Accounting & Taxation

Accounting and bookkeeping can take your business from bottom to top. Both of these functions are of huge importance to the company. The bookkeeping and accounting services are both functions related to finances.

In bookkeeping, the financial transactions of the company. This step is carried out before accounting. Accounting is the process of inferring, classifying, analyzing, and then summarizing and reporting the financial data of the company.

All types of companies no matter small, big or medium-sized go for accounting and keeping practices in order to keep their business going and growing in the right direction.

Small and medium-sized companies usually go for outsourcing the function of bookkeeping and accounting. The main reason behind it is that the services offered by the outsourcing firms are quite inexpensive and fast as well.

The experts working in the UAE agencies of accounting and bookkeeping are very well at carrying out the tasks related to accounts of the company. They are thus a good option for carrying these important functions out.

As we all are aware of the fact that there are a number of offshore companies that work in the UAE. These companies must know that accounting and bookkeeping functions are very crucial.

They are thus advised to go for outsourcing the functions of accounting and bookkeeping. This is because offshore companies are usually not fully aware of all the laws in the UAE.

It would, therefore, be better for such companies to outsource the function so that the accounting and bookkeeping firms in UAE may provide them with their services and help the companies in running their business operations properly and legally.

Bookkeeping is not very different from accounting. It has different financial nuances to tackle and that is why outsourcing service providers are the best option to consider. The bookkeeping firms in Dubai are a very preferable choice because it helps the offshore and inshore companies manage these functions in quite an easy way. Read more about the benefits of outsourcing accounting services.

If you want to set up a business in Dubai, take the help of accounting and bookkeeping firms in the UAE to help you with all such functions. This is because the experts working in these firms have good know-how about these business paradigms. They have very qualified staff which makes it easy for the companies to get disburdened.

For company formation in UAE, getting the help of accounting firms is very important because there is no company that can run without these operations. The accuracy and efficiency companies need can be achieved by outsourcing the firms.

The firms have expertise in providing the best services to their clients by appointing highly qualified accountants and bookkeepers. They also have proper knowledge about the changes in accounting laws and regulations which makes them follow the laws as per the need of the time.

There is a number of firms providing easy access to accounting and bookkeeping services to the international companies in the UAE. So, take their help and get the most convenient accounting solutions for your companies.

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.

Running a large scale business or working in a multinational organization is not as fancy as it sounds. There are many pressures situations to handle, multiple clients to deliver, effective decision making, etc. It includes managing internal departments like sales, marketing, production, human resources, accounting, and finance, etc. Each of these departments has its magnitude on its own to manage.

In business, every department or function has its importance and significance, but the accounting and finance department is one of the most crucial ones. It provides you a snapshot of the company’s performance and progress and how things are going.

Similarly, data and workings produced by the accounting department can help the decision-makers to analyze the future and make strategies accordingly. Hence, it can tell everything from a basic transaction to the macro-dynamics of the business. 

Additionally, the accounting department also acts as police, as any discrepancy, error or fraud can be detected and reflected in the accounting records. Therefore, owners or CEOs need to have core knowledge of the accounting department and ensure competent accountants in position.

For the reasons stated above, accounting departments and accountants attract a lot of attention and importance from the employers. Becoming an accountant involves gaining a lot of technical knowledge and having hands-on experience in handling accounting matters.

However, the accountants need to keep on working on their abilities and increasing their knowledge to stay up-to-date in the game for moving forward. It involves knowing the latest regulatory changes in accounting practices, understanding of emerging technologies in the Fintech industry, etc. One suitable approach is to get comprehensive knowledge and understanding by studying accounting academically.

Many universities and institutions around the world offer MSA Degree Online so that professionals can seek their degree program as per their convenience without affecting their jobs or employment.  

Accounting professionals are required almost in every business and domain; therefore, they remained in demand. Let’s explore some of the top highly paid jobs for accounting majors:

Financial Planning and Analyst

In this job role, professionals are involved in suggesting the best usage of the funds without inefficiencies. These professionals work to reduce the financial costs of the organizations.

According to a survey, financial planners and analysts earn around $100,000/year in the USA. Usually, these kinds of jobs involve salary plus bonus options, which are directly related to the benefit they provided to the bottom line of the company.

For becoming a financial planner and analyst, a thorough understanding of economics, accounting, and finance is required to provide better results. Moreover, attaining an MBA alongside focusing on accounting and finance, helps to get wholesome understanding and insights into the business to be better planners.

Accounting Professor

If teaching intrigues you and your passion is to inform and elevate young minds, teaching accounting at the university level might sound interesting to you.

Typically, an MBA is required in addition to an accounting degree to teach. Though experts recommend pursuing a Ph.D. to attain a permanent position. 

Teaching accounting involves giving lectures to students, spending time with them for their assignments, taking exams, and grading students. In addition to financial growth, teaching itself is intrinsically rewarding for any individual.

Internal Auditor

Internal Auditors are the police in every organization. Their goal is to oversee every operation and function in the organization. They are responsible for ensuring that everything complies with SOPs, government regulations, statutory requirements, and insurance protocols, etc.

One of the core responsibilities of their job is to provide recommendations and report any discrepancies to the heads of the departments. Therefore, they need to possess excellent verbal and written communication skills, along with presentation skills.

Corporate Controller

Technically, it is the backbone of the accounting department. Everything related to finance routes through this position. Corporate Controller is responsible for every budget, project financials, account receivable or payable, quarterly reports, year-end financial statements, etc.

Due to such a huge responsibility, they need to burn 60-70 hours a week to manage the load. But at the same time, in addition to their salaries, they get a sweet deal of bonuses attached to it. Corporate controllers earn, on average, $98,000/ year, excluding bonuses.

Forensic Accountant

Comparatively, forensic accounting is not a conventional job, and it has emerged as a growing specialization in the field. Forensic Accountants specialize in white-collar crimes, frauds, auditing, etc., and they are generally hired by governments to crack down on window dressing or creative accounting.

Due to the wide scope of their job, forensic accountants require in-depth knowledge of the law, accounting, data collection, investigative techniques, etc. It requires a lot of education and experience; therefore, they get handsome salaries.     

Conclusion

Apart from the profession and qualification, how much an accountant is paid depends on multiple factors like location, industry, level of responsibility, etc.

If an accountant is involved in big mergers or acquisitions of public listed entities, then he would +pay more than if he would have worked for a non-profit organization.  

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

“Accounting is the language of business,”

Warren Buffet

Millions of startups are growing all over the world. According to worldwide startup ranking, America is on top with 47,935 startups, India ranked second with 7,493 startups and UK holds third place with 5,187 startups and then comes other.

Do you know why a startup business should, consider hiring accounting service? When a new business process starts, there are always chances of risk and failure. A newly established business needs more accounting consultancy and backup support.

Due to uncertainty in the business world, you should always have a financial backup plan. Accounting help in understanding the startup in-depth. The right accounting service can build business roots stronger.

Every year, millions of people, entrepreneurs, and graduates bring new startup businesses in the world. Singapore has a visible share in it as well. People from different parts of the world migrate here to avail opportunities.

All kinds of startups, e.g. lifestyle, social, small or large, scalable, a buyable startup should always hire accounting services. For every startup having accounting plans are as important as having their marketing plans or management plan.

Startup businesses need accounting service in Singapore more because they need to build their good reputation in the market. Yes, sometimes for entrepreneurs it is hard to hire office based accountants from limited budgets, but hiring, according to your pocket is always a good idea.

The way accountants handle finance of your business, no other person can handle that efficiently. Accountant’s always made the best cash flows for your startup business. They support business plans through their financial expertise and they also provide maximum benefits to startup owners.

Why Singaporean Startups must Hire Accounting Services

• It improves the handling of startup financial management and resources, i.e. Revenue, expenditures, valuation, debts, leverage, and risk of return, etc.
• To carry out startup policies & procedures
• It saves the startup owners from panic during the annual tax returning process.
• Accountants let the owners know about profit opportunities and helps in expense tracking in different aspects including buying, selling, advertising, HRA, and others.
• To increase productivity and enhance services for startups.
• To compete in the market, accountants evaluate investment options and provide that maximize profitability.
• Accountants always guide about the do and don’ts of business.
• It is significant for the audit process which includes planning, fieldwork, making audit reports follow up and reviews.
• To understand future economic trends in the stock exchange.
• For future growth of business accounting services act as the power booster.
• To get to know financial, SWOT (Strength, weakness, opportunity, and threat)
• To support, financial decision-making process.
• For efficient bookkeeping i.e., a record of the transaction, accounts receivable, accounts payable, sales, receipts, payments made by an individual or corporation.
• Accountants make amazing financial reports, graphical charts and lose/profit statistics for the business.
• To understand tax laws and government financial policies.
• A startup bank account can only be handled by a professional accountant.
• Helps in calculating business costs, employees’ salaries and taxes.

Conclusion

To achieve startup business objectives, accounting services are compulsory. Accounting services let the business lead to the road of success. Accounting experts are always reliable for supporting new business plans.

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

So one of the most stereotypes questions that are always asked by accounting students, that why accounting, if there are many fields in professional life. But my opinion would be that accounting is love.

Many people think that an accountant would be a person who would be, boring, a bald headed, wearing a high number spectacle, but according to my point of view accounting is very fun subject if you love to play with numbers and basic accounting is that how you will play with numbers, accounting is a language which describes you a story.

Yes, accounting is important language but now you will ask how?

Let me tell you. Accounting tells the story in that how you started your business, how will your business grow, how will your business earn, it tells us that how will be your business in future, what will you achieve and how your business will be coming from.

This is how accounting can be fun for you, if you understand the whole scenario so accounting will never be bore for you and you will love to work as an accountant.

But main thing is that you have to understand its language.

Once all the mess and confusion is vanished from your table so then you will love to understand the story that accounting will tell you, then there would be no issue that you will bald or a person with a spectacle.

I had work with many entrepreneurs. they feel most irritating work to balance the accounts book and they find it nuisance, they are just too much focused on how they can improve their services or products that they are delivering.

In this case, they all refused to tackle the numbers, so they don’t interact in this complex situation instead of they hire a accountant who will tell them the story for their business and they will love to understand it easily.

Accounting is really a great and funny thing to learn, If you are willing to start your carrer as an accountant so here will be some perks for it,

Some Interesting Perks

People make money, You’ll have your Job

According to the stats of Bureau of Labor Statistics the employment rate for accountant and auditor is projected to grow 11% from 2014 to 2024. This is the fastest growth average of all occupations.

You will be in demand as long as the money grows in the economy and you will not lose your worth.

Career Growth is Infinite

If you will work harder in accounting field but not with growth mindset. Working as you have to work from 9 to 5 and then you have to go to home and you will take a peaceful sleep.

I am sorry you cannot grow in your field. You have to work with happiness and show love to your work to bring growth.

Great Salary

According to the Bureau of Labor Statistics states that the mean average salary of the Accountant and Auditor is $67,190.

With this salary, you will receive another advantages like health facility. Get some new certification so your salary will cross 6 digit numbers.

Sounds interesting!

Even if it doesn’t increase, you can discuss with management.

Flexibility and Travelling

Many accountants and auditors are likely to travel in city or outside their country to provide services. It provides you to travel countries and will get you paid for that.

Transferable Skills

You will not have to stuck to work in offices but if you love to teach students and you are good in it so you can enjoy your accounting by teaching students at Colleges or at Universities.

Varieties in Accounting

There are too much varieties in accounting field you will not stuck at one place you can change this field with different accounting principles – taxation, management accounting, etc.

Author Bio: Mustafa Kamal is accountant by profession and writer by passion. He may convert your ideas into words and business into numbers.

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Freelance services are one of the top decisions when it comes to outsourcing accounting. Accounting firms of various sizes want to avail of outsourcing services like accounts preparation, financial reporting, filing tax returns, and bookkeeping. 

There are routine tasks and some strategic consulting jobs which are being outsourced. Mid-sized accounting firms are facing a talent crunch.

You need to have knowledge of Accounting Software like Xero, TaxCalc or IRIS to get outsourcing work.

What Is the Client Looking for?

When outsourcing accounting work, the client would be looking at:

Transactional Work

When it comes to accounting work, most of it would be transactional work. There would also be some work related to data analytics, business strategy and consulting or strategic advisory.

Quality Parameters

The companies in the US, UK or Australia would be assessing your firm based on certain parameters like communication skills, TAT and quality. The company outsourcing accounting would also look into the work culture of your organization. When you are meeting a potential outsourcing company, make sure you understand their work culture. 

Free Trial

A great incentive for the company would be a free trial to access your quality and delivery capabilities. Your online security policy will also be tested. It is important to highlight your capabilities during the free trial. This will improve your chances of getting a contract.

How Do I Get Started?

Here are some of the strategies you can employ to get accounting outsourcing work:

Get a job with an Outsourcing Firm

Since analytics will help you get the attention of your employer, try to get a job in this area. The outsourcing company should be an established and reputed one. Working with analytics will improve your chances. 

Building Trust

You need to create a foundation for a long-term relationship with the client. It is not bidding and getting your first project that is difficult, it is getting repeat business. It’s not just your first project but all subsequent projects where you need to establish yourself as an effective and reliable player. 

Market Yourself

To get noticed by potential clients, you need to improve your visibility. The various ways you can do that would be through banner ads, networking with companies, submitting articles at relevant forums, participating in trade shows and volunteering. 

Effective Hard work

You need to put in hard work in an effective way by maintaining quality and meeting deadlines. This would be one of the factors client would be specifically noticing, in the free trails.

Join Accounting Forums

There are outsourcing forums relating to the US, UK and Australia where you may post your requirement. Companies who need to outsource will get in touch with you. 

Sole-Sourced Deals

A sole-sourced deal is one where there is only one supplier in the market. If you have any contacts, ask them to get you this deal for outsourcing accounting work. 

Do Your Research

Find companies who are already outsourcing accounting projects or are planning to do so. Connect with leaders of such companies through LinkedIn or other sources. 

Consulting Partners

Sometimes there are consultants who advise companies outsourcing accounting work. Get in touch with these consultants and register yourself with them. Depending on your profile, they will connect you to companies wanting to outsource. 

Profit from Accounting Work Outsourced by the US, UK and Australia

Different freelancing platforms like Fiverr, Upwork, etc, are a favorite outsourcing hub for accounting services from the US, UK, and Australia because of competitive rates and a skilled workforce. Accounting work, both transactional and consulting work.

Get your infrastructure in place, decide your core area, build a skilled task force, understand the culture of the country outsourcing the work, and you’re ready to outsource. 

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Management accounting is the process of communicating financial information to accelerate the company’s progress towards its goals. It’s also known as cost accounting.

Management accounting and financial accounting are tightly linked to each other although both serve different functions. The major factor that differentiates management accounting from financial accounting is that it’s aimed toward empowering managers within an organization to make effective decisions. On the flip side, financial accounting is intended to offer information to external entities of an organization.

The primary purpose of this type of accounting is to ease the practice of decision-making related to all aspects of business operations. Managers leverage the power of financial data to base their decisions for future growth & produce the results that the organization needs.

It helps you figure out how much a product costs, analyzes when your company breaks even, crafting a budget for expenses and future forecasts.

How Management Accounting System Works

Management accounting systems are deployed to equip the management with vital information to be used in operational business decision-making. A hospital might use management accounting systems to facilitate them in insurance billing and other in-house essentials.

Manufacturing firms employ these systems to assist them in costing and managing the manufacturing process. These systems are adaptable for functionalities and reports specific to that particular industry.

Let’s dive in to learn the various elements of the management accounting system:

Purposes of Management Accounting System

• Planning: Planning is at the heart of managerial accounting to foster businesses. This encompasses to tap into stacks of financial data to plan for future needs of corporations. The planning purpose of this type of accounting involves designing effective strategies to drive competitiveness and surge profitability.

• Monitoring: Accounting of this type is involved in ensuring that strategies are implemented and action plans are carried out as planned. It assures that resources are acquired and used effectively in the achievement of the organization’s goals. Confirmation of milestones achievement & improving product’s quality is a part of this monitoring process.

• Directing: Management accountants serve as liaisons between employees and upper-level management of a business to answer queries and help solve problems. Directing & motivating employees also comes as a part of their responsibility. Monitoring and directing features of managerial accounting are laced together. Monitoring is designed to ensure that everything falls in its place.

• Analyzing: The central purpose of management accounting is analyzing information to determine problematic areas or flaws and developing ways to fix them. Ultimately, data analysis sets the table to seize big opportunities.

• Reporting:  Now, It all boils down to creating comprehensive reports for communicating goals, plans & other recommendations. These reports include an analysis of a particular matter coupled with clear-cut conclusions. Additionally, it also includes recommendations for maximizing efficiency and solutions to problems faced by an organization.

Uses of Management Accounting

1. Forecasting: By using managerial accounting, you can project the financial trajectory of the company in the upcoming months and years. It includes forecasting of revenue along with operational costs. While taking into account, creating a capital budget, which frames the costs of future investments. Additionally, the budget also outlines the costs of new purchases and acquisitions.
2. Sales trends: Management accounting enables you to evaluate your money-making products & services. Data can help you to nail down whether your product is catered to the right audience or not. Accordingly, you can make it enticing to a specific market. This accounting equips you with the tool you need to target your marketing campaign and narrow it down to potential prospects.
3. Project Management Decisions: Managerial accounting is used to analyze profitability ratio for new projects and provide reports for existing projects. This accounting is crucial in ensuring that all projects are managed properly and delivered within time while staying profitable. 
4.  Financial Planning: Management accounting also keeps a check on your bills and bank statements. Hence, enables you to stay mindful of your current finances & what cash flow to expect during upcoming projects. These insights help you to make calculated decisions about when to control spending and when to go all-in on long-term investments. It allows you to gauge the financial effect of biased decisions and actions & highlight variations in your income. A managerial accountant performs cash flow analysis, by auditing the cash inflow or outflow generated as a consequence of a specific business decision.

The bottom line

Management accounting is a key pillar in creating sustainable operations for a corporation.

By just condensing & organizing stacks of data, it creates a framework where information is easy to find and apply.

Corporate financial reporting is the system that builds the economic reports of a company. A corporate financial report not only shows the financial statements of a company but also aims to highlight the necessary financial data and furthermore shows the application of financial policies.

The three main and basic targets of financial reporting are as follows:

1. to provide lenders and investors insights of a company’s financial health
2. to helps in determining a company’s cash flow
3. to tracks and analyzes your business’ income and reports it concurrently.

Good financial reporting can take your company to new heights, as it shows the true financial position of a company. If the accountants work efficiently to highlight the company’s weak points, they can be saved from hidden losses.

Corporate financial reporting includes income statement, balance sheet, statement of cash flows, and statement of retained earnings and change of equity.

Income Statement or Profit Loss Statement

One of the three important financial statements is the income statement. The income statement summarizes a company’s revenues and losses over a specified period of time that could either be the end of every month, every six months, or every year, depending on the company’s policies.

Income statements give investors and lenders an estimate about how much a company’s monthly or yearly profits and losses are. Therefore it is also called a profit and loss statement.

It clearly reports a company’s financial performance and consequently gives investors an idea of the profitability and future growth of the company that helps them analyze whether or not to invest in it.

The income statement aims at four things: revenue, expenses, gains, and losses.

Starting with the details of sales down to computing net income, and earnings per share (EPS), the income statement has it all.

Net income= (total revenue+gains) – (total expenses and losses)

Balance Sheet

A balance sheet gives an overview of a company’s finances at the moment. It’s a financial statement that reports a company’s assets, liabilities, and shareholders’ equity during that specific time.

Or you can say it’s a statement that identifies what a company owns and owes, as well as the amount invested by the shareholders. What really matters when someone’s looking to invest in your business is the fact that “Is your current asset subtotal compare to the current liabilities subtotal enough to pay off your short-term obligations/debt?

More debt than listed equity in the balance sheet is clear single that company may dangerously have a high amount of borrowing in the future, therefore it is also known as debt to equity ratio. The former information also helps creditors decide whether lending the additional credit would result in bad debt.

To make it easier for you to understand, let me define some major terms used above in more detail.

Assets

Anything owned by your company that has a dollar value is called an asset. List your asset in cash, or how easily they can be consumed or turned into cash.

A current asset is anything that you plan to convert into cash eventually within a year or so. Current assets include money in a current account, money in transit, accounts receivable, short-term investment, inventory, pre-paid expenses, and cash equivalents.

Long-term assets are the things you don’t plan to convert into cash within a year. Long-term assets include property, machinery and equipment, intangible assets (goodwill, franchise agreement, copyrights, and trademarks), and long-term investments.

Liabilities

Liabilities are the things that your business owes to others.

Assets and liabilities are listed in both the long and current terms. These current liabilities include payable accounts, wages against hours employees have worked, taxes and loans to be paid in the same year.

Whereas non-current or long-term liabilities include loans that you don’t have to pay within twelve months and bonds your company has issued.

Equity

Equity is the money held by your company. It shows what belongs to the corporate owners. Equity is dropped if the owner draws money out of the company to pay themself or when the corporation issues dividends to the shareholders.

Cash flow Statement

A cash flow statement is a financial statement that summarizes the cash or cash equivalent entering or leaving the company in a specific period of time.

Cash flow determines how well a company generates cash to pay off its debt obligations and fulfill its expenses. This way the statement of cash flow reconciles the income statement and balance sheet, serving along as one of the three core financial statements for any corporate.

Statement of cash flow is of utmost importance to both investors and lenders to determine whether to work with your company or not. Because it certainly indicates how financially stable a company is.

The important elements of cash flow statements include,

• Cash from operating activities
• Cash from investing activities
• Cash from financing activities

Supplemental information (disclosure of exchange of significant items that did not involve cash and reports the amount of taxes paid and the interest paid)

Operating Activities

This shows the day-to-day business income and regular expenses in a given period of time such as income from sales and paid receivables. Outflows may include payments to the suppliers, insurance, and company taxes.

Investing activities

Cash flow from investing activities signifies cash generated or spent upon bigger items like the purchase or sale of an asset, real estate, or equipment.

Financing Activities

Cash flow from financing activities is used to finance a business. It is the total amount of funds a company generates in a given period of time. Finance activities include issuance and repayment of equity, issuance, and repayment of the debt, payment of dividends, and capital lease obligations. It shows how a company funds its operations and includes changes in all the accounts of debt and equity.

Statement of Retained Earnings

Retained earnings statement represents the total amount of income your company has generated after dividends are paid to the shareholders. This statement reconciles the beginning and ending retained earnings of a company over a specific period of time.

This statement is further used by analysts to analyze how corporate profits are utilized. Retained earnings are the profits reserved by a company for further investment in future projects if they are already not used in making payment of any debt obligations.

The POS (point-of-sale) system allows customers to do the transaction digitally and keep track of sales transactions, inventory transactions, and provide a receipt to the customers. POS systems can also keep track of the customer’s history and provide a clear report on customer activities. It allows management to get an instant report on sales, purchase, and stock. The POS system is an integrated thing of hardware and software.

The use of the POS system

Generally, a skilled range is required for managing and marketing retail stores such as monthly sales reports, calculations of sufficient stocks, and also a skilled range to ensure that the store or store is operating properly. For so long, it would have been done manually or by handwriting, which would have required more time, labor and staff. The POS system is used to solve these problems.

It is most commonly used in different shops or restaurants. However, its use in various wholesale shops or showrooms or in super shops is also worthwhile.

Whatever you need to use the POS system

1 / Monitor or Tablet: You need a monitor or tablet to display all the data in your store, but a monitor is best.

2 / Barcode Scanner: All product information will be using the barcode scanner; It will take less than 5 seconds to know the price, quantity, weight, etc. As a result, it is often considered as an automated process. So, a barcode scanner is required.

3 / Credit Card Reader: A credit card reader will be required, as most consumers are currently comfortable with credit cards.

4 / Receipt Printer: All the details of what a buyer buys and the item will be written to the receipt which he can then compare. So a Receipt printer is very important.

5 / Cash Drawer: Hand cash very well practises in most developed countries, but it is still the king in many countries. Most buyers still prefer to provide cash so a cash drawer is a must for better serving to the customers accurately.

6 / POS Software: POS software that manages all the hardware and accomplishes and integrated task. It also generates accurate reports of everything related to sales. Many countries like in Pakistan, Bangladesh especially in Asia off-the-self POS software can be purchased separately but in some countries for example, in Bangladesh customised POS software is very popular.

However, the POS system does not do the full accounting of the whole company so an integrated Accounting System will be the best choice to fully automate the shops.  

Ayesha Saeed

Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.

Utah is well known for its enticing national parks, the Sundance film festival, and is an excellent place for practicing paleontology. Also, the people of Utah are known as one of the most generous people in the United States. They all strive for fundraising initiatives, such as charity, through car donations.

People donate a car in Utah for a variety of noble causes and charitable purposes, including relief to patients who can’t afford costly treatments. It’s not wrong to say that people who offer charity should be entitled to the benefits of these donations.

For instance, one can get the benefits of tax deductions by donating their car to a charitable organization. Utah has many such reputed philanthropic trusts, where one can give cars for various noble causes. These trusts make it possible even for people from rural areas, like Bicknell in Utah, to avail tax deductions from car donations.

This article will go through some of the critical aspects related to tax deductions while donating a car.

Itemize Your Return

It’s necessary to itemize the deductions if you wish to claim your car donation for reducing your taxes.

If the donation is the only deduction, standard deductions are likely to save you more money. You can achieve the benefit to the fullest when you have many deductions, including the car donation claim, and their total exceeds the standard deduction. However, the IRS limits the amount you can claim on your tax returns.

Impact of Tax Bill

One wishing to claim tax benefits from car donations must check the latest Tax bill. The Tax Cuts and Jobs Act lowers the tax rates and alters the income brackets. In Utah, the latest tax reform has enabled higher take-home, increased employee bonuses and incentives, and increased charitable donations.

You must check the applicable income bracket to decide the amount that you’re permitted to claim. The tax benefits from such contributions are perhaps more or less advantageous.

Document Tax Receipts

Maintain a record of all transactions related to the car donation. Furnish these documents at the time filing your taxes. The IRS gives a six-month extension to submit the returns in case of a delay in the car sale.

Otherwise, file the returns without claim. Use 1040X to claim the deductions, once charity sends you sale notification.

Identify a Qualified Charitable Organization

Donate your car to an IRS recognized, qualified 501c3 charity to claim your tax deduction. If you wish to donate cars in Utah, you can search online for genuine charitable organizations. From the list of organizations you select, IRS can confirm which ones are qualified and official.

Significance of Fair Market Value

The fair market value is the price a buyer will pay and a seller will accept. Under the IRS rules, you can deduct the vehicle’s fair market value under specific conditions. One such condition is when you sell your car to an underprivileged person at a rate significantly below fair market value.

To summarize, when you donate a car for charity in Utah, you can undoubtedly gain tax deductions. Keep in mind the aspects mentioned above, before proceeding with the claim.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.