Banking-Edu

Being engaged in business is not a simple task. You must take care of a lot of things to keep the business going and the money flowing. However, many do not become successful at their attempts to put up a business because of loss of track of their finances and cashflows.

If you intend to stay in business for a long time, you need to know and understand your financial situation.

Taxes
Compliance to the law regarding taxes will keep you out of trouble. Keeping track of all your income and expenses is necessary for you to be able to ensure that necessary tax payments are correctly made.

Taking Control of Your Business
Using financial data is one of the best ways for one to achieve better control of their business. Monthly reports will show you how good or bad your business has been performing and in what particular area is improvement required. Things to watch out for are:

• Overheads - to see if costs are u ... Read more »

To search and hire the right chartered accountant for you is not an easy task, but if you are going to start up a business, hiring an accountant must be one of your priorities. It is of course required that the one that you are going to hire has the qualifications. One of the best ways is to ask your professional associates or find a reliable source.

The internet is replete with accounting firms who advertise their services online. You can check out these firms and contact them. Most of them are promising and can help you find the right accountant for you, who of course, has the right qualifications. You should also go for a firm which offers a free needs assessment, as it is as important as hiring the right accountant for your business.

The Benefits of Having an Accountant

An accountant's job description includes studying and taking care of your accounts, diagnosing financial problems, and improving your company's financial sta ... Read more »

There are quite a few checking account plans out there, that tempt retail bank customers with high yields if -those hopeful people qualify..

To qualify of course, you need to meet their (demanding) expectations in being an ideal customer - which means, that you'll need to show them your goodwill by being regular enough with certain kinds of profitable banking transactions.. One very good example would be spontaneously using their online mode of bill payment service in paying your debit card for a month or more.

Bankrate conducted an analysis, wherein they discovered about 50 banks situated in the country, offering high rate business checking account plans to customers; With an astounding high interest rate of 3% for average up to as high as 6%.

After qualifying and getting used to it for several months there would be certainly come a time when you're not making sufficient business payroll checks with the bank; Your interest rate are t ... Read more »

There are a daunting amount of companies out there practicing accountancy so what should you consider when choosing an accountant...

There are a number of factors to consider when choosing an accountant but the most important is whether you need a general or specialist accountant. A general accountant can help service the overall needs of your business or can help with personal finances; a specialist accountant will be able to help with more specific areas of finance such as cash flow projections or VAT. The following will help explain the specific services that accountants can provide:

Account Production - Account Production is the preparation of annual accounts for inspection by the Inland Revenue; you are required to keep track of your spending, profits, tax returns and all manner of transactions.

Audit - An audit is the systematic examination and verification of a firm's accounts which results in the publication of an independent o ... Read more »

When folks talk about accounting generally they think about business and corporate accounting, and yes that is a huge topic with corporate audits, SEC rules, Sarbanes Oxley, and the latest new accounting rules. Still, government accounting is very important too, along with Government like organizations, yes, I speak of Freddie Mac and Fannie Mae. Now then, we have the Government Accounting Office, GAO, and the OMD - and many other accounting agencies to keep a check on our money.

And that's just at the Federal Level, as the same thing goes for our States and Counties. Yes, and our cities, many of which have millions of people in them. Take the New York City for instance, where does all that money go, how is it spent, and how is it all accounted for, or is it. Well, this is a troubling question as New York City recently discovered. For instance there was an interesting piece in the New York Times recently.

The article was tiled; "New York Ci ... Read more »

Liquidity is simply defined as the ability of a company to convert its assets into cash quickly or in the short term (usually encompassing a 12-month period). When your business is liquid, it means your company can easily turn assets into cash and pay-off its short-term debts or liabilities to creditors.

Liquidity is important when applying for a loan since this will be used by banks and other creditors to gauge your company's ability to pay off your debts and not go bankrupt. It can also be used to make financial and management decisions. For example, would you continue to buy inventory with cash to get a discount from your supplier, but risk not having enough cash to pay for wages, taxes, and interest on your loan?

There are two common ways to measure your company's liquidity just by looking at your accounting sheets:

1. Current Ratio

Current ratio is calculated as the current assets divided by current liabilities (Current asset ... Read more »

One of the key software that every small business owner should consider buying is an accounting software. Not only does it decrease cost and time in preparing financial information, it can also be used by businesses to instantly generate reports for decision making.

Choosing an accounting software is an important decision for small businesses since choosing the wrong one would mean losing a substantial amount of money, and losing productive time and other business opportunities due to time spent learning and implementing the system. Here are some guidelines to follow when evaluating different accounting software packages in the market:

1. Cost

Most accounting software can be had for a one-time fee while some charge recurring yearly or monthly payments. There are free accounting software but these packages usually lack support and various updates that paid programs provide. Similarly, open source accounting software, li ... Read more »

Account reconciliation or balancing bank accounts is representing vital financial management task. You improvise on the correctness of your bookkeeping assuring that bank haven't made any errors, and by regularly reconciling your records you reduce your chances of being a victim of fraudulent transactions.

Bank Account Reconciliation Problem

At times reconciling a personal or corporation bank account with Microsoft Money can be frightening. If a comparative study between your records and the balance in your bank account and its records show inconsistency. Reconciling a bank account would just explain you the difference between your records and the bank's.

Missing Transactions

Usually two factors explaining the discrepancy between two sets of records are: your unrecorded transactions in your account that has been recorded by the bank could be for reasons like either the transactions that you have missed to record or ... Read more »