How to Choose a Tax Accountant

If you need complex plumbing done on your home, pay for a plumber. If you need have a small business, and need small business consulting, then hire a business consultant. And if you have complex taxes, and need your taxes done, then hire a real tax accountant. Yes you do have all the tax preparation software packages and then there are the online tax preparers like TurboTax. With all of the recent changes in tax codes though, it would still be best to hire someone to do your business taxes.

A trained professional will find all the latest allowable deductions and you will be well on your way to a huge refund instead of having to pay the IRS. Choosing the right tax professional will mean that you will have fewer errors, this also means less chance of being audited.

You have to be careful about whom you allow to do your taxes. Want an example? As a business consultant, I buy web hosting for many of my clients. My tax accountant at the time, being quite unsophisticated in IT, didn't write any of these expenses off in my taxes, because he misinterpreted what web hosting was. I found out only the next year after it was too late. I can't even tell you how much money this cost me in tax write-offs that I never achieved.

Everyone with a shingle is not a professional. To choose a good tax professional you must first consider the needs of the business. Read on for more tips on how to choose a good tax accountant.

1. Now the problems with a small firm might be that they do not have the specialized training that you are looking for. Accounting covers such a wide range of topics that many accountants generally will concentrate their talents in one area only. Sort of like doctor's who decide to treat only children, they become pediatricians.

This is how it is with accountants. You may have to do an extensive search to find a small firm in the area of expertise you need. Some smaller firms are connected to a larger firms. In that case they can always seek the help of the other accountants in the network.

2. The complexity and diversity of your accounting needs is also a consideration when choosing a tax accountant. Will you need financial advice, statements prepared for your employees or just your personal and business returns filed. All of these will factor in tot the type of accounting firm you ultimately choose.

Finally before starting the search you should have a clear picture of what you need, this will ensure that you hire an accountant that can fit the bill. You might also want to know about the other areas that the firm could possibly be used for in the future.

Feel free to join Pat in his quest to implement business consulting in companies around the United States. As the internet becomes more and more complicated, Pat also provides services that help people like you fine buy web hosting options that are the most affordable of the highest quality.

Price Strategy

One of the strongest indicators of product/service value in the marketplace is pricing strategy. However, most businesses set their pricing policies based on arbitrarily estimates or "just below market" to ensure desperately needed sale.

This is the biggest mistake any business can make when using prices as a means to generate business. Pricing should be structured so that it strongly conveys chosen corporate image while ensuring solid long term profitability.

The keys to structuring sound pricing policies are up-to-date knowledge of your competition and deep understanding of internal cost drivers.

"Nothing is permanent except change" -- Heraclitus

Change is inevitable in business. From customers and staff to suppliers and industries as a whole, goalposts are constantly shifting therefore its vital to regularly update your business strategy to keep up within the industry.

Competitive Pricing Analysis

One of the simpler ways to analyse competition is first to review business directly competing with your products and services for example if your company markets garage door installations what are the other companies are providing similar services in your area?

Secondly, review other competitive products/service and brands; i.e. if you are distributing Fido mobile services, what are the other brand offerings in your area: Bell, Telus?

Thirdly, do not forget about competitors who compete for "same-purpose" dollars. If you are selling marketing print services what are the Internet Marketing services which are offered to the same customer segment?

Carefully consider, from the customer's point of view, all the alternatives there are taken into consideration when purchasing your brand. Knowing that, you can assure your brand provides real or perceived advantages over your competitors, beginning with those who market brands that most directly compete with yours.

Internal Cost Analysis

Gain objectivity by identifying which costs are supporting growth, as opposed to those which are simply maintaining the status quo and have no bearing on customer satisfaction and future growth by reviewing your business activities and processes.

Redeploy resources to achieve maximum cost savings while maintaining adequate quality levels in your products and services.

Review these costs periodically and make adjustments as required. Ensure that cost analysis is approached in a positive way. This will lead to improved morale and customer service.

Managing pricing effectively can be difficult at the best of times, an unpredictable economy has forced many companies to think about reducing pricing across the board, however while it offers a short term fix, measures like this can cause difficulties in the long term by destroying profitability and ruining brand image.

A better approach to managing pricing is not to cut it, but optimize. The goal is simple, maintain and improve brand image, while improving overall corporate profitability, by doing things smarter and more efficiently.

Eugene Mirkin, CMA
http://www.mirkin.ca

Tax Prep Is Dead!

For the past thirty or forty years, the tax preparation business has been one of steady growth, with low barriers to entry, with no educational or licensing requirements. And, in most locations, anyone with a business card and a computer could call themselves a tax preparer.

Because of these minimal requirement, consumers had no quality control over their tax preparation other than to judge it by the size and speed of the refund. This gave rise to fly-by-night tax preparation businesses, refund anticipation loans, and more. Every new franchise was going to be the one that turned out to be bigger than H&R Block.

You know what happened?

Taxpayers discovered that when a preparer made a mistake, the IRS didn't care whodunnit, the taxpayer had to bear the responsibility. Of course the taxpayer could try to sue the tax preparer, but fat chance of that succeeding if the fly-by-night operation had already folded up and moved their tent.

So, as these fly-by-night operators left taxpayers stuck with the bill, the IRS began to receive a lot of complaints. Especially from folks who had originally thought it really great to be getting that giant refund. At least until they discovered the refund they were expecting was the result of a fraudulent return by a preparer who was long gone from town, and they were stuck with penalties and interest and were facing the potential of being charged for submitting a fraudulent tax return.

Sounds like fun, huh?

Taxpayers also discovered that they could do their returns online, or with free software, get more of a refund, legally, and avoided a lot of the penalties that they got by using the unskilled fly-by-night preparation firms.

Pretty soon, even the half-way decent firms found they were losing clients as the convenience and cost savings afforded by the interweb kicked in.

And, even their old failsafe, the Refund Anticipation Loan (the RAL) got hit as the Office of the Comptroller of the Currency (the OCC) hit them by forcing lenders to abandon the RAL business. All of a sudden, a main revenue stream for all the big firms, like H&R Block, Jackson-Hewitt and Liberty Tax Service dried up... almost overnight they were out of the bank products business.

Oh, the best part is yet to come. The IRS has started formulating rules for licensing preparers. First barrier to entry in a profession that is being squeezed to death by technology, fraud and bad loans. What would you do if you were in the tax preparation business?

Well, first of all, you could look for a job.

But, if you're like most self-employed folks, it's pretty hard to go back to a job once you've tasted the freedom, and hopefully the income of self-employment.

Maybe there's another way.

Maybe you could look at the industry in a different light and start looking at tax services other than simple preparation. Services like cost segregation studies, tax problem resolution, or non-profit organization formation. Things that may not require licensing or credentialing, and that build on the knowledge you already have.

In addition, these services, in addition to being in demand, usually command fees of several thousands of dollars, where tax preparation fees for individuals only average a few hundred dollars. And, if you're interested in building a year-round business, these services can lead to building a significant client base for your own bookkeeping or accounting practice

If you're looking for advice from other practitioners, you can join the Consultant Supply Room weekly brainstorming session with top tax and accounting practitioners from across the nation by signing up for the "Let's Talk On Thursday's" brainstorming sessions at http://consultantsupplyroom.com

Or, start building your own specialized tax consulting business with resources from the Secrets of Marketing Accounting Services ( http://secrets-of-marketing-accounting-services.com ).

Understanding Financial Statements

Financial accounting's focus is on the financial reports distributed to people outside of the company. The major component of financial reporting is the financial statements: income statement, balance sheet, statement of cash flows, and the statement of stockholders' equity. The income statement indicates a company's profitability during a specified time period such as one year, three months or one month.

Under accrual accounting the income statement reports the amount of revenues earned and the expenses that were incurred to earn the revenues. Expenses also include costs that expired during the period of the income statement. If a corporation's stock is publicly traded, the income statement will also report the earnings per share of common stock. The balance sheet reports a corporation's assets, liabilities, and stockholders' equity as of a specific instant, such as midnight of December 31. Most balance sheets will group all of the current assets and all of the current liabilities. This allows readers to easily see the corporation's working capital and current ratio. The statement of cash flows organizes the explanations of the change in cash and cash equivalents into three sections: operating activities, investment activities, and financing activities. The statement of stockholders equity provides a summary of the changes occurring to stockholders' equity during the accounting period. The changes include net income, dividends declared, purchase of treasury stock, and other comprehensive income.

In order for the readers of these financial statements to make comparisons with other companies, it is necessary that the financial statements follow some common rules. The rules are referred to as generally accepted accounting principles or GAAP (pronounced gap) and consist of several components. One component of GAAP is the basic or fundamental accounting principles and concepts such as cost, matching, going concern, economic entity, materiality, conservatism, consistency, reliability, and others. You can see a brief explanation of these basic principles along with an example of each at AccountingCoach.com.

Another part of GAAP includes the detailed rules established by the Financial Accounting Standards Board or FASB (pronounced fas Bee). These pronouncements are entitled statements of financial accounting standards. FASB interpretations are also part of GAAP. You can view these pronouncements at [http://www.FASB.org/st]. The accounting rules established by the predecessors of the FASB remain as GAAP unless they have been superceded by the FASB.

Lastly, GAAP includes industry practices. For example, the balance sheet of a public utility will list the plant assets ahead of its current assets. Unique reporting practices often occur in industries that are regulated by government agencies.

The financial accounting and financial reporting of publicly traded corporations also include the annual report to the Securities and Exchange Commission (Form 10-K), the annual report to stockholders, and various press releases on financial matters.

The Accounting Coach is a former university instructor known for his clarity in presenting accounting information. He now spends his time developing a free website of accounting material, http://www.AccountingCoach.com

Tax Organizer

It's April 15th and taxes are due once again. Each year millions of small business owners go about their business without thinking about getting a system in place for tax time. Are you organized or are you sweating bullets as the deadline nears?

Usually small business owners myself included have a file stuffed with receipts. They are usually all mixed together not categorized at all. Sure we have the best intentions when we start the year off, but then things get busy and who has time to keep making new folders to file things in the right category?

The biggest problem with this is you are not going to get the best tax deductions if you are unable to report to the IRS or you preparer how your business expenses are defined. It is one thing to have an accountant simply keep you legal. It is a whole new level of business ownership when you start leveraging you tax advantages by getting organized for deductions. Who couldn't use more money in their pocket?

Now their is a tax organizer designed especially for the small business owner.

The Taxing Matters Organizing System is the first system on the market designed to be complete and inexpensive. With plenty of folders already setup with the proper dividing tab headings in place you can't mess this up. In addition is a free Taxing Matters small business owner guide. This 41 page guide is chock full of information for the small business owner. It is written in a down to earth way that anyone can understand and even includes worksheets to make your life even easier!

The entire system comes in a handsome green tote that has a handle on the top. When the year is up just take a trip to your accountant and hand it over. It is that simple.

Mike Gelb specializes in writing about solutions to common problems. After a busy year and having to file for an extension he thought it was time to write upon a solution many small business owners face. For more information on the Taxing Matters Organizer System visit

[http://www.MyTaxingMatters.com]

Picking a Tax Accountant - Seven Things You Should Know

Introduction.
Accountants come in all shapes and sizes. Some work with businesses, some work with individuals. Some do taxes, while others never do taxes. Many are CPA's, but you don't have to be a CPA to be a good tax accountant. Some are bookkeepers with little or no formal training. Some are authorized to work directly with the IRS, and to file your return electronically. Finding the right tax preparer can ease your burden at tax time. While finding a tax preparer isn't too hard, finding a good one can be a challenge. Here are seven steps to consider, when looking for a good tax accountant.

1. Is the Candidate Authorized by the IRS?
There are three types of accountants. First, there are bookkeepers who have little or no formal training in accounting. Second, there are enrolled agents who have passed the EA exam and are licensed by the IRS. Finally, there are Certified Public Accountants (CPA's) that have an accounting degree, have passed the CPA exam, and have at least two years of experience in their field. Because there are tax preparers without any formal license practicing in the field, it can be difficult to find out if yours is one who you can trust. Regional IRS staffers often know who the problem tax preparers are in their districts. To avoid attracting unwanted attention from the IRS, look for tax preparers authorized by the IRS to file electronically over the Internet. The IRS subjects these tax professionals to criminal background checks, and even keeps their fingerprints on file. They also check the preparer's personal tax record, and check with regional officials about their business record. You can identify these tax pros by the little yellow lightning bolt logo in their ads and on their stationary.

2. Research Their Background.
Don't trust your taxes to just any tax preparer. Before you decide on a tax accountant, meet with them and ask questions. Call and set up an hour-long appointment with at least three candidates. Any accountant desiring your business will agree to meet you without charge. How long have they been in business? How many of their clients have been audited? Have they (themselves) ever been audited? If so, how did they handle it? Experienced tax preparers will be able to answer these questions with ease. If they're a CPA, have they ever been sanctioned by the AICPA? Ask for written information about the firm and the candidate. Finally, does the candidate come across like a person who could adequately represent you?

3. Are they CPA's?
If they are CPA's, are they licensed? If your accountant is a CPA, you can contact your state's accountancy board and find out whether your CPA is indeed licensed. You can also find out whether there have been any disciplinary actions taken against him. Most CPA's are members of the AICPA (American Institute of Certified Public Accountants). If yours is, you can write to the AICPA and inquire about their record.

4. Check out the Accounting Firm.
In what situations will you work directly with the head of the firm, and when will you work with the staff? Can you meet the people who'll represent you? How does the firm bill for its services? How are extras (like an audit) handled? Will the firm provide a written agreement to define their services?

5. Can You Trust the Candidate?
Find an accountant you can trust, because you will be sharing all your financial secrets with them, and they will represent you before the IRS, if you're audited. Make sure the candidate will research the details of the tax laws, and your financial background. Look things over carefully before your sign anything. You are responsible for the information on your tax returns, regardless of who prepared your 1040. Make sure the information on your return is correct, before you sign on the dotted line.

6. Are They Accessible at Tax Time (and after)?
Tax time is a busy season for tax accountants. However, tax issues can happen at any time of year. Find out how hands-on your accountant will be after the April 15th deadline.

7 Ask for References.
Get recommendations from people you trust. Reputation is important, when it comes to tax accountants. Get three references, and call them. If references are not provided, then try another candidate.

Vern Beatty is an engineer who writes articles about business and the internet.

For more information on accounting topics, please visit: http://accounting-tips.blogspot.com/

Accounting Verification by Trial Balance, Preparation of Trial Balance

By now you should have observed that for every debit entry that is given to an account, or for every series of debits given to several accounts, there is a credit or a series of credits of an equal amount given to some other accounts and vice versa. It follows, therefore, that any time the debit balances standing in all the ledger accounts will equal to credit balances.

At the end of the financial year (or at any other time) the balance (or totals) of all the ledger accounts arc extracted, and a schedule is prepared in journal form to test whether in fact, the total debits equal the total credits. This schedule of balances is called a Trial Balance.

If the totals agree-what does it mean? It provides a reasonably reliable check and proves the arithmetical accuracy of the book-keeping entries.

If the totals do not agree-what does it mean? It shows that there is definitely something wrong b (some error) either in thy passing of the double entry or in the extraction of balances.

Definition of Trial Balance

According to Carter, "Trial Balance is the list of debit and credit balances, taken out from ledger, it also includes the balances of cash and bank taken from cash book."

According to Pickles, "The statement prepared with the help of ledger balances, at the end of financial year (or at any other date) to find out whether debit total agrees with credit total is called Trial Balance".

According to Rowlland, "The final statement of balances, joint and mixed, is called Trial Balance".

Ideal definition, "On the basis of different definitions given by different accountants at different times, following ideal definition of trial balance can be adopted :

"According to double entry system, after recording all the transactions into journal and posting them into ledger and ascertaining their balances, the statement prepared to ascertain the arithmetical accuracy of accounts on a certain date is called Trial Balance. It is the statement, on the basis of which Trading, Profit and Loss Account and Balance Sheet is prepared".

On analyzing the above definition we obtain the following characteristics of Trial Balance :-

(1) According to double entry system. after recording all transactions until all Ute business transactions are journalized, and posted, strictly according to double entry system, a trial balance can't be extracted.

(2) After finding out the differences of debit and credit sides of all the ledger accounts :- All the accounts opened in ledger totaled and balances (differences) are ascertained, only then trial balance can be prepared.

(3) Prepared on a particular date : Generally trial balance is prepared at the end of accounting year, but it can also be prepared monthly, half yearly or quarterly.

Preparation of Trial Balance

Trial Balance may be prepared either taking into consideration the total of each side of every ledger account. Thus you may follow either "Total Method" or "Balance Method".

Total Method

If the total of debit sides of all the accounts in the ledger is placed in one column of the list and similarly total of credit sides of all the accounts in the ledger is placed win another column of the list then this list of total (Trial Balance) will be known to have been prepared with the Total Methods.

Balance Method

Second method of preparing Trial Balance is to find out the difference of the ' sides of every account. If debit side of an account is bigger, than insert the difference on the credit side of the account. It is known as 'debit balance'. If credit side of an account is bigger, then insert the difference on the debit side of the account. It is known as 'credit balance'. Now prepare list of balances (Trial Balance) by putting all debits balances in one column and credit balances in another column. Such method is known as Balance Method.

The author is an engineering graduate, B.E.(Hons), and is managing his own software development firm, HiTech Computer Services, that mainly deals in accounting, billing and inventory control software for traders, industries, business houses, hotels, hospitals, medical stores, newspapers, magazines, petrol pumps, automobile dealers, commodity brokers and other business segments, website and web application deveopment for business. The software are available both for intranet and internet. These software are available for download from the website:

Evaluation version accounting software download is available at http://www.hitech-on-web.com/p10.asp

Copy of the article and full Financial Accounting Primer or Tutorial is available at http://www.hitech-on-web.com/Accounting_Verification_by_Trial_Balance.asp

Visit HiTech Computer Services at http://www.hitech-on-web.com/

How to Start Your Accounting Career

You want to be an accountant. You love numbers, maths and money. So, how do you get started? Where do you go to get certified so that your services will be in demand? If you do not have any recognised qualifications, your clients will not be able to know if your standards meet their requirements. People hire Chartered Certified Accountants with a full practicing certificate because they know that they can trust in their expertise.

Any old accountancy certification will not do. You need an internationally recognised global qualification to compete in today's industry, and the ACCA qualification fits this demand perfectly. The Association of Chartered Certified Accountants (ACCA) is the world's largest international accountancy body, with over 300,000 members and students in more than 160 countries. Founded in 1904, ACCA has over 100 years of history as a leader in the development of the global accountancy profession. The United Nations has chosen the ACCA syllabus as the basis of its global accountancy curriculum and the ACCA qualification is well recognised in an ever-growing list of countries including the USA, Canada, the United Kingdom, the European Union, Australia, New Zealand, South Africa, China, Singapore, Malaysia and Pakistan. Many ACCA graduates work in premier companies such as British Airways and Price Waterhouse Coopers.

The syllabus spans 16 topics each with its own examination to test your competency in that subject. It usually takes 2 years for a student to obtain the ACCA qualification. This is broken up into the "Fundamentals" stage that consists of 9 papers and the "Professional" stage that consists of 3 papers and a choice of 4 options. With so many examinations to pass, self-study can be difficult. The good news is that there are many professional accounting and finance schools such as FTMS Global that offer ACCA courses. The better ones have a cast of highly qualified and experienced lecturers who are ACCA-certified. These teachers know what the ACCA syllabus requires and can dramatically increase your chances of passing the examinations. Definitely, it is highly recommended to enlist the aid of a mentor who can show you the ropes.

After qualifying as a Chartered Certified Accountant by passing the examinations, to obtain the practising certificate you must have had sufficient experience in a practising accountant's office. On top of all that, you must continue to keep yourself updated by attending courses on a regular basis. The ACCA is the only accountancy body that provides a disciplinary system which offers remedy if any ACCA member breaches its high standards.

Once you obtain the ACCA certification, your clients know with certainty that they can depend on:

- Your integrity

- Your absolute respect for the confidentiality of your client's affairs

- Your knowledge and expertise

- The fact that there is a regulatory body who will ensure that standards are maintained

- The fact that you must operate within a strict framework of rules and ethics

The entry requirements of the ACCA qualification are 2 A-Level passes or a bachelor's degree from a recognised university. If you do not meet this requirement, you may opt to go for the open-entry route by taking the Certified Accounting Technician (CAT) qualification first. Upon completion of the CAT course, you may progress to take the ACCA qualification.

As an ACCA graduate, you can look forward to rewarding accounting career in a variety of fields such as accountancy, auditing, financial management, taxation, business development and management. Numerous opportunities will be available to you, whether you choose to work in a small practice, run your own company or lead a large multinational organisation. Indeed, ACCA graduates are in high demand worldwide.

So, if you are looking to start a career in accounting, you might as well do it right. Be internationally recognised and sought after, and you will do well wherever you may be.

Jonah Yong works for FTMS Global, Asia's largest provider of the ACCA professional accounting and finance certification. Visit http://www.ftmsglobal.com for information on all available courses such as ACCA, CFA, CAT, CIMA and HKICPA.

Optimizing Your Cash Flow With Proper Accounts Receivable Management

Businesses miss on growth opportunities and even close their doors every day, not because they aren't profitable enough, but because they are strangled by poor cash flow. The problem is that while their profit and loss statement shows success, their bank account cries poor. Excessive money tied up in delinquent receivables, bad checks, and bad debt write-offs, rob businesses of valuable cash flow, handcuffing their ability to grow or even stay in business at all.

It doesn't take long for a business to get caught up in a spiraling trend of increasingly late receivables, only needing a few additional delinquent accounts to start the process. Most companies lack the expertise and manpower needed to handle a spike in delinquent accounts. Soon, their staff is doing more work chasing late receivables, and they end up neglecting the easier to collect, more current accounts. Eventually, a higher and higher percentage of accounts become delinquent and more and more accounts become uncollectible, forcing companies to employ expensive collection agencies to recover at least some of their money at a big loss or they write off the debt completely. The end result is a loss in profitability and a serious strain on cash flow.

There are some more obvious, common sense practices that companies can employee to maintain a healthy accounts receivable portfolio. A few examples include:

1. Perform a credit history check before extending credit.

2. Set and adhere to credit limits.

3. Establish your credit terms in writing on statements and invoices

4. Require all sales and money management staff to know and follow credit policies.

As for maintaining or restoring a healthy accounts receivable portfolio, companies may need to invest in additional personnel or outside services with expertise in delinquent debt collection. If a company's receivables are large enough and they have a budget which allows them to add experienced, full-time debt collectors to their staff, they should make the investment in additional personnel. If a company can't afford it or their delinquent receivables don't require full-time attention, outsourcing would be a better alternative. Which ever method is best for you, cash flow maintenance is critical to maintaining your company's financial health. Make sure that you have a comprehensive plan in place to keep your company going in the right direction.

Marc Eskew is business consultant located in the Tampa Bay area. For more information on preventative maintenance approach to accounts receivable management or to contact Mr. Eskew, please visit http://www.fmxservices.com/

QuickBooks - Balancing the Bank Statement

Let's quickly review why the bank statement should be balanced each month as soon as you receive it:

• Finding Errors. While banks don't make errors very often, you only have a certain amount of time to alert the bank if you do find any.
• Verifying Entries. Balancing the bank statement is one way to ensure your entries are being recorded properly in QuickBooks.
• Takes Less Time. The longer you wait, the more transactions you will have to examine, making the process take longer than necessary.

Before beginning, look over the bank statement and make sure all items that appear on it also appear in QuickBooks. In particular, look at the area of the statement that shows electronic withdrawals, such as ATM withdrawals and debit card purchases. Often, there will be one or more items in that section that are not in QuickBooks. Enter those before beginning the reconciliation process. Then:

1. Open QuickBooks. From the top menu, select Banking, then select Reconcile. The Begin Reconciliation window opens.

2. From the Account drop-down box, select account you wish to reconcile.

3. Enter the Statement Date as shown on the bank statement.

4. Verify that the Beginning Balance in QuickBooks is the same as the beginning balance on the bank statement. If these amounts are not the same, you may have changed or deleted a previously reconciled transaction. See #b below.

5. Enter the Ending Balance as shown on bank statement.

6. Enter any Service Charges. From the Account drop-down box, select a Bank Service Charges account.

7. If the statement shows any interest earned, record it in the Interest Earned box. From the Account drop-down box, select an Other Income account called Interest Earned. If this account does not exist, scroll up to create it.

8. Click Continue. The Reconcile window opens.

9. Place a checkmark next to each entry that appears on the both the bank statement and in the Reconcile window. Notice that there are two columns---one for Checks and Payments and one for Deposits and Other Credits. Under normal circumstances both of these columns will have checkmarks in them when you are finished.

10. While doing this, verify that the amounts recorded in QuickBooks match the bank's amounts exactly. If an amount in QuickBooks is incorrect, double click the entry to open and change it.

11. If all entries were made correctly, when you are finished checking off everything, the Difference (located in the bottom right corner) will be zero. If it is zero, click Reconcile Now.

12. IMPORTANT: when given the opportunity, print a Detailed report and staple it to the bank statement. If you are running QuickBooks Pro, the printed Detailed report will be your only record should you ever need to go back and see a previous reconciliation.

If the Difference is not zero, errors were made. Verify the following:

• Checkmarks may be placed next to items that do not appear on the statement, or some items may not have been checked that should have been.
• Carefully verify that all amounts in QuickBooks match the bank statement amounts exactly, and that all entries on the statement are also in QuickBooks.
• It's possible, although unlikely, that the bank made a mistake by recording an item incorrectly. If this is the case and you can verify that the Difference is the amount of the bank's error, contact your accountant. There are a couple different ways to handle this and your accountant will be able to advise you according to his/her preference and your situation.
• Always try to make the Difference amount zero before clicking Reconcile Now.

Situations Requiring Outside Help:

a. Pro versions of QuickBooks allow access only the last month's reconciliation. Premier versions allow access to all previous reconciliations. If you need a previous reconciliation report and are running QuickBooks Pro, ask your accountant if he/she is running Premier. If so, have your accountant upload your file to his/her computer, then generate the necessary reports.

b. Never delete or change a transaction after it has been reconciled. If you do, it alters the subsequent reconciliation, making it much more difficult. If the beginning balance in QuickBooks was not the same as on the statement, or if the Difference is not zero because a previously reconciled transaction was deleted, contact your bookkeeper or accountant to help resolve the issue.

c. If the difference amount was not zero when you reconciled, QuickBooks made an adjusting entry in both the checking account register and the account called Open Balance Equity (OBE). OBE should always have a zero balance. Contact your bookkeeper or accountant if you ever see a balance in this account.

If you don't reconcile right, you might miss some tax deductions. Also, I hope you don't ever fall into one of the six reconciliation traps - they make life miserable. And I want to show you four easy ways to uncover the source of your bank rec problems.

If you want to learn all of these and much, much more, to go here and download the eBook, "Quick & Accurate Bank Recs". I wrote it so that people like you can take care of their own bank recs, from start to finish, from problem to resolution, without calling an outside professional to help you.

"Quick & Accurate Bank Recs" is part of my series called "Get More from QuickBooks". Download all four eBooks today so you can use QuickBooks like a professional.

Troubleshooting Bank Reconciliations

It's great when you balance the checkbook or credit card account and everything works smoothly. I hope that's your experience at least most of the time. However, there are times when the initial attempt to reconcile doesn't work out. So, where do you start?

First, are you in the right account? Depending on how you get to the reconciliation window, QuickBooks may simply pick the first account in the list or the account that you currently have open (if you have multiple windows open).

Next, look at the opening balances. Do they match? QuickBooks won't let you enter that number; it's actually a calculated number based on all the cleared transactions in that account. So, if that doesn't match, click on Locate Discrepancies (lower left-hand corner of reconciliation window) and look at the report. Chances are you'll find a transaction that was changed - could have been deleted, re-entered, dollar amount changed, etc. If you're able to resolve the issue, then click on Restart Reconciliation. If not, you might want to click on Undo Previous Reconciliation and check that one.

Does your ending balance match? Can't tell you how often I've accidentally typed in a wrong number!

If the difference still is not 0, look at the totals for Deposits & Credits and Checks & Payments.( Note: service charges are not included with the Checks & Payment total.)

Hopefully only one of the numbers is off. Regardless, your next step is then to review the transactions that you cleared with those on the bank statement. Sometimes you miss one. You can change the sort by any column, so you might sort by cleared status or check number or dollar amount (I use all 3 of those frequently).

Sometimes a number is keyed into QuickBooks incorrectly (or the bank read the number incorrectly), so that may mean looking at the cents part of the number. Another tip is that if the difference by which you are off is a multiple of 9, chances are you transposed numbers somewhere (i.e. instead or 97 you have 79).

Do a Find (Edit, Find) and search for a transaction for that dollar amount. You might get lucky and find the transaction. Sometimes the date is incorrect or it's in the wrong account and that's why you didn't see it.

I love using the "Hide after the statement's end date" found in the upper right hand corner because it makes the list of transactions smaller and I'm less likely to incorrectly clear a transaction. However, if you're still having problems reconciling, remove the checkmark and see if future transactions were accidentally checked.

To reduce problems with reconciling, here are some suggestions:

• Reconcile monthly. It's easier to remember the story on a given transaction, you'll find mistakes sooner and they'll be easier to fix.
• Use the QuickBooks Online banking feature. Then in the reconciliation window, click on the Matched button. Enter the ending date from your bank statement and then all your matched transactions will show as cleared. You might be done at this point - yeah!!
• Clear checks before clearing other deductions. The bank statement will have a total dollar amount for the checks and sometimes the number of checks cleared. If that matches the statement, then if there are problems on the deduction, you know it's not a check.
• When creating deposits from credit cards or other types of batched/wired transactions, you might want to change the memo (e.g. AmEx, MC, Visa, CC, Debit). That way, if you have problems reconciling the deposits, you have an idea what type of deposit is the problem.

Muir & Associates helps businesses use their Intuit products more efficiently and more effectively so businesses can focus on their business and make more informed decisions. We provide sales and support services. Monica Mitchell Muir has been helping businesses with their QuickBooks products since 1996.

http://www.muirassoc.com

Double-Entry Bookkeeping - The World's Reclusive Necessity

The majority of the world's population, especially in developed countries, are aware of the use of accountancy within all kinds of organisations, whether they be commercial, governmental, charitable or any other kind of enterprise involving the use of money. Accountants produce accounts of several different types. Accounts to help run the organisation as efficiently as possible, accounts to meet conditions set down by governments, accounts to satisfy the requirements of taxation authorities and, in larger enterprises, accounts to keep shareholders and other interested outsiders informed of how well the organisation is operating.

The majority of the world's population also understand that the main basic skill of a house builder is bricklaying, and that the main basic skill of a successful author is an above average skill in the art of writing. However, what percentage of the world's population knows what the basic skill of an accountant is? A small minority, I would suggest.

The basic skill of an accountant is the art of double-entry bookkeeping. Double-entry bookkeeping was first evolved in Italy, late in the 15th century. But it is still the basis of all manual accounting systems, and all accounting computerised software available today, from the most simple, to the most sophisticated. It is used to control the finances of the smallest corner-store to the World Bank. Without double-entry bookkeeping, the world could not operate as it does today, but, despite its importance, only a very small proportion of the world's inhabitants have any idea of how it works and a huge percentage of the world's population doesn't even know that the term exists.

So why is this ancient art called double-entry bookkeeping? Why not just call it bookkeeping? If an accountant needs to record a transaction, surely that's what he or she does? He or she records a transaction. Why is there a need for the word "double"? The answer lies in the fact that all transactions in fact affect two or more aspects of the enterprise, so that two or more entries are required. For example, when a business makes a sale, it may be for cash or it may be on credit. If the sale was for cash it has to be recorded that the total sales made have increased, and also that the total cash owned by the entity has increased. If the sale was on credit it has to be recorded that the total sales made have increased, and also that the customer now owes the entity money that has to be collected in the future.

There are a million other examples but, in each case, more than one category needs to be adjusted. Double-Entry Bookkeeping is a skill that more people, especially small business people should be much more familiar with. Don't you agree?

For more information and, if needed, assistance, go to: http://www.bookkeeping-theeasyway.com

(C) 2011 Philip Ramage All rights reserved

Why Employment Accounting Tests Should Be Conducted

An organization can well survive for at least a while, with poor human resource management, or poorly designed marketing plans. However, an organization will be bound for immediate failure if there are serious problems in the financial and accounting system. This is how important accounting and finance is in any business.

Calling this to mind, it is then very important that employers only hire the best people in their accounting and finance department. Poorly made hiring decisions can lead to detrimental results and will set your business spiraling out of control.

Efficient hiring decisions through a well-planned recruitment system are the key to avoiding accounting recruitment mistakes. And there is no better way to improve your recruitment program than to incorporate an accounting test during pre-employment screening.

There are many skills required for accounting and finance professionals. In order to ensure productivity and decrease chances for high turnover rates, it is important to assess accurately whether a potential job candidate has the necessary skills to perform them. However, it is very difficult to rely only on interviews and references in assessing a potential employee. It is only with the help of a pre-employment accounting test that this could be made possible.

An accounting test will equip you with the tools necessary to evaluate your job candidates. Accounting tests provided through our website provide you with only high quality content necessary to properly assess accounting and finance professionals in various areas. These areas include Account Payable, Accounts Receivable, Financial Statement Analysis, Payroll, along with specialized subject areas such as Cost Accounting and Taxation.

To supplement your accounting test, it will be best to also evaluate skills and abilities critical to promote success in your accounting office. This can include skills test to measure typing, transcription, shorthand, vocabulary, and spelling, as well as tests to identify the candidate's ability to understand accounting terminologies and to make and use accounting and financial documents. Whether you are looking for key competencies in the field of insurance, consumer finance, financial analysis, credit issues, and financial management concepts, an accounting test will precisely and accurately assess your applicants and narrow down the list to include only those who can potentially serve the company best.

With our professional packages, it is also possible to create a customized test, where you create your very own accounting test by choosing from hundreds of knowledge-based accounting questions and question types. By doing this, you can create tests that will exactly fit the job requirements and will be best for your customer needs.

Skills tests are now indispensable in the recruitment process. Skill and aptitude tests such as an accounting test is necessary to protect the company from the very expensive costs of bad hiring decisions. As you know, poor hiring decisions, especially in the accounting section, can lead to hundreds of dollars of loss even with just one or two departing employees per year. Spending a few hundreds in screening employees will surely be an investment worth spending on.

Accounting and finance is the heart of any profitable organization. This is a department where mishires should be avoided as much as possible, as it could lead to business failure before you know it. To ensure productivity, maximize business profits, and minimize turnover losses, make sure to include an accounting test into your recruitment program.

Hiring new employees is a difficult task. See how you can make it easier with Pre-employment skills testing at http://www.employmentskillsonlinetest.com/

Small Business Accounting Services: Your Best Option for Managing Your Finances

Small business accounting services offer a cost effective way to keep your company's financial information up to date, track your assets and expenses, and remain tax compliant year after year. While at a glance, the cost for contracting an accounting service seems high, you should take the time to consider the cost of not using one.

A Necessary Service
Unless you are an accountant, you, as a small business owner, do not have the expertise to manage your own financial statements and reports. If you are an accountant, you do not have the time to manage these tasks because it takes you away from your most important responsibilities, which are those that are directly related to generating revenue. However, your accounting is not an administrative task that can safely be swept under a rug; your books, balances, and financial reports must be kept up to date for the sake of the health of your company.

Your Options
With this in mind, you have a few options; you can hire someone, you can do your own accounting, or you can contract with a company that offers small business accounting services. We have already established that doing your own accounting is not a feasible option for the long term, but you may consider bringing in your own permanent accountant. This will be a costly task, from the day you post the ad until the day you write his first pay check, and pay for his benefits and unemployment insurance.

Utilizing small business accounting services puts experienced, knowledgeable professionals at your beck and call, at a flat rate that you only pay when you have a need. This means that if you have a week in which your company really only requires a few ledger entries, you are not paying a full time salary so your accountant can find some work to do.

What They Offer
When you look for small business accounting services, you will want to find a company that offers a wide range of accounting services. These should include income statement generation, tracking payables and receivables, managing the general ledger, and month end, quarter end, and year-end review and reporting. A reputable service will employ qualified accountants who can also provide budgeting and tax recommendations based on your company's revenue and expense activities.

Software
A large part of your cost savings will be the software used. A professional business accounting services company will make use of a state of the art software package, like Quickbooks. By contracting a company like this, you are freeing yourself of the need to purchase the software or train an employee how to use it. A package like this is expensive, and you want to know that your accountant is an expert at using every feature it has to offer. Small business accounting services understand this, and they provide the necessary training and ongoing education to their employees and contractors to ensure that they can use the software to make the most of your company's assets.

Bookkeepingpro.co.uk is a Leading Online Bookkeeping & Accounting Outsourcing Firm in UK. It provides Bookkeeping Services & Accounting services at AMAZINGLY Low Rate for small Business.