Outsource Accounting Tasks To Us Instead of Using Expensive Internal Accountants

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By Amitaabh Saboo

Do you know the language of business? Accounting is termed as the key language of business by many people. Without adequate accountancy knowledge, skills and experience, your business performance and monies will be difficult to track. Nowadays many entrepreneurs are not able to study and manage their businesses at the same time. They are taking advantage of outsourcing. When entrepreneurs outsource accounting, they shift their difficult responsibility to an outsider, who has nothing to do their organizations. Both of them form a contract that defines the scope of service delivery, terms of payment, task deadlines, methods of service delivery and many other parameters.

Since managing your company is hard enough, you may also want to outsource accounting to a reputable firm near you. An accountancy firm is an independent organization that employs thousands accredited and qualified accountants. It has a remote data entry centre that accommodates its employees. The arrangement involved in outsourcing is quite different from a normal recruitment process. Your company and an accountancy firm of your choice will get into a business deal that does not involve any employment terms. The firm will get your accounts books balanced and you will pay the agreed rate to return the favor.

As you can clearly see, entrepreneurs who outsource accounting tasks to an autonomous service provider, avoid the hassle and stress of recruiting new accountants. Would you not want the same thing? Another cost you can avoid is that of training or retraining new or existing staff. Software development technology has greatly advanced these days, and new accounting software products are cropping up quickly. The cost of training your accountant on how to use new accounting software can be higher than the cost of assigning your daily tasks to an external accountancy firm. When you outsource accounting, you are given an opportunity to choose among different accounting software programs.

An outsourced company already has many professionals who know how to use software at no additional cost on your part. What’s more, you get to choose when you want to contract out and when you want to do the job personally. After ending a contract with an independent outsourcing company, you can decide not to form another contract until you are financially. On the contrary, keeping an office employee denies you the pleasure of not paying any monthly wages when your business is not getting enough contracts. It is therefore convenient and cheaper to outsource accounting than to do the job yourself. In addition, when you assign a task to a remote contractor, you can free your office space by dismissing redundant staff.

This will help you channel the money you would otherwise pay as monthly salaries to other profitable departments of your company. For instance, you can do more advertising and marketing in order to attract more customers. While looking to outsource accounting, it is advisable to use a registered company with offices in your country. For instance, if you live and do business in the USA, you should locate a company that has head offices in the US. This way you will know that you are protected by the laws of your country. Additionally, it makes you feel secure and confident when passing your business data over the internet. To be completely successful, you should outsource accounting tasks to a trustworthy company that has diligent and qualified employees. Outsourcing accounting improves financial operations as well as increased the level of efficiency, adaptability and ability to wok with the market conditions while at the same time curtailing risks and costs.

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

Article Source: http://EzineArticles.com/7185943

Ask us for help – we provide on-site and remote accounting and controllership 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, BA, MBA, PA

 

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