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CCH Wolter Kluwer, an accounting research manager, conducted a research study in 2013. It was a national research study commissioned by CCH. The study was “Cloud computing – a matter of survival for the accounting industry?” The findings of the study were interesting and expected.

CCH’s study approves that the change to cloud-computing software or platforms for accounting services is well proceeding. Acceptance has now reached momentous levels among accountants and small business owners and is predominantly high amid younger groups. Future intents show that within two to three years, a mainstream of SMEs and their accountants will be managing their accounting on the cloud. For the accounting industry, the change to cloud-based computing offers some direct threats, but also long-term prospects.

Cloud computing will mechanize much of the low-level, managerial facilities that accountants have provided to small and medium enterprise clients for so long. This is not lost on business owners, who show they will consider replacing much of the work their accountant now does with cloud software. A decent number also say that they will deliberate replacing their accountants if they do not work with a cloud computing system. This fondness for cloud computing is increasing abruptly amid younger groups of business owners.

Cloud computing cannot replace an accountant, by any means.  However, accountants who have a wide knowledge of cloud computing will certainly be given preference in future jobs in small to medium sized businesses.

Before understanding the benefits of cloud computing, let’s through accounting and cloud accounting differences.

Cloud Accounting

Cloud accounting is the same as traditional accounting and bookkeeping procedures done on an accounting software. The cloud accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’, where it is processed and sent back to the user. All application functions are done off-site, on the cloud, not on the desktop. The accounting functions are done online and not on the desktop software. The internet or another network is used for the process. Users access the cloud accounting software through a cloud application service provider. The software does not have to be installed onto a computer. It can be accessed from any place in the world, provided the cloud applications service provider is present.

Benefits of Cloud Computing for Businesses

1. You have access to your accounting and bookkeeping data anywhere and anytime in the world. You can spend time on other activities related to business operations or spend your quality time with family. You can go online to access cloud accounting software while sitting at home and stay updated with the accounting and bookkeeping functions in your business from the comfort of your own home. An up to date view of the financial status of your business enables you to make the right decisions at the right time

2. Go paperless in accounting and bookkeeping. This step is Eco-friendly, too. Paperwork takes a lot of time and resources for accountants and business owners. Small business owners need time to interpret accounting information. Accounting software makes it easy to interpret this critical information.

3. Cloud accounting software offers multi-user access.

4. A better relationship is built with your accountant. You can access accounting data online and give quality time to your accountant for discussion related to business bookkeeping.

5. Cloud accounting software is automatically updated.

6. Cloud accounting reduces upfront business costs. You do not face regular maintenance fees.

Conclusion

Cloud computing is the future of accounting procedures in small and medium sized businesses. Accountants must seek training to learn the cloud computing operations for their survival in accounting jobs. Cloud computing cannot replace an accountants. It only makes their jobs more efficient and time effective. The accounting industry is shifting from manual accounting to cloud computing in nearly all small and medium size entrepreneurships. This is the preference of business owners as well.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

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Various management tools are used by businesses to ensure that their business functions run smoothly. These tools are quite efficient in doing what they are supposed to do and offer business owners key insights into their financial information and business processes. Budgets are one of the most common financial tools that are used by businesses to manage their finances. A budget is created with advanced forecasting tools and is useful in predicting your future expenses. Companies heavily rely on the accuracy of their budget because most of their key decisions are based on it. There are all sorts of budgets, including departmental and company budgets.

Performance reports, on the other hand, are generally an assessment of a specific function of a business. However, an overall performance report is also generated at the end of every fiscal tenure. These reports, along with budgets, are extremely critical to every business. Highly professional people should be appointed to work on them, including professional bookkeepers or accountants. The finance department is usually allotted the task of creating a budget, while a performance report may highlight specific attributes associated with the budget and should be created by an expert.

Performance Reports and Budgets Help Plan for Expenditures

Your current budget is an important indicator of how you should plan your future budget. Based on previous experience, business managers can indicate overspending as well as allocate the proper funds to specific departments. The growth of your business depends on your ability to allocate your budget correctly and efficiently.

A budget also helps you determine the number of sales that are required to meet a specific target. You can then allocate your sales resources accordingly so that the target can be achieved. Reviewing the budget and adjacent performance reports helps businesses understand the specific elements in their mode of operation.

Tracking Spending Variances

Tracking a company’s spending is an important aspect of any business. If you do not regulate and control spending, you will soon lose control of your cash flows and negative balances will start popping up. Small things matter, therefore, the expenses need to be checked. A budget can highlight important aspects of your spending. If your expenditures are not resulting in the estimated amount of sales, it is highly likely that your money is not being fully utilized. Performance reports and budgets help you identify these cases of spending variances which are responsible for under utilization of your resources. Therefore, their roles are vital for a business to achieve it’s fullest potential.

Performance Reports

Though a budget holds a significant amount of key information, it cannot offer you additional information related to budget variances. This information doesn’t necessarily have to be financial and can go outside the realm of budgets. Additional costs of acquiring the resources or poor economic conditions are various factors that need to be considered before a budget is approved. Government changes of laws and regulations related to your specific business are something that can impact your budget and information regarding that is included in performance reports. Some of these indicators are financial while others may completely depend on something else. Therefore, a performance report has to be provided to ensure that there are no surprises in the future.

Suggestions

It is suggested that businesses use accounting tools and software for the creation of budgets as they offer a broader picture of your company’s financials. You can view the information in graphs, plots and any other medium of choice which makes it easier to understand. Maintain accurate records from the beginning and uphold them throughout the bookkeeping periods so you do not have to rush at the end. The process is also quick and efficient, therefore, it will save you precious time and resources. You can also hire professional accounting and bookkeeping services that will make highly accurate performance reports and budgets. If you are in doubt or your accounting skills aren’t spot on, always opt for that option.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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Businesses face several accounting costs when conducting day to day business operations that can easily be identified and calculated. Companies, however, also face other costs known as economic costs that are not displayed on the bookkeeping records and have a huge impact on the decisions made by management. Accounting costs are crucial for the external and internal reports of the company. Whereas, economic costs are applicable to the internal sector only.

Implicit Costs

Economic costs reflect both the implicit and explicit costs of a company that are encountered during the year. Implicit costs are linked to resources that are offered to a company without any price tag. If a company, for instance, is operational from a building that it owns, it encounters an implicit cost due to the rent that could have been earned by leasing off the building to some other company. The owner could have earned around $3,000 a month from a renter who was commercial. Therefore, in this case, the company faces an implicit cost of $3,000, which will be referred to as its economic cost.

Explicit Costs

Accounting costs are generated from the overall explicit costs of a business throughout the fiscal year. They do not include the implicit costs coming from resources that are unused. Explicit costs that have their monetary value defined are included in the accounting costs of a business in order to identify the net income.

Accounting Profit

If an accountant or bookkeeper wants to calculate the accounting profit of the financial year, they will only have to look at the profit of the company and its accounting costs. The economic cost details are not needed by the accountant to form an income statement for the company. For instance, accountants have no concern with the fact that the company could have made $3,000 by leasing off the building to some other business – making a total of around $36,000 during the financial year. This figure of $36,000 has nothing to do with the gross profit of the company during the financial year.

Economic Costs are not included in Bookkeeping

Economic costs are not written or mentioned in the accounting records or bookkeeping of a company. When creating financial reports, accountants are focused on the explicit costs generated from the business operations conducted throughout the financial year.

Economic costs, however, are generally considered when a company has to make strategic decisions that involve opportunity. For example, if a company has intended to close down an operational location and rent or lease it out to another business, the company needs to consider the economic costs of losing the money generated from business operations or the profit that might be generated from the rent.

In general, economic cost comprises of the monetary value of resources employed by the business. Also, it links to the opportunity cost that arises from the inputs used by the enterprise to make the business functional.

Accounting costs, on the other hand, are focused on explicit costs that are incurred by the business. The costs that are incurred by any company in normal, day to day market transactions are referred to as explicit costs. One common example of explicit costs include wages that are given to employees. The money spent on buying the resources needed by the business is also known as explicit costs.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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The need for bookkeeping and accounting will never die. They are the two most basics needs and goals of every business, regardless of size, scale, or industry in which a retail business operates. Since businesses need to keep track of their income and expenses to improve their chances of increasing profitability, they need to implement sound bookkeeping and accounting practices to help their business grow in such a fierce environment. The slightest financial miscalculations or projections can cost significantly and can even kick a business out of the competitive race. For better financial decisions, businesses need to collect the necessary financial information as well as document and review their bookkeeping records accurately.

What Is Bookkeeping?

In simplest terms, bookkeeping is the process of recording business transactions as they occur, which means documenting daily transaction in an accounting system. It helps businesses track their finances, cash flow, income, and expenses and come up with a sound game plan to increase profits. In short, it reveals the financial status of the company that can further be matched against long-term intended goals.

Most small to medium-sized retail businesses prefer to do their own books as it saves money. However, the idea that hiring the expertise of professionals is costly is just a mere perception. There are many individuals and agencies who offer unique bookkeeping and accounting services at competitive rates. Therefore, it is recommended that small to medium-sized retail businesses search for professional, yet affordable, individuals or agencies who can help them achieve their intended financial outcomes.

The Use of Advanced Software in a Retail Setting

There is no denying the fact that advanced accounting software can be as helpful as hiring a professional accountant to do the job. For a small to medium-sized retail business looking to maintain and manage its accounting in-house, accounting software is one of the most convenient and cost-effective ways to record, handle, and manage important business books and financial records. Some accounting software used in retail businesses can be purchased for $300-$800 dollars. Businesses can even buy monthly subscriptions to record transactions, manage their payroll, sales, inventory tracking and have a clear picture of their finances.

Why Is Accurate Record Keeping the First Step towards Success?

As someone rightly said, accurate financial records lead a business to make ideal assumptions and wise decisions. Whether you are using a credible accounting software or not, you must always keep backup of important financial documents like receipts, sales records, bank statements, loan status, past tax data, etc. A tangible file and hard copy of financial records as well as bills and invoices need to be maintained properly to handle situations such as data loss.

According to accounting veterans, it is ideal to plan for the worst scenario to happen to your business. The records of a retail business need to be backed up properly in order to avoid problems that miserably drag you into a severe financial crisis.

Accounting Expertise

Hiring someone with the proper accounting knowledge and skills can help you reduce your tax season troubles and save you a lot of money and time. For retail businesses that consider investing in accounting services as troublesome and expensive, the investment made on hiring an expert will always pay off in the long run, with accurate results. 

It is important to remember that acquiring an accounting service tailored to your business needs can be extremely helpful to your business in many ways. You can leverage more control over your company by concentrating more on core affairs of running your business and allow your accountant to ensure accounting and financial data is handled properly.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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A simple understanding of a profit and loss statement is the first thing an entrepreneur should be aware of. Many entrepreneurs do not actually take this into consideration for their start-up needs. No doubt, they are enthusiastic and passionate about what they are doing but understanding the need for accounts management and knowing where to begin is highly crucial. Having the relevant knowledge about this vital aspect of any business is a blessing and huge help. It makes the execution of business operations easier than one can imagine. A simple guide to a profit and loss statement is important and helps in understanding how to balance the accounts.

Importance of Financial Management

A business’s finance aspects are the reasons that it is able to cope with it’s activities. There are literally hundreds of entrepreneurs who overlook the importance of statements, indicating that their financial situation must be, in some ways, overseen. These matters can be addressed without the need of being a qualified certified professional accountant. These basics can really help in understanding how to better manage and effectively implement methods into a system. This simple guide about profit and loss statements contains some important key points to remember.

Profit And Loss Statement Basics

A profit and loss statement is a summary of the expense incurred and the revenue generated by a business. Usually, it is a financial tool that helps relevant professionals sum up the overall health and performance of a company. The keywords that are used here are revenue and expenses. The International Accounting Standards Board is responsible for all guidelines issued to the public. Global organizations, like FASB in the US, help it with setting policies and regulations. Due to the nature of different types of accounts for various types of organizations, jurisdictions, and practices, statements can differ. Usually, in the profit and loss statement, the summary is always included to sum the following information.

Revenue

The revenue contains all of the important information regarding inflow of cash, assets, etc. During a specific period of time, all recorded elements such as services, producing goods, or any other activities that have generated revenue are calculated. The gross revenue of any business, that sells a product or its services, is recorded in the statement.  It is an elemental part of the statement.

Expenses

The expenses are the records of any flow of cash going away from the business. As a fundamental part of a profit and loss statement, this can be all of the expenses endured to carry out its activities successfully and are represented in more ways than one, as mentioned below:

  • COGS (cost of goods sold): All costs that are related to its production. All goods sold, incurring any amount, are recorded here for accounting and bookkeeping purposes. This can include labor, material costs, overheads, etc.
  • SGA Costs (Selling, General, and Administrative): These are indirect costs incurred. In a simple guide for the non-technical, these are the costs borne by a business through proactively running it. These are all expenses undertaken, shown in the profit and loss statement, to sell goods, run showrooms or factories, or conduct manufacturing. Also, these costs are related to salaries, offices, utilities, insurance, equipment, suppliers, vendors, etc.

Depreciation

Depreciation is not the market value decrements, but it is the charge in regards to fixed assets which are capitalized on the balance sheet for specific accounting purposes.

Conclusion

It is note-worthy to point out that any business that has more expenses than revenue is headed towards trouble. A business that has more revenue than expenses heads towards success. From the above, entrepreneurs without an accounting background can easily get an idea about a profit and loss statement and its importance in the business. Trying to weigh a situation regarding a business’ financial position can be easily comprehended from understanding this vital tool of a business. Without understanding or reading statements, a business cannot even begin to take a direction nor can the entrepreneur, who invests much of their time and money into creating a sustainable business, be successful. If you are someone who has never viewed this financial tool, you are not alone. This is one of the most commonly occurring mistakes that one can do. It is important to understand the profit and loss statement like any other documentation in a business.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Small business owners are often searching for cost-effective solutions to manage their business needs in an efficient manner. This is the sole reason why more and more businesses are now shifting towards QuickBooks Online to manage their accounting and bookkeeping needs effectively.

QuickBooks is an accounting software that is easy to setup and has a simple user interface. It keeps all of your data in one place and ensures smooth processing. You can create customized reports and export them onto other applications using the useful features of this bookkeeping software.

Though there are several training courses available online, most do not teach you how to create inventory assemblies – which is an important part of the QuickBooks online application that will help you ensure efficient management of your data. Though the concept is quite simple and the application helps you out in the process, it can still prove to be a complex task at times.

A Guide to Building Assemblies in QuickBooks Online

We have compiled a handy guide that will teach you how to build assemblies in QuickBooks Online. Before you start, make sure that you have formed detailed records of items that will be added to the assemblies. If there are any new items, you can add those later. However, it is best to add all items beforehand in order to ensure smooth processing.

We have listed all of the steps that will help you create a simple assembly. Several issues can arise when creating and selling builds. Therefore, if you plan on doing these frequently, you should consider taking a QuickBooks class to understand it more completely.

1. Click on the ‘Vendors’ menu and open the ‘Inventory Activities > Build Assemblies’. A dialogue box will pop up in front of you.

2. Click on the arrow next to the category labeled ‘Assembly Item’ and click on the option ‘<Add New>’. A ‘New Item’ box will appear displaying ‘Inventory Assembly’ as highlighted. Select ‘New Item’ and enter the ‘Item Name or Number’ in the field.

3. You will not yet be entering anything in the field of ‘Cost’, however, you can enter a description in the ‘Description’ category. Also, you need to make sure that you have chosen the right Cost of Goods account under the ‘COGS Account’ category.

4. Go down to the box below ‘Bill of Materials – BOM’. Click on the space underneath ‘Item’ and access the list of items present in your inventory by clicking the down arrow. Choose the first option in the assembly and fill up the ‘QTY – Quantity’ field. Go down to the next option and continue doing this process until you’ve entered all of the required information.

5. QuickBooks Online continues tallying the costs of the items present in your assembly, which is not the sales price and puts the total beneath the ‘Bills of Materials (BOM)’ box.

6. The ‘Asset Account’ must display the accurate information. You need to enter the number of new builds that need to be ordered in the ‘Build Point’ field. If you know the amount of builds you have in your hand, type that number in on the ‘On hand’ box. QuickBooks then calculates the total value of your current builds and presents the figure in the ‘Total Value’ box.

7. Once you are done with the above steps, you can scroll back up and issue a ‘Sales price’, which will be based on the cost along with the markup. When you are done, click on ‘Ok’. The screen that comes up after that will ask you the number of assemblies you want to build. Type in the number of assemblies you want to build and save the record.


Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.



 

 

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There are many measures that need to be taken towards the end of an accounting period. Adjustments to income statements and balance sheet accounts are of utmost importance. Although automated accounting systems take care of most procedures, it is vital for businesses to understand what exactly happens towards the end of a period. While most of the tasks might be automated, there are always certain aspects that require manual attention. Here are certain vital elements that every business must look after at the time of closing.

Closing the Accounting Period

Temporary Accounts – Income Statement

All revenues and expenses that have occurred in the period must be accounted for in the same period and should not be left to be included later. Both the revenues and expenses are recorded in the same period as defined by the matching principle because, otherwise, your closing income statement would contain anomalies. Ask your vendors to provide you with work in progress figures so that you can include them in the income statement. All of these accounts will be closed at the end of the accounting period, hence, giving them the name temporary accounts.

Knowing how much money you spent to make what you earned will help you make key strategic decisions in the future. You will realize if you need to cut the costs to lower the expenses or increase the price to bulk up the revenues. Whatever the case is, closing temporary accounts is critical for your business operations.

Permanent Accounts – Balance Sheet

Permanent accounts need to be managed actively throughout the accounting period. It is important so that the current capacity of the business can be determined correctly at all times. No balance in the account will go away unless it is written off. Every transaction has to be tracked and adjusted accordingly. While some of these tasks are performed automatically, inventory changes and depreciation need to be adjusted manually. All of your assets must be reevaluated at the end of an accounting period and any changes should be adjusted likewise.

Reconciliation of bank statements is another vital task that needs to be performed before the end as you have to prepare for filing tax returns, too. Amortization of the prepaid assets to determine the value of future payments needs to be completed for a specific accounting cycle. A well-maintained balance sheet allows you to determine the current standing of the business, which is imperative to its success.

Trial Balances

The remaining trial balance in each account has to be determined before the end of an accounting period. It helps to ensure that all debit entries are equivalent to credit entries and any anomalies are updated through the adjusted trial balance. The trial balance reports will help you to determine the opening and closing balances of many accounts, which will help you understand the abnormalities in your bookkeeping system and what needs to be addressed.

Closing Entries

Typically, your accounting software will perform the closing entries on the books. However, it is vital to understand how the process actually works. An income summary account is created by closing off the revenue and expense accounts. This means that your income statement is wiped clean and is ready to be reused for the next accounting period. The income summary accounted is further closed into a retained earnings account, which is basically represented as equity on your balance sheet. After the tax deductions and everything, the retained earnings are then transferred into the net income account which is distributed among the shareholders as equity.

Conclusion

The wrapping up of an accounting period is indispensable because you never know where the business stands without these closing adjustments. You have all of the information but it is scattered and you cannot make sense out of it unless all of the closing entries are performed for the accounting period. Businesses should use the help of a professional if they are unable to perform these steps on their own because of their significance.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Filing for bankruptcy is probably the last resort that people and businesses want to be reduced to. There are a number of reasons for it. On the other hand, some view this as a way out of a sticky situation. We will discuss the debate on whether bankruptcy is an instrument for liberty or not. The answer to this can vary widely based on the situation you are in. So, let’s look at both sides before coming to any conclusions. However, first, let’s understand what bankruptcy actually is.

What is Bankruptcy?

In the eyes of the law, bankruptcy is a legal process in which the liabilities and assets of an individual or firm are weighed to decide whether the individual can still pay off their debt or if they should be legally exempt from this. However, an individual or business must first file for bankruptcy before the court will actually consider their plea. This can be done in two ways. A person can file for bankruptcy on their own or they can hire an attorney to do it. If the court does declare you bankrupt, they will take control of all or most of your assets to pay off your creditors. Not only will your creditors not be able to contact you asking for what you owe them, but you will also be declared debt free. The only dues not cleared on your behalf are the loans that you co-signed with someone, student loans, alimony, child support, or money that you owe to the government such as unpaid taxes, penalties, and fines. You will further have to pay for the case of bankruptcy to be filed in court.

Pros of Filing for Bankruptcy

In some cases, it is actually a good idea to file for bankruptcy due to the following reasons:

  • You will legally become debt free
  • You will no longer be pestered by lenders
  • You will get a fresh start

Cons of Filing for Bankruptcy

Filing for bankruptcy has a lot of disadvantages as well that need to be taken into consideration, such as:

  • Your property, bank accounts, and other assets might be sold off or seized to pay off your debts
  • Your bankruptcy will become public domain that can be easily accessed through the court records
  • It will become harder to secure a mortgage

Is Bankruptcy an Instrument for Liberty?

In our opinion, bankruptcy can be an instrument for liberty in some cases. If you are under a ton of debt, your assets aren’t sufficient to pay them off, and you are constantly being pestered by lenders, filing for bankruptcy is the right option. However, even after declaring bankruptcy, it is not a guarantee that your creditors will stop pestering you. Secondly, after filing for bankruptcy, you will have no assets to fall back on. You will have to rebuild your life from scratch. Unless it is in the case of huge multinationals that will just need some restructuring, cost-cutting, bookkeeping scrutiny, and a few tough decisions made in the ownership.

On top of this, your bankruptcy will become a matter of public record that can easily be accessed by potential lenders, landlords, and employers. You might have a harder time renting or getting a loan. Landlords and banks may assume that you are a liability and will have a hard time paying your dues. Yet, are these issues really a problem compared to your mounting debt? If you have nothing left to lose and no way out, the only option to free yourself may be declaring bankruptcy.

Will You be Free after Filing for Bankruptcy?

Filing for bankruptcy is just the tip of the iceberg. Not only will you have to pay for filing the case, but if you aren’t filing the case yourself, you will also have to hire and bear the fees of an attorney that will cost you a decent amount of money. Going to court and simply stating that you’re broke isn’t enough. As ironic as it sounds, you will have to pay money to declare that you don’t have money.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

businessman using tablet PC and information communication technology concept. IoT(Internet of Things). GUI(graphical user interface). paperless office.
Technology has enabled us to break through the shackles of burdensome organizational residue. What was once a gratified paperwork filing cabinet is no longer an essential component of a fast-paced office that is ever so efficient and swift in its operational prowess. Finally, a concept formulated by technology is helping eradicate age-old traditions that once were used. Paperless offices are the future. With cloud computing, a casual office is turned into a digital record-keeping safe house. Kiss receipts and copies goodbye.  Life is easier if it’s less messy.

The concept further aids other vital industries like business development, engineering, oil and gas, etc. However, accounting is an area it can specifically bring much needed organizational and management bliss. As business evolves, the need for paper lessens which leads to a reduction of clutter and commotion. With a focused environment, comes more productivity. A paperless office doesn’t just save trees; it saves jobs and, usually, is the outcome of composed progression of a business that is still growing. It’s much better to work with spreadsheets, word processors, and pdf files rather than handling files and getting lost in paperwork to even answer a simple question.

Benefit of Paperless Office in Accounting

Document handling becomes euphoric. Executives have never been this excited due to the absence of “paper”. The manual processes of the past have receded into the corridors of redundancy and technology puts the last nail in the coffin. Modern systems have made it possible to use computers in a paperless office to save, store, and organize data at a better rate and with less effort. Everything, from expenditures to purchase orders, can easily integrate into a system that can allow enterprising to become easier and create an opportunity to save time by using systems instead of manual tasks. The click of a mouse can bring all information to the tips of your fingers.

The reduction of supply costs helps businesses manage their priorities. With money saved, costs automatically go down and other places of essence are catered to with that amount. Cabinets, folders, paper, and printer ink are not ideal for a business environment nor paperless office as they contribute to waste – a waste of time and paper! Remember when you copied a single paper 3 times because of an improper printing setting? Keep in mind, paper is an expensive commodity. Not only does it take years for a tree to grow, it takes even more processing power to produce paper.

With an e-office, all documentation for record keeping is instant and spontaneous. No need to go back to the old storage where the dusty, old, frail dog-eared files lay in total oblivion. With a paperless office, all storage is on the system and your fingers can do all the searching for you. This is the best time to invest in the technological benefits of clouds and IT systems. Even a computer, scanner, and small-time printer can help you manage all of your documentation that has collected over the years. With a single spreadsheet, for instance, any accounting or database management can be achieved… and that’s only basic stuff.

Since a business is prone to a lot of inquiries, the paperless setup provides easy facilitation to all outside inquirers. For instance, the vendor calls to follow up on invoices, purchase orders, etc. In a paperless office, a system of retrieval and storage of documents would not warrant you throwing everything down and rushing to the filing cabinet to retrieve documents and then call them back. Electronic documentation is the future for not only accounting, but every industry that is evolving.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Senior businesswoman is doing paperwork in her stock factory.
The accounting needs of today’s small business industry can be described in the words of John F. Kennedy.

“History … has no present, only the past rushing into the future. To try to hold fast is to be swept aside.”

Not much has changed in a long time when we talk about the system of using double-entry as a way of bookkeeping to track a company’s possessions. It is the equation that brought a revolution in the method of bookkeeping in all types of businesses and companies, be it big or small.

Bookkeeping helps business owners gather all of the necessary and relevant information through which their accounts are formulated. The method of bookkeeping is a standard and precise process in the field of business and accounting. It is the process of bookkeeping that helps business owners ensure their accounts are accurate and timely.

The alteration in bookkeeping for small businesses of today is due to the development and advancement of technology that has made it much easier for accounting experts to perform their work. Advanced accounting platforms seem to have built up performance, streamlined analysis and entries, and decreased the errors, tampering, and omissions that occur with interest charges, penalties, and dishonest dealings.

With the introduction of various cloud accounting programs, it has become a trend for small businesses to managed their accounting books with automated systems. However, many small business owners are anxious about making the switch. They must realize that they need to adapt to automated bookkeeping or they may be left behind.

1. Shift to the Cloud

Small business owners already have many time-consuming tasks that they must manage. Automated bookkeeping should not be one of them. Cloud accounting programs can save so much time and effort.

Experts have said that business owners of today need to streamline the cloud into their accounting processes. From ERP to managing expense and travel reports, the process needs to be cloud-based. Thanks to this program, small business owners are able to put more focus on other parts of their business. With cloud-based accounting software, they will spend fewer resources and time on their administrative activities.

2. Automate Your Accounting and Bookkeeping Software

If a small business owner is using an accounting software, they should be aware of all of the ranges of automation that is offered through the software. Do not let it go to waste.

Automate your bookkeeping so that you are able to track all of your business expenses and earnings. Use your app that connects to your bank account. This way, you will automatically save receipts and pull transactions. Delegating such an arduous task will save you time and allow you to be able to spend your valuable time focusing on growing your company.

3. Separate Personal expenses from Business Expenses

Most small business accounting software allows small business owners to separate their personal expenses from their business expenses.

Experts say that small business owners should create separate checking, credit card, and savings accounts for their business. This allows you accurately track business spending without mixing personal spending accounts. By doing this, you will discover that it makes it much easier to determine your deductions and filings on your tax return.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.