Accounting & Taxation

Running a business is not an easy task. Aside from ensuring that your products or services are of good quality, you also need to make sure that your finances are in order. Without proper financial management, your business will not be able to grow and prosper.

That’s why more and more businesses are now using cloud accounting services. With cloud accounting, you can manage your finances more efficiently and effectively.

In this article, we’ll discuss six ways how cloud accounting services can help your business grow.

So, let’s get started!

1. Improved Cash Flow Management

One of the most essential aspects of financial management is cash flow. With cloud accounting, you can manage your cash flow more effectively by tracking your income and expenses in real-time.

This way, you’ll know exactly how much money is coming in and going out of your business. As a result, you’ll be in a better position to make informed decisions about your finances.

2. Reduced Accounting Costs

When it comes to accounting, businesses often have to spend a lot of money on hiring accounting staff or outsourcing accounting services.

However, with cloud accounting, you can save on these costs as you can do your own accounting. All you need is a computer and a reliable internet connection.

3. Improved Financial Visibility

Cloud accounting also gives you improved financial visibility. With cloud accounting, you can access your financial data anytime, anywhere.

This way, you may always keep track of your business finances and make sure that everything is in order.

4. Better Decision-Making

Another benefit of using cloud accounting services is that they can help you make better decisions about your finances. With cloud accounting, you can track your financial performance in real-time.

This way, you can identify areas where your business is doing well and areas where it needs improvement. As a result, you can make better-informed decisions about where to allocate your resources.

5. Increased Security

When it comes to financing, security is always a major concern. However, with cloud accounting, you can be assured that your financial data is safe and secure.

Cloud accounting providers use state-of-the-art security technologies to protect your data. This way, you may be sure that your financial information is safe from hackers and other cyber threats.

6. Increased Efficiency

Last but not least, cloud accounting can help you increase the efficiency of your accounting processes.

With cloud accounting, you can automate repetitive tasks such as invoicing and billing. This way, you can save time and resources that can be better used elsewhere.

Manage Your Finances More Effectively and Help Your Business Grow

If you are looking for ways to take your business to the next level, cloud accounting may be a good option for you.

Cloud accounting services offer a number of benefits that can help businesses grow and manage their finances more effectively.

By using cloud accounting, you can save time and money while getting access to the latest features and tools. If you’re not already using a cloud accounting service, now is the right time to start!

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

Accounting and bookkeeping are two related functions that involve the finances of an individual or a business. While these two can help you achieve the common goal of keeping your finances on track, it’s important to understand the difference between these two areas of finance to be able to decide whether you need to hire an accountant or a bookkeeper.

In this article, we will highlight the distinction between these two aspects of finance and explain the differences between the roles of an accountant and a bookkeeper.

What is Bookkeeping?

Bookkeeping refers to the process of diligent recording of day-to-day financial transactions. It is a crucial aspect of running a business and must be performed consistently to ensure updated and accurate financial data is always available to aid in decision-making.

Bookkeeping may involve the following tasks:

• Daily recording of financial transactions.
• Posting debits and credits.
• Bank reconciliation.
• Preparing and sending out invoices.
• Chasing overdue invoices.
• Preparation of financial statements such as the balance sheet, income statement, and cash flow statement.
• Efficient maintenance of general ledgers and historical accounts.
• End-to-end payroll processing.

Among these tasks, one of the primary functions associated with bookkeeping is the maintenance of the general ledger. This is a basic document where the bookkeeper records or posts sales and expenses. So the more sales you have, the more often the ledger is posted.

Traditionally, ledgers are maintained using sheets of paper or spreadsheets. Nowadays, innovative accounting systems can help maintain ledgers more efficiently and conveniently.

Although the bookkeeping function seems to involve basic administrative tasks, the complexity increases depending on the size of your business and the number of transactions completed. This is because all sales and purchases must be recorded, and the IRS requires supporting documents on some items or business transactions.

What is Accounting?

Accounting is a high-level function that involves using bookkeeping data to generate financial models. Compared to bookkeeping which is mainly transactional, accounting is somewhat more subjective.

The accounting function involves the following tasks:

• Preparing to adjust entries.
• Financial statement review.
• Analysis of operational costs.
• Accomplishing income tax returns.
• Helping business owners understand the impacts and implications of their decisions.

One of the crucial aspects of the accounting process involves the analysis of financial reports to help you make informed decisions. The end result is that you will achieve a more in-depth understanding of your business’ actual profitability and be better equipped to manage your cash flow efficiently.

You will be able to turn the financial information recorded on the general ledger into valuable insights on your business performance and monitor how you’re tracking towards reaching your goals. Business owners usually tap into the expertise of accountants to assist them in analyzing their financial position, budgeting, forecasting, and efficient tax planning.

What is the difference between an Accountant and a Bookkeeper?

Many people are not aware of the difference in the role of accountants and bookkeepers. Contrary to the common belief that they do the same work, these two professions actually require different skill sets.

Generally, the role of the bookkeeper is to keep an accurate and updated record of transactions and ensure that your books and reports are kept organized. On the other hand, accountants can assist you in financial analysis, provide tailored advice, and help you navigate complex tax matters.

Bookkeepers aren’t required to undergo formal education, and accountants typically oversee their work. In order to be an effective bookkeeper, it is crucial to have a keen attention to detail and diligence.

Meanwhile, accountants need to graduate with a bachelor’s degree in accounting and hold additional certifications. In order to obtain the title of Certified Public Accountant, the accountant must first pass the Uniform Certified Public Accountant exam and have sufficient experience.

Final Thoughts

To sum it up, the bookkeeping function is more transactional and administrative, while accounting uses bookkeeping information to provide you with insights into your business’s financial performance.

With the help of a good accountant and bookkeeper, you will be able to achieve organized books and financial records, develop a sound financial strategy, and build a tax-efficient business that thrives.

While some small business owners do the accounting and bookkeeping by themselves, this is not an efficient use of your time. As a business leader, your focus should be directed to managing the core aspects of your business and driving growth.

So if you’re looking for a reliable accounting firm that can do both and even provide personalized business advice, you might want to consider a princeton CPA. Our team of accountants can also assist you with hassle-free audits and efficient tax planning that can help you enjoy cost savings.

Contact us today to learn more about how we can help you run your business better and give you more time to focus on doing what you do best.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.

The end of the year is a time when most organizations close their books. Despite being critical to every business, preparing a year-end account can be an intimidating process.

However, this article will show you 7 essential pieces of information that’ll help you take control of your year-end accounting process and prepare you for the new year.

Hiring Tax Accountant Services Is Critical

While your in-house accounting department can do your year-end accounting, you can be assured of a more effective outcome when engaging with tax accountant services. Hiring accounting professionals will free up your time, allowing you to perform other relevant tasks.

The valuable insights these professionals offer can also help guide your business plans and enable you to make more strategic financial decisions. Additionally, having a fresh eye to audit your taxes can help you gain an objective view of your performance. Therefore, you can proactively streamline your systems to maximize profits.

Your Financial Statements Are Crucial

Financial records play a significant role during the compilation and analysis of year-end statements. Your financial statements can be regarded as your business’ lifeline. They give you a synopsis of your financial state by revealing your past and current finances.

Through your statements, you can also forecast a financial future for your business. Critical financial statements include your income statement, cash flow statement, and balance sheet. To have proper year-end accounting, you should ensure these statements are well prepared and readily available for each of your financial activities across the year.

Past Due Invoices Are Still Relevant

When preparing your year-end account, you should try to retrieve outstanding debts that your customers owe your business. Doing this might be challenging when past invoices are not available. However, having them handy lets you discover debtors after a brief cursory search.

With a simple invoice reminder, you can get some customers to settle their bills. However, others may require more effort to yield to your demands. The goal here is to ensure you don’t leave your money in the pockets of customers who have received your services. Getting your money back will help your accounting process be more comprehensive and further increase your financial strength for the new fiscal year. 

Your Business Receipts Should Be Well Organized

If you’ve not given much attention to your business receipts, you may need to think twice regarding this, because receipts are essential business documents and must be tidied up for the new year. Having disorganized receipts puts you at risk of inaccurate records.

Moreover, bad records increase the chances of making errors on necessary documentation, such as business tax returns. Organizing your receipts saves you from making costly accounting mistakes. You may pay for things twice when you have no payment record or exclude such expenses from your account.

A way to organize your receipts is by sorting them according to the expenses they represent. You can also have your receipts in folders or stored on digital devices.

Budget And Outcome Comparison Is Essential

Business budgets help keep financial expenses in order. Aside from assisting you in allocating resources, a budget aligns your investments to expected outcomes. Comparing your budget with your outcome is essential while preparing a year-end account. When you compare your budget at the end of the previous year to the results you’ve achieved at the end of this year, you can tell how well you’ve fared.

More so, such a comparison will help you spot areas you spend more money in than planned and those you spent less. You can use this information as a guide while preparing your accounts for the coming year. This way, you can apportion resources more to tasks and operations appropriately.

An Inventory Of Your Assets Will Be Needed

As you end the year, it’s necessary to count the available materials and supplies accurately. This proves helpful in several ways.

First, it enables you to have correct records of business materials and supplies. Secondly, you can note the supplies you will need to make for the next year and materials you need to get off your shelves/store.

If you run an inventory-based business, ensure you complete an inventory check as the year ends. Compare the total inventory on hand to your balance sheets. By doing so, you can make adjustments to any misalignments and have your records straight.

Accounts Reconciliation Help You Maintain Balance

Accounts reconciliation forms a significant aspect of your year-end accounting. Ensure your accounting records tally with your bank accounts. To make this reconciliation, compare your bank statements to your accounting records. Ideally, both records should match, but if you observe a discrepancy, then you need to do some inspection and inquiry. You should locate the origin of the mismatch and guarantee the records are equally balanced.

Conclusion

Having a well-prepared year-end account is a significant business outcome. However, the process doesn’t always come easy. Nevertheless, by focusing on the essentials, you can achieve desirable results. The tips recommended in this article will enhance efficiency and save you time and effort without compromising accuracy in preparing your year-end accounting.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Dealing with different taxes is no fun at the best of times. Nobody enjoys handing their hard-earned cash over to the government, and although we love receiving tax returns, organizing all the paperwork is a tedious and complex process. This can sometimes lead to mistakes, which can have rather significant consequences if you don’t get them fixed. So today, we’re going over what you should do if you’ve got something wrong on your tax return:

You Should Probably Seek Professional Guidance

First and foremost, it’s time to call in a professional. Filing your own taxes can save you a bit of cash upfront, but if you’ve made a mistake, you really don’t want to try to fix it alone. Run a quick Google search for a tax accountant near me, and select an agent who can fix up your figures and ensure you have the correct information to submit.

You’ll Need to Submit an Amendment

Figuring out the numbers precisely is vital at this stage as you’re going to need to submit an amendment. While you might get away with accidentally submitting the wrong information to the tax office once, if your figures are also wrong in your amendment, you might find yourself in some pretty serious trouble. The good news is that your selected tax accountant will be able to get everything fixed up properly, so you can avoid making the same mistake again.

What if your Mistake is Related to a Self-Managed Retirement Fund?

It’s important to note that if you have a self-managed retirement fund, you’re going to need to get in touch with your accountant. Mistakes on your tax return may affect your account if the issue was related to it, so your personal accountant or financial advisor needs to be kept in the loop.

You Could be Audited

The tax office is within its rights to randomly audit anyone at any time. However, your chances of being audited will increase significantly if you have made a mistake on your tax return. Because of this, it is important to ensure that you have all receipts and documentation organized and ready in case this occurs.

You May Face Penalties

Finally, it is important to be aware of the fact that you may face penalties if your mistake is significant or goes uncorrected. We don’t say this to scare you but to prepare you for the possibility.

In most cases, as long as you take steps to rectify the issue, the worst that will happen is that you will receive a fine. However, if your mistake is large enough and goes uncorrected for long enough, it could be considered tax evasion. So, it is important to get things sorted as efficiently as possible.

Making a mistake on your tax return isn’t the end of the world, but it is something that you need to correct swiftly. The tips in this article will help you do this, but it is important to remember that our first point really is vital. While it can be tempting to try to fix the issue yourself, having a professional rectify things not only ensures that they’re correct but also provides you a certain level of protection moving forward. It really is your best course of action. You can also claim back any fees associated with doing your taxes in the next financial year, so it ends up paying for itself. Good luck.

Tristan D. Porter

I am Tristan who loves to ride and spend time with my jenny (horse) and my love Mark. After completing my graduation, I have been working as an accountant in a private firm in Cologne.

India has announced to represent the bill regarding cryptocurrencies several times in parliament. But government authorities have announced that they will table the digital currency bill in the august session of 2022.

Some of the leaks of cryptocurrency bill 2022 include the amount of tax financial authorities will levy on each virtual coins transactions alongside the formulation of India’s first digital currency. If you are interested in bitcoin trading, visit auto-trading robot to acquire an utter guide to crypto trading. Surprisingly, financial authorities did not mention the ban of cryptocurrencies, but the taxes they are about to levy on each transaction subjected to these virtual coins are massive. Here is a detailed overview of the glimpse of cryptocurrency bill 2022 India.

Key Takeaways

• India’s top digital currency is not under construction yet. However, the development of this coin will start in the April of 2022 and will be launched somewhere between 2022- 2023.
• Meanwhile, India has announced taxation on every cryptocurrency transaction, whether a gain or loss.
• Conferring China and India, African countries have also dictated their plans of creating a cryptocurrency powered by the national bank.

Skyrocketing Digital Economy

While announcing the cryptocurrency bill, the finance minister of this country addressed the surge in the economy after the arrival of national bank-powered digital currencies. India’s digital currency is potential enough to lead towards a more proficient system. However, public domains are currently devoid of detailed knowledge regarding India’s national bank-powered digital currency.

The Finance minister of India revealed a glimpse of cryptocurrency bills amid crackdown rumors. As in an earlier parliament session, the national bank clarified that a few cryptocurrencies would be banned. For example, privacy-focused cryptocurrencies will no longer operate in India, as per the bill of 2022. Before the parliament session, people were also speculating on a hardcore ban on cryptocurrencies.

Taxation on Cryptocurrencies

India will follow a brilliant strategy to regulate cryptocurrencies as for each exchange subjected to such digital coin exchange, and the country will intensify taxation. However, financial authorities will not implicate any straight ban on cryptocurrencies.

Increasing Trends of Cryptocurrencies

India is now amongst the countries that have revealed their plans regarding developing national bank-powered cryptocurrencies. Immediately after announcing national bank-powered cryptocurrency in India, Jamaica also revealed its plan. South American and Caribbean countries have also amplified the use of cryptocurrencies.

So far, China is the mere country to execute the plans of significant cryptocurrencies with utter grace, and their national currency is named as Yuan. On the other hand, Japan and the United States have been conferring similar plans for a very long time, and their national digital currency is on the way.

Are National Currencies Undermining Decentralization?

National currencies cause a massive concern amongst cryptocurrencies bug as usual digital currencies contemplate an open-source ledger. Besides an open-source ledger, peer to peer also accounts for the decentralization part of digital coins.

Decentralization not only means noninvolvement of government but any other party trying to regulate it. However, national bank-powered cryptocurrencies are not decentralized at all. Financial authorities have the power to govern these centric cryptocurrencies. Undeniably centric cryptocurrencies comprise less volatile characters, but the government will record each transaction alongside the public identity.

The Future of Mining In India

Mining has proven its profitability in developing countries over the last few years. But the viability of this process usually depends on resources like electricity and hardware. In India, multiple mining plants are making a hell of a lot of money, and most of them are either early movers or multinational companies. However, the concern arises when people consider the expenses of mining for a solo miner.

Setting up a mining plant that provides a handsome income stream is expensive. Usually, each mining calculator depicts that a miner can make 12% of their entire investment in good market conditions. So, according to Indian currency, if you purchase a GPU worth 1 Lakh INR, you can quickly generate 8000 to 12000 INR each month. You might wonder about the durability of a GPU and how much time a GPU can provide its maximum performance. The process is long-lasting for five years. If you buy a GPU today to start mining, you can efficiently operate with this GPU for mining purposes till 2026.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.

The government collects taxes through a variety of methods. There are individual income taxes for professionals, corporate income taxes for businesses, and more. Considering that the government uses tax payments as its primary source of funding, it is understandable that they pay close attention to people’s activities related to it. Unfortunately, dealing with taxes can be overwhelming for some. Certain policies and regulations about tax payments, debts, and management are difficult to understand, especially for a layperson.

People are expected to pay their due taxes promptly. Otherwise, concerned government agencies such as the Internal Revenue Service (IRS) will take action against you. According to  www.flclaw.net, hiring a tax attorney can help you understand more about tax payments and how to deal with specific tax issues you might be facing.

Here are top things your tax attorney can help you with:

They can help during a tax audit

Tax audits are the IRS’s way to ensure that your tax records are on track. They want to see if you adhere to the tax laws and policies. The IRS checks, reviews, inspects and verifies whether financial records and transactions are all accounted for. This process is often stressful and overwhelming to handle on your own.

A tax attorney can help you during an audit by briefing you about the purpose of the audit and guiding you throughout the whole process. The tax attorney will also walk you through all the paperwork and records to be prepared and submitted to the IRS for review. They will also ensure that your rights are protected during the audit. Lastly, they will be there to act as the mediator between you and the IRS.

They can assist with missed tax returns

It is possible to miss filing your tax reports. In times like this, having a tax attorney by your side can help you deal with unfiled tax returns. A tax attorney can help communicate a deal with the IRS and provide you with an arrangement that is beneficial to both parties. This is particularly helpful if you are facing years-worth of unpaid taxes.

They can represent you in case of tax fraud

A criminal charge from the IRS because of tax fraud or evasion should be taken seriously. Cases like these put all of your assets, properties, livelihood, and freedom in jeopardy. Thus, it is crucial that you hire a trusted and reliable tax attorney right away.

A tax attorney is the only person qualified to stand and represent you in court. Throughout this process, they will provide you with sound legal advice and defend your case by providing all necessary reports, paperwork, and evidence to prove your innocence.

They can help communicate with the IRS

Facing the IRS can be intimidating. If you have little to no knowledge about tax policies and regulations, it is best to hire a tax attorney to do the talking for you. In the eyes of the IRS, ignorance is not an excuse to commit a crime or miss tax payments. A tax attorney can help guide and educate you about the fast-changing tax laws, so you don’t break them.

They provide professional legal advice

Tax attorneys are not only there when you are in a dire situation or pitted against the IRS. Tax attorneys can also help you by providing legal advice and education about certain tax policies and regulations that a layperson may not know. This is particularly important if you are thinking about establishing a business or conducting a noticeable financial transaction that can catch the attention of the IRS.

Bottomline

Given the gravity of tax-related problems one can face, people should take their time in choosing the right tax attorney to represent them. It is crucial to consider the attorney’s reputation, qualifications, and experience in specific tax cases to see if they can provide you with the right services.

Hiring a tax attorney to guide you during an audit or a missed tax return can significantly ease the stress and pressure during these challenging situations. You can rely on their knowledge and expertise to help you deal with the IRS with little to no risk to your assets and livelihood. Aside from that, tax attorneys can also provide professional advice and education about tax laws and policies that will stop you from committing a crime or an infraction.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.

A business accountant can seem like a luxury, but they are essential to any company’s success. A good accountant will help your company make the most of its opportunities and avoid costly mistakes. They can also play a vital role in helping you through the tax season among other important accounting roles. It’s important that you pick one with the right qualities to propel your business to the next level. Here are seven qualities that make a business accountant worthwhile.

Accountability

Accountants should always provide accurate, timely information and be available when needed. You need your accountants to easily trace financial problems to their root cause and tell you how to fix them.

Experience

Accounting is a rapidly changing profession, with laws and regulations constantly being updated by the government or other authoritative bodies. Accountants should always be staying up to date on changes in their field to advise clients accordingly. The more experience your accountants have, the better they will handle your finances.

Financial Knowledge

Business owners may know how to make money, but that doesn’t mean they understand the accounting profession. This is where a great business accountant from Pherrus.com.au can step in and provide expertise on finance-related issues. A good financial analyst will help you find new ways to grow your revenue and manage it in the long run.

Creativity and Innovation

A great accountant will also bring ideas for new ways to make money and help you develop methods that can reduce your expenses over time. Some of the most crucial ideas a worthwhile accountant will bring to your business include:

• How to select a base currency for your business
• Methods to reduce the time it takes to complete books and records at year-end
• How outsourcing jobs can save you money in the long run

With such an accountant in your team, you can rest assured that your financial systems will always run seamlessly.

Knowledge of Technology

Great accountants understand the impact that social media and cloud software have on businesses today, and how to incorporate these platforms without compromising your security or performance.

High Ethical Standards

Business owners often make financial choices that negatively impact the bottom line, and it’s up to an accounting team to point out where any missteps may have occurred. Well-trained accountants will always maintain a strong sense of integrity and are inclined towards honesty for the benefit of your business.

Client-Oriented Approach

A great accountant will be dedicated to giving insightful advice when necessary about how business decisions may affect your tax liabilities and financial standing. A good accountant will never try to push you into a direction that may not be best for the company. They are always looking at all angles of any decision made, so there is no room for miscommunication or mistakes.

Business accountants are an invaluable asset to any business. They will help you stay on top of your business finances, reduce tax liabilities through proper filing, ensure that all necessary federal and state filings are completed accurately every year, and motivate the company to grow into a better version of itself each day.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.