Posts Tagged ‘accounting services’

When Is A Good Time To Switch Accounting Services

From improper classifications to the 1099s you still don’t have prepared because you’re tracking down corresponding W-9 information, your taxes are going to need an extension—again. This is the fifth year in a row you have agonized through tax season, wringing your hands and wondering how you can fix it yet the dread you feel when you think about switching accounting services has kept you in the same annual cycle. To avoid the same crisis next year, it is officially time for you to figure out when is a good time to switch accounting services.

How Much Back Work Will You Have?

This is a question only you can answer, as there is no one-size-fits-all for any business. Do you plan on having your new accounting services fix last year’s books? Then you’ll want to find a new provider without delay. The faster you switch, the faster they can get on with their work. This will save you time and money over waiting and letting the work pile up.

Starting Fresh With New Accounting Services?

You can technically start any time with accounting services but be mindful of your current situation. If you plan on terminating any of the staff currently working on your accounting, you want to make sure either their work is complete or you have a plan in place to finalize their previous work. This is especially true if you don’t want your new accounting services to provide any back work support but still need your completed books for last year. The more your accountant is still waiting on from your current bookkeeper, the more sensitive you need to be to announcing a switch.

Can You Afford To Wait?

Of course, if your accountant isn’t getting any information from your bookkeeper, simply waiting for information and completed books isn’t likely to be of much help (or simply, happen at all!). If your books are a total mess right now, you may be better off making the jump to new services without delay. After all, do you really have much else to lose?

 

Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

Starting a small business requires making important financial decisions that help you plan and manage your business properly. Setting up a good chart of accounts is a large part of your business’s financial plan; it will pay dividends by allowing you to access accurate financial data with just a few clicks of a mouse, and it can be done in-house or hired out to bookkeeping services.

Setting up your chart of accounts

Your chart of accounts can be thought of as a file for all of your financial information; it lists your company’s account names and numbers and is step one in setting up your accounting system. Which accounts you decide to put in your chart of accounts depends upon your business; an inventory account is only needed for companies that sell products, and not for service businesses.

Keep the future in mind when setting up your accounts; you may not have a need for some accounts right now, but make sure your numbering system allows for lots of growth. As a new business owner, you may be the only employee; that may not always be the case. Adding payroll accounts now can keep your books clean and current later.

Use a four-digit numbering system for your chart of accounts and you will have plenty of blank numbers left for adding accounts as needed, and so that each transaction can be properly coded and added to the system. Additionally, you will be able to easily identify the type of account by its number if done correctly.

Account categories and common coding numbers

The chart of accounts will be used to journal all of the business’s transactions and there are five main categories of which accounts can belong: assets, liabilities, revenue, expenses, and owner’s equity. You are setting up your chart of accounts so that it will mirror the format of a company balance sheet.

Your asset category outlines what your company owns. Most computerized systems will start it at 1000 and list current assets first (cash, accounts receivable, inventory) and then fixed assets (buildings, equipment, vehicles), and a depreciation account that will show reductions in value of those assets.

Liabilities track what your company owes and the numbers should start at 2000 for ease of computing; add your current liabilities (accounts payable, sales tax, payroll tax, wages owed) first and then your long-term liabilities (such as mortgages.)

Owner’s equity is typically coded as a 3000 series of numbers and denotes the owner’s investment in the business. Later, you might have investors and need accounts for stock and retained earnings for profit that is reinvested into the company.

Revenue accounts are typically the 4000 series and show sales revenues and other income for your business. You typically need an account for discount, and one for sales returns and allowances as well. There will also be interest income, costs of goods sold, and accounts for shipping and other costs in this block of accounts.

Expenses are the final category and should be coded with numbers in the 5000 series; many people use the IRS Schedule C tax form to set up this category. Your bookkeeper and any outsourced accounting services or tax preparers will be happy about this, as it makes it much easier at tax time.

That is really all there is to it, though the task may at first seem daunting. This chart of accounts will keep your books clean and your data quick at hand whenever you need it. Outsourced bookkeeping services can help keep you on track and your expenses and other transactions coded perfectly if your chart of accounts is clean and easy to use.

 

Looking for more information on outsourcing accounting services? We can help you figure it all out.

 

tmf Accounting Services

Veteran Business Owner Caters to Novice Business Owners

Meet Woman in Business Tashia M. Flucas, Owner/Accounting Professional of tmf Accounting Services

Tell us about your business.

Primary services include bookkeeping, income tax preparation, and payroll processing. We cater to novice business owners, entrepreneurs, and investors just like your readers. We keep our clients financials records in good health, while they focus on what matters most – Building their businesses.

Please tell us what being a business owner means to you and why you became an entrepreneur in the first place?

Being a business owners means having independence to work with a diverse group of professionals. The opportunity to selectively choose business owners who are passionate about their venture and sharp enough to hire an expert. I became an entrepreneur due to the dot.com bust of 2001. I was working as a Staff Accountant for a dot.com who lost their funding. We were managing the financials for numerous start-ups. After receiving my pink slip and lots of sleepless nights. I came to this conclusion – there must be small business owners who need a bookkeeper, but can not afford a full-time person. So I sought out business who needed a “Part-Time Bookkeeper”.

What or who has been your greatest influence in business and why?

Madam CJ Walker she was one of the 1st self-made millionaires. I admire her because she gave herself a start. When others told her she would not amount to anything she proved them wrong and designed a line of hair products and instruments which are still used today.

What would you say is your greatest professional accomplishment to date?

Getting through those initial three years of business. I struggled even took on a seasonal job at UPS, but I was determined to make a career for myself. A high percentage of businesses fail in the first two of inception. Great service will survive in any economy.

What’s the best advice you have received in business that you wish to pass on to our readers?

Be truthful. Clients do not like surprises, however they do appreciate honesty.

What has been the most effective marketing initiatives or programs you have used to promote your business?

Investing in signage and advertising. Keep your messages short and sweet.

What one thing have you learned as a small business owner that has served you well over the years?

Show interest in your clients and prospects. Survey your clients get a clear idea of what they like and dislike. You don’t want to send them chocolates and they are allergic to them.

Are there any resources or tools you’d like to share with other small business owners that have helped you run your business? If yes, please describe.

At times I need to send large files or secure files and I use www.yousendit.com . For posting free classified ads I use www.craigslist.org and to create surveys I use www.surveymonkey.com

Do you have any new projects coming up? If so, please tell us about it.

I am working on a tax workshop to assist novice business owners on what and what is not deductible for their business.

What do you do for fun/relaxation?

I love to travel, visiting exotic places, playing tennis, and sipping orange flavored teas.

What is the Number One Business Goal you plan to accomplish over the next year?

To coach Bookkeepers on how to deal with clients and run a successful practice.

You want to write a book on … The Dynamics of Networking. Networking is very important in business and life in general. I am a connector and would enjoying sharing this with others.

Is there anything else you’d like to share with our readers?

Get Support – Network – Join your local Chamber – Be Active

What’s the best way for our readers to connect with you?

www.tmfAccountingServices.com

http://www.facebook.com/tmfAccountingServices

http://www.linkedin.com/profile/edit?trk=hb_tab_pro_top

How Much Do Accounting Services Cost?

Without fail, we get asked “How much do accounting services cost?” by about ten percent of our initial inquiries. The question comes in various forms, from “What is your hourly rate for a bookkeeper?” to “Can I get a ballpark of what it would cost for a daily bookkeeping service?” but the questions all boil down to one main concern: Cost.

Of course, we understand that cost is and will always be a factor in decision-making. After all, budgets must allow for the cost and an appropriate return on the expense must be present. But we worry sometimes that this question, when taken out of context, fails to address the greater issues at hand. As such, we do not have a pricing matrix per se but rather we create custom fixed fee monthly quotes for each prospective business based on the scope and complexity of the work required. However, we can address cost considerations in different ways to help answer your pricing concerns.

What About An Hourly Rate for Bookkeeping Services?

This may come as a surprise (unless you’re a big fan of accounting yourself) but virtually any business can boil down their expenses and costs to some form of an hourly rate. After all, the number of employee hours spent on a given project and the employees’ salaries can easily provide a rough hourly estimate through basic arithmetic. As a responsible business, we have to know what the cost of our services is to appropriately budget and set pricing. However, actually billing at an hourly rate doesn’t make sense for us due to a variety of reasons.

Scope and Complexity of Work Isn’t Always A Straight Equation

This may go without saying but not all bookkeeping tasks are as simple or as complex as others. Some of our clients require incredibly complex reporting and financial management, which requires oversight by highly trained professionals. These same highly trained professionals may also be the ones monitoring and managing more common bookkeeping tasks—but charging clients a single “rate” for services would potentially put them at risk for paying hourly rates that are not always in line with the level of knowledge required to deliver a service. Instead, evaluating an approximate amount of time required to perform each account task in a period and establishing monthly, fixed fee rates for the complexity of work required is more likely to create a fair price.

Price Fluctuations In Monthly Fixed Fees For Accounting Services

At the same time, we recognize that our clients like to have options when it comes to their accounting services. From adjustments in frequency that increase or reduce the number of times work is performed to service add-ons that increase or reduce the complexity of reporting and analysis, we provide up to three “service tiers” for accounting services quotes. Some examples of typical variations include the frequency of review with a controller, managed employee expense reporting, payroll management and sales tax reporting. Sometimes simple adjustments in frequency, such as from monthly to quarterly, can have notable effects on pricing.

Interested in finding out how much accounting services would cost for your business? Contact us for a free consultation.

When Is A Good Time To Switch Accounting Services

From improper classifications to the 1099s you still don’t have prepared because you’re tracking down corresponding W-9 information, your taxes are going to need an extension—again. This is the fifth year in a row you have agonized through tax season, wringing your hands and wondering how you can fix it yet the dread you feel when you think about switching accounting services has kept you in the same annual cycle. To avoid the same crisis next year, it is officially time for you to figure out when is a good time to switch accounting services.

How Much Back Work Will You Have?

This is a question only you can answer, as there is no one-size-fits-all for any business. Do you plan on having your new accounting services fix last year’s books? Then you’ll want to find a new provider without delay. The faster you switch, the faster they can get on with their work. This will save you time and money over waiting and letting the work pile up.

Starting Fresh With New Accounting Services?

You can technically start any time with accounting services but be mindful of your current situation. If you plan on terminating any of the staff currently working on your accounting, you want to make sure either their work is complete or you have a plan in place to finalize their previous work. This is especially true if you don’t want your new accounting services to provide any back work support but still need your completed books for last year. The more your accountant is still waiting on from your current bookkeeper, the more sensitive you need to be to announcing a switch.

Can You Afford To Wait?

Of course, if your accountant isn’t getting any information from your bookkeeper, simply waiting for information and completed books isn’t likely to be of much help (or simply, happen at all!). If your books are a total mess right now, you may be better off making the jump to new services without delay. After all, do you really have much else to lose?

tmf Accounting Services

Veteran Business Owner Caters to Novice Business Owners

Meet Woman in Business Tashia M. Flucas, Owner/Accounting Professional of tmf Accounting Services

Tell us about your business.

Primary services include bookkeeping, income tax preparation, and payroll processing. We cater to novice business owners, entrepreneurs, and investors just like your readers. We keep our clients financials records in good health, while they focus on what matters most – Building their businesses.

Please tell us what being a business owner means to you and why you became an entrepreneur in the first place?

Being a business owners means having independence to work with a diverse group of professionals. The opportunity to selectively choose business owners who are passionate about their venture and sharp enough to hire an expert. I became an entrepreneur due to the dot.com bust of 2001. I was working as a Staff Accountant for a dot.com who lost their funding. We were managing the financials for numerous start-ups. After receiving my pink slip and lots of sleepless nights. I came to this conclusion – there must be small business owners who need a bookkeeper, but can not afford a full-time person. So I sought out business who needed a “Part-Time Bookkeeper”.

What or who has been your greatest influence in business and why?

Madam CJ Walker she was one of the 1st self-made millionaires. I admire her because she gave herself a start. When others told her she would not amount to anything she proved them wrong and designed a line of hair products and instruments which are still used today.

What would you say is your greatest professional accomplishment to date?

Getting through those initial three years of business. I struggled even took on a seasonal job at UPS, but I was determined to make a career for myself. A high percentage of businesses fail in the first two of inception. Great service will survive in any economy.

What’s the best advice you have received in business that you wish to pass on to our readers?

Be truthful. Clients do not like surprises, however they do appreciate honesty.

What has been the most effective marketing initiatives or programs you have used to promote your business?

Investing in signage and advertising. Keep your messages short and sweet.

What one thing have you learned as a small business owner that has served you well over the years?

Show interest in your clients and prospects. Survey your clients get a clear idea of what they like and dislike. You don’t want to send them chocolates and they are allergic to them.

Are there any resources or tools you’d like to share with other small business owners that have helped you run your business? If yes, please describe.

At times I need to send large files or secure files and I use www.yousendit.com . For posting free classified ads I use www.craigslist.org and to create surveys I use www.surveymonkey.com

Do you have any new projects coming up? If so, please tell us about it.

I am working on a tax workshop to assist novice business owners on what and what is not deductible for their business.

What do you do for fun/relaxation?

I love to travel, visiting exotic places, playing tennis, and sipping orange flavored teas.

What is the Number One Business Goal you plan to accomplish over the next year?

To coach Bookkeepers on how to deal with clients and run a successful practice.

You want to write a book on … The Dynamics of Networking. Networking is very important in business and life in general. I am a connector and would enjoying sharing this with others.

Is there anything else you’d like to share with our readers?

Get Support – Network – Join your local Chamber – Be Active

What’s the best way for our readers to connect with you?

www.tmfAccountingServices.com

http://www.facebook.com/tmfAccountingServices

http://www.linkedin.com/profile/edit?trk=hb_tab_pro_top

When Is A Good Time To Switch Accounting Services

From improper classifications to the 1099s you still don’t have prepared because you’re tracking down corresponding W-9 information, your taxes are going to need an extension—again. This is the fifth year in a row you have agonized through tax season, wringing your hands and wondering how you can fix it yet the dread you feel when you think about switching accounting services has kept you in the same annual cycle. To avoid the same crisis next year, it is officially time for you to figure out when is a good time to switch accounting services.

How Much Back Work Will You Have?

This is a question only you can answer, as there is no one-size-fits-all for any business. Do you plan on having your new accounting services fix last year’s books? Then you’ll want to find a new provider without delay. The faster you switch, the faster they can get on with their work. This will save you time and money over waiting and letting the work pile up.

Starting Fresh With New Accounting Services?

You can technically start any time with accounting services but be mindful of your current situation. If you plan on terminating any of the staff currently working on your accounting, you want to make sure either their work is complete or you have a plan in place to finalize their previous work. This is especially true if you don’t want your new accounting services to provide any back work support but still need your completed books for last year. The more your accountant is still waiting on from your current bookkeeper, the more sensitive you need to be to announcing a switch.

Can You Afford To Wait?

Of course, if your accountant isn’t getting any information from your bookkeeper, simply waiting for information and completed books isn’t likely to be of much help (or simply, happen at all!). If your books are a total mess right now, you may be better off making the jump to new services without delay. After all, do you really have much else to lose?

 

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