Accounting has come a long way since it was invented just for keeping track of the transactions for traders. Its first practice was the double-entry book keeping developed in the Northern part of Italy in the 14th Century.
The double-entry book keeping revolutionized and widened the scope of accounting. Today, Accounting plays an important role in every business. It is the single medium by which the financial information is communicated to business entities and stakeholders. It is the base on which all business decisions are made.
A career in Accounting whether Management or Financial is definitely a strong, influential and promising one. However, there are so many rules, regulations and principles that have to be studied, understood and experienced in order to find an opportunity in the accounting field.
Accounting, as they say, is the language of business. Accounting is that one activity on which entire business revolves around. A good and fair accounting practice can set the reputation of a business while bad practices could spoil it. Let’s look into some of the best accounting practices that hold the key to success. Invoicing The image of the company is often reflected in the way invoicing is handled. A comprehensive invoice template will contain the essential components such as name and address of the company selling the product or service, buyer’s name and address, s...
Accounting is a basic component of business, in which the movement of money is recorded and analyzed. There are a lot of parts of accounting, but there are some parts that stand out as universally viable and crucial. These components are going to be discussed in this brief introductory article. More research is always better when it comes to accounting, so start here and continue onward later on. The following terms are only some of the most basic possible, but they are also some of the most often used in the accounting world. Accounts Receivable An account receivable is an amount of money t...
If you are filing income tax return for your small business for the first time you would like to explore the options available to you. You may either handover the entire process to a professional or file the tax return on your own. Actually, the process is so simple that you do not need the help of an expert provided you were methodical from the very beginning and have all the information with you. The following suggestions will help you file the returns accurately. Choose the Right Form and Inspect It Thoroughly Go to the IRS website to determine the form that applies to your business. Go t...
Inevitable For Today's Business Creative accounting is the practice of putting a company's best foot forward by creatively and legally recording accounting records in ways that offset negative records. Creativity has been practiced in accounting in order to give a new dimension to business. For those of you who had considered accounting is all about maintaining records, creativity is something that makes it more exciting. Consistent growth Every business wants to portray consistent growth instead of depicting volatility in terms of profits. This is the main reason why creative accoun...
A Certified Public Accountant or CPA is a very valuable professional to have, especially during tax time. With the right CPA, not only will you have a far lower risk of ultimately being audited because of a silly mistake. Not only will you be able to collect a larger refund or a smaller bill than you would otherwise have. If you go with a great CPA, you will also be able to plan your finances more carefully for next year, so you will not have as many problems as you do now. However, a great CPA is sometimes difficult to come by, meaning you have to actively search for some particular traits...
Doing taxes can be a lot of work. While it might be tempting to simply go to the nearest tax place to get your taxes done, sometimes you would be well advised to shell out a little bit more money to get the job done by a genuine professional. While a professional accountant may run you some more money, he or she will help you to stay on the right side of the IRS. He or she will also allow you to get as much of a refund as you legally can, which in many cases will more than make up for the fee the accountant will charge you. The following are some tips for finding a qualified accountant. Cert...
Do you receive financial reports from companies whose shares you own and cannot understand what the report says? Are you a business owner who is good at business operations but knows nothing about accounting? If yes, you need to learn to understand common financial reports. Financial reports may comprise of hundred pages but actually there are only three pillars on which accountants build a huge edifice; the balance sheet, income and expenditure account and cash flow statement. If you understand the basics of these common financial reports you have solved the puzzle. The Balance Sheet A bala...
There are a lot of different investment classes out there that you can invest in. With a little bit of money and a variable amount of time put into research, you can make a substantial return on your money. Of course, there is a lot to learn that you should carefully look into before you plunk down the money you worked hard to earn. The following are four very useful pieces of a solid investment strategy. You may use a couple of them or all of them, and still do fairly well. Just be careful how much you put into each asset class. Common Stocks Common stock is the most basic form of investmen...
An audit notification from the IRS is enough to strike fear even before one opens it. The very idea of having revenue officials scrutinizing every piece of evidence and going through every line with a fine tooth comb is frightening, not to talk of penalties and/or additional taxes. However, open the letter first to see what it says because many times IRS simply wants some additional documents and information. An IRS audit need not be stressful if you have taken care of filing your tax returns with care and ensured that you have not missed out on anything. However, it is common for people to...
Stocks, commodities, foreign currencies and any other kinds of assets can be bought and sold on a daily basis with relative ease. While it might not be something many people do, enough people are constantly at work trying to make their fortunes in the various markets to create a robust trading environment. Buying and selling activities are not unlike those at any marketplace or pawn shop. The difference is, these are not necessarily mere goods, but are in many cases far more valuable ownership stakes. Trading Ownership Ownership is what assets are all about. When you buy an asset, you have s...
If accounting is considered as the lifeline of a business, auditing ensures it is transparent as well as healthy. Auditing in a traditional or typical language is checking and authenticating the transaction records managed by the company. This is to ensure that there are no frauds, misappropriation of amount, duplications of transaction or amount etc. It is a process where each cash transaction will be cross verified with the connected bills or vouchers and ensure the profit or loss has been derived by following correct accounting procedure. Why auditing? Many of you might have this question...
A 401K is a very important type of investment tool that was started by some legislation called ERISA in the 1970s. While it can hold a variety of different asset classes, the unique tax status of a 401K can make it very beneficial for a worker who invests through it. If an employee's income drops as they get older, not having to take taxable distributions down the road can lead to a hefty tax savings. However, the information we just covered is the what, retirement is the why, and the following is a solid chunk of the how. Getting Started Most companies in this day and age offer some kin...
There was time that if you had to file personal tax returns on your own, you could either consult a tax preparer or gather a whole bunch of receipts and wrack your brains. The Internet has changed all that and now you have a variety of options for preparing personal tax returns. While the traditional option of filing hard copies is still open for taxpayers, considering the convenience of newer options you would not want to. Moreover, it is in your own interest to file tax returns electronically. However, regardless of how you file returns, you still have to prepare for personal tax returns....
A lot of people think that in this day and age, a broker is not as important as such a person would have been in the past. However, there will always be a place for quality brokers in a world where trading can take on complicated nuances. While you might not need a master trader on your side, a qualified broker is the least you should go for. Don't just take your advice from anybody who will give it to you, or you might spend the rest of your natural life listening to nonsense from fools. Here is what to look for in a qualified broker. Certifications Ultimately, schooling is an important...
An incorporated business is a separate entity, an artificial person of sorts. That means that if your business is a corporation, you need to file your personal and corporate tax returns separately. Both returns are filed in different IRS Forms. The one that applies to C corporations is Form 1120. Most of the information would be available in the financial accounts and reports while the rest is general information about the corporation. Company Information The form as well as the 1120 instructions can be procured from the IRS website. You will have to familiarize yourself about the different...
Over the years, manual accounting process has proved to be cumbersome, time consuming, laborious and prone for tampering. It always carries the risk of being lost or destroyed. Further, the information in the books is difficult to search and cannot be readily accessed when required. This leads to unwanted waste of time at the time of filing tax. Accounting software has proven to be a perfect substitute for this futile effort. The following points will explain how this software has proven to be a winner for every business and unavoidable too. Saves time One of the main advantages of using thi...
Accounting is the lifeline of every business. It is the list of transactions that have taken place over a period of time and gives a clear picture of profit or loss at the end of every year. Business accounting concepts differ based on the size of the business. Small business accounting is very different from corporate accounting, as the amount of transactions and volume vary hugely. The accounting concepts do differ from each other although the basics remain same in both forms. Here is the comparison of both the accounting concepts and how they can actually have an impact on your business....
For a layman, the question what is the present value of money would sound like something irrelevant. Ask that question to someone not conversant with the meaning of the term and you are likely to be laughed at. After all, the present value of hundred dollars today is neither more nor less than hundred dollars. However, present value of money has a different meaning in the world of finance and is among the most widely used calculations. In finance, present value of money is the present worth of a future sum or a stream of cash flows assuming a specified rate of return. It is often used to det...
It is a misnomer that professionals do not need assistance in financial planning and managing their money. Professionals are masters in their chosen field and financial management may just be Greek to some. Financial planning or shall we say, saving money, is one of the most important aspects of modern living. It is even more essential for professionals who find it hard to save money on low incomes. While financial planning requires taking hard decisions, it is in no way a suggestion that some expenses be totally cut off totally. It is about striking a balance between income and expenditure...
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