|Posted on August 18, 2020 at 2:57 PM||comments (27)|
YESSSSSS!!! That Beautiful Moment when you finally reconcile an Account, especially after battling with the Account for a while - PRICELESS!!! In Case, you are wondering what Reconciliation is. Reconciliation is the Process of ensuring that your Accounting Record agrees with your Bank Statement.
Performing Bank Reconciliations helps you spot out Fraud and Reduce the risk of transactions, that can cause late fees and penalties. The Following are the Advantages of Bank Reconciliation:
1) It makes Accounts to be in Good Standing - It makes your Account to be in Good Standing. When you reconcile your Bank Account, it helps you to be aware about the Amount that you can spend in your Account, so that you are less likely to overdraw your Bank Account. You need to keep in mind, that overdrawing will negatively affect your Credit Score and can prompt the Bank to charge you fees.
2) It Prevents Theft - Recording Bank Fees is a Standard Practice as you process your Reconciliation and it may reveal a transaction, that you have overlooked to record. By examining further, the available original documents, these discrepancies will be revealed. Most Importantly, it will reveal the Bank transactions, that were initiated by unauthorized individuals, who try to steal money from your Bank Account.
3) It Helps you detect Accounting Errors - There can be some cases, where your Bank commits an error in your favor, and this will make you liable to return that money, even if you've already spent it. By Reconciliation, you will be able to detect accounting errors that commonly occurs in Business, such as Double Payments, Addition and Subtraction Errors, Missed Payments and Lost Checks.
4) It keeps Mistakes in Check - Banks are usually responsible for implementing procedures to avoid making mistakes in your Bank Account; unfortunately, mistakes do happen sometimes, with the most common being a Simple entry error. Nevertheless, Banks will be able to correct these mistakes when you point them out, after you complete your Bank Reconciliation.
5) Need to Record Interest Earned - Businesses may think, that they are Small, so recording their Interest maybe minor. It is important to keep precise track of smaller details, since these can add up over time. Also, It may not seem important now, but as you earn more money and your Principal grows, your interest may become significant enough that it affects your bottom line.
6) It reduces Missing Transactions - We have seen several instances, where Banks may refuse to deposit your Check for reasons like you have drawn on a Foreign Bank Account. This may require them to reverse the original entry on a Deposit. Bank Reconciliation is carried to introduce transparency and efficiency into a Business's Accounting System.
7) It helps to identify Duplicate Charges - Reconciling your Bank Account helps to identify duplicate charges, that may be erroneously charged in your Bank Account; It also helps you to recognize unauthorized charges and incorrect posting amounts, thereby reaching out to the Merchant Companies and informing them to refund these charges.
8) It detects and prevents Embezzlement of Funds from your Company - Reconciling your Account helps to detect Fraud and embezzlement of funds from your Company. You are able to track every transaction and determine, where they are coming from, where the funds are being allocated to and if they were wrongly allotted.
9) It Helps Business Owners make Sound Financial Decisions - Reconciling your Bank Account helps Business Owners to make sound financial decisions about the growth of their Company and helps to identify particular product lines, that maybe non-profitable.
10) It helps you track your Accounts Receivables - Cash is King. Reconciling your Account keeps you on top of your Account Receivables; It helps you know the true Amount, that your Debtors are owing you. Reconciling your Account allows you to track your Invoices and reach out to your Debtors to make Payments promptly. It helps to ensure that you always have Cash available in your Bank Account.
11) Reconciling your Account helps you produce Accurate Financial Reports, needed for your Loan Application - Due to the Pandemic, a lot of Businesses have to rely on SBA Loans and Government Stimulus to help their Businesses stay afloat. Having a Reconciled Account helps you produce Accurate Financial Reports, that can help you obtain these Loans easily, without hassles.
Are you Reconciling your Account Regularly? Are you overwhelmed with your Reconciliation? We have the latest Accounting Software to help you and Guess What? We can set one up for you as well.
Give us a Call on 202-422-4586 and We'll help you out.
|Posted on April 3, 2020 at 4:04 PM||comments (3)|
We are aware that these are unprecedented Times and there are a lot of challenges during these Period. We are encouraging you to rise above this Situation and remain confident, that you will come out Stronger, Bigger and Better off.
President Trump just signed off a $2 Trillion Relief Bill, which will come in form of Stimulus Checks to offer Assistance to Millions of American Household, affected by the Corona Virus Pandemic. We are aware that most of us have Questions and we want to enlighten you more about, what in this for us.
The Following are the Basic Things to know about the Stimulus Checks:
It is important to note that if the Income Exceeds the threshold, the Amount will be reduced on a Sliding Scale.
We are available to help you with all the Questions, that you may have , regarding the Stimulus Check as well as any other Question on the Stimulus Package. We are also available to assist you virtually. Call us on 202-422-4586 to set up an Appointment.
It is always our Pleasure to Help you.
|Posted on August 17, 2018 at 5:36 PM||comments (5)|
More than 2 Million Individual Tax Payer Identification Numbers( ITINs) are set to expire at the end of 2018.
* Tax Payers whose ITIN is expiring and needs to file a Tax Return in 2019 must submit a Renewal Application.
* ITINs that are affected are the ones with the middle digits 73,74,75, 76, 77, 81 or 82. ( For Example: 9NN-73-NNNN) needs to be renewed even if the Tax Payer has used it in the last 3 Years.
*ITINS with middle digits of 70,71,72,78,79 or 80 have previously expired. Tax Payers with these ITINs can still renew at anytime.
* Acting Now to renew ITIN Numbers will help Taxpayers avoid delays, that could affect their Tax Filing and Refunds in 2019.
* As a Reminder, the IRS no longer accepts passports that do not have a Date of Entry into the US as a Stand Alone Identification Document for dependents from a country other than Canada, Mexico or dependents of US Military Personnel Overseas.
* The Dependents passports must have a Date of Entry Stamp, otherwise Additional Documents to prove US Residency will be required.
Read on and Be Enlightened. Feel Free to Share.
|Posted on July 4, 2018 at 2:14 AM||comments (7)|
|Posted on March 29, 2018 at 5:43 PM||comments (2)|
It was a pleasure offering Quickbooks Training Services to the finance Team of RCCG Mercy Court, Towson, MD. Great Pastor, Great Receptivity, Great People. When you have a great team, Training is a Breeze.
#quickbooks, #quickbookstraining, #quickbookstrainer, #quickbooksproadvisor, #quickbooksspecialist, #bookkeepingservices.
|Posted on December 22, 2015 at 10:49 AM||comments (5)|
Merry Christmas and A Prosperous New Year 2016 to all our Current and Prospective Clients. We want our Clients and Fans to know that we appreciate them and continually look forward to a great working relationship. The Year is almost coming to an end and It's a Busy Season for everyone. As you make your Holiday Plans, Remember to close your Books and Accounting Records for the Year 2015.
We have listed some Tips to help you close the year properly, so that you can make great plans for the upcoming year:
1) Ensure that the Bank and Credit Card Accounts have been reconciled.
2) Ensure that the Loan Interest has been separated from the Principal Amount and is accurately entered into your Books.
3) Check for the Accuracy of Accounts Receivable and Accounts Payable.
4) Write Off Bad Debts for Customers who are Noncollectable.
Another Tax Season is about to start; Filing your Taxes will probably never be fun, but being proactive when you are not under a Deadline can help ease some of the burden and save you time and frustration when April Comes around. If you need help with getting your Books ready for Taxes, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.
|Posted on November 5, 2014 at 1:44 AM||comments (29)|
-Understanding the Myth of Profits.
As a Business Owner, Have you ever wondered why you cannot seem to get hold of your profit? Most Business Owners ask the question....." I see that I made a Net Profit of $XXX, but where is it? ".We have been looking at the topic of profit making, and this topic is a great mystery in Businesses.
We agree that making Profit is a good thing and a negative profit (Loss) is not a good one; however, the mind game begins when there is profit, but no money in the Checking account. Do you also wonder why you don't go out of Business, when your Profit & Loss Statement keeps showing a negative profit (Loss)?
The Answer is simple: PROFIT IS NOT CASH.
The most important fact to remember about Profit is that, Profit has no connection to how much Cash is in the bank. A Profit and Loss Statement shows the movement of transactions, which occur in your Business for any given period (monthly), and the total net effect of these transactions constitute the balance that you see on your reports.
An Example is when you enter a Business transaction, and an invoice amount of $3,000 is created in your Books, your Profit and Loss Statement shows the Sale and Resulting Net Profit, but there is NO CASH, until the invoice is paid; this money remains in your Account, only for a period of time, because when you pay your vendors or make your Bill Payments/Loan Payments, the money is being used up.
Let's take a Loan Payment as another example; Most Business Owners forget that only the interest portion of a Loan Payment appears on a Profit & Loss Statement, while the Principal portion of the transaction occurs on the Balance Sheet. In this case, another portion of profit has been used to pay the principal.
In conclusion, It's not Magic...........It's just having a basic understanding of how transactions occur in your Business and its effect on your Profit & Loss Statement, as well as your Balance Sheet. The Ultimate Goal is to make better financial decisions. However, take Note, You can be profitable and still be broke (Did I hear someone scream?). Turning Profit into Cash is the secret to managing your Net Profit Balances.
Our Next Newsletter will feature, how you can turn your Profits into Cash; if you need help with understanding your financial reports, why don't you give us a call? We would be glad to help you.
|Posted on October 7, 2014 at 1:17 AM||comments (7)|
Profitability is a key driver of financial success in business. The goal of every Business owner should be to make profit and improve their business to make it better.
If you were having a discussion, one year from today, and looking over your financials, Will you be happy with your financial progress? This question should propel you to take action, about what you expect your profit to be for the year.
Profit is like a car,that must be driven; it does not drive itself; for you to get a projected profit, you have to be on top of your profit expectations. I have listed some questions, which should stimulate you to focus on an expected profit, as the year is coming to an end:
As you go through these questions, you're painting a picture of what your financial success should look like, and this will lead you to action, for an end result. Having a picture requires taking action to actualize your projected expectations. These steps below will help you achieve your financial profit picture, feel free to put them into practice and see the transformation, it brings to your business:
1) Have a Target Goal: You need to have a financial goal for your business at the beginning of every year. The Goal can be broken into monthly, quarterly and semi-annual financial targets. It is advisable and easier to have a monthly target.
2) Monitor your Progress: Once you set your financial goals, you will need to monitor your progress, against your target every month. You can only monitor your progress by examining your monthly financial reports (Profit & Loss/ Balance Sheet Reports). If you have not been preparing your report, this should be a good time to start.
3) Adjust: At the end of every month, you need to review your target goal against your actual results (financial reports), and decide if you need to make changes, in your business, to achieve your targets. The changes can be in form of reducing an expense category to putting a plan in place for faster accounts receivables process.
This is the secret to creating your financial success for your business. I challenge you to put these into action and watch your business achieve your desired projected profit.
Do you need help with interpreting your financial reports? Perhaps you are yet to prepare your financial reports for the year, and don't have an idea of your actual profit; Call us NOW for further consultation and Assistance.
We will be glad to help you.
|Posted on September 5, 2014 at 12:50 AM||comments (7)|
Setting up the Right Accounting System for your Business.
Every Business needs a good Business Accounting System to increase their Business' chance for success. When Starting a Business, the first focus should be on building systems and processes, that allow us to accurately capture as much data as possible, from the setup process; It is important to remember that this process helps us to learn about our businesses and enhances our decision making, as well as giving us a better idea, of what is going on in our Business.
This Month, we will be looking at the processes of setting up the right business accounting system for our Organization. Below are some points to consider, when setting up your Business Accounting System:
You need to spend time in setting up the right Accounting system for your Business, if you want your Business, to be successful. We know that it is easy to get caught up in all the administrative tasks and will suggest that you ask for help
Do you have the right Accounting System for your Business? It's not too late to set up a good system for you, why don't you give us a Call to help you out.
Remember: You are increasing your Business chance for Success, when you make your Account Setup, a priority.
|Posted on August 5, 2014 at 2:49 AM||comments (26)|
It's already the eighth month of the Year, We are gradually getting to the end of the year, and soon it will be time for Year End Reports. In our last Newsletter, We discussed the concept of Cash Flow and how it affects our Business Operations; this month, we will be looking at tips to manage our Business Cash Flow.
Being in Business for yourself is like being an Air traffic controller, especially in the area of cash flow management ; You can imagine trying to control 100 Airplanes landing simultaneously on two runways; this can be an upheaval task, but we regularly see clients line up their monthly bills, their projected income, business projects and business expenses and try to combine all these activities, at the same time, trying to ensure a steady cash flow into the business; you can imagine, the projected outcome, if all these activities are not properly coordinated.
Cash Flow is the heartbeat of every Business, and if a Business does not have the cash on hand to pay their vendors, they will definitely run into problems. The main Cash Flow Problem, that Business Owners face is as a result of Lack of Creative Cash Management. Below are some Tips to overcome the Ups and Downs of Cash Flow Problems in your Businesses:
1) Always Schedule All Payments: Most Business Owners line up their monthly bills, compile them, sit down and issue all the checks and set up Bill Payments at once; but the trick is to have a " Holding Pattern". It is advisable to schedule each payment, in order to get to your vendors in a timely landing, without affecting other Cash Flow activities.
Every Business has Three (3) tiers of Checks Disbursements Groupings:
a) Must Pay Group- These are payments that can hurt you, either in cost or ability to operate your business, if they are not paid. These include items like Taxes, Rents, Payroll and Service Charges.
b) Important to Pay Group - These are payments, that have a reasonable grace period, and if not paid, a financial penalty can be incurred, as a result of Nonpayment. These include Utility Bills , Credit Card Payments and Insurance Payments .
c) Flexible Payment Plan Group - Suppliers, Vendors and Wholesalers, that supply most Small Businesses are the best sources of flexible credit financing. Most of them will continue to work with you, if you arrange a regular payment plan with them.
2) Make Payments on your Revenue, not on uncollected Sales : I am sure, that none of us will want to land a plane, hoping that the runway is beneath us in the fog bank, as also Business owners, it is not advisable to make projected payments on uncollected revenue. You may wander, what happens to Credit Facilities, Guess What, Most Credit Facilities still have a timeline for payment.
3) Do not use Payroll Taxes to float your Business Operations: Studies have shown that most Business Owners use the Tax liabilities, collected during payroll, to float their businesses, rather than remitting the payments to the appropriate Tax Authorities. They don't realize that they spend more in potential penalties, fees , interests, time and aggravation, if they engage in this act. Tax Liabilities grow, if they are not remitted at the appropriate timing.
4) Establish Relationships with your Credit Provider: It is very important for every business owner to plan for a rainy day. Having a great relationship with a vendor, that gives you a credit facility, avoids cash flow storms, which might bring in a sense of desperation or lack of control.
5) Invest in a Good Bookkeeping/ Accounting Service: It is important for Business Owners to have a grasp of their cash flow and understand the effect on their business growth. A Good Bookkeeping service is invaluable to your business, particularly in preparing your monthly financial reports and cash flow statements, which will help you, see how your Business is doing as well as maintaining your Business Cash flow.
Understanding and Managing Cash flow has been a challenge for many Business owners, but with the application of these tips, it is possible to grow your Business to a greater level , and also have enough funds for other activities, that will bring more revenue into your Business.
Please feel free to contact us on 202-422-4586, if you will need further help on how to manage your Business Cash flow and financial Reports. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW.