Best Accounting Software

Software for accounting is increasingly important for businesses that not only do business in real time through brick and mortar companies, but also for businesses that include Internet sales to their inventory options. These tools usually allow for customization of its features to allow multiple users, diverse financial mechanisms and complete tracking for both web and store front transactions. It is important to find the right financial computer program before starting a business in order to alleviate confusion and mistakes on everything from sales, taxes, inventory and user log ins.

There are simple financial packages that provide the bare necessities for a small business. Many do not provide comprehensive features or customizable functions, but are perfectly useful for certain small business needs. There is never any real use in buying software for accounting that is very expensive and that offers features that a business will never require. Choosing the right tool for the accountant's needs should be determined by how much growth is planned for, in a business design.

A company's needs should also be determined by how many users are expected to log on to the system, what security features are necessary and whether or not users intend on broadening business expectations. Some of the best accounting software falls into the financial management category that will offer tracking features that far exceeds some business needs. However, if a business intends to develop rather rapidly, company owners may want to consider programs that the company will not readily outgrow.

Having to resubmit business information and learn new programs can be a feat in itself, so purchasing a program to grow with may be the right move. Financial management software can include features like tracking features, statistical breakdowns and marketing features. Tools for accountants are built into these super progressive financial management programs, providing the cutting edge in finances, marketing and statistical tracking. These programs provide much more than the typical software for accounting.

Many of the typical financial programs include regular features, such as accounts receivable and payable, order stats, entry recording and general accounts managed. The very basic design of some software for accounting programs can be all a company needs and it is not necessary to purchase a financial management program with all the bells and whistles in order to get the job done right. Many times it is necessary to find a user friendly tool for accountants in order to insure full usage and documentation from business personnel. The more complicated the program, the more training may be required in order to receive the full benefits of use.

Good program options, however, can be user friendly since much of the PC software has attempted to compete with Mac's friendly software designs on everything from photography, music, office to financials. Competition has been good among companies designing the best accounting software and business offices are reaping the results through friendly, simple accounting programs. These tools not only make life easier for business offices but also provide up to date technology for accurate, financial business management. One of the most appreciated features that can be found among the newer versions is the ability to customize the many features to fit one's particular accounting needs.

Some people have found that upgrading to a new version or upgrading to a totally new program has not paid off. Many of the upgraded features are merely fluff and don't really do much for added functionality. Some businesses just stick with what they have until several versions later or until some major break through occurs in these computer programs that will really impact their accounting needs. There are many online sources that can provide accountants with further information regarding the best accounting software for any business needs. "God is our refuge and strength, a very present help in trouble." (Psalm 46:1)

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Avoiding Capital Gains Tax

Investors agree that avoiding capital gains tax is important, for taxes can have a significant impact upon the profits realized from investments. However, with planning and discipline, a person can deflect some of the effects from capital gains taxes. Although changes in capital gains tax rates are ongoing, there is usually enough time before changes actually take place to ensure that these do not seriously alter investment plans. Committing oneself to a general investment plan while remaining flexible enough to deal with new regulations takes a certain amount of discipline and a determination to remain informed about financial matters. Yet this mixture of disciplined planning and flexibility allows an investor to realize maximum profits from investment vehicles.

Capital gains are taxed differently depending upon whether an investment is long or short term. A short term investment is one in which the asset is held for one year or less. These short term investments are taxed at the same rates as ordinary income tax rates. Long term investments are those in which the assets are held for a period greater than one year. These are taxed at a discounted rate -- normally 5% or 15%, depending upon the investor's tax bracket. If investments are held until they qualify for these discounted rates, it will allow the investor to reap greater earnings while avoiding capital gains tax when the investment is sold.

Which rates a person will pay depends upon several things. These include when a person buys and sells an asset, the income level of the investor, and the latest IRS code changes! For this reason, a person should consult with investment advisors or experts in these laws before taking any actions regarding his or her investments. However, it is possible to stay informed about many of these laws regarding capital gains tax rates through financial websites and articles. Check to make sure that the information uncovered is up to date and accurate before altering an investment strategy.

Currently, capital gains tax rates are 5%, 15%, 25%, or 28% for long term investments. An individual's income determines which of the capital gains tax rates apply to the investment. Long term capital gains tax rates are usually much lower than regular income tax rates. Collectibles (stamps, coins, precious metals or gems, rare rugs and antiques, and fine art) are taxed at a flat rate of 28%. Some business assets which are used in a business venture are considered investments. These may include equipment used in the business, such as copiers and computers, or items such as desks, chairs, and other office furniture.

Before 1997, the only way to be sure of avoiding capital gains tax on the sale of a home was to use the money to buy another more expensive house within two years. Sellers who were age 55 or older could take a one-time exemption of up to $125,000 on profits realized from selling their homes. These rollover or one-time options were replaced with new exclusion amounts by the Taxpayer Relief Act of 1997. Now, a person does not have to buy another house with the proceeds from selling a house. There is no limit on the number of times this home sale exemption can be used. Each time, the seller can realize up to $250,000 in profits if he or she is single, or $500,000 for married couples. The property has to be a principle residence, and a person has to live in it for two out of the five years before the sale. Note that the two years does not have to be consecutive. Any combination of renting out and living in the property is acceptable, as long as the owner lives there for two out of the five years previous to the sale. The new rules also eliminate paperwork. If a person's profits do not exceed the limits, nothing need be filed with the IRS. Some pro-rated tax free profits are allowed under certain circumstances due to changes in health, employment and unforeseen circumstances. Military personnel get special exemptions from the use requirement if they must move to fulfill service commitments, for the frequent deployments common to their employment make it difficult to meet residency rules.

Investment properties have their own set of rules for avoiding capital gains taxes. The sale of one investment property for another, sometimes called a 1031 Exchange (named for the section of the IRS code which permits this action), Starker Trust Exchange, or 'like kind' exchange, helps investors to avoid capital gains penalties. An investor must select a replacement property within 45 days of the sale of the investment property. Also, one must close on the purchase of the second investment property no later than 100 days following the closing on the first property. A 'qualified intermediary' will hold the money and act as the seller of the first property and the buyer of the second one. The second property must have at least equal value as the one which was sold. Also, the second property must be used as an investment property with at least some evidence of rental activity for two years. In this way, a person can defer the capital gains tax from the sale of the first property. After the two years are up, the owner can declare the property his or her primary residence and live in it for at least two more years. At that point, if it is sold it will qualify for the $250,000 or $500,000 exclusion from capital gains taxes.

Be sure to consult an attorney or tax advisor before beginning this process, to make sure the latest terms are agreeable and that all the current requirements are met. "Render therefore to all their dues: tribute to whom tribute is due, custom to whom custom..." says Paul in Romans 13:7. Christians have the duty to pay any taxes which are due. However, if there is a legal way of avoiding capital gains tax, this is a wise way to preserve funds which can then be used for other purposes.

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Asset Protection Strategies

Asset protection strategies are necessary for protection from potential lawsuits, creditors, or any other organizations that seek to lay claim on portions of people's savings. A plan set in place for the protection of one's properties can be like a protective barrier barring the way between a frenzied creditor and a family's nest egg or a person's life savings. There are several courses of action for building that barrier. The best way to protect earnings and assets is by setting up a trust, which is also the most common method due to ease and low cost. Most plans are able to be customized to best fit the needs of an individual, company or organization.

Many people feel the need to take precautionary measures when it comes to guarding assets and investments. Asset protection planning has been sought after throughout the years due to effectiveness and to the fact that no laws are broken. Everyone has the right to take steps to ensure that their money is protected from such events as over taxation, bankruptcy or tricky financial situations that might arise as the result of a divorce. Steps towards financial protection are imperative before any claims or suits are filed against someone's assets. People need to take action as soon as possible to make certain that the majority of personal properties are protected.

Various strategies for the protection of assets are available, and not all strategies are the same as people are able to customize plans according to needs. The best way of determining the most effective method is by basing the method on what area of finances needs the most safeguard and the possible risk factor involved. One of the most common forms for the protection include plans geared toward retirement, portions of property legally given over as a gift, turning a business into an LLC and so on. Domestic asset protection strategies are implemented when a person seeks to protect the assets they have within the country of residence. An expensive form of investment protection is found in an offshore trust. Oftentimes, when plausible, people will choose to set aside a large portion of investments in a foreign country where the assets will be protected by creditors do to the different jurisdiction and laws. While this method can prove to be beneficial, one is required to be familiar with the legalities involved and maintaining an offshore investment can become costly.

Asset protection strategies function much like a shield against the attack of unfriendly foes. By setting up and properly maintaining protection, people are able to shield investments and earnings from those who might try take from them, such as creditors and various officials of the government. If one has failed to set up a proper defense system at the time of an attack, they are likely to lose a substantial portion of assets, whereas those who have taken preliminary precautions have a greater advantage against the assault of creditors.

There are simple ways of making certain that a family's nest egg is protected, the most widely used strategies being that of a trust, either domestic or offshore. Placing money in a trust is an excellent course of action as trusts are easy to maintain and have the ability to grow over time. Those who have a lot of assets or have a high income would be wise to consider hiring a financial accountant as a method of asset protection planning. The selection of a reputable accountant or attorney can be a wise decision as clients can deal directly with a real person they trust to intelligently manage investments and provide an added level of security.

Asset protection planning is made up of techniques that enable people to protect what they have. Creditors are not prevented, planning simply makes the job one of dead ends and frustrations, in the hopes of deterring the efforts made by any current or future creditors. There are cases and situations when hiring an attorney is necessary. When dealing with large sums in either settlements or claims, abiding by laws is important yet can be difficult of one is not familiar with the process. Precautions should be taken any time valuable assets are at stake and a working knowledge of the boundaries of such processes can occasionally be necessary.

While plans can be formulated and put into action that have the purpose of discouraging creditors from filing claims or other actions, those who do so need to keep in mind that there is a line that should not be crossed, and if done so, could violate the law. The act of discrediting of discrediting a creditor is not validated whatever the reason, and is an action that if taken, is considered a criminal offense. One of the main purposes of asset protection planning is to avoid possible lawsuits that might be enacted. Any steps towards asset protection strategies after a lawsuit has been filed are against the law and can be considered a criminal offense. Situations might arise where one feels like they have not been treated fairly, however, creditors have a job to do and laws are put into place with the intent of being abided by. As the Scriptures say, "Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God" (Romans 13:1). Everyone has the right to guard properties and investments which can easily be achieved through ethical means.

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Asset Management Software

Technological advances in asset management software make tracking valuable resources easy and efficient. Businesses invest hundreds of thousands of dollars into expensive equipment, computers, vehicles, and supplies; but keeping track of where assets are can be overwhelming. Thankfully, today's small and large enterprises can utilize the latest software to provide an accurate accounting and save thousands each year in losses. From a PC down to a pencil lead, asset management tools exist to track which employees are in possession of company assets, when maintenance is required on equipment and vehicles, and which vendors to call for reorders. Once a company's database has been established which includes every asset, its description, digital image, and date placed in service, it's easy to find with the click of a mouse. Shop supervisors can instantly find tools that have been checked out by employees, due dates for service, and even when those items are overdue.

Asset-intensive businesses, such as machine shops, automotive parts stores, tool and die manufacturers, heating and air conditioning companies, plumbers, and building contractors have to be able to locate equipment, parts, and vehicles to realize greater profitability. Companies that invest hundreds of thousands of dollars in inventory cannot afford to have assets unaccounted for. Without asset management tools, unfortunately, employees can steal expensive parts; some operating jack-leg enterprises right under employers' noses! Unscrupulous workers often rationalize that owners are wealthy enough to share tools, equipment and computers without feeling the pinch. Many don't give a second thought about lifting valuable assets from employers, nor do they realize that replacing assets results in higher consumer prices and lower wages. Firing dishonest employees may result in high worker turnovers and more expense incurred replacing staff. The cost of reordering stolen or misplaced parts can quickly add up and those costs can not be passed on to the customer. Time lost reordering or trying to recover missing equipment and parts can cost business owners unnecessary expenses and can threaten the viability of most operations.

Corporate theft is a huge problem among our nation's businesses. Employees who routinely and without conscience steal small and large items from employers for personal use or monetary gain are unaware of the financial burden it imposes on owners. While respectable individuals strive to live above reproach, workplace theft can mar an otherwise exemplary reputation. Jesus addressed the issue of impropriety in Mark 7:20-22: "And he said, That which cometh out of the man, that defileth the man. For from within, out of the heart of men, proceed evil thoughts, adulteries, fornications, murders, thefts, covetousness, wickedness, deceit, lasciviousness, and evil eye, blasphemy, pride, foolishness: All these evil things come from within, and defile the man."

Wise business owners can implement an effective loss prevention program by utilizing accurate asset tracking tools. Asset management software enables business owners to track each part, equipment, or vehicle with service instructions, vendors, and contacts right from the database. Model identification and serial numbers are easily accessed, along with a photo, owner's manual, and chronological service record. Asset management tools include bar code scanners which allow users to scan items and serial numbers for a quick search without having to go through the warehouse to find extra stock or check on the number of available parts and supplies. Companies with multiple employees using the same equipment at varying times can trace a history of ownership, detailing when, where, and how long each employee handled a piece of equipment. Business owners can even track fuel and oil expenses, repair histories, and preventive maintenance scheduling for each vehicle or expensive equipment accessory or item.

Some asset management tools offer detailed tracking including floor plans of each piece of equipment's location in the warehouse or job site. Imagine being able to locate a single computer, or something as small as a wrench, based on floor plans generated by highly accurate software. Tools to locate and track assets can be used to generate inventory reports, prepare accurate invoices, and plan future acquisitions based on current equipment usage and maintenance. Digital tracking helps increase productivity, reduce loss, and assist with time management. User-friendly navigation and help menus, windows-based platforms, and colorful screens make using the software simple for even novice PC users. Most management software is compatible with later PCs or servers and operating systems, from the antiquated Windows 98 to later platforms, such as Windows XP and the newer Vista. Users will need at least 32 MB RAM and 10 MB of free hard drive space.

Business owners and contractors seeking a better way to keep tabs on valuable assets should browse the Internet for vendors of asset management tools and software. Most packages are affordably priced and come with limited tech support. Some vendors also offer onsite training and assistance in setting up databases to help get entrepreneurs up and running for additional fees. Owners can compare pricing online and determine which system best meets the particular needs of the industry. Some companies offer free trial downloads which may be helpful in deciding which asset management software is appropriate. Firms may also provide links to user guides, frequently asked questions (FAQs), and testimonials from satisfied customers to give potential software buyers a better idea of the performance of management software packages. In the final analysis, investing in asset management software may be the best solution for preventing valuable assets from walking out the back door. It is well worth the money spent on protecting valuable company assets to help prevent losses through theft and mismanagement and realize greater profitability.

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Asset Protection Consultant

An accomplished asset protection consultant can help corporations, smaller enterprises, and individuals develop a loss prevention plan to secure capital assets and prevent seizure through litigation. Large and small entrepreneurs run the risk of losing hard earned capital assets through workplace thefts, embezzlement, or lawsuits. In today's licentious, libel-hungry culture, there are those who major in preying on unsuspecting business owners and individuals who have accumulated wealth; and the enemy can exist from within or without. Companies lose millions of dollars each year to employee theft or embezzlement, while individuals can be bilked out of thousands through frivolous lawsuits and get-rich-quick scams. Asset protection services can assess potential avenues and opportunities which may leave a company or an individual at risk for theft, mismanagement, embezzlement or litigation. Once assessed, professional consultants can help potential targets devise strategic plans to counteract adverse consequences.

Due to the accessibility of private and public information through the Internet, almost anyone can discover specific details about the amount and types of capital assets owned by others. Divorcees, collection agencies and attorneys, federal and state governments, thieves and extortionists can all gain access to private financial information by doing an asset search on the Internet. All that is needed is a name, a social security number, and electronic payment to cover online fees. Once assets can be tied to a person's social security number, attorneys seeking to collect delinquent accounts, disgruntled ex-spouses seeking divorce settlements, plaintiffs seeking restitution, and the Internal Revenue Service seeking to levy judgments to collect past due taxes can all file claims against unsuspecting individuals. But an accomplished asset protection consultant can help prevent collection agencies and others from taking unfair advantage of business owners and individuals.

One simple way to protect assets is to keep private information private. Identity theft has become a national epidemic, as thieves make a living out of fraudulently obtaining personal financial information about unsuspecting consumers. Law enforcement agencies advise consumers, especially older adults, not to give out social security numbers or banking information over the telephone. Individuals should be careful to shred paperwork which includes financial data that thieves can use to gain access to funds. Asset protection services and law enforcement also advise against divulging personal and financial information to individuals who present themselves as lawyers or collection agencies.

Another fail-safe method of protecting assets is to keep the right perspective about worldly possessions versus the true spiritual riches of the Kingdom of God. "Lay not up for yourselves treasures upon the earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also" (Matthew 6:19-21). In spite of expert advice from an asset protection consultant, thieves may succeed in stealing assets and identities, but no one can rob an individual of a truly born again experience with Jesus Christ.

A professional consultant is a keen strategist when it comes to protecting an individual's wealth. One strategy is to create a legal separation between the client and capital assets owned. In order to detach an owner's social security number from real property, investments, stocks, bonds, or liquid assets, consultants must attach property to a legal entity which cannot be traced back to the client. Debtors routinely try to place ownership of assets under relative's names, but the IRS and creditors can easily detect an effort to illegally convey property to avoid prosecution or seizure. Professional consultants may recommend concealing assets under a corporate structure which will alleviate clients from personal liability. Individuals at risk of litigation or seizure of assets due to legal judgments may choose to incorporate businesses and place assets under a legal corporate name, or donate capital assets to an S-corporation. Personal property is protected against litigation; and plaintiffs are prohibited from suing the client as an individual. Asset protection services may also advise investing capital in offshore ventures under the jurisdiction of foreign governments and out of reach of domestic litigation.

Reputable asset protection services may recommend short- and long-term solutions to safeguard funds. Retirees on a fixed income can avoid becoming extortionists' targets by stashing away tax-deferred funds in an Individual Retirement Account (IRA), untouchable until the age of 59 1/2. The federal government is prohibited from taxing IRA accounts until individuals withdraw monies at maturity. Asset protection consultants may also advise clients to establish trusts and foundations which operate under Employer Identification Numbers (EINs), rather than a client's social security number. Strategies exist for almost every situation in which clients find themselves in a fight to build an impenetrable fortress around capital assets.

Corporations and individuals seeking capital asset protection may browse the Internet for links to reputable consultant firms. A professional asset protection consultant should have a lengthy track record of successfully providing protection to a wide variety of clients. Ask to see case histories, references, and explore company websites to review policies, pricing, and personnel. The last thing a client needs is to discover all too late that the asset protection consultant is actually using financial privacy tactics and tools to help themselves to capital assets. Wary clients can do background checks on firms and check with the Better Business Bureau and Securities Exchange Commission to review negative and positive reports, check credibility, and ensure that all federal and state requirements are being met. Corporations and consumers should inquire about asset protection before a real need arises. Consultants recommend putting a strategic plan in place well in advance of litigation. An iron clad plan to keep hard earned cash should be implemented as soon as accumulated wealth warrants it. Money is just like honey when it comes to drawing thieves and con artists out of the woodwork; but a well thought out strategy can keep financial wolves at bay.

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Payroll Accounting Services

In today's complex business world, payroll administration can be a complicated task. More often than ever, businesses are turning to outside payroll accounting services to help with the intricate task of getting employees paid and overseeing the employee financial benefits. Because of the penalties mandated by the government that are associated with poor payroll tax collections and records, businesses are finding it advantageous to employ a service bureau that will completely handle all aspects of payroll administration for them and their workers. The business world is becoming very specialized and it takes specially trained workers that know the law, know accounting, and know the importance of expedient procedures to accomplish getting pay checks out on time to employees.

Some businesses may find that a computer software program serves adequately as payroll accounting services. Modern technology has equipped machines to handle many different accounting services for businesses, small and large. There are even helps services available that will network with their client's computer software and manage the over all production of paying wage earnings. These services can help equip businesses to utilize software appropriately. But, if bad information goes into a computer, then bad information comes out of a computer, and some businesses prefer to have an entire payroll accounting services company handle their employees' wages for this reason. Utilizing outside services may save some businesses expensive personnel and time consuming training.

There are also payroll accounting services that have web access for their clients. Customers of these agencies never have to physically send or take information to an office, all transactions and records are recorded online through the service's web site. These high-tech services are making employers bookkeeping very simple! Personnel input data into the website and the company processes the data. Then, payment data information is sent back through the Internet or to an in-house computer for check and W2 printing.

New businesses in various industries may want to review some of the procedures required to adequately process a payroll, before deciding that they can serve as their own payroll administration. Employee data must be constantly checked and double checked for accuracy. Quarterly reports must be filed on income taxes. The IRS has been known to penalize companies that have incorrect information on W2s. Taxable fringe benefits, employee reimbursements, sick pay, and retirement must all have accurate records and be reported to the IRS. Bonuses, gifts, educations, and company provided transportation are all taxable incomes that must be calculated when determining applicable taxes.

The tax laws are constantly being amended and completely changed in regard to business and personal income. When a company chooses to out-source their accounting, and specifically the payroll administration, they are not only getting a service provided, but they are receiving the security that the firm employed stays abreast of the latest changes in tax laws and regulations.

When a business is looking for a reputable payroll administration service to work with, they should first conduct a total evaluation of their current operations. How many employees are there? What types of benefits are included with the current payment program? How many workers are dedicated to the payroll procedures now? Getting hard facts and figures down on paper will help those seeking accounting support find services that will match up to their needs. Some accounting services may offer free trial periods or free consultations. It is a good idea to also get references from any payroll accounting services under consideration. Speak with their clients about the quality of work provided and the ease of submitting records. Price-comparing will also give seekers a good idea of the current market and what to expect in expenses associated with a service. Many accounting assistance programs advertise their services on the Internet. Browsing through the companies online is a great place to begin the search. Also, speaking with the current accounting firm in use about the potential of outsourcing payroll and getting referrals may be beneficial. The accounting services already in place may be interested in extending assistance in payment of wage earnings procedures as well.

The Bible actually has something to say about workers and their wages. God has expectations of those that are put in the charge and care of others, and He expects that managers and masters rule with fairness and justice over employees and servants. "For the scripture saith, Thou shalt not muzzle the ox that treadeth out the corn. And, the labourer is worthy of his reward." (1 Timothy 5:18) Reading the Bible can give business people a good understanding of how God wants them to run not only their spiritual lives, but their businesses as well. The book of Proverbs is a great place to obtain practical Christian living principles that can apply to every day use. It may be a good idea to brush up on Biblical advise before outsourcing any business services.

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Accountant Average Salary

Job seekers inquiring about an accountant starting salary, before expressing interest in other aspects of the job, both amuse job counselors and also provoke further questioning. Not that it is not prudent to make such inquiries before embarking upon preparations for a career. It is always wise to weigh the costs and rewards of career choices. If acquiring a decent salary is the only object of one's interest in an accounting career, though, perhaps it would be better to check out some other occupations as well. That may seem strange, because, after all, accountants deal with figures all the time. However, there is a lot more to this profession than handling some other person's or company's money. A near-obsession with detail, and the ability to arrange disparate data into a coherent report which can be readily understood and used by others to make financial decisions are vital requirements for this profession. An accountant starting salary may be influenced by a wide range of factors.

In the United States of America, the accountant average salary is somewhere between $40,000 to $46,000. Many factors can influence these figures, such as the size of the company, employee credentials, and years of experience. Also, the particular part of the accounting industry which the company is involved with may dictate salaries. Popular categories in these days of widespread corporate scandals include such areas as forensic accounting and various auditing procedures.

Accounting jobs fall into two major categories. Budget analysts ensure that budget figures are complete, accurate, and that these reflect current procedures and regulations. They may also examine budget reports and make recommendations to keep expenditures under control. The other category comprises billing, cost and rate clerks. These gather data, compute charges and provide invoices for billing purposes. They may contribute to efficiency by keeping track of costs and rates, and keep data on various records. Those who pursue either category would do well to become acquainted with current computer software which deals with accounting and auditing. The picture of accountants laboring over columns of figures in crowded back offices has given way to computers, laptops and other devices which can keep up with the rapid pace of today's business needs. Take advantage of employer educational incentives and grants to fill in any gaps in computer proficiency.

As far as the United States goes, an accountant average salary is largest in New York and California. In particular, New York City and Los Angeles are reportedly record holders for the highest accountant average salary. Before rushing to move there, consider carefully the high cost of living in these areas, as well as other quality of life issues. Some accountants do better by moving to an area which offers a lower accountant average salary, yet is not so densely populated, and offers more in other factors which are important to the accountant and his or her family. One complaint of employees is that this industry requires considerable hours of work. Knowing this, consider carefully matters such as long commutes, which may take additional time from family or other pursuits. While a large salary is nice, if you have no time to enjoy the fruits of your labor, the long hours become wearisome. Speaking of money, some studies suggest that men generally receive somewhat higher salaries than women in this profession. However, looking closer, one important factor may be much more significant than gender alone: experience. The men who received higher salaries in these studies had nearly twice the years of experience.

This 'experience factor' seemed to hold true throughout several studies on this profession. The more one could offer in the way of certification or education or experience, the higher the accountant starting salary. The holder of a Master's degree in Business Administration generally could command a slightly higher salary. Experience, however, still seemed to be key in determining accountant average salary ranges. Although this seemed surprising at first, upon second thought this is very reasonable. A client who is trusting someone with important financial matters would be most interested not so much in the degrees one holds as whether an accountant had ever dealt with practical issues before. Although possessing a degree may speak to potential employers about issues of preparedness or the ability to complete a task, most people would be more impressed with a proven track record of confidentiality and efficiency. The accountant starting salary requested by an experienced person will be higher.

One accomplishment, however, is considered quite desirable. An accountant who possessed a CPA (Certified Public Accountant) credential earned quite a bit more than those who do not have one. In the category of 1- 4 years of experience, holders of a CPA made from $10,000 -15,000 more money. This was significant, yet those who possessed both a CPA and experience really achieve salary rewards. Those who had from 5-19 years of experience made about $25,000 more than accountants without CPAs. In the 20+ years of experience range, employees with CPAs made more than twice that of an accountant starting salary of persons who did not have these credentials.

A Christian may find in accounting something even more important and eternal than a large salary. This is a stable field, with an ongoing need for people to deal with such tasks as bookkeeping, taxes and auditing. There are opportunities for ministering to others which arise when taking care of an individual's financial matters. Aside from the faithful completion of duties with integrity and professionalism, it can be satisfying to know that the work brought order and peace to a client's tangled financial dealings.Opportunities to minister at a corporate level are also available. As the apostle Paul says in Philippians 2:15-16, That ye may be blameless and harmless, the sons of God, without rebuke, in the midst of a crooked and perverse nation, among whom ye shine as lights in the world; holding forth the word of life... Budgets and financial reports are always necessary for efficient business dealings. A high standard for prompt, efficient work done with confidentiality and integrity will certainly be noticed in a business world rife with corruption and scandal.

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Small Business Accounting Packages

Using small business accounting packages ensures that the quality and accuracy of financial information is reliable and easy to use. Small business owners would be well advised to review however, the many types of online small business accounting solutions available, so that the best package for the particular needs of any type of business in which the owner may be engaged is purchased. Owners who think they are getting by with only office packages that come with PC's are not being realistic. Mistakes can be noticed and headed off before bigger problems arise. Small business accounting packages may be the best start-up investment the new business owner buys.

Small business accounting packages are not only available on line, but also at stores which carry all types of software and electronics. These software packages not only assist the owner in taking care of accounting needs, but also have within them the means to manage other aspects of the corporation as well. Lets say an employee is new to the accounting profession, and some assistance is needed so that person can increase capability while still working pretty much independently. Certainly accuracy needs to be maintained, so there are online small business accounting solutions that would allow a newbie to work with the software package worry-free. Some packages are intuitive, doing much of the work for the employee by saving transactions that are made quite often for use later. Also, there is the ability to create or develop all kinds of financial statements like profit and loss or balance sheets. In order to begin using the software so that it meets the needs of the company, just take the time to answer a few questions at the start, and the package will be almost like it was tailor made for the owner! Just as financial professionals must account for all money spent in a business, so Christians are called to account for actions done while on Earth. "So then every one of us shall give account of himself to God" (Romans 14:12).

Online small business accounting solutions also take the wear and tear out of running back and forth from the bank to the office and back again. Online banking capability will save loads of time and effort, allowing the user accessibility any time of the day or night and at any location for a number of employees. If the employee runs out of work time and must continue working at home, then that is certainly no problem at all. Just log in at home and begin using the software to pay bills, manage invoices or customer receivables, and get the payroll done, even for the non-officed independent contractor folks! Time clock capability ensures that getting payroll done will be seamless with time clock technology, linking right in with the payroll portion of the software. Talk about easy to use! Does the inventory need attention? Well no fear, that too can be managed easily online, which helps to improve cash flows . Managers who wear many hats will be very pleased to know that any documents that must be created out of the financial realm can also be handled with ease and precision through the publisher portion of the software.

If processing credit card transactions is getting burdensome, then getting small business accounting packages can solve that problem too. The information is transferred directly into the software, ending the need to enter information more than once. The software can be customized to fit in with existing company web pages where payment information is entered and received. The customer can also print out receipts, and all transactions are performed with one single act. The process is seamless with the accounting portion of the software, so that transactions are automatically journalized. Also, customer billing can be set up to happen automatically for repeat customers. If the user finds that the next step in the financial accounting process cannot be recalled, the software knows that too, and provides hints three steps ahead of the user, acting as a personal tutor. It would be very difficult to make mistakes using this software.

There are online small business accounting solutions that will interface with almost all types of computer platforms, so no matter what package is chosen, it will most like already fit most of the needs of the purchaser. Also, if there are concerns about complying with GAAP, that too is not a worry. There are packages that automatically fill in the ledger when purchases are made, payments are made or received and invoices completed. Bank reconciliations are done automatically, and even taxes are prepared and printed on the correct IRS tax forms quarterly and annually. Let us say a manager quickly needs to come up with a report that analyzes the company's performance over the last six months. The package has that covered too. Simply indicate what the needs are for the report and it will be done in minutes! Then, if decisions must be made on the following years budget, that too can be done along with reporting comparisons between the current year and last years financials. This just doesn't get any easier!

Note that there will be some software packages that can be used in the small company, but because of the complexity is really geared for the larger corporation of more than fifty employees. Also, those who are experienced accountants may prefer this type of software and the ability of this product to do complex job costing, complicated inventory reporting and other manufacturing needs of larger companies. Regardless of the needs of the small business owner, there are online small business accounting solutions to meet the needs of most companies with fewer than fifty employees. Just log in and begin the search, or take a trip to the local software store and pick one up on the way back from the grocery store.

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Payroll Checks

Businesses can print their own payroll checks that are professional, easy to print and low cost. Whether a payday check or IRS payroll forms, there is specially designed software that makes it possible for any company to operate its own in-house financial management. All it takes is a computer, printer and a trained employee that can operate a user friendly software program. Many times smaller businesses prefer to process their own employee financial services rather than hire another company to handle their transactions. This can prove to be cost effective and easy especially if a company has straightforward financial operations that rarely fluctuate.

There are several reasons for a company to print its own payroll forms and checks rather than purchase a specialized service. If a business has 9 or less employees, there is generally no need for a broad range of options associated with large financial management programs. Also, if there are relatively little changes in the management structure of a business office, there may be no need for extra functions. Issues such as employee turnovers, unstable legal matters or massive company growth are good reasons to consider outsourcing payroll checks and other functions. Barring these considerations, most small companies generally maintain well with their own management system that is operated through customizable software.

Software that can print payroll stubs, tax forms and data entry sheets are sufficient to organize, maintain and operate all financial requirements. In regards to such functions as printing checks, a lot of money can be saved by using appropriate software. For owners who have several businesses, more than one bank account, and need to use pre-numbered checks, there are several types of software to choose from that offer many features. For example, a business office can print payroll checks that include all the necessary information and the designated signature to make it active without having to hand sign all the checks separately. Some software can also be integrated into an office's accounting program which makes it especially helpful for office personnel to manage the paycheck process.

Financial management software provides a low cost means to print pre-numbered checks without the expensive overhead of purchasing them from another company. A pre-numbered check can cost as much as 9 cents or more when purchased from an outside source. The cost can add up if mistakes are made and some have to be discarded. Using software that is designed to make payroll stubs offers a cheaper way to produce a pre-numbered check. Some software can be purchased that combine all the functions that are needed for a business office to run efficiently including not only paycheck information but also payroll forms. These forms can include tax documents, unemployment papers, miscellaneous documents and anything else associated with financial business or government transactions.

Some of the documents included in financial software are for employee completion as well as company tax responsibilities. A multitude of documents are needed in order to fulfill government requirements for accountability and provide necessary business records. Purchasing appropriate software that is designed for payroll forms as well as other functions is necessary to maintaining good records both within the company and adherence to outside federal government regulations. Many fiscal management packages or kits are designed to cover just about any type of payroll checks, forms and tax documents that any business will ever need. An office can purchase a basic package or a complete kit that will include IRS requirements to direct deposit permission documents.

Downloadable software is available from many online sources that make it easy to get started organizing any business office immediately. Most kits include a manual and comprehensive instructions on how to use and maintain all records as well as print necessary documents on the spot. For many businesses, this is the easiest way to get set up with productive office tools since there are so many issues involved in managing finances within government regulations. This also provides a wealth of information virtually at the fingertips of upper management so that locating payroll forms, documents or files is always easy.

Since many companies rise and fall on their internal management of finances, choosing the best office tools from the start is critical to success. "Through wisdom is an house builded; and by understanding it is established: And by knowledge shall the chambers be filled with all precious and pleasant riches." (Proverbs 24:3-4) Some online sources offer free trial versions of management software that include payroll checks and other documents for use within a restricted period of time. If a business owner is satisfied with the trial version, he or she can upgrade to the full version by paying with a credit card through a secure, online site. This allows prospective consumers a way to shop and compare office management tools in order to find the one that best suits any given situation.

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Small Business Sales Tax

The advantages of small business tax deductions appeal to entrepreneurs whether transactions are conducted from the corner of a dining room table or the corner office of a company headquarters. The national Small Business Administration (SBA) doesn't provide a strict definition of which companies are considered in this category or put limitations on the total amount of sales or the number of employees. Some businesses can be quite large and still be included under the auspices of the SBA for receiving government assistance, such as low interest loans, and for tax purposes. Though the actual statute and regulations are more complicated, the simplest criteria are that the company is independently owned and doesn't dominate the particular industry. Whether the company is considered in the SBA category varies according to the industry. An important aspect of running a company is keeping meticulous income and expense records. Equally important is the proper collection of small business sales tax to be remitted to the appropriate state agency.

A benefit of the growth of the Internet has been a proliferation of sole proprietorships and partnerships. The Internet makes it extremely easy for sellers and buyers of goods and services to connect with each other. Online auctions and some other company websites have created an easy way for individuals to open up virtual stores with very little expense. Many people have gotten a start in business by searching through their attics and garages for items to sell at popular auction websites. Improved technologies and security safeguards have increased consumer confidence in making monetary transactions which has further increased the popularity of Internet sales. Jumping on the virtual store bandwagon is a great way for individuals to make extra income without leaving home. The small business tax deductions allowed by the Internal Revenue Service is another incentive for establishing even a small Internet presence. A person who establishes a business, whether online or at a physical location, as a sole proprietorship can usually complete a Schedule C Profit or Loss from Business to include with the other income tax forms. On this form, the sole proprietor adds the totals of various expenses to come up with either a profit or a loss. Though the IRS usually allows a loss for a couple of years (since start-up expenses can be hefty), the agency also provides guidelines for determining whether the venture is a bona fide company or just a hobby. Anyone filing Schedule C should be making legitimate efforts to earn a profit.

Of course, the more complicated the company structure, amount of sales, and number of employees, the more complicated the record-keeping and reporting requirements become. Basically, the IRS allows small business tax deductions that are "ordinary and necessary" for the particular industry. By opening even a tiny sole proprietorship, an entrepreneur can deduct Internet and cell phone costs, office supplies, postage, professional fees (such as for an attorney and an accountant), and other costs of doing business. These are separate from the calculation for the cost of goods sold which will need to be determined when completing Schedule C. Capital expenses are also handled separately and personal expenses do not belong on the form at all. The IRS provides helpful information on its website to assist entrepreneurs in complying with the rules and regulations.

Two areas that can create a great deal of confusion are the legitimacy of a home office deduction and travel expenses. Prospective entrepreneurs may wish to download the following material from the IRS website: Publication 587 Business Use of Your Home and Publication 463 Travel, Entertainment, Gift and Car Expenses. A link is also available to Standard Mileage Rates which can be very beneficial. Being able to deduct the expenses of a home office, which includes a percentage of the monthly mortgage or rent payment and a percentage of the utilities can significantly lower the company's taxable income. It may also subject the tax return to more scrutiny or even trigger an audit. Therefore, it may be prudent to seek a professional opinion from an attorney or accountant when utilizing a home office deduction. This is a good example of a time to heed this advice: "Every prudent man dealeth with knowledge: but a fool layeth open his folly" (Proverbs 13:16). Certainly, it's folly to disregard the tax code, though it is prudent to take advantage of every legitimate deduction offered by the government.

Prudence is also needed when it comes to understanding the small business sales tax. The federal government has not levied a national sales tax, but almost all the fifty states have. The rates vary from state to state and, because of add-ons by counties and municipalities, sometimes even from one locale to the next. For example, the state sales tax rate for the Florida is 6%, but counties may add to that rate. Purchases made in the popular tourist destination city of Orlando are taxed at a 6.5% rate while those made in a neighboring county are taxed at 7%. The entrepreneur will need to educate herself about the requirements of the city, county, and state where she establishes her company. She also may need to know the requirements of other jurisdictions where sales are completed. Her company will be required to collect the appropriate amount of money from her customers and then to pass those funds on to the proper state agencies. Depending on the jurisdictions involved and the amount of sales (both in volume and monetarily), this can become a record-keeping nightmare and may require the services of a trained accountant or, at the very least, a savvy bookkeeper. The entrepreneur not only needs to know when to charge such fees, but also when the law requires a small business sales tax to be paid. The owner can apply for a resale certificate that exempts him from paying sales tax on wholesale items that he plans to resell at a profit.

It's quite possible that there has never been an easier time to startup one's business. Even a tiny venture can provide significant advantages through appropriate use of small business tax deductions. But the entrepreneur needs to be prepared to do homework on the rules and regulations, both in collecting and paying, of the small business sales tax for her jurisdiction and those of her customers.

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Business Accounting Services

Accurate financial data is crucial to the operations and growth of any business, so many companies that utilize professional accounting services would never consider doing otherwise. In the business industries of the global market that is expanding today, professional services are becoming even more specialized. Businesses are finding that their needs are complex and require the knowledge of specialists. Corporate partnerships and corporate take overs continue to increase and outsourcing jobs and projects are common practices. Travel, subcontracting, and shared sources can make accounting procedures very challenging. The business structures of today's culture are complicated and it will take trained professionals to unerringly manipulate vast numbers to get to a bottom line. Most business accounting services in operation will not only offer standard bookkeeping procedures for their clients, but will also extend their support in other areas as well. Analyzations, consultations, and technology training are among a few of the now specialized areas that accountants master.

Finding an accounting firm to meet the many different needs of the individual clients may not be an easy task. Global markets offer businesses the opportunity to search for professional support from anywhere in the world, but global markets can be overwhelming as those seeking to contract services know little about agencies outside of their immediate influence. To research professional accounting services and to locate an agency that will help the many areas of need, the following provides suggestions and advice to put into practice before making a final decision about any given service.

A complete evaluation of current business practices will be the first step in determining where there is room for improvement in regard to bookkeeping and methodologies used. Areas of business to consider would be accounts payable and receivables, cash flow, payroll, and inventories. Also a review of financial reports and the methods used to gather data used in reports can be beneficial. As businesses begin to evaluate how much money and time is currently being spent to accomplish a number of different accounting tasks, the realization of costs will emerge. Some companies may find that to hire business accounting services may save them money in the long run, negating the need for specific personnel, or enabling personnel to focus on other important tasks.

The second step in evaluating current conditions with in the company would be to determine what services would help increase productivity immediately. Does the business need to streamline payroll? Would it be beneficial to have another agency take care of taxes? Are employee benefits up to date and in line with current trends in the labor force? Would having an accountant and lawyer work closely together be more time advantageous? During this evaluation process, imagine the ultimate scenario and what services would really make the company operate more smoothly and efficiently. What would professional services bring to the table of operations?

Now there should be a fixed time limit for exploring different business accounting services. Having a list of the most needed services will help in eliminating some agencies and moving others to top consideration. Also, a secondary list of what would be helpful, but not necessary, when utilizing professional accounting services will allow savvy business managers to negotiate for additional support. While some accounting procedures may not be needed for every company, preparing for future growth will be in the best interest of the company. It will be important to form a good relationship with the business accounting services agency that is contracted, then later, once an understanding has become evident, the business accounting services agency can be used for more services and specialized tasks.

Hiring professional accounting services can bring to any business, expertise and accuracy in financial dealings. Today's markets are not only complex and large, but they are also competitive. Every dollar and figure count when competing for business. Consumers and clients can find products and services from anywhere in the world, so all effort and energy should be directed at getting the business at hand exposed, promoted, and sold. Working in competitive climates can be stressful, and often the future may seem uncertain when jobs change rapidly and companies go in and out of business. Christians have the Bible to bring them the security of God's plans in all things. "For I know the thoughts that I have towards you, saith the Lord, thoughts of peace, and not of evil, to give you an expected end." (Jeremiah 29:11)

When searching for professional accounting services, put the matter to prayer. As appointments are made and meetings take place, ask the Lord for His guidance and direction. Also, ask potential accounting services for referrals and follow up with their clients, asking about customer service and quality of work. Working with honest business people who exhibit integrity will make the choice to secure a professional support system a pleasant one.

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Business Tax Help

Professional business tax help is available for those seeking to start new enterprises. Going into business sounds like an exciting venture and a chance to be your own boss. But if fledgling entrepreneurs are not prepared for the long hours, mounds of paperwork, tons of bookkeeping, and fiscal accountability, staying on a 9-to-5 job might be a better option. Most new owners won't have much trouble making money, but keeping it can be a problem; especially after paying suppliers, employees, and last but not least, taxes. Uncle Sam will have his hand out; and owners will need professional help to avoid incurring late penalties and excessive interest payments for delinquent tax obligations.

Entrepreneurship is not for the weak at heart, but with proper preparation and expert accounting, new owners can realize a lifelong dream and a measure of profitability. The Small Business Administration (SBA) website offers links to resources for business tax help and seeks to pair new owners with experienced entrepreneurs in similar fields. New owners should never be afraid to ask for wisdom, either from veteran entrepreneurs or revenue professionals. "Get wisdom, get understanding: forget it not; neither decline from the words of my mouth. Forsake her not, and she shall preserve thee: love her, and she shall keep thee. Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding. Exalt her and she shall promote thee: she shall bring thee to honour, when thou dost embrace her" (Proverbs 4:5-8).

The first step in small business tax preparation is to determine which type of entity is applicable for specific owners. Companies can be formed as sole proprietorships with a single owner; as partnerships involving more than one owner; or as a corporation (or C-corporation) established as a separate entity to avoid liability of a group of individual owners. S-corporations are also formed by several co-owners but taxed at the same rate as individual taxpayers. Similar to partnerships, limited liability companies (LLC) are owned by several co-owners or members, but the liability of each member is limited to their investment in the LLC. For the purposes of clarity and abbreviation, this article addresses business tax help for sole proprietorships.

Sole proprietors carry the lone responsibility for the company, including profit and loss, tax liability, insurance, employee and contractor compensation, and overhead. Sole proprietors are required to file certain taxes and reports in keeping with the federal and state Department of Labor laws. To comply with U.S. Department of Labor regulations and those of a particular state, novice entrepreneurs can log onto DOL websites or visit a local state office. Owners can also browse www.dol.compliance for updates on employer workplace responsibilities and certain revenue issues. DOL representatives may also offer business tax help relevant to filing required employer payroll forms and quarterly reports. Representatives are on hand specifically to assist owners in computing and filing accurate employer reports and complying with labor laws.

Aside from filing self employment taxes on a quarterly basis, sole proprietors must also file federal and state income returns. An owner's income is determined by the net profit and loss realized from the venture. The total net profit or loss is entered on Form 1040 as income. To verify a company's net income, sole proprietors are required to submit Schedule C, Profit or Loss from Business, along with their Form 1040 Federal Income Tax return. Schedule C enables the Internal Revenue Service to review income earnings and expenditures. Sole proprietors should keep accurate receipts, payroll records, expense reports, and checkbook balances throughout the year to ease the process of small business tax preparation. Essentially an accounting balance sheet, Schedule C includes spaces for owners to fill in income and expense information and should be an accurate reflection of all business activity throughout the preceding year taxes are filed. Gross income is computed by adding gross receipts or sales and subtracting returns, allowances, and the cost of goods sold.

Essential to small business tax preparation is tabulating all expenses associated with running an enterprise. Promotional advertising; car and truck expense, such as gas and oil; commissions and fees paid to salespeople, contract labor for independent contractors and subcontractors, and depletion must all be tabulated. Schedule C should also reflect depreciation of major tools and equipment; monies paid out of employee benefit programs; insurance other than health, which would include General Liability and Workers Compensation; legal and professional services; and office expense. In addition to all of these items, if employee pension and profit-sharing plans, such as 401ks or IRAs, were owner-provided, these figures need to appear on the Schedule C; along with the amount of office rent or lease, repairs and maintenance, and supplies. Also included are taxes and licenses, travel, deductible meals and entertainment, wages, less employment credits, and other expenses.

Once receipts for all expenditures and account receivables have been tabulated to arrive at the gross income, owners can either tackle filling out the Profit and Loss statement themselves or solicit the services of a small business tax preparation agency. A good idea is to simply add up income and expense figures based on the Schedule C and take the tabulated figures to a Certified Public Accountant (CPA), tax preparer, or bookkeeper. The advantage to using professional business tax help is that a certified preparer or CPA will be familiar with the latest credits and deductions, regulations, and filing requirements imposed by federal and state governments. Additionally, many preparers can file returns electronically. If an owner is fortunate enough to get a refund, e-filing is faster than waiting months for a check. A word of advice to novice business owners: for at least the first year of operating an enterprise, don't try to handle small business tax preparation alone. Local SBA offices, U.S. and state Department of Labor offices, and independent preparers are all available to assist budding and accomplished owners comply with the regs and keep Uncle Sam happy.

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Small Business Tax Tips

Small business tax tips help companies understand the importance of keeping receipts, maintaining good records, and knowing about deductions that are legitimate. Keeping good records make it easier when filing income tax to recognize legitimate deductions. A small business tax credit will reduce amount owed to the government. Some of the allowable credits include disabled access, investment, work opportunity, research, alcohol fuels, and employer social security. Other deductions may include travel expenses, entertainment expenses, depreciation, supplies, and equipment. A company owner should apply Biblical principles when making decisions about operations in order to be successful. "So that thou incline thine ear unto wisdom, and apply thine heart to understanding" (Proverbs 2:2).

A company will gain returns by keeping good records, receipts, utility bill statements, credit card statements, bank statements, any cancelled checks, invoices, and any other paperwork that might be needed to prove a valid expense. Deductions include office supply expenses, computer expenses, entertainment, interest paid, and equipment. Small business tax tips emphasize that anything used for the operation of the company may be tax deductible. In some situations the entire amount may not be deducted but only a portion or percentage. One example of this may be utility expense for a home office. The amount that can be used would be based upon the percentage of the space that the company uses in the home.

Building a ramp for disabled individuals to enter an establishment could mean a deduction on the expense. This could also include installing a railing in the public restroom and making a special parking space as well as any expense incurred for signs. The small business tax credit could be as much as half of the total cost up to a maximum amount. Easy access for those who are disabled is a consideration that is appreciated by the customer and is recognized by the government as a legitimate deduction.

An investment deduction includes such investments as installing solar paneling or any type of installation that saves energy. This includes any expenses incurred for remodeling a building to be more energy efficient. This type of expenditure goes a long way in not only helping to downsize costs for utility services but is also considered a smart growth or green expense. A small business tax credit makes this a worthwhile endeavor and the long-term benefits to the environment make it well worth the time and cost to make it a reality.

Travel and lodging expenses are deductible as long as they are business related. Small business tax tips include allowable deductions such as meals and airfare as long as the expense incurred is entirely for company purposes. When combining business with pleasure there are limitations on what can be claimed as a deduction. Entertainment expenditures can be claimed up to a reasonable amount while traveling.

Hiring qualified workers such as veterans, the disabled, and ex-felons can qualify a company for a work opportunity deduction. The small business tax credit applies for anyone who is receiving public assistance or has special employment needs. This type of deduction encourages employers to hire those who might be considered an undesirable employee by many. Veterans often have difficulty once they are out of the service in procuring employment. Some employers will not consider an ex-felon out of fear of loss or damage to property or other employees. In addition, hiring a disabled individual may mean making adjustments in equipment or property. Companies who take out the time to make these adjustments or changes are rewarded for doing so.

Any expenses that are incurred toward research and experimental activities can be taken as a deduction in the year that they are incurred. This encourages companies to spend more on development of worthy causes that could help the economy or the environment. Research and development could lead to drugs that could save lives or inventions that can enhance the lives of others. A small business tax credit can make these types of inventions worthwhile. Drugs can prolong life, raise the quality of life, and even save lives.

Business expenses for the use of ethanol or methanol are deductible expenses. This includes the use of or selling of these types of fuel. Alcohol produced from natural gas or coal does not qualify for the deduction. These types of allowances are there because they help the environment by cutting down on air pollution. Allowances such as these encourage company owners to consider switching to cleaner fuels. Another example of deductions for cleaner fuel includes purchasing a hybrid vehicle that runs on cleaner fuels and electricity instead of gasoline.

Other items purchased for company use may include an automobile, computers, cell phones, entertainment equipment, printer, office equipment, and so on. High dollar items can be capitalized and depreciated over several years. These are company assets and the expense on the depreciation can be claimed against taxes owed. Small business tax tips include learning about deductions and the importance of keeping up to date records on monthly depreciation and yearly depreciation. There are limits on total depreciation expense per year per vehicle.

Employers who allow their employees to accept tips that cause them to make more than minimum wage are allowed to deduct the amount from social security tax due. This usually only includes companies that sell food and beverages. Other types of companies that allow their employees to accept tips should contact the IRS to find out if they are allowable. Some of these companies may include car wash services, cosmetologists, valet parking, and so on.

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Cash Basis Accounting

Simple cash basis accounting is more frequently used by small businesses and those that do not use or extend credit. Similar to making entries in a checkbook ledger, accounting in hard cash gives owners a running tally of monies received and funds paid out the moment the transactions occur. Money receipts are recorded one transaction at a time and there are no expectations of future dates of payment. Business owners operating on a strict cash basis can track cash flow and assess on a daily basis whether an enterprise is making a profit or not. Similar to making entries in a checkbook ledger, cash basis accounting lists each sale and each expense, adding and subtracting transactions from a total operating budget. The process is the same even when owners use popular accounting software rather than antiquated ledger books.

Mom and Pop enterprises, shoestring startups, and sole proprietorships generally operate with cash basis accounting. These businesses depend on paying customers to stay afloat and provide sufficient revenue to purchase inventory and stock store shelves. Smaller businesses invest a significant amount of startup capital in new businesses, and are usually extended a certain amount of credit through bankers and lending institutions. But small businesses cannot operate for very long on credit or limited capital. Every dollar counts and every customer must be a paying customer in order for small owners to pay suppliers, repay bank loans, and keep up with overhead expenses.

Most businesses fail in the first five years of operation largely due to a lack of capital or insufficient cash flow. Smaller businesses simply cannot compete with larger entities that can afford to extend credit or run an enterprise from the interest consumers pay for the privilege of delaying installment payments. A small entrepreneur can quickly get into trouble extending credit for which payments fall into default. The resulting lack of cash flow can spell bankruptcy if owners don't watch the bottom line. Consumers have a moral obligation to creditors who depend on timely payments to stay in business. Ecclesiastes 5:4-5 admonishes, "When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou hast vowed. Better is it that thou shouldest not vow, than that thou shouldest vow and not pay."

Businesses that extend credit, or promises to pay at a later date, use accrual based accounting, a more sophisticated method of tracking profitability. Instead of recording monies that are actually received, revenue is entered when it is earned, although payment may actually be received at a much later date. Credit card issuers, lending institutions, building contractors, and other businesses that allow consumers to pay on time or via installments operate on an accrual basis. These businesses deal with account payables and account receivables, instead of cold hard currency. Accurately determining cash flow in an accrual based business can be more difficult, because transactions are open ended. Customer accounts, while recorded as revenue, are outstanding until payments are actually received. Companies that extend credit run the risk of "counting the proverbial chickens before the eggs hatch." On the books, a business can look like it is in the black, but if customers routinely default on payments, what appears to be assets can easily turn into liabilities. Yet, in spite of the potential precariousness of accrual-based bookkeeping, the Internal Revenue Service (IRS) and the U.S. Securities and Exchange Commission (SEC) require that publicly traded companies follow Generally Accepted Accounting Practices (GAAP), which specifies accrual based accounting.

Unlike the Mom and Pop grocery around the corner, the global monetary system, or money market, operates on accrual based accounting. Corporations, conglomerates, mutual funds, lending institutions, and credit unions depend on interest accumulated from credit extended to consumers. Rather than getting paid at face value at the time of a purchase, businesses can realize significant earnings from interest payments on credit purchases extended 90 days, five years, and more. Accrual-based bookkeeping records principal payments as assets, regardless of when consumers actually pay the balance of purchases made over a period of time. Companies that use cash basis accounting may not have sufficient capital reserves to extend credit and wait on payments. For smaller firms and start-ups, dollar-for-dollar bookkeeping is the safer method of keeping track of cash flow and net profits.

Companies that file federal income tax returns must indicate the bookkeeping method used during the tax year on Schedule C, Profit or Loss from Business, along with Form 1040. Whether cash- or accrual-based, the method must accurately reflect income. IRS guidelines require businesses to use the accrual method for sales and purchases of inventory items. Entrepreneurs using money-based bookkeeping must show all taxable income received when it was credited to accounts, less actual expenses paid. Accrual-basis taxpayers report income in the fiscal year it was earned, regardless of whether monies have been collected. Expenses are deducted even if they have not been paid in the year in which taxes are filed. Bookkeeping methods can be changed in order to reflect accrued sales in one tax year which may not have been received until the following year. Owners may consult the Internal Revenue Service website to determine when to use accrual based accounting or cash basis accounting, or the procedure for making adjustments due to changes in bookkeeping methods. Bankers, certified public accountants, and tax preparers may also be helpful in determining the best method of recording income and expenses and complying with IRS and SEC regulations.

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Analysis Of Cash Flow Statement

A critical analysis of cash flow statement is vital information for a company's management team and for both prospective and current stockholders. By understanding the basics of cash flow management, company management are better equipped to make financial decisions regarding such issues as whether or not to purchase or sell capital assets, taking on and repayment of debt, and plans for additional growth. Investors can use the information from a cash flow statement (or CFS) as part of making wise decisions about buying, holding, or selling stock in the company. The U.S. Securities and Exchange Commission, more commonly referred to as the SEC, was established in 1934 in response to the historic stock market crash of October 1929. The SEC is headed by five commissioners who are appointed by the President of the United States to serve staggered five-year terms. To help ensure nonpartisanship, another requirement is that no more than three of the commissioners can be from one political party. The first SEC chairman, appointed by President Franklin Delano Roosevelt, was Joseph P. Kennedy, the father of President of John F. Kennedy. According to the SEC's official website, their purpose is to "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation." Therefore, publicly traded companies are required to file certain financial documents with the SEC on a regular basis. The Commission has enforcement authority to ensure that businesses comply with its regulations. Since the late 1980s, the SEC has required publicly-held companies, those that offer stocks to investors, to file cash flow statements along with other financial documents.

An analysis of cash flow statement basically shows where a business's money comes from and where the money goes. This differs from the economic information that will appear on other accounting documents such as net income or profit and loss statements, or balance sheets. Though an unscrupulous company may use fraudulent accounting techniques to hide negative economic information on some documents, it's nearly impossible to make up a fake CFS because this document reflects, to some extent, actual bank account information. There are three basic components to cash flow management, namely core operations, investments, and financing. The operations component is based on income received for goods and services while considering depreciation and inventory. The investing component considers the purchase and sales of capital equipment. The financing component considers debt payments and stock sales. Of course, the actual equations are more complex, but this is a brief overview. Much of the information on a CFS comes from the income statement which provides earnings information. It might be said that the CFS "translates" the earnings within a specific period of time (usually monthly, quarterly, and annually) to give a summary of relevant economic information. Another way of looking at this data is to see an analysis of cash flow statement in terms of an operating or earnings cycle: cash is exchanged by the business for goods and services which are offered to customers in exchange for cash which is used by the business for goods and services . . . ad infinitum.

After the October 1929 crash, political and financial leaders understood the need and the right for all investors, whether giant institutions or the common man on the street, to have accurate and current economic information. Only armed with this data, could wise investment decisions be made concerning what stocks to buy, what stocks to keep in one's portfolio, and when it was time to sell certain stocks. The SEC ensures that publicly held companies provide this information and that it is accessible to current and prospective investors. Like practically everything else, the technological advances of the internet have made it possible for people to access a wealth of economic information about a company without leaving their homes. Even those with just a small amount of money to invest can do so through certain trading companies. The documents that the SEC requires a company to file can often be found on the business's own website or at all other websites. On some sites, the prospective investor only has to enter a business's stock ticker symbol to find reports, documents, and stock prices (both current and historical). Stock market gurus offer all kinds of advice, both good and not-so-good, for picking up-and-coming stocks. Naturally, education is the best means for avoiding disaster. It's always beneficial to give heed to the Proverbs writer, who said, "The heart of the prudent getteth knowledge; and the ear of the wise seeketh knowledge" (Proverbs 18:15). The more the prospective investor knows and understands cash flow management, the more likely good investment decisions will be made. Get rich quick schemes seldom work, but a plan based on solid principles, including an understanding of proper analysis of cash flow statement, has a good chance of being successful.

Some investment advisors believe and teach that a good first step for determining whether a business is a good investment opportunity is to find out if the operating cash flow (OCF) exceeds the total net income. If not, it may turn out to be a dud. A second, related step is to determine the company's free cash flow (FCF). The prospective investor will need to calculate this amount by subtracting money spent on capital expenditures and acquisitions from the operating cash flow. This numbers should be recorded for the last year in which they are available as well as previous years. Businesses that are growing quickly will be investing most of their excess funds into expansion so the FCF may not be high. That's acceptable. However, a company with negative FCF should be considered a risky investment. The numbers needed for these two simple steps can be found on many investment websites by entering the ticker symbol in the proper box and then finding the appropriate link. Understanding the investment basics, including solid cash flow management, will help investors make good investing decisions.

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Claiming Child Tax Credit

Taxpayers claiming child tax credit may be eligible to deduct up to $1,000 per qualifying child. Depending on a taxpayers income, marital and filing status, the government may allow a sizeable deduction for each eligible dependent under the age of 17 at the end of the year. To qualify, in addition to being under age 17, children must be related to the taxpayer by birth or marriage, by adoption, or as a foster child of qualifying parents. Not only do sons, daughters, and foster kids qualify, but taxpayers brothers, sisters, stepbrothers, stepsisters, or their descendents can also be claimed. Parents with dependent nieces and nephews; blended families raising stepchildren, or older adults, up to a certain age, who rear grandchildren may all benefit by claiming child tax credit. Qualifying dependents must be citizens, nationals or residents of the United States and must have resided in the taxpayer's home for at least six months out of the year. In addition, children who qualify must receive over half of all monetary support from the taxpayer claiming a deduction.

In today's economy, raising children can blow anybody's budget. Parents, grandparents, and foster parents not only shoulder the hefty responsibility of paying for education, food, clothing, and housing; but children also need quality healthcare, dental care and insurance. Most families depend on two incomes just to meet monthly household expenses; and paying for daycare while Mommy works has become the norm rather than the exception. While many advocate families having fewer children, the Bible views childbearing in an entirely different light. "Lo, children area an heritage of the Lord: and the fruit of the womb is his reward. As arrows are in the hand of a mighty man; so are children of the youth. Happy is the man that hath his quiver full of them: they shall not be ashamed, but they shall speak with the enemies in the gate" (Psalms 127:3-5). Thanks to the federal government's Child Tax Credit (CTC), families with single or multiple dependents can reduce the amount of taxes owed or qualify for a refund. While the CTC was legislated to give predominantly low- to middle-income families claiming child tax credit a break; the deduction is limited by their modified adjusted gross income (AGI). The AGI for married couples filing jointly cannot exceed $110,000. If couples decide to file separately, neither spouse's income can exceed $55,000. Other qualifying taxpayer AGIs are limited to $75,000.

Taxpayers claiming Child Tax Credit greater than the amount of tax owed may claim the difference as an Additional Child Tax Credit; however the total amount of deductions claimed for the CTC and Additional CTC cannot exceed a maximum amount, usually $1,500. Taxpayers with qualifying children use Form 1040 or 1040A when claiming deductions. For detailed information on computing and filing, taxpayers may log onto the Internal Revenue Website at IRS.gov or call 800-TAX-FORM. Publication 972, a lengthy 17-page document, explains qualifications and instructions for filing in detail. More abbreviated instructional brochures can also be downloaded from the IRS website.

Another legislation designed to help low-income employed taxpayers is the Earned Income Tax Credit (EITC). Originally approved by Congress in 1975, this credit was designed to help alleviate Social Security tax burdens and offer low income individuals an incentive to seek gainful employment. Because of taxes imposed on employees who work, many individuals on public subsistence feel that they fare better by remaining on government assistance. However, the EITC does not prevent individuals from receiving specific welfare benefits, nor does the EITC impact eligibility for food stamps, Medicaid, Supplemental Security Income (SSI), low-income housing, or specific Temporary Assistance for Need Families.

While the Child Tax Credit is designed specifically for families, childless workers may qualify for Earned Income Tax Credit if they meet certain requirements. Many low income wage earners miss out on EITC benefits simply because of an erroneous belief that they must have children in order to claim a legitimate EITC deduction. But low-income workers with a valid Social Security number and proof of earned income from 9-to-5, part time, or self-employment can meet basic qualifications. Employees seeking to file for EITC must be full year U.S. citizens or resident aliens. Non-resident aliens married to U.S. citizens or resident aliens filing jointly also qualify. In addition, qualifying individuals must be between the ages of 25 and 65 by the end of the year. However, they cannot qualify as another taxpayer's dependent, or as the qualifying child of another person. Special EITC rules also apply for military personnel, members of the clergy, and those who receive disability retirement income. IRS.gov gives detailed information about each of these special categories.

Individuals seeking to file for Earned Income Tax Credit can check for eligibility online via the EITC Assistant. Employees who qualify for EITC on federal returns are also advised to investigate whether a state of residence also offers EITC. IRS.gov features links to state websites with more detailed information on how to qualify and file for Earned Income Tax Credit. Many taxpayers may qualify for significant deductions by claiming a Child Tax Credit or Earned Income Tax Credit; but it is up to the individual to search for opportunities to reduce taxes or receive refunds. Every dollar saved can go toward improving the life of a little one. A thorough online investigation of federal and state government websites may reveal even more opportunities for low-income wage earners to offset the high cost of childrearing and reduce taxes.

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Church Accounting Software

Church accounting software provides ways to track various areas of ministry. Some of the features include specialized modules for keeping up with contributions and money for outreach programs. Such software keeps detailed records of attendance and offerings. There are features included with some computer programs that provide database information for each member. With added features including budget capabilities, tax receipts, and other receipt categories, computer programs can be a valuable asset for ministry purposes. Church accounting must be accurate and up to date to meet all requirements for tax purposes. Using a good software program to keep up with all transactions including the detailed information on contributions is mandatory. It is also essential that financial statements are consistently kept and updated frequently. It is imperative that Christians are responsible with God's money and ministry. Click here and take a Bible quiz, find out what God's word says.

Some companies offer computer programs on the Internet and provide a free downloadable trial version. Some sites have tutorials that assist with learning how to operate the software. Tutorials for church accounting software usually include basic information about the program; how to begin using the program; menu bar options and help menus throughout each option. Some companies offer training classes for their software. All churches need a good system for record keeping. Church accounting software will assist in keeping good records. Information will be at one's fingertips when purchasing programs for the church accountant.

God's word tells us that it is very important that we be good stewards with his money and his business. Ministry is his business. Let us not be careless in taking care of God's ministry by lacking in the area of church accounting. There are many good reasons for accountants to use computer programs. The extensiveness of the church accounting software could very well depend on the unique needs of each ministry. However the basics would be very similar. One of the essential key areas to maintain would include financial records, including all incoming and outgoing money exchanges. Most of the money acquired through church functions is mainly through contributions. A good program will provide the ability to keep detailed contribution information. This will be much appreciated by the contributors. Most non-profit organizations that are set up legally must provide their contributors with a record for income tax purposes at the end of each year.

Ministry accountants should provide detailed records of all financial transactions concerning the Lord's money. Sometimes we get so busy with our ministry that we neglect the records that need to be kept. Someone within the administration should be responsible for making sure these church accounting records are kept daily. Something may be lost if it is put off. Details of a specific situation may not be remembered if we forget to record something immediately. Computer financial programs make this task easier. Let us be responsible with all of God's work. Let those who are of the household of faith set a standard. A standard that says, "God's work is the most important thing I can do, so I will be faithful in maintaining church accounting records as confirmation that I truly believe it is a worthy vocation to the Lord. "And he called him, and said unto him, How is it that I hear this of thee? give an account of thy stewardship; for thou mayest be no longer steward" (Luke 16:2). "If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches? And if ye have not been faithful in that which is another man's, who shall give you that which is your own? No servant can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon." (Luke 16:11-13)

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Construction Accounting Software

Contractor accounting software can be very helpful in the financial management and planning of a construction company and can make expenses, bills, and payroll much easier to manage and control. These payments, if not properly maintained, can cause serious problems for the company. Accounts receivable can also be monitored using construction accounting software. The information included in the accounts receivable will be billing discrepancies and any payments from homeowners or businesses for the contractor or company that should be taken into account. Another very important aspect is the ability to manage the cost of a job. This information will offer budgets for jobs, equipment needed, and other key information that will be used to understand and control the costs of a job.

These programs can make bills and expenses much easier to control and manage. There are a number of accounts and expenses that will be accrued over time by a construction company or contractor. For a contractor with an office or base of operation, there will be some monthly expenses that must be taken into account. These expenses will include utilities, office equipment, and other supplies that may be purchased. Payroll is another important part of the accounts payable. This can be made much simpler by using construction accounting software. The software will help keep track of hours, pay rates, and tax information for the individuals and the company. Accounts payable information will also be helpful in keeping track of the money that is owed to other companies that will be part of the construction process. Supplies from lumber companies, hardware stores, appliance dealers, and other suppliers will be needed in the construction of homes and other buildings. Tracking who needs to be paid and when the payment must be made can be difficult. Other payments, along with payroll and expenses can be done with contractor accounting software. This will make the financial aspect of the construction company run much smoother.

Managing accounts receivable may be much easier than accounts payable, but taking advantage of such organizational software can make this even easier. Often, billing discrepancies or problems will be lumped in with accounts receivable. This will often include the return of merchandise to hardware stores or other retailers. Products may not be used or too many of something may have been purchased. When the products are returned, the information must be recorded and tracked in order to keep everything balanced. This can sometimes fall into accounts payable because the other information from the retailer may be in this category, but it actually takes on the form of a receivable when money is received or returned for a product. Payments from homeowners or businesses will also fall into the accounts receivable category. Down payments, fees, and other payments may be required by the contractor to perform certain jobs. This money may come from homeowners before, during, and after the job is completed. Using contractor accounting software can manage the flow of money that is coming into the company. Isaiah 1:18 says "Come now, and let us reason together, saith the LORD: though your sins be as scarlet, they shall be as white as snow; though they be red like crimson, they shall be as wool."

Controlling, planning, and managing the cost of a job is also very important. This is the information that will help create bids and estimates for individuals wanting to build homes and other buildings. Information on supply prices, labor, equipment, and other materials must be kept on file and updated on a regular basis to keep the company competitive. It is very important to lower or raise prices according to the fluctuations in prices of supplies. For a company that keeps the same fees when prices go up on supplies, they may very likely lose money. If the company maintains their fees but prices go down, other contractors may offer lower prices. Using construction accounting software can help the company understand and track supply and demand. Understanding these concepts will allow the company to stay competitive with other contractors and companies.

This software is a very useful tool in financial planning and management. Information can be difficult to control and understand, but interactive and detailed software can provide assistance in monitoring both incoming and outgoing money. Most important, accounts payable can be controlled using construction accounting software. Information such as payroll, expenses, and office supplies will fall into this category. Accounts receivable will also be easier to manage with the use of these programs. Billing discrepancies and payments received from homeowners or businesses are part of the accounts receivable category. This is the money that is flowing into the company while the accounts payable will be the outgoing cash flow. Another area that will be covered by contractor accounting software is the cost of jobs. Managing job cost can be very important because this is where budgets, bids, and estimates for jobs will come from. This information will include the price of labor, supplies, and other materials.

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