Tips And Tools For An Effective And Efficient Accounting Department

Accounting Management: Tips And Tools For An Effective And Efficient Department

 

Running a successful accounting department can be challenging. There is a lot of data to manage as well as team members. Use these tips and tools to operate a more successful, effective, and efficient department.

 

Build And Develop Your Team

If you are the head of the accounting department or close to the top, you have a duty of care to your employees and an interest in their personal and professional development. Each member of staff is a building block, and how you fit them together creates a structure that you should be able to build upon. 

 

This can help you to lead your team through changes and increase your department’s capacity for growth. Your management skills can help you develop your team, your team members to develop their skills, and your department to become an even greater asset to the business.

 

Review Your Common Work Practices

This is a great way to get your team more involved with the business and decision-making and show your leadership skills and initiative. Many of your common, day-to-day business practices may be suitable for streamlining or re-evaluation to see if you can find new efficiencies. 

 

By involving your team, you can utilize their knowledge and experience as well as your own to optimal processes that can save time every day. This can increase capacity, promote growth, and create a happier, more efficient workplace.

 

Involve Everyone In Decision Making

Giving people a voice in the business and departmental decisions that affect their work life is empowering for them. This can help them to become more engaged with their job and the department and can give you valuable insights into how the office works and the processes that power it. 

 

You can use these team discussions about decisions to find new efficiencies, develop new processes, and react to changes in the business in a way that everyone can support and work with.  Though you may want to retain control and have the final say on matters, do not be afraid to introduce some democracy to discussions and take votes on issues.

 

Create Learning Opportunities And Resources

When people get bitten by the accounting bug they can often be enthusiastic about developing new skills and gaining new qualifications. Some employers in the field can see this as a threat and think employees who gain new skills will take them elsewhere. 

 

If you create avenues to new learning opportunities for employees and support them as they gain new certifications, you will have very loyal employees. Investing in your workforce is incredibly cost-effective and can give your department new skills and capabilities from a very small financial outlay.

 

Mentor Your Employees

Every team member is worthy of mentorship. They will have goals for themselves both inside and outside of the workplace, and you can help them to achieve them. This can be incredibly beneficial to your employee and your business. 

 

Happy workers are productive workers, and people who achieve goals are often hungry to achieve more. Create a thriving atmosphere of go-getters in your office through effective mentorship. This will help your business to get more value from your team and increase your capacity for growth.

 

Follow these simple tips and see the difference they can make to your department. With some careful mentorship and active discussions, your team will become stronger and more productive.  And always remember, accounting success is Universal.

 

All About Color Accounting Course and The Benefits

It’s time to improve the communication skills of accounting professionals and the understanding of business management as it relates to the accounting business model.  It’s time the accounting information becomes useful to business owners to help them make more informed decisions.

 

Color Accounting is a technique that uses color and a tactile model to improve financial literacy by connecting the principles, meaning, and application of accounting data. Other studies have found a substantial relationship between color, attentiveness, and memory recall. You may also opt for other Universal Accounting Online Courses for better guidance and information.

Color Accounting

 

Instead of replacing this technique with a three-color balance sheet-income statement (“BaSIS”) storyboard and color-coded “buckets” (accounts) and “tickets,” Color Accounting is innovative in that it does away with explaining how accounting works using debits and credits (transactions). Transaction tickets are assigned to bucket accounts based on how they influence the buckets on the storyboard. Accounting topics are taught in this fashion, using color and tactile objects to help students visualize the logic of money flows.

 

It’s a highly effective accounting training curriculum that employs real-world situations that managers can readily connect to. It’s the approach that’s been shown to turn non-financial managers into confident masters of the financial fundamentals in only one day worldwide. The presentation is also a lot of fun, and at the end of the day, you’ll have a solid working understanding of fundamental accounting principles that you can apply daily.

 

Color Accounting is a teaching approach that uses diagrams and logical colors to illustrate how accounting and business operate graphically so that everyone can make better decisions. These are some of the advantages:

 

  • Fluently read and understand financial statements.
  • Engage confidently in financial conversations – asking powerful questions and improving communication, and reducing misunderstandings.
  • Truly understand the mechanics and language of accounting and finance use by professionals.
  • Confidently make sound decisions more quickly.
  • Create budgets that work and guide the delivery of results.
  • Impact the organization by meeting its financial goals.
  • Share the mindset of colleagues, clients, and the CEO to gain credibility as a trusted, business-savvy team member.
  • A clear framework for the structure of financial information
  • A robust understanding of the mechanics of accounting 
  • Fluency in the language of accounting and finance
  • Enhanced business understanding, based on The Value Cycle of Business

 

About BaSIS Framework

 

Almost all resources are based on the Color Accounting Course visual system and illustrate important topics using the BaSIS Framework. The Framework provides accounting comprehensively on a single page, with logical color-coding. There are several advantages to having both the Balance Sheet and the Income Statement in one view…

  • During explanations, the lecturer or students might point to it (portability)
  • It is simpler to assist in resolving frequent misunderstandings, such as the mistake between cash and income.
  • When studying, using color instead of the phrases debit and credit makes the logic of debiting and crediting obvious, requiring less rote memory.
  • Combining visual, aural, and kinaesthetic learning modes to increase speed and depth of the intake.
  • It’s simple to observe and comprehend the distinctions between balance sheet and income statement accounts and sub-accounts.
  • The language becomes more visible: words are presented more clearly and defined in terms of what they are and are not.

 QuickBooks Specialist

You will learn the language of business and apply it to business choices with the Color Accounting Course program in Universal Accounting. Understanding the foundations of accounting will provide new insights into how organizations operate, and your connection with financial data will be altered. They also have an exclusive program of QuickBooks Specialist Training. Have a visit straight now.

online accounting training

Top 4 Benefits Of Accounting Training

The demand for accounting specialists is unlikely to decrease anytime soon. Indeed, as long as there are businesses and currencies, there will be a need for specialists to assist both firms and people in organizing their finances and paying their taxes.

Accounting career prospects are expected to be accessible indefinitely, regardless of the health of the economy. Whether times are good or bad, accounting training assist businesses and people strategize and devise plans for success. Consider how difficult it would be for firms to examine their financial performance and make lucrative decisions in the future if they did not have accountants.

One of the numerous advantages of getting an accounting degree is career stability. If you’re thinking about enrolling in an accounting program, keep reading to find out what makes this profession so appealing.

online accounting training

Accounting Careers Can Be Found In A Variety Of Industries

One advantage of pursuing accounting training is the vast range of firms for which you will be qualified once you have completed your studies. You’ll be able to apply your financial knowledge to an accounting job in an industry that interests you.

From video game firms and fashion merchants to non-profit organizations and veterinary clinics, everyone requires payroll specialists that understand financial bookkeeping. Once you graduate, determining the industry you want to work in may make the job search process a lot more fun.

Accounting Professionals Have A Wide Range Of Job Opportunities

You will have the choice to choose which sector of accounting you want to work in, just as you will have several industries to choose from. While many accountants work in accounts payable, others work in a variety of compliance jobs.

Within a single online accounting training firm, you may have access to a wide range of accounting options. Indeed, many firms provide many opportunities for growth, as well as the opportunity to try your hand at a different job within the department. After graduation, you may be interested in pursuing numerous accounting opportunities, such as being a controller, auditor, accounting assistant, and others. You may also think about launching your own accounting firm, where you can manage a range of customer accounts on your own.  Regardless your employment goals be sure to leverage your opportunities with the Complimentary Job Placement Assistance Program.

With accounting skills, starting a home-based business is a possible career option.

You’ll Be Prepared For Business Success

To be successful as a business owner or entrepreneur, you must understand basic accounting principles.

Managing costs, cash flow, bills, vendors, and payroll are all important aspects of running a business. Preparing financial accounts, evaluating how profitable your firm is, estimating future sales, and conveying financial information to stakeholders and investors are all critical accounting skills for entrepreneurs.

Accounting can help you go one step closer to your entrepreneurial ambitions as a business owner. Therefore if you want to start an accounting business, visit us at Universal Accounting!

 start an accounting business

 Accounting Professionals Make A Good Living

The average accountant’s compensation now starts around $50,000. However, as you achieve more experience, you will be able to earn far more. Accounting has a lot of earning potential, especially if you appreciate studying and staying up to speed on the newest accounting techniques and trends throughout your career.

Some accountants utilize their knowledge to teach in the profession, while others work hard to become partners in big accounting companies, so you never know where your accounting training may lead you! To learn more, contact us at Universal Accounting!

How to Do Accounting for an LLC: All you Need to Know

Getting your business’s accounting in order has many benefits. Not only does it help with bookkeeping and taxes, but it’ll also bring peace of mind. Additionally, if you’re someone who isn’t detail-oriented, having organized financial records and accounting can be helpful for budgeting and business projections. 

Why should a business be registered as a Limited Liability Company (LLC)?

An LLC includes the features of a sole proprietorship, a partnership, and a corporation. The LLC, therefore, presents itself as the most flexible business structure. As opposed to a sole proprietorship, an LLC protects the individual from debts and lawsuits. When filing taxes, a single-person LLC can file taxes as a sole proprietor or as a corporation. Alternatively, an LLC with multiple owners can file taxes as a partnership or corporation. For example, if you’re looking to start an LLC in Florida please make sure to familiarize yourself with the local laws.

Does an LLC need to open a business bank account?

Laws mandate LLCs to open a bank account. Consider the following when deciding on the bank:

  • What type of account best meets your requirements?
  • The fee charged by the bank.
  • Choice of online/in-person services offered by the bank.
  • Network of branches of the bank in the area of the business’s operations. 

The types of accounts that need to be opened include:

  • Business Checking Account – For the business to receive customer payments and pay business expenses.
  • Business Savings Account – For the business to save a part of the income for tax obligations and unforeseeable business expenses. 

 

Why is it important to separate personal and business finances?

Separation of personal and business finances is vital. Business expenses should not be made from personal accounts and vice versa. Also, don’t transfer funds from the business account to a personal account. Separation of finances helps in consolidating business income and expenses in one place and makes it easier to calculate the business’s tax obligations accurately. One could also enroll in formal accounting/bookkeeping classes to learn the basics. 

 

What are the options in the choice of accounting methods for an LLC?

LLCs can choose to follow one of two options in accounting methods:

  • Cash accounting – In this method, income is recognized and recorded when money is received. Likewise, expenses are recognized and recorded when money is paid. 
  • Accrual accounting – Here, revenue is recognized and recorded when earned, not when received. Also, an expense is recognized and recorded when incurred, not when paid. The drawback of this accounting method is that it does not give a true picture of a business’s cash flow. On the other hand, it provides an accurate picture of its income and expenses during a specific duration of time. 

Whatever accounting method the business chooses, the business will need to stay with it for all future tax filings. 

 

Should the LLCs do their bookkeeping in-house or outsource it?

Bookkeeping is the tracking and recording of the business’s income and expenses. This must be done diligently to accurately track the business’s finances, prepare correct financial statements, and file correct tax returns. Depending on the size and maturity of the business, the available options for bookkeeping include:

  • In-house bookkeeping – Typically, in-house bookkeeping would not be required for early-stage businesses. As the business matures, it may decide to hire a team of bookkeepers to record the firm’s financial transactions. In-house bookkeeping, invariably, works out to be the most expensive option.
  • Outsourced bookkeeping – This bookkeeping method could be done by hiring a part-time bookkeeper or by subscribing to an online bookkeeping service. Businesses could consider services such as InsightsOfficer from PwC.

How should business expenses be tracked?

IRS stipulates and provides a detailed list of business expenses, income earned, and payable taxes that need to be tracked and recorded. The important ones include:

  • Business receipts for office supplies, work-related travel expenses, etc.
  • Bank statements
  • Bill for office utilities, internet/telephone expenses, etc.
  • Invoices
  • Financial statements
  • Payment proofs
  • Tax returns

IRS regulations also stipulate the length of time that each of the different types of records needs to be maintained. The length of time that the documentation needs to be stored varies depending on the type of financial record. Businesses have the option of choosing physical documentation or a cloud-based service.

What are the options available for the business to receive payments?

In addition to the traditional methods of cheque/direct deposits, other options available to the business for receiving payments are:

  • Online payments – Online receipt of payments helps in the faster clearance of invoices. If the business has opted for cloud-based accounting software, the software would normally be integrated with an online payment tool to manage the business’s payments.
  • Automated invoicing – To simplify their invoicing processes, businesses can opt for an automated invoicing system. Most cloud-based accounting systems integrate this feature for recurring invoices.

How should the LLC’s payroll be set up?

Setting up payroll is essential for any business that employs staff. The employees of the business need to be appropriately classified as permanent employees, contractors, part-time employees, etc. After the staff has been classified, the business must design the payroll by factoring in the different financial regulations specific to the different classes of personnel. Insights on payroll management from ADP are a useful source of information. One could also find other reliable resources on the subject.

What are the tax obligations of an LLC?

LLCs are bound by law to comply with tax regulations at the federal and state levels. The leadership enrolling in a course to learn the basics of preparing tax returns will help adhere to compliance requirements. The taxes that the LLC needs to pay include:

  • Income tax – Tax to be paid on the income earned by the business.
  • Employment tax – Federal Insurance Contributions Act (FICA) mandates LLCs to pay employment tax, including contributions towards social security and medicare. 
  • Sales Tax – This tax varies depending on the state in which the business is based. 

Also, to manage its accounting needs the business can decide to either hire or consult with a professional business accountant. A trained business accountant can advise the business on the appropriate legal structure for the firm, tax-related obligations, and financial strategy and oversee financial reporting. 

Accounting plays a critical role in running a business by helping track income and expenses and enabling statutory compliance. It also provides the business’s management and investors with the financial information required to make informed business decisions. 

 

Author Bio:

Matt Horwitz is the founder of LLC University, a website that teaches people how to form LLCs. Matt is the leading authority in LLC education and is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and the US Chamber of Commerce. Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.

Best Ways To Keep Tabs On Your Money

When it comes to personal or professional finances, money management and using a financial application that’s specific to your circumstances can help you achieve financial health and monetary growth. Not only will the right app make it easier to manage your various accounts, but it can also give you real-time insights into your personal or professional financial picture. If you’re ready to move to the next level, Universal Accounting provides a range of training and certification programs that will help you grow your career in the finance sector.

Benefits Of Financial Apps

When you’re operating a company, Business News Daily says maintaining your financial health is critical to your overall success. The right apps and software will help you establish fiscally responsible budgets, ensure that you’re meeting your goals and objectives, and it will alert you to any potentially worrisome financial issues before they get too far out of hand. It can also help you get an instant snapshot of your finances without having to log into various accounts, download reports, and conduct an analysis. The key is in finding the right app or apps and software to help you achieve all of your goals.

What A Financial App Can Do

According to the U.S. Chamber of Commerce, one of the greatest benefits of having a financial application is that you can keep all of your information in one place. This helps you easily access all of your financial details at the touch of a button, which in turn, can help you organize both your personal and business finances efficiently. It will also result in fewer errors, and if you’re both a business owner and you’re tracking your personal finances, it’s wise to keep your accounts separate. This is especially critical if you form an LLC, or limited liability company, for your business. If you combine or commingle your funds, you run the risk of losing your liability production and becoming personally liable for debts and losses.

What You Should Look For

One of the first things to consider when you’re comparing different personal financial apps is whether they integrate with your other accounts and are easy to navigate. You may need special tools or features based on your particular line of work, and you also want to ensure security. If you’re not terribly familiar with using this type of technology, keep in mind that an application that offers superior levels of customer tech support is invaluable. Ease of use is another critical factor. It doesn’t matter how effective an app is, or how many bells and whistles it features, if it’s too complex, you’re unlikely to use it in a way that makes the most sense for your operations.

Things To Track

When you’re comparing financial apps and software, consider your specific needs and compare them to the features of different apps. For example, maybe you could benefit from accounting features, inventory management, payroll functions, business expenditures, or research and development investments. Look for an app that allows you to utilize analytics, run reports as necessary, and keep your accounting information in detailed, organized order. This will make it easier when it’s time to file your taxes, apply for business grants and loans, and share with investors, if applicable. You want a tool that meets all of your needs, not just some of them. 

Whether you’re managing your finances as a business owner or looking for something to help with personal accounts, an app is only as good as the fiscal planning you establish. If you’re a business, utilize a business plan that includes forecasts and projections. Track marketing efforts to ensure you’re reaching the appropriate audiences, and regularly review your operational functions. If you’re tracking as an individual, set earning and investment goals and work with a money manager to make strategic investments. Once you have the strategy, the right app will keep you on track.

Universal Accounting offers certification in accounting, bookkeeping, tax preparation, and other related financial fields. Programs are designed to meet you where you are and achieve your unique professional objectives. Visit the site to learn more or reach out via phone for a consultation.

by Sharon Wagner

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