Benefits Of Retaining Us To Perform Your Part Time Controller and CFO Services

Four businesspeople in boardroom talking

Small and medium-sized companies that are not in a position to hire a full-time Controller or CFO are often the companies that would benefit the most from the expertise of an experienced Controller or CFO.

We can take complete responsibility for the financial side of your business, or we can function purely as your part-time / virtual Controller or CFO, optionally, managing your existing accounting and bookkeeping staff. Every business and situation is different.

We can work with your accounting and bookkeeping staff, attorneys, bankers, insurance brokers and tax preparers at a fraction of the cost of a full time employee.

Outsourcing to us will reduce and control your internal operating costs, allow you to gain access to extensive additional capabilities, and allow you to focus on managing your business.

We are seasoned professionals and have the experience, expertise, education and qualifications to be your part-time / virtual / on-going Controller or CFO.

The types of services that we can optionally provide include:

•Monthly Accounting

•Accounts Payable and Receivable Management

•Financial Statement Preparation

•Cash Flow Analysis and Management

•Inventory Management and Control

•Fixed Assets Reporting

•Bank Reconciliations

•Tax Return Preparation

•Payroll Tax Compliance

•Variance Analysis and Reporting

•Activity Based and Job Costing

•Revenue and Expense Analysis

•Staff Training and Utilization

•Business Consulting and Guidance

•Accounting Systems and Controls

•Financial Analysis and Reporting

•Strategic Planning and Consulting

•Cost / Revenue Benefit Analysis

•Budget Preparation and Reporting

•Financial Forecasting and Modeling

•Treasury / Cash Management

•Negotiations for Financing and Operations

•Reorganizations, Mergers and Acquisitions

•Develop and Analyze Business Plans

•Software Selection and Implementation

•Software Training and Support

•Preparation of Policies and Procedures

We are headquartered in the Tampa Bay area; the majority of our work is handled remotely, yet, we are able to talk and work with you on a regular periodic basis.

We have over 45 years of Accounting, Management and Systems experience. Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

Ask us for help – this is what we do.

Visit our website www.desmidtconsulting.com to learn more about our business.

Visit our mobile website www.DeSmidtConsulting.mobi

Read about us on LinkedIn http://www.linkedin.com/in/peterdesmidt

Contact us www.desmidtconsulting.com/contactus.html

813-252-9490

Thank you,

Peter DeSmidt,

imagesRMWHBYUM

Benefits of Retaining Us to Perform Your Remote Accounting Services

Business meeting

Small and medium-sized companies that are not in a position to hire a full-time Controller or CFO are often the companies that would benefit the most from the expertise of an experienced Controller or CFO.

We can take complete responsibility for the financial side of your business, or we can function purely as your part-time / virtual Controller or CFO, optionally, managing your existing accounting  and bookkeeping staff.  Every business and situation is different.

We can work with your accounting and bookkeeping staff, attorneys, bankers, insurance brokers and tax preparers at a fraction of the cost of a full time employee.

Outsourcing to us will reduce and control your internal operating costs, allow you to gain access to extensive additional capabilities, and allow you to focus on managing your business.

We are seasoned professionals and have the experience, expertise, education and qualifications to be your part-time / virtual / on-going Controller or CFO.

The types of services that we can optionally provide include:

  • Monthly Accounting, CFO and Controller Services
  • Accounts Payable and Receivable Management
  • Financial Statement Preparation
  • Cash Flow Analysis and Management
  • Inventory Management and Control
  • Fixed Assets Reporting
  • Bank Reconciliations
  • Tax Return Preparation
  • Payroll Tax Compliance
  • Variance Analysis and Reporting
  • Activity Based and Job Costing
  • Revenue and Expense Analysis
  • Staff Training and Utilization
  • Business Consulting and Guidance
  • Accounting Systems and Controls
  • Financial Analysis and Reporting
  • Risk Management and Controls
  • Strategic Planning and Consulting
  • Cost / Revenue Benefit Analysis
  • Budget Preparation and Reporting
  • Financial Forecasting and Modeling
  • Treasury / Cash Management
  • Negotiations for Financing and Operations
  • Reorganizations, Mergers and Acquisitions
  • Develop and Analyze Business Plans
  • Software Selection and Implementation
  • Software Training and Support
  • Preparation of Policies and Procedures

We are headquartered in the Tampa Bay area; the majority of our work is handled remotely, yet, we are able to talk and work with you on a regular periodic basis.

We have over 45 years of Accounting, Management and Systems experience.  Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

Ask us for help – this is what we do.

Visit our website www.desmidtconsulting.com to learn more about our business.

Visit our mobile website www.DeSmidtConsulting.mobi

Read about us on LinkedIn http://www.linkedin.com/in/peterdesmidt

Contact us http://www.desmidtconsulting.com/contactus.html

813-252-9490

Thank you,

Peter DeSmidt,

imagesRMWHBYUM

The Importance of Cost Accounting

By Uma A Ilango

Managers rely on cost accounting to provide an idea of the actual expenses of  processes, departments, operations or product which is the foundation of their  budget, allowing them to analyze fluctuation and the way funds are used socially  for profit. It is used in management accounting, where managers justify the  ability to cut expenses for a company in order to increase that company´s  profit. As a tool for internal use, versus a tool for external users like  financial accounting, cost accounting does not need to follow the GAAP standards  (Generally Accepted Accounting Principles) because its use is more  pragmatic.

It creates a financial value out of the production of a product, measuring  currency that is nominal into units that are measured by convention. By taking  recorded historic costs a bit further, it allocates a company´s fixed costs over  a specific time period to what items are actually produced during that period of  time, creating a total cost of product production. Products that were not sold  during that period of time produced a “full cost” of those products, recording  them in a complex inventory system that uses accounting methods of its own that  are in compliance with the GAAP standards. Managers are then able to focus on  each period’s results as it relates to the “standard cost” of any product.

Any distortions in expenses that were caused by calculating what the overhead  of a product is versus what a unit cost is for companies that specialize in only  one specific product are very minor in industries that mass produce that product  with a low fixed one. Understanding why it varies compared to what was actually  planned helps a manager to save a company money by taking actions that are  appropriate to correct that variation in the future. Variance analysis is a very  important part of cost accounting because it breaks down each variances into  many different components of standard and actual one. Some of these components  are material expenses variation, volume variation and labor expenses  variation.

It is a very important part of the management accounting process. In order  for managers to determine the best methods to increase a company’s  profitability, as well as saving a company money in the future, cost accounting  is a necessary system in the management of a company’s budget, providing  important data to analyze fluctuation in company production expense.

Executive level pay is based upon company performance. If the performance of  a company is not reported in a proper manner, executives make money that far  exceeds what the business is capable of and creates a false picture of a  company’s performance. This false reporting causes the stock market to balloon  by rewarding stock to companies who do not deserve it, and these methods have a  bad effect on our economy. Business accounting that honor the GAAP (Generally  Accepted Accounting Practices) creates a transparent persona, an air of trust  and respect, from the users of their financial statements.

Article Source: http://EzineArticles.com/2140873

Ask us for help – this is the work that we do.

Visit our website www.desmidtconsulting.com to learn more about our business.

Contact us www.desmidtconsulting.com/contactus.html

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Job Cost Accounting – Its Relevance and Importance

By Fayaz Ali Shahabudeen

Most companies invest a lot of time and energy into the process of job cost  accounting. To the lay person, this may seem like a lot of undue attention, but  it is an important function which does estimate the performance of the company  in relation with its expenses and revenue.

Job cost accounting takes into consideration various jobs in the  organisation, and studies the expenses which have been incurred by the function  against the revenues it has been able to generate.

There are several parameters that come clear with the use of job cost  accounting. The first helps ensure that there is a certain level of  profitability which is maintained in each function of the organisation. This  also helps understand which the weakest link is, and helps take more specific  remedial action.

Another important aspect of job cost accounting is being able to correlate  targeted revenue against the actual revenue, and similarly, estimated costs  against actuals.

Job cost accounting actually begins by studying the job and being able to  monitor all the costs which are associated with a particular job. It then tries  to collect all invoices and make sure that they are forwarded to the customer in  a comprehensive manner. Further, they also need to document and establish how  the revenues justify the costs which have been incurred.

To be able to collate an accurate record, you must be extremely meticulous  and track every record. Make sure that expenses and revenues match and ensure  all invoices have been presented properly. Rather than using vague, general  terms which could end up confusing later, make sure you use precise terms when  making any entries.

Job cost accounting may seem like a laborious, complex affair, but it is  extremely critical to the organisation as it charts progress at every stage and  sets direction for future action.

Article Source: http://EzineArticles.com/?expert=Fayaz_Ali_Shahabudeen

Article Source: http://EzineArticles.com/5196270

We have over 45 years of Accounting, Software, Management and Systems experience. Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

Ask us for help – we provide small business accounting, cost accounting, business advisory and software consulting services.

Visit our website www.desmidtconsulting.com to learn more about our business.

Visit our mobile website www.desmidtconsulting.mobi

Contact us www.desmidtconsulting.com/contactus.html

813-252-9490

Thank you,

Peter DeSmidt.

 

Could Your Business Use Job Costing ?

By Rebecca Tervo

I just got off the phone with a very frustrated contractor. He has been in  business for several years, but his business has grown to the point that he  knows he needs to keep a closer eye on his numbers. In fact, he said “I can’t  sleep because I’m worried my reports are screwed up!”

I agreed to help him out by reviewing what his current QuickBooks file is  doing for his business. He wants help to figure out if he’s doing his “job  costing” correctly so he can know how much money he’s making on each job.

Job costing was part of my duties when I worked for a manufacturing company  several years ago. I had to make sure the proper systems were in place to track  all the employee hours and materials and supplies properly to each job. It was  an ongoing process of reviewing data on a regular basis to check for flaws in  the system and for inaccuracies in the numbers. I enjoyed it immensely, and  learned a lot about how a breakdown in the RECORDING of information can really  screw up the job profitability reports.

But, a manufacturing company isn’t the only business that needs job  costing.

Job Costing

What is job costing? Simply put, it is a way to track the profit and loss on  specific jobs or projects for your business. Knowing how profitable or  unprofitable your work is will help you make better business decisions when  moving forward.

Manufacturing businesses aren’t the only companies that can benefit from job  costing:

-Interior Designers can track profit by customer project

-Road Construction companies can track actual profit vs estimate

-Plumbing contractors can track whether they are making or losing money on  each service call

-Law firms can track profit and loss per case

-Consultants can track profit and loss per consulting job

-Online business managers can track profit and loss by project -and more.

As you can see, job costing can be very useful for many types of businesses.  Figuring out the profitability of a specific project requires you to track  several pieces of information.

Information that’s used to determine job profitability. In order to properly  “cost” your jobs, you’ll need to have a way to track income and expenses for  separate projects. One other note: All costs related to a specific job are also  called “cost of goods sold”. My choice to track job costs is QuickBooks.

Here’s the information you want to track for each job:

-Labor cost- including time for employees and subcontractors; and any taxes,  insurance, and benefits you pay for this labor.

-Materials cost- parts, supplies, products used on the job

-Cost of equipment to get the job done- example: did you rent any equipment?  Also, figuring out a way to allocate the use of your own equipment on a job is  important.

-Mileage, travel, meals-this is all an important part of getting the job done  and needs to be carefully tracked

-Licenses, permits, etc-any extra licenses or permits that are required for  the job need to be tracked to the job

-other-ANY expense that is directly tied to the job is considered a job  expense.

The Job Cost Result

Now that you have a way to track expenses by job, you’ll be able to get a  summary at the end of each job or project that will look like this:

Total income for the job

MINUS

Total job expenses (from list above)

EQUALS

Job Profit or Job Loss

Job costing is extremely important for several reasons and helps you:

-keep up on the current pricing of each job cost item

-know if you’ve been overbilled by your vendors

-point out inefficiencies in the work process

-point to problems with subcontractors and employees

If you can’t figure out how to setup a job cost system that works for your  business, please contact a qualified professional (accountant, bookkeeper,  Certified QuickBooks Proadvisor) to help. The investment of time and money in  setting up a proper job costing system goes a long way in helping your business  be more profitable.

Article Source: http://EzineArticles.com/6458369

We have over 45 years of Accounting, Cost Accounting, Job Costing, Management and Systems experience. Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

Ask us for help – we provide small business accounting, advisory and consulting services.

Visit our website www.desmidtconsulting.com to learn more about our business.

Visit our mobile website www.desmidtconsulting.mobi

Contact us www.desmidtconsulting.com/contactus.html

813-252-9490

Thank you,

Peter DeSmidt

 

What is Job Costing?

By Arnold S. Grundvig, Jr.

Here is a fact that will surprise few contractors: Construction is the highest risk industry in the US economy. There are more business failures in construction than any other industry, both in number and as a percentage. The reason for this gloomy statistic is the reality that most contractors fail to monitor construction costs, so they get out of control. Before the contractor knows it, a job has lost money and the business has deteriorated toward insolvency. If things are not turned around, the owner’s home is soon being foreclosed on and another marriage ends up in divorce court.

Here is a real life example, with a twist. A contractor had just finished a job that he bid with a $100,000 built-in profit. He complained that when he paid the last bill, instead of making $100,000, he had lost $120,000. He was fortunate that this $220,000 swing would not cause his business to fail. His big concern was the reality that he had no idea where things went wrong, so he didn’t know what to fix!

In response to this risk, some contractors reason that the best solution is to keep their business small, thereby reducing the risk of failure. Surprisingly, the same study that documented how risky construction was (done by the US Small Business Administration) also concluded that staying small actually increased the odds that a contractor would fail. In fact, of all the industries in the study, the one that benefited most by growth was construction!

How can a contractor monitor costs AND grow, thereby increasing the chance for success? The answer is to use job costing. There is an old axiom, “Use the right tool for the job.” When it comes to construction, the right tool for accounting is job costing. That is why contractors need it.

Now, we get to the heart of the question. What exactly is job costing? Job costing is a special accounting process that was designed specifically for contractors. It’s nothing mysterious and it doesn’t require a high-priced accountant or high-priced software. It is simple a two-step process. The first step is to set up a job and enter a “budget” for that job. Where does the budget come from? The budget is nothing more than the “estimate” that was created by the estimator when this marvelous visionary calculated the expected costs for the job, line by line, phase by phase, from start to finish, for the job. Logically, an estimate is not a single figure, but a series of small estimates, each covering a different phase of the job. For instance, how much concrete at what cost per yard will it take for the foundation? How many hours of labor, at what cost per hour to prepare and then pour the foundation? What will the costs be for subcontractors, if any? Will it be necessary to rent some equipment, like a concrete pump, and what will it cost?

Each phase of each job has a potential budget for labor, material, subcontracts, equipment, and a general, catch-all “other” category. In addition, there may be a “burden” category, which adds a portion of general and administrative overhead to each job, thereby spreading the whole cost of operation back to each job. This is a powerful way to determine if each job is carrying its share of the load.

In actual practice, setting up a budget is not as complicated as it might sound. Estimators do it all of the time. In fact, the Construction Specification Institute (CSI) created a numbering system to help contractors budget and track costs. This numbering system is called the CSI Cost Code. This is a tool created specifically for contractors to help them do job costing.

The next step is nothing special. In fact, the accountant does what the accountant always does: Enter vendor invoices and subcontractor billings, enter payroll, and do customer billings as usual. As costs are “accrued,” they are tracked. “Accrual accounting” recognizes an expense as soon as it is incurred, not waiting until it is paid. With job costing software, it is not necessary to actually pay an invoice or a payroll for that cost to be included. The fundamental difference in job costing is that as each cost is entered, it is assigned to one of the CSI cost codes for one of the jobs. The result is that individual actual costs are compiled and compared to individual budgeted costs. True job costing software will actually go one step further and forecast the “cost to complete” for each cost code, based on a series of “algorithms.” If a contractor uses “field reports” that show what remains to be done on each phase of each job, job costing software can override the algorithms and add those numbers to actual “costs-to-date” and then compare them to the budgeted costs, line by line, phase by phase, job by job. The result is up-to-the-minute cost information. That means contractors can sleep well at night, knowing that they are making money as the job progresses. They never have to wait until the job is completed to see if there is anything “left over” for them. Job costing provides peace of mind to contractors.

If a contractor is using job costing software and actual costs get out of line, there is time to find out why. This should be an ongoing process, not done after the fact. Was the contractor double billed? Was an invoice double-paid? Was more work done than was originally budgeted? Is a change order necessary? Only by knowing that costs are out of line can management address the causes on a timely basis. Job costing allows management to monitor and thereby control costs. The result is reduced risk, increased profitability, and something sweet, something called “success.” Job costing is more than a tool that contractors need in order to avoid becoming a statistic; it is the key to their success. Perhaps it is bold, but one accountant said, “Contractors that don’t use job costing are either lucky or bankrupt, and no one likes to hang their future on luck!”

Yes, the professionals are right; contractors NEED to use job costing. Taking that a step further, they need to use REAL job costing software to do it right.

Article Source: http://EzineArticles.com/?expert=Arnold_S._Grundvig,_Jr.

Article Source: http://EzineArticles.com/1069404

We provide virtual and onsite Accounting, Cost Accounting, Controller and CFO Services to small and medium sized businesses.

Ask us for help – this is what we do.

Visit our website www.desmidtconsulting.com

Visit our mobile website www.desmidtconsulting.mobi

Contact us www.desmidtconsulting.com/contactus.html

813-938-3608

Thank you,

Peter DeSmidt, BA, MBA, PA

QuickBooks Certified Advanced ProAdvisor

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist