10 Ways to Organize your Business Finances
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
Kamis, 10 Juni 2010
How to choose The Right Accounting System For Your Business
How to choose The Right Accounting System For Your Business
When clients ask me, “What accounting system do you recommend?” two words immediately come to mind – “It depends.” I say this for three reasons.
First, there are various types of accounting systems on the market. There are manual systems, computerized systems, single-entry systems, and double-entry systems.
Second, the predisposition of individuals is a major factor. For instance, some people love working with the computer. Other people can barely get by. Some people hate working with numbers, others love it. Some people simply don’t have the time and have to pay someone else to perform accounting tasks.
Third, the level of activity of the business may be quite small or quite large and this is another major factor to consider. Let’s explore each reason:
Regarding the first reason, if you are keeping the books for a very small organization, a single-entry system may suffice. You can find the “Dome” and “Ideal” bookkeeping systems at your local office store. Personally, I have tried both systems for small businesses and have found them confusing. The reason for the confusion is that there are no checks and balances to catch mistakes. Although, a double-entry system is harder to learn it is much easier for maintaining accuracy.
Not so many years ago, accountants used manual systems to record transactions. They had big, hardbound covers with yellow “Wilmer” ledger pages. I was still using those back in 1978. What a relief when desktop computers came along!
However, there are some manual systems in use today that are still very effective. These are the “one-write” systems. Safeguard Business Systems, Inc. is the grand daddy of the one-write systems and my choice because the layout of their forms makes sense and is easy to use. A one-write system is sometimes called “checks on a shingle” because the checks are stacked like shingles on a journal page. The checks have a carbon strip on the back where the date, payee, purpose, check number, etc., is automatically recorded on the journal when the check is written. The journal also has a column for recording bank deposits. In the center of the journal is a column for a running checkbook balance.
The beauty of this system, and why it remains popular, is that you don’t need to know accounting to record all the pertinent information that will be required by your accountant. The journals can be stored month by month and, if you don’t need a financial statement but once a year, all the required information is already recorded and organized. Think about it. You have to write the checks anyway. Isn’t it nice that you only have to write the information one time?
Small business accounting software programs such as People’s Choice, QuickBooks, PeachTree, MAS90, One-Write Plus, etc., are absolutely necessary because they are general ledger double-entry systems that produce financial statements, namely, a balance sheet and profit & loss statement. It is hard to get along without them because they are such a time saver. The question is, “Which one fits you the best?” This leads us to the second reason.
What are your personal predispositions? Are you computer literate? Do you have the time or staff to enter all the transactions into the computer on a timely basis? Is it convenient for you to cut a computer check on the fly? Will your business stay at the same address long enough to use all those pre-printed computer checks. Do you want to carry a checkbook with you when running errands and making business purchases? These are the factors to consider when deciding whether to have computerized checks or manual checks.
You know you have to have a computer and an accounting software program. That’s a given. There are various check writing systems, from your standard little checks you get when you open your bank account, to the “Three-on-a-Page” checks with stubs, to single checks with a voucher attached, to the one-write systems. You can, and many people do, use a manual check writing system in combination with an accounting software package. The checks are manually entered into the computer from the check register and coded to the appropriate general ledger account. The remaining information can be recorded into the computer using the general journal. You can do this yourself, if you know how and have the time. Or, you can hire someone to do it. It depends on your preference and your financial resources.
The third reason to consider is the size of your business. I’m not referring to large businesses because they have to be computerized and have their own accounting staff. I’m discussing small business applications here. If you are just getting started and the business is very small and you can’t afford a computer then I recommend the one-write system. When you can afford to buy a computer and an accounting software system, you will want to consider one of the lower priced accounting software systems that cost in the neighborhood of $200.
When selecting a system, you will want to ask whether the accounting package can handle your accounting needs as you expand your business. For instance: after the basic package, can you add on Job Costing, Payroll, Accounts Payable, Accounts Receivable, Inventory Management, Cash Flow reporting, etc.? Most of the packages have all these modules and more. Therein lies the difficulty. The complexity of these systems makes it hard for the beginner to begin. The software manufacturers all claim their systems are simple and easy to learn. This doesn’t always turn out to be true. I recommend that you start out with the essentials and, as your knowledge base increases, add more complexity. Pick a system that is straightforward, easy to follow, and, this is important, in which it is easy to make changes and correct mistakes. Some systems make it extremely painful just to change a name in the general ledger. It is true that the more expensive systems offer the greatest flexibility. MAS90, by Best Software, is an example of an accounting software package that has been well thought out. However, it can run into the thousands of dollars depending on how many modules you want to buy.
QuickBooks has many fine features, however, in my opinion, it has some strange quirks. For instance, when setting up your chart of accounts you are given an option to have names and/or numbers. That’s cool but, hidden in the system is the button that turns on the preference for numbers. As you set up your categories you can put in the beginning balances. Don’t miss one or make a mistake because in that system you don’t get a second chance. You have to enter any numbers left out in another section. Plus, if you made a mistake you can’t easily change the number. Maybe there is a way to make these adjustments. If so, it isn’t obvious, which is my point. Why make you suffer?
I have found that the People’s Choice software is well designed for the very small business. Their basic module does not include a full-blown accounts payable and accounts receivable module. You can add these on when you are ready for them. In fact, they are offering a start-up system for free.
Look to see whether the system will automatically bring up the next check number when entering checks. That’s a big time saver. In addition, look at the report called “Detail of the General Ledger” to see how it is laid out. This report is invaluable as an investigative tool. It tells you, by account, exactly what transactions were posted and where they came from. This should also be a very simple and straightforward report but, often it isn’t. Last, the financial statements should be easy to read, spaced properly on the page, and, professional looking.
In summary, determine whether you want to have a combined manual/computer or full computerized system. Let the size and complexity of your business and your budget determine which accounting package to buy. When doing so, keep in mind simplicity and flexibility. Sometimes having all the bells and whistles is worse than not having them. You must be committed to learning the system. Learning only part of the system can be frustrating. First, take the time to plan your accounting needs, then, set up your accounting framework. It pays to do so, since all the data collected is organized into that framework.
When clients ask me, “What accounting system do you recommend?” two words immediately come to mind – “It depends.” I say this for three reasons.
First, there are various types of accounting systems on the market. There are manual systems, computerized systems, single-entry systems, and double-entry systems.
Second, the predisposition of individuals is a major factor. For instance, some people love working with the computer. Other people can barely get by. Some people hate working with numbers, others love it. Some people simply don’t have the time and have to pay someone else to perform accounting tasks.
Third, the level of activity of the business may be quite small or quite large and this is another major factor to consider. Let’s explore each reason:
Regarding the first reason, if you are keeping the books for a very small organization, a single-entry system may suffice. You can find the “Dome” and “Ideal” bookkeeping systems at your local office store. Personally, I have tried both systems for small businesses and have found them confusing. The reason for the confusion is that there are no checks and balances to catch mistakes. Although, a double-entry system is harder to learn it is much easier for maintaining accuracy.
Not so many years ago, accountants used manual systems to record transactions. They had big, hardbound covers with yellow “Wilmer” ledger pages. I was still using those back in 1978. What a relief when desktop computers came along!
However, there are some manual systems in use today that are still very effective. These are the “one-write” systems. Safeguard Business Systems, Inc. is the grand daddy of the one-write systems and my choice because the layout of their forms makes sense and is easy to use. A one-write system is sometimes called “checks on a shingle” because the checks are stacked like shingles on a journal page. The checks have a carbon strip on the back where the date, payee, purpose, check number, etc., is automatically recorded on the journal when the check is written. The journal also has a column for recording bank deposits. In the center of the journal is a column for a running checkbook balance.
The beauty of this system, and why it remains popular, is that you don’t need to know accounting to record all the pertinent information that will be required by your accountant. The journals can be stored month by month and, if you don’t need a financial statement but once a year, all the required information is already recorded and organized. Think about it. You have to write the checks anyway. Isn’t it nice that you only have to write the information one time?
Small business accounting software programs such as People’s Choice, QuickBooks, PeachTree, MAS90, One-Write Plus, etc., are absolutely necessary because they are general ledger double-entry systems that produce financial statements, namely, a balance sheet and profit & loss statement. It is hard to get along without them because they are such a time saver. The question is, “Which one fits you the best?” This leads us to the second reason.
What are your personal predispositions? Are you computer literate? Do you have the time or staff to enter all the transactions into the computer on a timely basis? Is it convenient for you to cut a computer check on the fly? Will your business stay at the same address long enough to use all those pre-printed computer checks. Do you want to carry a checkbook with you when running errands and making business purchases? These are the factors to consider when deciding whether to have computerized checks or manual checks.
You know you have to have a computer and an accounting software program. That’s a given. There are various check writing systems, from your standard little checks you get when you open your bank account, to the “Three-on-a-Page” checks with stubs, to single checks with a voucher attached, to the one-write systems. You can, and many people do, use a manual check writing system in combination with an accounting software package. The checks are manually entered into the computer from the check register and coded to the appropriate general ledger account. The remaining information can be recorded into the computer using the general journal. You can do this yourself, if you know how and have the time. Or, you can hire someone to do it. It depends on your preference and your financial resources.
The third reason to consider is the size of your business. I’m not referring to large businesses because they have to be computerized and have their own accounting staff. I’m discussing small business applications here. If you are just getting started and the business is very small and you can’t afford a computer then I recommend the one-write system. When you can afford to buy a computer and an accounting software system, you will want to consider one of the lower priced accounting software systems that cost in the neighborhood of $200.
When selecting a system, you will want to ask whether the accounting package can handle your accounting needs as you expand your business. For instance: after the basic package, can you add on Job Costing, Payroll, Accounts Payable, Accounts Receivable, Inventory Management, Cash Flow reporting, etc.? Most of the packages have all these modules and more. Therein lies the difficulty. The complexity of these systems makes it hard for the beginner to begin. The software manufacturers all claim their systems are simple and easy to learn. This doesn’t always turn out to be true. I recommend that you start out with the essentials and, as your knowledge base increases, add more complexity. Pick a system that is straightforward, easy to follow, and, this is important, in which it is easy to make changes and correct mistakes. Some systems make it extremely painful just to change a name in the general ledger. It is true that the more expensive systems offer the greatest flexibility. MAS90, by Best Software, is an example of an accounting software package that has been well thought out. However, it can run into the thousands of dollars depending on how many modules you want to buy.
QuickBooks has many fine features, however, in my opinion, it has some strange quirks. For instance, when setting up your chart of accounts you are given an option to have names and/or numbers. That’s cool but, hidden in the system is the button that turns on the preference for numbers. As you set up your categories you can put in the beginning balances. Don’t miss one or make a mistake because in that system you don’t get a second chance. You have to enter any numbers left out in another section. Plus, if you made a mistake you can’t easily change the number. Maybe there is a way to make these adjustments. If so, it isn’t obvious, which is my point. Why make you suffer?
I have found that the People’s Choice software is well designed for the very small business. Their basic module does not include a full-blown accounts payable and accounts receivable module. You can add these on when you are ready for them. In fact, they are offering a start-up system for free.
Look to see whether the system will automatically bring up the next check number when entering checks. That’s a big time saver. In addition, look at the report called “Detail of the General Ledger” to see how it is laid out. This report is invaluable as an investigative tool. It tells you, by account, exactly what transactions were posted and where they came from. This should also be a very simple and straightforward report but, often it isn’t. Last, the financial statements should be easy to read, spaced properly on the page, and, professional looking.
In summary, determine whether you want to have a combined manual/computer or full computerized system. Let the size and complexity of your business and your budget determine which accounting package to buy. When doing so, keep in mind simplicity and flexibility. Sometimes having all the bells and whistles is worse than not having them. You must be committed to learning the system. Learning only part of the system can be frustrating. First, take the time to plan your accounting needs, then, set up your accounting framework. It pays to do so, since all the data collected is organized into that framework.
Petty Cash Procedures
Petty Cash Procedures
Why petty cash? It is the difference between sloppy bookkeeping and managing your money properly. You have your own small business, so why not grab a twenty out of the till when you need some pocket money? It may not be the end of the world if you do, but it presupposes a certain attitude toward your business.
Keeping track of your finances is one of the most important tasks a business owner has. A lackadaisical approach in this area can spell trouble. For instance, I've seen owners who are shocked to find a major discrepancy between the cash receipts and the sales when they are reconciled at the end of the month. They had no idea they were taking that much money out for lunches, etc. In addition, what if you have employees who decide they can dip into the till? There is no way to know who took the cash, the owner or the employee. In accounting, this is an issue known as "Internal Control". Internal controls are established to maintain the integrity of the accounting system. These are procedures that provide checks and balances to ensure that the figures reported on a financial statement are what they say they are.
In a small business that is large enough to have employees who handle bookkeeping functions such as preparing a bank reconciliation, making bank deposits, and recording entries into the general ledger, an internal control procedure known as the "division of labor" should be instituted. Division of labor means that the same person preparing the bank reconciliation should not also make the bank deposits. The theory here is that it is less likely that two employees will "collude" with each other to commit a crime.
The petty cash system is part of a company's internal control procedures. A set amount, such as $100 is established by withdrawing the cash from the bank and placing it in a separate locked box. When cash is removed from the box, a voucher is filled out for the exact amount of cash and signed by the person removing the cash. This voucher amount and the remaining amount of cash in the box must total $100. When the item is purchased, the receipt is placed in the box in lieu of the voucher. If the box were audited, the auditor would find receipts, vouchers, and cash that equal $100.
You can find locking cash boxes and pads of petty cash voucher slips at your local stationer store. If your business is small enough not to warrant a petty cash box, then you should at least use the voucher slips to replace any money you take out of the cash register till. Follow the same procedures above, and you will always know where your cash went and what it was spent for.
Why petty cash? It is the difference between sloppy bookkeeping and managing your money properly. You have your own small business, so why not grab a twenty out of the till when you need some pocket money? It may not be the end of the world if you do, but it presupposes a certain attitude toward your business.
Keeping track of your finances is one of the most important tasks a business owner has. A lackadaisical approach in this area can spell trouble. For instance, I've seen owners who are shocked to find a major discrepancy between the cash receipts and the sales when they are reconciled at the end of the month. They had no idea they were taking that much money out for lunches, etc. In addition, what if you have employees who decide they can dip into the till? There is no way to know who took the cash, the owner or the employee. In accounting, this is an issue known as "Internal Control". Internal controls are established to maintain the integrity of the accounting system. These are procedures that provide checks and balances to ensure that the figures reported on a financial statement are what they say they are.
In a small business that is large enough to have employees who handle bookkeeping functions such as preparing a bank reconciliation, making bank deposits, and recording entries into the general ledger, an internal control procedure known as the "division of labor" should be instituted. Division of labor means that the same person preparing the bank reconciliation should not also make the bank deposits. The theory here is that it is less likely that two employees will "collude" with each other to commit a crime.
The petty cash system is part of a company's internal control procedures. A set amount, such as $100 is established by withdrawing the cash from the bank and placing it in a separate locked box. When cash is removed from the box, a voucher is filled out for the exact amount of cash and signed by the person removing the cash. This voucher amount and the remaining amount of cash in the box must total $100. When the item is purchased, the receipt is placed in the box in lieu of the voucher. If the box were audited, the auditor would find receipts, vouchers, and cash that equal $100.
You can find locking cash boxes and pads of petty cash voucher slips at your local stationer store. If your business is small enough not to warrant a petty cash box, then you should at least use the voucher slips to replace any money you take out of the cash register till. Follow the same procedures above, and you will always know where your cash went and what it was spent for.
When pensive
When pensive
silent night
dreamy .......
reptile's embraces
becoming more soluble stabbing
could not stop
lie substitute sage
tuk regret that gray
now reluctant to call your name
cornered in a corner now
leaning against the wall fragile
must ... must ... have ...
although forced tuk select
essential life direction
in the divine blessing
silent night
dreamy .......
reptile's embraces
becoming more soluble stabbing
could not stop
lie substitute sage
tuk regret that gray
now reluctant to call your name
cornered in a corner now
leaning against the wall fragile
must ... must ... have ...
although forced tuk select
essential life direction
in the divine blessing
Heart on Top Paper
Heart on Top Paper
My painting your face in the twilight.
I want you to know that there is a sense.
Stay with my tears ...
Hinggapi quiet-quiet ...
Give happy ...
This love will bring us back to reap the longing.
Bepisah long we have.
Let me whisper sweet.
That I still love you.
My painting your face in the twilight.
I want you to know that there is a sense.
Stay with my tears ...
Hinggapi quiet-quiet ...
Give happy ...
This love will bring us back to reap the longing.
Bepisah long we have.
Let me whisper sweet.
That I still love you.
To Jaranireng: Me and my writing
To Jaranireng: Me and my writing
Are there people would ask me when I will
never wrote one word?
Are there people will find my name when I
never leave an impression?
my writing is me, me impossible that my writing
working my fingers to my brain
but not with me
potential of myself is a collection of behavioral sin
me is the composition of meat bone blood
which may have absorbed illicit goods
I am not mine, my neighborhood has been claimed
Has anyone ever received I'm different with my writing?
Berjayalah write sentences
because they get the respect of friends and enemies
I want to put myself into my writing
hope I can get the same respectful greeting
My brain that my writing is unpretentious production
can not be chatting with that prilakuku
produced by the subjective intentions
I tell my writing about the world
while I never do the same
to writing ....
Are there people would ask me when I will
never wrote one word?
Are there people will find my name when I
never leave an impression?
my writing is me, me impossible that my writing
working my fingers to my brain
but not with me
potential of myself is a collection of behavioral sin
me is the composition of meat bone blood
which may have absorbed illicit goods
I am not mine, my neighborhood has been claimed
Has anyone ever received I'm different with my writing?
Berjayalah write sentences
because they get the respect of friends and enemies
I want to put myself into my writing
hope I can get the same respectful greeting
My brain that my writing is unpretentious production
can not be chatting with that prilakuku
produced by the subjective intentions
I tell my writing about the world
while I never do the same
to writing ....
Sabtu, 05 Juni 2010
Occurrence Lake Toba
Occurrence
Lake Toba
In antiquity, there lived an orphaned peasant boy in the northern part of Sumatra island. The area is very dry. Syahdan, he was living from farming and fishing. One day he was fishing a fish that is very beautiful. The color is golden yellow. So holding, the fish is turned into a beautiful princess. The lady is a woman who was condemned for violating a ban. He will turn into a kind of creature that first touch. Therefore, the human touch, so he turned into a princess.
Enchanted by her beauty, the young farmer asked the princess to be his wife. Applications are accepted on condition that he was not going to tell you that its origins come from peasant ikan.Pemuda it undertakes these requirements. After a year, married couples are granted a boy. He has a bad habit that is never satiated. He ate all the food there.
One day the boy's eating all the food from their parents. The young man was very annoyed to say: "base progeny of fish!" That statement by itself unlock the secrets of this isterinya.Dengan their promises have been violated.
His wife and daughter magically disappear. The land of their former footing menyemburlah springs. Water flowing from these springs was increasingly large. And becomes a vast lake. The lake now called Lake Toba
Lake Toba
In antiquity, there lived an orphaned peasant boy in the northern part of Sumatra island. The area is very dry. Syahdan, he was living from farming and fishing. One day he was fishing a fish that is very beautiful. The color is golden yellow. So holding, the fish is turned into a beautiful princess. The lady is a woman who was condemned for violating a ban. He will turn into a kind of creature that first touch. Therefore, the human touch, so he turned into a princess.
Enchanted by her beauty, the young farmer asked the princess to be his wife. Applications are accepted on condition that he was not going to tell you that its origins come from peasant ikan.Pemuda it undertakes these requirements. After a year, married couples are granted a boy. He has a bad habit that is never satiated. He ate all the food there.
One day the boy's eating all the food from their parents. The young man was very annoyed to say: "base progeny of fish!" That statement by itself unlock the secrets of this isterinya.Dengan their promises have been violated.
His wife and daughter magically disappear. The land of their former footing menyemburlah springs. Water flowing from these springs was increasingly large. And becomes a vast lake. The lake now called Lake Toba
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