The Responsibilities of Business Accountants

We’ve heard this line time and again. “Business Accountants are needed in all companies big or small, new or established.” Quite frankly, this is true and a well-accepted fact in the business world. Have you ever wondered what exactly do these individuals do? Whether you are the student choosing his or her options, a business owner looking for a professional to employ or simply a curious being with a mind looking for new information, this list is for you.

figure analysis1. RECORDING AND CLASSIFICATION OF DAY TO DAY TRANSACTIONS

One of the basic tasks and duties of accountants is to record and classify all the transactions of the business. This entails knowledge in classifying accounts into assets, liabilities or equity and as income or expenses. Are they balance sheet or income statement accounts? Are they current or non-current? All these and more are dealt with by these individuals.

2. ANALYSIS OF FIGURES

Apart from the classifying or journalizing of transactions into the company books, they also take care of the analysis and interpretation of such figures. What does a low receivables to equity ratio signify? Are the prices of goods reasonable against its cost of production? Is inventory accurate and up to date? They do more than just compute, they also do a lot of analysis.

3. FINANCIAL PLANNING AND BUDGETING

Likewise, business accountants aid business owners and management in making their annual, semi-annual, quarterly and/or monthly financial plans and budgets. For every company, having a carefully laid out and studied budget is a must. You cannot simply have your usual operations without putting into mind if you have enough resources to fund it. Plus you have to know if you have access to such funds. This also includes proper and careful allocation of your resources to the different departments, operations and projects.

4. TAXATION AND OTHER GOVERNMENT DUES

Not everyone is well acquainted with the tax laws as well as the procedures and processes that come with it. You must already know by now that you risk getting penalized with fines or be put under serious legal consequences if you fail to follow the said legalities. Business accountants are well equipped in this area. They handle the filing, payments, and assessments and they also make sure that you meet the stated deadlines.

These are only four of the many responsibilities given to these professionals and even with only these on our list, it is safe to say that no business will thrive without a good accountant.

The Importance of Auditing

We’ve all heard about auditing but what does it really entail? As per definition it has been referred to as the unbiased examination and evaluation of the financial statements and operations of an organization which can be performed by internal employees or by an external entity such as an audit firm. What makes it an important aspect in business then? Let’s try discussing its long list of benefits and importance in brief:

  1. auditingPREVENTION AND DETECTION OF FRAUD. The procedures performed in an audit helps businesses detect any anomalies, fraudulence and small and big time theft within the organization. In the same manner, because of this employees and staff are less likely to attempt one knowing that the organization has eyes set to look after everyone.
  2. DETECTION OF ERRORS. Sometimes employees commit mistakes unconsciously without any intention to do so. Human error is always a risk that can never be fully diminished. No one’s perfect after all. With an audit performed, companies get to track down errors committed and apply the needed corrections to set things straight and on track again.
  3. ASCERTAIN COMPLIANCE OF TAX LIABILITIES. It also enables organizations to make sure that the taxes they remit and declare are the correct and actual amounts. We all know that the penalties and legal consequences of non-compliance can be a pain and not to mention expensive. It helps to have people who can make assessments of the company’s ability to fulfil its tax obligations.
  4. MAKES WAY FOR IMPROVEMENT. With errors corrected, fraud eliminated, advices provided and efficiency upheld; businesses make way for improvement. It is important for entrepreneurs to remember that they should constantly improve themselves, their employees and their company as a whole if they want to stay afloat in the market.
  5. ENSURES EFFICIENT, EFFECTIVE AND TRUSTWORTHY STAFF. With someone to check up on their work and to ascertain that policies, standards and procedures are intact and followed as should be, employees will be pushed to constantly do their best, improve their skills, work as should be and stay honest in all matters.
  6. IMPROVE INTERNAL CONTROLS. In most cases, companies already have internal controls put in place. However, this does not guarantee that it is working and that people are following it. There are cases when the said controls fail to do what they are expected to do. Auditing allows companies to review and assess whether another line of control should be added, removed, scraped off or changed.

Business Accounting Tips for the Entrepreneur

Entrepreneurs know for a fact that business accounting is an important factor in their companies. They are a necessity and a need. How then can they record, manage, analyse, compile and track their daily transactions and operations? From the small disbursements from the petty cash fund down to the bigger ones that require approval from the CEO and other key employees, business accounting is the rule of the game. We’ve all seen big companies that toppled over and fell rock bottom with a big thud due to accounting mistakes. No one would want to follow such fate for sure. Of course everyone has to start somewhere. Even with simple practices, you can do a lot.

With that said below are our tips to help entrepreneurs with managing their financial records.

  1. accounting-tipsGET PROFESSIONALS. This is a serious matter that requires impeccable skill and expertise. Even the accounting profession is aware of this that is why they have set up professional bodies to regulate and uphold the quality of the profession. Make sure to get one who has the qualifications. You cannot assign such task to just anybody.
  2. TAKE ADVANTAGE OF TECHNOLOGY. Gone are the days when you have to journalize by hand and make financial statements from scratch or take long hours on your calculator. In fact those things pose a lot of possible human error. Use biometrics rather than manually logging in time in and out of employees. Get yourself an accounting system or program. There are loads of options available. Find one that suits you and your company best.
  3. CONSIDER PAPERLESS. It’s okay to still have a hard copy of your documents but imagine the number of trees that have died plus the storage needs you will have to spend for and of course the risk of fire, termites and natural hazards that can destroy records. You can already store data on computers. Of course you need back up and there are a lot of cloud services that offer this.
  4. TAKE GOOD CARE OF YOUR RECEIPTS. One common mistake many businesses make is not being able to preserve all their receipts both those they have issued and those they acquired from purchases. These supporting documents are considered a gem. Make sure that they are kept intact, readable and complete.
  5. SEPARATE BUSINESS AND PERSONAL MATTERS. Expenses, profits and everything else should be kept separate.  The law considers a company a separate and distinct entity from its owners so don’t you ever charge your newly bought smart phone to your business’s communication expense.

Those are only a few of the many business accounting tips that entrepreneurs should remember.

The Importance of London Tax Accountants

Why should you get London tax accountants? Won’t your in-house accounting department suffice? Would it cost you some serious amount of financial resources? What benefits can you get from hiring them?

Those questions often resound on the heads of business owners as well as the company’s top management and decision makers. Getting one or a team of London tax accountants to work for you during the season has its perks and benefits. Read on to find out what these are!

NO PENALTIES, NO INTEREST: One of the common and most loved benefits that make these professionals important is the fact that they can help entities stay away from penalties, interest and other costs that would otherwise be available when you get someone who isn’t skilled enough to handle your taxation and related transactions.

MORE SAVINGS AND FEWER EXPENSES: In connection with our first item, because you avoid penalties and interests, you get to cut on costs. Late filing and wrong computations can cost you more money that you think it will. Take a preventive action. It’s best to prevent a bad situation from happening than trying to resolve it afterwards.

Cutting TaxesLESS WORRIES EQUALS NO STRESS: Admit it. The tax season and the tasks to be done is full blown tiresome and no to mention challenging. If one isn’t skilled, educated at or experienced enough, handling taxes can be such a burden. Why not alleviate your stress by getting a professional who is an expert at it?

RELIEVE OVERBURDEN: You may already have an in-house accounting department with employees segregated to different duties. Most often than not, the person to handle the taxes here is already tasked to do other work. Since taxation doesn’t happen on a daily basis and you don’t file and remit daily, it would be a better idea to get someone to do exactly this. Hiring in-house personnel may be costly with all the employee benefits and other factors so outsourcing can be a good option to many.

MORE TIME: Because you relieve overburden from your staff, you are giving not only them but you yourself more time to focus on other key goals and tasks for the company such as product innovation, research and development, expansion and the like.

So what are you waiting for? Go out and search for the best London tax accountants to do tax planning for you. There are numerous firms and professionals out there like Ripe Financial. See to it that you screen them well.

On Finding London Accountants

Hiring the right person to manage your financial resources is a crucial step to ascertaining the success of your business. As they say, people are a company’s most important asset and the driving force that propels the business forward. You may have the capital but if you do not have the right people then all that will be put into waste. More importantly, finding and getting the right London accountants is a must as who would lead the administration of your finances? You will always need these professionals. Have you seen a successful business that operates without them? None, zero, nil.

So how exactly do you hire and get the best London accountants for your company?

  1. accountants-1024x821Make your needs known. Do know that there are many kinds of accountants and each of them have a different skill set and specialization. Do communicate who and what you need at the onset so you won’t be walking back and forth and lose your way. You might hire someone who’s competent and skilled but whose abilities aren’t fit for the task at hand. Your needs and their abilities must meet.
  2. Create a requirement checklist. There are standards when it comes to requirements and characteristics. List them down by order of your preference. If there are other characteristics that you require then add them up too. This should guide you on your search.
  3. Interview well. Once you find someone, may they be an independent practitioner or a firm, see to it that you don’t buy into the conversation easily. Interviewing is like sales talk for the interviewee and you as the recruiters are the buyer. Of course, they will do well to impress. Your job is to check up whether what they say is true. Do background checks. Call their references. Ask for licenses. In the case of firms, read up on reviews. That should give you an idea as to the quality of their services.
  4. Quality often comes with a price. When someone offers you services that are way too cheap then that should raise a red flag. Quality may come with a price but it should be affordable and reasonable, therefore a balance. This however does not mean that over the top costs are always the best.
  5. Trust your gut. Sometimes, you just have to trust your instincts. Finding the right London accountants will require you to perform a couple of different steps and processes but in the end it will all boil down to your judgement so use it well.

How to Spot Reliable Accountants in London

With so many businesses popping here and there, London is a home to numerous companies, big or small, local or international. This isn’t to be questioned as the city is one of the three global economy command centers, a world leader and a financial center for commerce. One of the reasons why these businesses strive is because of their standards and practices that help them keep track of their daily operations to see if things have to be improved, removed or acted upon. One of these is finding reliable accountants in London to facilitate the maintenance and records of the company’s transactions. But how do you exactly find one? With so many professionals offering their services in the said field, how would you know who is fit for the job?

accountantFirst up is research. You can do this in many different ways. Open up your directory. Surf the internet. Ask clients and other business associates. Make full extensive research about the accounting companies or agencies in your area. You may also want to visit their offices and talk to them directly. Know the services they offer, their rates and other important matter. Also remember to contact some of their past and present clients. Ask for feedback. This will give you a good idea of the quality of service that you might get.

What are your needs? You may want to hire them for different reasons such as for the handling of your payroll, the computation and requirements for your taxes, to conduct an audit, for bookkeeping, for general accounting, for corporate tax planning or any other similar service. Be sure to determine why and for what you’d hire them so that you will be able to correctly choose the right person. This is so because there are different kinds of accountants with different fields of expertise.

Look for those who can work with you. If you are a fast-paced company with high, extensive and numerous daily transactions, look for professionals who can and are willing to handle the pressure and work. You’d need someone who is flexible enough to easily complement you.

Check their skills, knowledge, educational attainment, training, experiences and licenses. It’s okay to ask. Firms and their accountants will gladly show and inform you about this. This will help you ascertain whether or not they are fully finances-1024x670packed with skills to match the task at hand.

Talk to them. There are firms who offer a dry run to their clients. Grab this opportunity for you to be able to test if they can indeed provide the service you are looking for. See to it that they too are approachable and friendly. You and your employees are going to work with them on a daily basis and you obviously wouldn’t want someone who cannot socialize properly.

There you have it. So if you are looking for reliable accountants in London, always put in mind the said tips. Good luck!

North London Accountants: How to Plan and Achieve Your Dream Retirement

Older Couple Walking Along BeachEveryone wants a comfortable and happy retirement. You’ve worked so hard for the past years and it would be so fulfilling to be able to give this to yourself in the near future. You’ve worked from sunrise to sunset, placed food on the table and labored for hours. It would be nice to see yourself in all that ease, security and comfort someday. But how should you go about it? How do you know that you’re doing the right thing? Luckily, we’ve got some of the best North London accountants to give us some tips and advice on how to plan and achieve your perfect retirement.

What are your sources of income? Do you depend on your salary? Have you got some investments? Or are you running a business? Know where and what your financial sources are. Doing so will give you an idea on how much you’re likely going to work with.

Second, know your needs. The basics would have to be food, clothing, shelter and healthcare. You must know what things you should prioritize. Always remember that your money today will not have the same value in the future. What costs a pound today will cost more tomorrow. So take this into consideration.

How about your retirement savings plan? Employers offer this kind of benefits to their employees. If your employer does, grab the opportunity. Study the terms and policies and see if it works for you.

Save, save and save. The earlier you start the better. Distribute your income into separate divisions depending on your lifestyle and needs. Allot some for groceries, electricity, mortgage and other usual expenses. Also remember to leave something to place in an emergency fund. It’s all about the budgeting. Lastly and most importantly, never forget to leave something to save. Put it in a bank. Saving is a very good habit and when the time is ripe, you’ll be reaping the sweet fruits of your labor.

Live healthy and happy. If you’re all too sickly, there is no way that you are going to enjoy your retirement. So think smart. Eat healthy foods but of course you can also give in to a cheeseburger and fries occasionally but remember to not go overboard. It’s all about balance. Rest well and get enough sleep and lastly exercise regularly.

If, however, you’d really want to make sure that everything is in its place, you may ask professional help. You may contact North London accountants who specialize in retirement and pensions who can help you analyze, establish strategies and plan wisely.

Good luck!

London Chartered Accountants and the Benefits You Get By Hiring Them

A proper, strategic, organized and standardized means of maintaining business records and transactions is a must for all businesses in all industries. No company can survive without having an accounting of its transactions. To do this, businesses keep and maintain a separate and distinct division for this important function while there are those who opt to hire the best London Chartered Accountants and outsource instead. An in-house department is common to most entities and has been used by many. Lately, businesses have tried to outsource due to the following benefits that they can derive from it.

it_photo_122035You get cuts on costs and expenditures.

One of the most highlighted benefits would have to be regarding the amount of resources you are able to save. No more expenses for added office space lease, maintenance, equipment and supplies. You wouldn’t even have to spend on training your staff as well as their salary and benefits. In the long run, it is cheaper to outsource accountants.

Less effort, less stress, more time.

Hiring, training and supervising employees for the division would not be necessary anymore. You won’t be stressed about having to check up on them all the time and make sure that everyone is working and not slacking around. You can now devote your energy and resources to more specific goals like profitability, sales, marketing and product improvement.

You work with highly trained, skilled and well-experienced professionals.

When outsourcing, it is expected that the individuals who offer their services are already skilled, trained and experienced enough. Because they would want clients like you to hire them, they would constantly improve on their knowledge and skills so you won’t have to worry that their awareness of accounting standards and legislations are incorrect. They keep themselves at the top of their game.

No more penalties.

You avoid all the possible penalties resulting from late filing and miscalculation of tax payments, withholdings and the like. Outsourcing accountants help you avoid these unwanted penalties not only because of their vast knowledge on the matter but because they offer insurances. Most firms would give their clients a kind of insurance that assures them that in the event that a mistake occurs, the firm in itself is liable.

Outsourcing London accountants indeed has its perks. Don’t be afraid to take advantage of these. Just see to it that you look into every detail of the process. Would you have to hire professionals for the whole accounting function or only for specific tasks like VAT, payroll and other taxes? Plan well. Good luck!