the pay; gross pay vs. net pay.

Every single one of these is a potential issue that could arise in the event that the employee disputes the pay, or in the event of a employment tax or work comp audit.

Here is how to pay employees with cash, while still protecting the business from potential problems:

1. The business must be set up with some type of payroll service. Either QuickBooks must be enabled to perform payroll, or an outside service should be used. Either way does not matter, but somehow payroll taxes, etc., must be computed correctly.

2. Generate a paycheck in the normal way, using the checking account to draw from, or a special checking account for payroll, if you have one.

3. Have the employees endorse the checks – he/she is signing it over to you.

4. Pay the employees cash. It must be the exact amount on the checks, to the penny. No fudging here! This is important, because the cash paid out must reconcile to the check amounts. If the amounts are not exact, it will be difficult to reconcile them.

5. Take the checks to the bank and deposit them back into the checking account. Don’t void them in the software. Although voiding them has the same net effect on the bank balance, the accounting software cannot compute the gross pay and payroll taxes correctly if they are voided.

Another alternative is to simply create “dummy” checks on blank paper. Make sure the employees put their signatures on them. Pay with cash, to the penny.

The employee’s signature on the paycheck or “dummy” check is crucial – this way, the employee cannot claim he/she was not paid.

Following this method, you are simply cashing the employee’s paychecks for them. This leaves a very good paper trail for your accountant or auditor to follow. Everything is clean, above-board, and easy to understand.

My thanks goes to Suzanne Mead, Certified QuickBooks ProAdvisor over at http://forums.quickbooksusers.com/index.php, for this excellent tip. Thank you Suzanne!

By: Jennifer A. Thieme

Accounting Software Tally

admin — Sat, 26 Jun 2010 03:55:58 +0000

In business today, it is very important to have an accounting method that is both accurate and convenient to use. This is where accounting software Tally comes in.

This software is a software program that maintains all books of accounts starting from records of vouchers, ledgers, etc. it is perfect for those businesses who deal in multiple products and prices.

It is a wonderful software program that handles different types of vouchers like Payment, receipt. It also makes adjustment entries like Journals, Debit notes, Credit notes, Sales, Purchases, Receipt notes, and Delivery notes.

This incredible software follows the double entry system of accounting and this will eliminate any possible errors. Accounting software Tally also allows the user to have a multiple tree like structure groupings. This may seem a little complicated especially if you are just starting your business, however the program is very easy to use and very easy to understand.

Tally software usage has come a long way, since the primitive usage of account methods involving the abacuses and hand written ledgers. The methods of the past were very time consuming and mistakes were often made that led to the numbers being off.

This software has been developed to cater to the needs of businesses representing the growth and needs of the customers. There is no chance of errors being made when you use this software.

It encompasses multiple products with several innovative products and service offerings for various businesses including small business, chartered accountants and software entrepreneurs. It is a fast, efficient, accurate way to maintain your business records.

Accounting software Tally’s flexibility and features can be used for Gold accounting or any other bullion metals or commodities accounting. This is excellent for those who do not have the time to sit down and figure out prices that often change without notice.

By: Blake Allen

8 Reasons Why You Should Not Use Free Online Accounting Software For Your New Business

admin — Mon, 07 Jun 2010 05:51:53 +0000

It’s no secret that commercial accounting software isn’t cheap. Quickbooks Pro will now run you around $200, and I just checked Peachtree products and found them costing anywhere between $70 and $1200 depending on the number of users of the product.

Pushing that free “Download” button…

We’re all familiar with free shareware on the Internet, most of it claiming to have all the functionality of the commercial packages, and it’s tempting to push that “download” button and start using it right away, at least until our businesses get “up and running” and we can afford the name brand stuff.

But before you start managing your vital resources and expenditures with something a techy devised because he or she thinks software on the Internet should be free, you might want to keep some things in mind…

Free isn’t always free…

Here are some potential drawbacks to free “shareware”, many of which have been posted in forums on the subject:

1. No help files. A lot of software on the Internet has tremendous functionality, rivaling and even surpassing its commercial counterpart. But if you get into a problem…something you can’t understand or make work and there is no help file on the subject, you might find yourself stuck.

2. The authors don’t communicate well in English (or whatever your native language is). Yes, you do have help files, but the author lives in Venezuela and writes in broken English. Your business depends on this fantastic free software and you can’t understand the instructions to keep it running.

3. Everything works great but it can’t print. You really don’t want to store everything on a hard drive that might crash, and you still want a paper back-up. Unfortunately, the author of the software didn’t think anybody wanted that.

4. It’s only partly compatible with the operating system you’re using. For example, it works great with XP but won’t open Vista files. You find you’ve wasted a lot of time inputting data only find you can’t save it (or open the file later).

5. The publisher wants too much information from you. Some publishers want to know everything about you – information it might be dangerous to divulge. Don’t give out sensitive information (such as your social security number) in order to get a free piece of software.

6. It’s difficult and clunky. Yes the functionality is there but the time and effort it takes to enter the data and get it into a form you can use makes its “free” price tag not worth it.

7. There is no support. This may be the most critical aspect of free software. What kind of support will you get if down the road you find your “free” version develops a bug? Will it still be available for download? Or will it have disappeared off the Internet, leaving you with a hard drive full of records you can’t access?

8. Incompatibility with commercial programs. When you can finally upgrade to a commercial software package, will this free program be compatible with it? Will the commercial program be able to access the folders and files created by the freebie so you can continue your business?

Before you download, read between the lines…

As I implied at the beginning of this article, most of the “free” packages are reviewed in the forums, where users anonymously assign stars and say what they think. The problem with that is that one doesn’t always get the whole story. For example, two comments are posted about a “Code” being required for the same piece of software. One reviewer didn’t mind entering the Code, and the other stated that the Code required too much personal information. In another instance, for a piece of software receiving 4 out of 5 stars, the four rave reviewers couldn’t speak highly enough of it, while another claimed he couldn’t create files. He was running Vista. The others were running XP.

The moral of the story…

Is to be careful. Be sure you thoroughly research out any new piece of “free” software you are considering using for your business. Keep in mind that a lot more is at stake here than is the case with another type of application, such as entertainment or photo retouching. Your business, and your future, is going to depend on whoever developed it, how much support he intends to provide for it, and whether or not you will be able to utilize the support he does provide.

Utilizing free downloadable accounting software can be a wonderful boon…or a spectacular future disaster for you and your new business.

By: John Young

Check Printing Software – How To Select The Right One For Your Business?

admin — Mon, 24 May 2010 14:39:49 +0000

Check printing software can save you both time and money. With check printing software, you do not need to store preprinted checks, it significantly reduce fraud. And some check printing software allows you design your own checks and print checks on blank computer stock.

Check printing systems vary in price, performance and functionality. A search of the internet may yield countless results not necessarily in order of price, quality or reputation. You may also find that cost is not necessarily related to quality. The following steps will show you how to select the right check printing software for your business.

Step 1: Shortlist Your Requirements

You first need to decide what kind of check printing software would be suitable for you.

If you just need basic printing function, a stand-alone application is a good solution. Such software will allow you format your own checks, change logo, change labels, change labels position and print your check on blank computer check.

If you need to print regular payroll checks or checks for re-occurring payments, then you need should opt for more complex accounting software with built in printing feature.

Step 2: Decide Upon Your Budget

You need to decide how much you intend to spend on this check printing system. Most stand-alone check printing software cost you less than $50. But payroll software with printing feature may cost more than hundred dollars. QuickBooks Payroll Standard is $199, Peachtree Pro Accounting 2008 is $169 and ezPaycheck 2007 is $89.

I recommend: contact Halfpricesoft for its recently released free version check printing software, ezCheckPrinting Lite. For general users, its basic check designing and printing features should satisfy your requirements.

Step 3: Compare Different Options Available

Once you shortlist your favorite options that suit your requirement then it is a good idea to compare all the features offered by each software. This would help you to narrow down your list to two -three good software.

Step 4: Trial Version

Download the trial versions or ask your local vendor to give you the CDs to test software. You should be pretty familiar with the software before you make any serious purchase. Simple jobs like creating a check design should be as simple as possible.

Step 5: Make a Purchase

Once you decide upon your favorite software and get familiar with it, you can think about making a purchase.

Tips:

Try before you buy – Choose software with most comfortable graphical interface. It should be easy to navigate and handle.

By: Casey Yang

Sales Accounting For Profit With Accounting Software

admin — Thu, 20 May 2010 02:24:51 +0000

It is a natural phenomenon for small business to be deeply involved in the particular skills and operations of the business. A fundamental issue that many small businesses overlook is that the particular industry in which they work and their personal skills are just tools of the trade not the trade of business itself. That trade of business is to produce a satisfactory bottom line.

While all business keeps financial records and many use accounting software the serious benefits of producing the accounts has a tendency to be restricted to accounting for tax purposes. The most useful function of a good bookkeeping system is however to use the financial information to generate higher levels of profitability.

The first step is to acquire and adopt an accounting software package suitable for the skills and knowledge of the small business. The second essential step is to produce a regular monthly income and expenses statement, usually called a profit and loss account.

Any individual monthly profit and loss account is of useful by limited value as a financial tool. Several consecutive monthly financial accounts can be indicative of where action can be taken to use the bookkeeping tool as a tool for accounting for profit.

Having produced a set of monthly accounts the next stage is to simply sit back and look at the numbers. The financial numbers tell the story of how the business has performed financially and with an intimate knowledge of how the figures came about the small business owner is perfectly placed to consider all potential options.

Sales turnover is a critical area to be considered. The historical sales income should be viewed in three separate modes being sales volume, sales prices and marginal profitability, the most critical and important of which is likely to be marginal profitability.

It is useful to stand back from the numbers and consider how the sales volume was achieved, what the driving forces where to achieve that level and what additional promotion can be done to increase sales volume even higher. Thinking about how the sales volume was obtained is the basis for determining how even higher levels can be produced in succeeding months.

Selling prices are often driven by market forces and product costs. An important area to consider is whether the sales prices obtained where the maximum prices obtainable at the same volume. Other considerations would be to consider the effect of increasing sales prices which would increase profitability if the same volume is maintained and even the effect of reducing sales prices if the volume of business increases to produce a higher level of gross profit.

Businesses in niche markets can charge a high selling price for the products or services without affecting the demand for the goods. On the other side of the coin the supermarket approach could be adopted by generating high volumes of sales from promoting the products at the lowest available prices.

The most critical area to be considered is the marginal profit from different products or services. The marginal profit is the gross profit which is the difference between the net selling price and the variable cost of that business area.

A lot of time can be spent working in the wrong direction, By identifying the most profitable items compared with the time and effort involved the small business can become more financially efficient by diverting more effort to those areas producing the highest financial returns.

The essential tool to this study is to maintain accounting records on a regular basis and produce a monthly profit and loss account. Periodically take a step back and consider the direction, future and opportunities available based on historical performance and the changes required to positively influence the bottom line, using and viewing the accounting software as a business tool. That tool is accounting for profit.

By: Terry Cartwright

Real Estate Accounting – Software For Your Property Management

admin — Tue, 11 May 2010 19:49:02 +0000

Are you planning to start your real estate business? Well, if that is so, then you need to take into consideration one vital aspect of any business and that is accounting. In addition, in the case of real estate, accounting plays a much important role. As real estate business is all about financial transactions made by numerous people, the accounting department needs to be extra alert. This department follows certain principles as well as strategies to maintain a proper setup for the business of real estate. Here, it becomes a tedious job to handle the accounts and that is why only experienced accounts qualify for the job. The professionals in the field have to keep a track of each detail of the financial transactions made.

Real estate accounting deals with maintaining of the book records. In addition, the accounts have to keep a track of the ledger books, balance sheets and the debited as well as the credited transactions. All the information is stored for future purposes and it is the responsibility of the account to take care of the authenticity of these records. Moreover, this is not all; a professional account in real estate also keeps a record of the daily costs that include utilities, maintenance and management of the business. Moreover, this department also deals with property taxes, depreciation charges and insurance. Thus, handling the position of a real estate accountant is a responsible job and not just every body’s cup of tea. It needs commitment and calm nature to handle pressure.

When the accountants define the strategies for their accounting process, they need to emphasize on the strategic necessity of the occupancy cost to make sure they do not get troubled while handling the accounting of real estate. A lot of accuracy and concentration is required in real estate accounting because the success of the real estate business depends upon it. It helps the businesses to grow and reach newer heights. In addition, it also helps the business to curb the losses that has been faced due to some reasons. There are a number of ways that are used to ensure that the accounting department works smoothly in the real estate business. And that is why technology has taken over the task of human beings.

Yes, in the present times with the advancement in the technology, you can also get real estate accounting software to handle your business’s accounts. This software is much more reliable. This software includes the management of areas like distribution, payroll, budgeting and accounting as well. Moreover, they are made with a highly user friendly interface so that the user does not need to be a computer genius to operate them. This software is popular because it provides flexible and scalable solutions. The software has changed the scenario of the real estate industry. You can get this real estate accounting software from the Internet. Some of them are also available for free trial version.

By: Alvis Brazma

Must Have Software For Home Based Businesses

admin — Sun, 09 May 2010 10:35:44 +0000

Home based business owners need to be sure they have the proper software. You will be able to show off your professionalism and be more productive with great software tools. Of course, as a small business owner you do not want to spend unnecessary money. Before you buy anything you want to figure out what type of software you need. There are a number of popular options that may fit your business profile.

Microsoft Office is the suite that is most popular for business productivity. It has a number of different software tools that you will need in any business. Excel, word, PowerPoint and Outlook are all staples of the business world. There are other products you can get that will perform the same functions but if you are running a business, you need Microsoft Office.

QuickBooks is a great accounting software to have on hand. This is the most popular one on the market but there are others that you can try. You will be able to do your invoicing for employees and customers and keep customer records straight. QuickBooks also allows you to keep track of your inventory. QuickBooks is a great all in one tool to have. Keep track of all of your businesses financial information.

Quicken is another great financial software to have in your home based business. The thing that sets Quicken apart from QuickBooks is that you don’ need to have any added functionality. You will be able to keep track of all of the financial plans.

Having postage on hand will save you a lot of time and effort. How many times has a letter lingered on your desk because you don’t have postage for it? Eliminate this problem by having postage on your computer. Get Stamps.com and you can integrate it with QuickBooks and some of the other software that you purchase.

Inventory records and customers sales will let you know how your business is doing. It is essential that you keep track of these things. RetailEdge is a great project that gives credit card point and sale functions. This is another home based business must have.

Managing your time effectively is very important as a home based business owner. You will need to keep track of what you do and how much time you spend doing it. This can be a difficult task. However, using WorkTime can help you keep track of the hours you spend working and what you are doing. This will be very important information.

Adobe GoLive or Dreamweaver may be good tools to have on hand. They can be good for adding a design edge to your home office. However, if you are not good at finding your way around design software you should have a professional design your website for you. Don’t buy Dreamweaver or Adobe GoLive if you are turning to a freelancer to create the design side of your home based business. Buy the software that you need but don’t go overboard.

By: Dustin Cannon

Accounting Software for a Small Business

admin — Tue, 13 Apr 2010 11:39:08 +0000

Can you do your accounting the old fashioned way with a ledger book? Yes, you can, but with all the accounting software out there, why would you?In general, you probably wouldn’t, but I do know of a number of small businesses that have tracked their accounts in Excel for the first few years while waiting for the company to generate enough cash to buy an accounting package.I don’t recommend this strategy because basic accounting software is not that expensive and keeping appropriate track of your accounts is important for your business. Keeping a good account allows you to track your profitability by customer, allows you to understand how your employees spend their time, and allows you to understand how your marketing dollars drive your sales.Make sure when you get your software that you are able to: Track every revenue item and every expense by customer or job type.You are able to customize your expense categories.The reports that you can run will give you a good understanding of how money flows through your business.Keep time by employee and run reports showing time by customer.Download your data to your accountant’s software system.Have more than one seat license to use the product.The three packages often recommended for small businesses are QuickBooks Pro 2008, Peachtree Complete Accounting 2008, and for Mac users: Myob Accountedge 2007 for Mac Also Includes Network Edition. (QuickBooks Pro also has a Mac addition and MYOB has a PC addition).From my discussions with business owners, the majority start out with QuickBooks, but don’t like it that much. Peachtree seems to be the favorite, but it is not available on the Mac. Any of these packages are fine for a small business, but please make sure that you have an accountant help you set up your accounts if you do not understand accounting yourself. The software will only benefit you if you understand what it is telling you.Another note: if you are doing Department of Defense contracts, you must comply with the DCAA (Defense Contract Auditing Agency) accounting rules. A lot of specialty accounting firms would have you believe that you must have special software to be DCAA compliant. In many cases, special software will make it easier, especially if you have multiple contracts over multiple years. If you are just going for an SBIR or two, the above mentioned accounting packages can be used and can be DCAA compliant. Go to the DCAA website and click on the menu item: Standard Audit Programs. About half way down is the Preaward Survey of Prospective Contractor Accounting System. The DCAA will do an audit of your accounting system prior to beginning an award and this is the check list they will use to make sure your accounting system is up to their standards.

By: C. Worrall

Choosing A Payroll Accounting Software For Small Business

admin — Sun, 07 Mar 2010 16:05:39 +0000

You need people to run a business unless you happen to be a one-man-industry. So, if you have employees, you have payments to make, taxes to deduct from the salaries and send the deducted money to the state exchequer. In case of larger establishments, these things are taken care of by the professionals, who are experts in the area, which takes the accounting load off the higher management.

But if you own a small business, you need to take care of the payroll all by yourself. The old paper system, quite obviously, is too cumbersome and time consuming to fit today’s business needs. Therefore, what you need is an efficient payroll accounting software.

A small-business payroll software manages payroll and taxes in a small business establishment. Now, you may be in a fix as to whether or not your establishment is a small business. The answer is quite simple. If you have less than 500 employees, your business is small business for the purpose of getting an accounting software. In other words, irrespective of how much revenue it generates or the amount of profit you might be making, if you have less than 500 employees, you just need a payroll accounting software designed for small businesses.

The tedious tasks of figuring, documenting and executing a payroll is made easy by payroll accounting software whether it is on monthly, biweekly or weekly basis. So far as the cost of the software is concerned, it depends upon the number of employees and the duration of payment. Other than that, the state where your company is located together with the tax procedure followed also matter. These factors influence the features in the software, which, in turn, affects their prices.

Executing payroll is a complicated process and involves skilled manpower. That’s the reason why even small businesses have to have full time employees specifically for this purpose. A payroll accounting software reduces the necessity of the payroll executors and makes the whole exercise far smoother, faster and accurate. What is further heartening is the fact that these software are constantly evolving and are getting faster, friendlier and more accurate.

While choosing a payroll accounting software you must also keep in mind the growing needs of the company. So, get a software that is flexible enough to accommodate a reasonable amount of work expansion. It is also advisable to purchase the software that comes with an assurance of an up-gradation later in time. The best deal is the one that give you the most for the least.

By: Aasheesh Jain