BOOKKEEPING METHODOLOGY| ODOO | XERO | MERU ACCOUNTING
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Today's accounting software solutions Accounting has traditionally been regarded as a dull and uninteresting aspect of business. However, as the business grows, the accounting department will arguably become one of the most important components in the company's success. Accountants are uniquely positioned to be some of a company's most valuable informational resources. They understand how the organisation works and are well-versed in the organization's current and projected financial position. It is critical for an organization's financial health to provide the accounting team with the tools they require to effectively monitor these factors. There are numerous accounting software options on the market that can provide the features and reporting functions that accountants require, but where should the search for the best option begin? For their business operations, the majority of growing businesses use a commercial management solution. For these businesses, the ideal solution would be to select accounting software that can be integrated with their current commercial solution. This will save the organisation a significant amount of time and resources. Accounting software can be installed locally or via a cloud service provider. While both types of software have distinct advantages, online offers are becoming increasingly popular among small and medium-sized businesses (SMBs) due to their ease of use and low cost of implementation.
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Final Account Adjustments
Balance Sheet Inc is a leading tax service provider in the West Palm Beach area. Having an experience of more than 26 years on our side, we have been providing exceptional services to our client in preparing and filling forms to strategic tax planning. We also offer audit related services and can also represent you before IRS cases of audit and collection.
Some of our tax services are
1. Payroll returns
2. Individual Income
3. Business
4. Non Profit Returns
5. Offers in compromise
6. Direct IRS Communication
So, whether you hate preparing your tax returns or find taxes to be time consuming, we can help you out. We can also help you if you need 100% accuracy in your taxes or are facing issues related with IRS debt/audit.
account adjustment , its types and time issue
Definition and purpose of account adjustment
Common types of account adjustments (e.g., Accrued Revenue ,Accrued Expenses ,Deferred Revenues ,Deferred Expenses)
time issue
Types of adjusting entries
Recommended
Final Account Adjustments
Balance Sheet Inc is a leading tax service provider in the West Palm Beach area. Having an experience of more than 26 years on our side, we have been providing exceptional services to our client in preparing and filling forms to strategic tax planning. We also offer audit related services and can also represent you before IRS cases of audit and collection.
Some of our tax services are
1. Payroll returns
2. Individual Income
3. Business
4. Non Profit Returns
5. Offers in compromise
6. Direct IRS Communication
So, whether you hate preparing your tax returns or find taxes to be time consuming, we can help you out. We can also help you if you need 100% accuracy in your taxes or are facing issues related with IRS debt/audit.
account adjustment , its types and time issue
Definition and purpose of account adjustment
Common types of account adjustments (e.g., Accrued Revenue ,Accrued Expenses ,Deferred Revenues ,Deferred Expenses)
time issue
Types of adjusting entries
The Final Accounts of non-trading concerns consists of1. Receipts.pdf
The Final Accounts of non-trading concerns consists of:
1. Receipts and Payments Account
2. Income and Expenditure Account, and
3. Balance Sheet.
1. Receipts and Payments Account:
It is a Real Account. It is a consolidated summary of Cash Book. It is prepared at the end of the
accounting period. All cash receipts are recorded on the debit side and all cash payments are
recorded on the credit side.
Cash Book consisting of entries of receipts and payments in a chronological order while the
Receipts and payments is a summary of total cash receipts and cash payments.
It starts with opening balance of Cash and Bank and ends with closing balance of Cash and
Bank. It does not take into account outstanding amounts of receipts and payments. Receipts and
Payments may be of Capi tal or Revenue nature; they may relate to the current or previous year or
subsequent year; so long as they are actually received or paid, they must appear in this account.
Features of Receipts and Payment Account, In Brief:
1. It starts with opening balance and ends with closing balance
2. It is the summary of cash and bank transactions.
3. Actual cash transactions are entered.
4. It includes capital as well as revenue items.
5. It follows cash system of accounting
6. It shows cash position and excludes all non-cash items.
7. It is a real account.
8. It does not take any income/expense outstanding at the beginning or at the end.
2. Income and Expenditure Account:
It is a Nominal Account. It is in the form of Profit and Loss Account. It is concerned with only
revenue items—expenses and incomes. It records all losses and expenses on its debit side and all
incomes and gains on its credit side.
Of the incomes and expenses of revenue nature, only the portion pertaining to the current year is
shown in the Income and Expenditure Account i.e. amount relating to the previous year or future
year are excluded. Again, the incomes and expenses of current year, whether received or not,
must be shown.
In other words, incomes and expenses have to be adjusted for both out-standing and pre-
payments. All non-cash items, Depreciation, Bad Debts, Provision for Doubtful Debts etc. are
taken into account.
The difference between the debit side and the credit side is either surplus or deficit for the year
concerned and the difference will be transferred to the Capital Fund (also called General Fund or
Accumulated Fund) appearing in Balance Sheet.
Features of Income and Expenditure Account, In Brief:
1. It is prepared in lieu of Profit and Loss Account.
2. It is a nominal account.
3. It is based on mercantile system of accounting.
4. There is no opening balance.
5. It ends with Surplus or Deficit.
6. It excludes all capital income and capital expenses.
7. It includes only revenue items.
8. It records all expenses whether paid or not, and all incomes whether received or not.
3. Balance Sheet:
Balance Sheet in case of non-trading concern is prepared in the usual manner and consists of all
liabilities and .
ACCOUNTING FOR NON PROFIT ORGANISATION | MERU ACCOUNTING
Not-for-profit organizations are those that are established for the benefit of society or to promote art and culture in society. These are typically established as charitable institutions with a service mission. These organizations are managed by trustees. The trustees are chosen by the organization's members. Non-profit organizations raise funds from their members as well as the general public to achieve their goals.
These organizations' primary goal is to provide service. They may, however, profit in the future. In general, these organizations do not manufacture, buy, sell, or provide services. As a result, they are not required to prepare Trading and Profit and Loss A/c. They deposit the funds received in the Capital Fund or General Fund A/c.
Not-for-profit Organizational Characteristics:
1. Service Motive: These organizations exist to serve their members, a specific group, or the general public. They provide services for free or at a very low cost because their goal is not to make a profit. They do not discriminate against people based on their caste, creed, or skin color. They provide services such as education, food, health care, recreation, sports facilities, clothing, and shelter.
2. Members: Members of these organizations are charitable trusts or societies. These organizations' subscribers are their members.
3. Management: These organizations are managed by the managing committee or the executive committee. The committee is elected by the members.
4. Surplus: In due course, the surplus is distributed among its members.
5. Reputation: These organizations earn their reputation or goodwill by doing good things for the public good.
6. Accounting information users: These organizations' accounting information users include current and potential contributors, as well as statutory bodies.
Accounting Basics
Basics of Accounting. Principles and concepts of Accounting
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Business accounting is the process of measuring, processing, and communicating financial information related to a business entity to various stakeholders, such as investors, creditors, regulators, and management. The goal of business accounting is to provide accurate and timely information that can be used to make informed decisions about the financial health and performance of the business.
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Branch Ac & Dept Alc.pdf
Branch accounts
A branch is an extension or sub-division of a large business.
Divisions or sections, opened in various parts of a country or the world
with a view to extend business activities or to capture new market is
known as Branches. A branch is a section of an enterprise, geographically
separated from the rest of the business, controlled by a head office.
Departmental accounts are accounts relating to the different
departments or division of a business and are prepared to ascertain
the trading results of each department separately. In short, the
accounts which are prepared to know the profitability of each
department separately are called departmental accounts.
PAYROLL RECONCILIATION REPORT | MERU ACCOUNTING
Payroll reconciliation is important because it can help catch errors or outstanding items that need to be addressed before they become too late. To accomplish this, make a list of all payroll-related balance sheet accounts that do not clear to $0 and investigate the issues that must be resolved so that all funds go where they should. To make the process easier, we provide a free payroll reconciliation spreadsheet.
Step 1: Create a list of your payroll balance sheet accounts.
Make a list of the balance sheet accounts you need to reconcile each month before we begin the reconciliation process.
The following is a list of payroll-related balance sheet accounts that you may need to reconcile.
Accrued Payroll: The net payroll amount earned but not paid out.
Federal Income Tax Withholdings Payable: The amount of federal tax withheld from employee paychecks but not paid to the IRS.
Payable State Income Tax Withholdings: State tax withheld from employee paychecks but not paid to appropriate tax agencies
FICA Tax Payable: The unpaid employee and employer portions of Social Security and Medicare taxes; half is withheld from employee paychecks, and the other half is expensed from the business.
Contributions made by employees to their 401(k) accounts (different accounts can be created if you have multiple retirement account options); you can also put any contribution matches made by your company into this account and hold the money there until it's paid out.
Health Coverage Payable: Employee-paid insurance premiums, as well as contributions that you have recorded as a business expense but have not paid.
Step 2: Set Up Monthly Payroll Reconciliation Sheets
Download our payroll reconciliation spreadsheet to give yourself a head start.
Step 3: Gather Payroll Software and General Ledger Reports
For each payroll-related balance sheet account, you'll need a monthly transaction report from your GL, preferably one that shows the beginning and ending balances for the month.
Step 4: Examine Payroll Transactions and Reconcile Disagreements
You are now ready to begin reconciling your payroll accounts. The process may be simplified if you can download the transactions from your accounting software into a spreadsheet—or if you can copy and paste them onto your spreadsheet.
Step 5: Fix Payroll Reconciling Items
Reconciling items can be vastly different in what they require to resolve. In our health insurance premium example above, the first step would be to take a look at the health insurance invoice.
RENTAL BUSINESS MANAGEMENT | MERU ACCOUNTING
You've worked hard to make your rental property a reliable source of income. However, an accounting system is required to properly manage your investment.
A good property management accounting system allows you to see how much profit each property makes. It enables you to accurately record your expenses in order to maximise tax deductions. It also makes it simple to report income and expenses separately for each property, which the IRS requires.
Here's how to get started with property management accounting.
Step 1: Establish separate business accounts.
You must treat your rental property as a business, regardless of its size. That means opening a business checking account to separate your personal and business finances.
All property income should be deposited into that account, and all expenses should be paid from it. If you own multiple properties, you should open a separate account for each. This will make it easier for you to keep track of your finances.
Step 2: Select an accounting method.
There are two ways to track money entering and leaving your property management company: cash basis and accrual.
Accrual
The accrual method requires you to enter income and expenses as they occur. It makes no difference whether you have the funds in your account or are still awaiting a bank transfer.
This is especially important when it comes to renting. Assume you own a summer home. Your tenant pays you $8,000 in advance for four months of rent, to be tracked monthly. Even if you have $8,000 in your bank account, you would only enter $2,000 per month on the books if you used the accrual method.
On a cash basis
Transactions on a cash basis are recorded as soon as money changes hands.
Using the summer cottage rental as an example, as soon as your tenant paid you $8,000 in advance, you would record that amount as business income.
The accounting method you use will be determined by how comfortable you are with tracking and reporting income. However, for small businesses, cash basis is the most popular method.
Step 3: Create an account chart.
Your chart of accounts serves as a cheat sheet when it comes to doing your books. You refer to the chart of accounts whenever you enter a transaction for your rental.
It lists every account or ledger into which a transaction can be sorted. It also indicates whether the account is for expenses (money leaving your business) or income (money entering it).
The more detailed your chart of accounts—that is, the more accounts you have—the better your understanding of how money enters and exits your business. The cost is that your books will be more complicated.
Your chart of accounts could be a spreadsheet or even a text document. Accounting software will have a separate section or tab for it.
Here's an example of a straightforward chart of accounts. Assume you're going to list your laneway house on Airbnb:
Step 4: Create your journal
Your journal is the heart of your accounting system. This is where you keep track.
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Similar to BOOKKEEPING METHODOLOGY| ODOO | XERO | MERU ACCOUNTING
The Final Accounts of non-trading concerns consists of1. Receipts.pdf
The Final Accounts of non-trading concerns consists of:
1. Receipts and Payments Account
2. Income and Expenditure Account, and
3. Balance Sheet.
1. Receipts and Payments Account:
It is a Real Account. It is a consolidated summary of Cash Book. It is prepared at the end of the
accounting period. All cash receipts are recorded on the debit side and all cash payments are
recorded on the credit side.
Cash Book consisting of entries of receipts and payments in a chronological order while the
Receipts and payments is a summary of total cash receipts and cash payments.
It starts with opening balance of Cash and Bank and ends with closing balance of Cash and
Bank. It does not take into account outstanding amounts of receipts and payments. Receipts and
Payments may be of Capi tal or Revenue nature; they may relate to the current or previous year or
subsequent year; so long as they are actually received or paid, they must appear in this account.
Features of Receipts and Payment Account, In Brief:
1. It starts with opening balance and ends with closing balance
2. It is the summary of cash and bank transactions.
3. Actual cash transactions are entered.
4. It includes capital as well as revenue items.
5. It follows cash system of accounting
6. It shows cash position and excludes all non-cash items.
7. It is a real account.
8. It does not take any income/expense outstanding at the beginning or at the end.
2. Income and Expenditure Account:
It is a Nominal Account. It is in the form of Profit and Loss Account. It is concerned with only
revenue items—expenses and incomes. It records all losses and expenses on its debit side and all
incomes and gains on its credit side.
Of the incomes and expenses of revenue nature, only the portion pertaining to the current year is
shown in the Income and Expenditure Account i.e. amount relating to the previous year or future
year are excluded. Again, the incomes and expenses of current year, whether received or not,
must be shown.
In other words, incomes and expenses have to be adjusted for both out-standing and pre-
payments. All non-cash items, Depreciation, Bad Debts, Provision for Doubtful Debts etc. are
taken into account.
The difference between the debit side and the credit side is either surplus or deficit for the year
concerned and the difference will be transferred to the Capital Fund (also called General Fund or
Accumulated Fund) appearing in Balance Sheet.
Features of Income and Expenditure Account, In Brief:
1. It is prepared in lieu of Profit and Loss Account.
2. It is a nominal account.
3. It is based on mercantile system of accounting.
4. There is no opening balance.
5. It ends with Surplus or Deficit.
6. It excludes all capital income and capital expenses.
7. It includes only revenue items.
8. It records all expenses whether paid or not, and all incomes whether received or not.
3. Balance Sheet:
Balance Sheet in case of non-trading concern is prepared in the usual manner and consists of all
liabilities and .
ACCOUNTING FOR NON PROFIT ORGANISATION | MERU ACCOUNTING
Not-for-profit organizations are those that are established for the benefit of society or to promote art and culture in society. These are typically established as charitable institutions with a service mission. These organizations are managed by trustees. The trustees are chosen by the organization's members. Non-profit organizations raise funds from their members as well as the general public to achieve their goals.
These organizations' primary goal is to provide service. They may, however, profit in the future. In general, these organizations do not manufacture, buy, sell, or provide services. As a result, they are not required to prepare Trading and Profit and Loss A/c. They deposit the funds received in the Capital Fund or General Fund A/c.
Not-for-profit Organizational Characteristics:
1. Service Motive: These organizations exist to serve their members, a specific group, or the general public. They provide services for free or at a very low cost because their goal is not to make a profit. They do not discriminate against people based on their caste, creed, or skin color. They provide services such as education, food, health care, recreation, sports facilities, clothing, and shelter.
2. Members: Members of these organizations are charitable trusts or societies. These organizations' subscribers are their members.
3. Management: These organizations are managed by the managing committee or the executive committee. The committee is elected by the members.
4. Surplus: In due course, the surplus is distributed among its members.
5. Reputation: These organizations earn their reputation or goodwill by doing good things for the public good.
6. Accounting information users: These organizations' accounting information users include current and potential contributors, as well as statutory bodies.
Accounting Basics
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Business Accounting for Gem Star
Business accounting is the process of measuring, processing, and communicating financial information related to a business entity to various stakeholders, such as investors, creditors, regulators, and management. The goal of business accounting is to provide accurate and timely information that can be used to make informed decisions about the financial health and performance of the business.
Financial statements of sole trader with adjustments 1
Preparing final accounts (Financial statements) of sole trader with adjustments.
Branch Ac & Dept Alc.pdf
Branch accounts
A branch is an extension or sub-division of a large business.
Divisions or sections, opened in various parts of a country or the world
with a view to extend business activities or to capture new market is
known as Branches. A branch is a section of an enterprise, geographically
separated from the rest of the business, controlled by a head office.
Departmental accounts are accounts relating to the different
departments or division of a business and are prepared to ascertain
the trading results of each department separately. In short, the
accounts which are prepared to know the profitability of each
department separately are called departmental accounts.
Similar to BOOKKEEPING METHODOLOGY| ODOO | XERO | MERU ACCOUNTING (20)
The Final Accounts of non-trading concerns consists of1. Receipts.pdf
The Final Accounts of non-trading concerns consists of1. Receipts.pdf
Introduction-and-Preparation-of-Trading-Account.pptx
Introduction-and-Preparation-of-Trading-Account.pptx
ACCOUNTING FOR NON PROFIT ORGANISATION | MERU ACCOUNTING
ACCOUNTING FOR NON PROFIT ORGANISATION | MERU ACCOUNTING
Financial statements of sole trader with adjustments 1
Financial statements of sole trader with adjustments 1
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PAYROLL RECONCILIATION REPORT | MERU ACCOUNTING
Payroll reconciliation is important because it can help catch errors or outstanding items that need to be addressed before they become too late. To accomplish this, make a list of all payroll-related balance sheet accounts that do not clear to $0 and investigate the issues that must be resolved so that all funds go where they should. To make the process easier, we provide a free payroll reconciliation spreadsheet.
Step 1: Create a list of your payroll balance sheet accounts.
Make a list of the balance sheet accounts you need to reconcile each month before we begin the reconciliation process.
The following is a list of payroll-related balance sheet accounts that you may need to reconcile.
Accrued Payroll: The net payroll amount earned but not paid out.
Federal Income Tax Withholdings Payable: The amount of federal tax withheld from employee paychecks but not paid to the IRS.
Payable State Income Tax Withholdings: State tax withheld from employee paychecks but not paid to appropriate tax agencies
FICA Tax Payable: The unpaid employee and employer portions of Social Security and Medicare taxes; half is withheld from employee paychecks, and the other half is expensed from the business.
Contributions made by employees to their 401(k) accounts (different accounts can be created if you have multiple retirement account options); you can also put any contribution matches made by your company into this account and hold the money there until it's paid out.
Health Coverage Payable: Employee-paid insurance premiums, as well as contributions that you have recorded as a business expense but have not paid.
Step 2: Set Up Monthly Payroll Reconciliation Sheets
Download our payroll reconciliation spreadsheet to give yourself a head start.
Step 3: Gather Payroll Software and General Ledger Reports
For each payroll-related balance sheet account, you'll need a monthly transaction report from your GL, preferably one that shows the beginning and ending balances for the month.
Step 4: Examine Payroll Transactions and Reconcile Disagreements
You are now ready to begin reconciling your payroll accounts. The process may be simplified if you can download the transactions from your accounting software into a spreadsheet—or if you can copy and paste them onto your spreadsheet.
Step 5: Fix Payroll Reconciling Items
Reconciling items can be vastly different in what they require to resolve. In our health insurance premium example above, the first step would be to take a look at the health insurance invoice.
RENTAL BUSINESS MANAGEMENT | MERU ACCOUNTING
You've worked hard to make your rental property a reliable source of income. However, an accounting system is required to properly manage your investment.
A good property management accounting system allows you to see how much profit each property makes. It enables you to accurately record your expenses in order to maximise tax deductions. It also makes it simple to report income and expenses separately for each property, which the IRS requires.
Here's how to get started with property management accounting.
Step 1: Establish separate business accounts.
You must treat your rental property as a business, regardless of its size. That means opening a business checking account to separate your personal and business finances.
All property income should be deposited into that account, and all expenses should be paid from it. If you own multiple properties, you should open a separate account for each. This will make it easier for you to keep track of your finances.
Step 2: Select an accounting method.
There are two ways to track money entering and leaving your property management company: cash basis and accrual.
Accrual
The accrual method requires you to enter income and expenses as they occur. It makes no difference whether you have the funds in your account or are still awaiting a bank transfer.
This is especially important when it comes to renting. Assume you own a summer home. Your tenant pays you $8,000 in advance for four months of rent, to be tracked monthly. Even if you have $8,000 in your bank account, you would only enter $2,000 per month on the books if you used the accrual method.
On a cash basis
Transactions on a cash basis are recorded as soon as money changes hands.
Using the summer cottage rental as an example, as soon as your tenant paid you $8,000 in advance, you would record that amount as business income.
The accounting method you use will be determined by how comfortable you are with tracking and reporting income. However, for small businesses, cash basis is the most popular method.
Step 3: Create an account chart.
Your chart of accounts serves as a cheat sheet when it comes to doing your books. You refer to the chart of accounts whenever you enter a transaction for your rental.
It lists every account or ledger into which a transaction can be sorted. It also indicates whether the account is for expenses (money leaving your business) or income (money entering it).
The more detailed your chart of accounts—that is, the more accounts you have—the better your understanding of how money enters and exits your business. The cost is that your books will be more complicated.
Your chart of accounts could be a spreadsheet or even a text document. Accounting software will have a separate section or tab for it.
Here's an example of a straightforward chart of accounts. Assume you're going to list your laneway house on Airbnb:
Step 4: Create your journal
Your journal is the heart of your accounting system. This is where you keep track.
PAYABLES METHODOLOGY | MERU ACCOUNTING
Accounts payable and its management is a critical business process that allows an entity to effectively manage its payable obligations. Accounts payable is the amount owed by an entity to its vendors/suppliers for goods and services received. To elaborate, once an entity orders goods and receives them before paying for them, it should record a liability in its books of accounts based on the invoice amount. Accounts payable refers to this short-term liability owed to suppliers, vendors, and others.
Once the vendor is paid for the unpaid purchases, the corresponding amount is deducted from the accounts payable balance.
What is the significance of Accounts Payable and its management?
Accounts payable and their management are critical to the smooth operation of any business entity. It is critical for any company because:
It is primarily responsible for timely payment of the entity's bills. This is critical in order to maintain strong credit and long-term relationships with vendors.
Only by paying invoices on time will vendors ensure an uninterrupted flow of supplies and services, which will aid in the systematic flow of business.
A good accounts payable process ensures that there are no overdue charges, penalties, or late fees.
The well-organized accounts payable process ensures that all invoices are tracked and paid on time. This will help you avoid missing payments and paying twice.
It also enables businesses to better manage their cash flows (i.e. making payments only when due, using the credit facility provided by the vendor, etc.)
Following a strict accounts payable process can help to reduce fraud and theft to a greater extent.
Accounts payable balances must be recorded accurately for a company's financial statements to be complete and accurate. These payables must be handled efficiently and correctly.
Process of Accounts Payable
Every business will have an accounts payable department, and the structure will vary depending on the size of the company. The accounts payable section is organised based on the expected number of vendors and service providers, the volume of payments that will be processed over time, and the type of reports that will be required by management. A small entity, for example, with fewer purchase transactions, would require a basic accounts payable process.
BOOKKEEPING PRACTICES & METHODOLOGY| REAL ESTATE | MERU ACCOUNTING
When it comes to keeping track of clients, listings, finances, and expanding personal business networks, professional real estate agents have a lot on their plates.
Success requires not only the ability to connect, sell, and close sales, but also a working knowledge of administrative best practises. While real estate accounting principles may not be the first thing that comes to mind for many agents, they can make or break your success.
Accounting in real estate paves the way for accurate reports and records throughout the buying and selling processes. It also allows agents to secure their personal financial situations and stay organised for important tax collection and compliance activities.
Real estate agents cannot afford to be surprised when it comes to good, strong accounting procedures. Whether you're a new or seasoned real estate agent or property management professional, the knowledge and tools in this guide can help you:
1) Improve your understanding of the foundation and importance of good accounting.
2) Discover the distinctions between bookkeeping and accounting.
3) Adopt industry best practices for how you manage your expenses
4) Simplify your processes to free up more time for critical business activities.
5) Discover the next steps in selecting a software or platform that works for you.
Why Do Real Estate Agents Require Accounting Services?
Effective accounting procedures are required for real estate agents for a variety of reasons, some of which are dependent on the type of real estate activities that a person manages.
Whether you work on small-scale real estate transactions or large-scale corporate contracts, having the right accounting structure is critical. Real estate accounting is essential for several reasons, including:
- The ability to gain a high-level view of your own financial situation
- Insight into your company's year-over-year growth
- The ability to manage your cash flow and spot potential red flags
- Having a streamlined process for producing annual tax returns
- Examining your outgoing expenses in order to make timely payments.
Contact MERU ACCOUNTING for more methodology and bookkeeping practices.
BOOKKEEPING FOR NON PROFITS IN UNITED STATES | MERU ACCOUNTING
Nonprofit Organization Accounting
From houses of worship to youth organisations to neighbourhood business meetings, non-profit organisations make our communities more bearable.
Because not-for-profit organisations do not have business owners, they rely on reserves from commitments, participation contributions, programme earnings, fund-raising events, open and private awards, and venture salaries.
We intend to introduce some fundamental concepts unique to non-profit accounting.
Significant aspects of non-profit accounting include:
Taxability of the received donation: It provides a detailed breakdown of all the donations they received over the course of a year. It is critical that non-profit organisations keep track of the donations they receive and from whom they accept them. Except for a few exceptions for property income or capital gains, non-profits are exempt from paying income tax.
Various donations were received:
Unrestricted commitment income: If the giver does not express the reason for the commitment, it is classified as unrestricted commitment income.
Temporarily restricted net assets: If the donor specifies the use of the donation, it will be classified as temporarily restricted net assets.
Net assets that are permanently restricted:
These are donations that the recipient can never use in perpetuity at any point in time.
Accounting for Expenses: Expenses vs Expenditure done- Accounting of the expenses done for the long run that can be en-cashed, and the cost incurred to meet every day and current financial needs of the business, generally for a short term is dealt with.
Spending from Corpus: Spending from the total collection of donations for a specific purpose.
Budgeting
Budget approval by trustees- A budget is an estimate of revenue and expenses for a given future period. It is then approved by the non-profit organization's trustees following a timely review of financial reports and planning.
Spending vs. budgeting reports- Trustees create the budget report, which is compared to the annual spending report, and then a balance of all spending is created.
Here are some pointers to help non-profits with their bookkeeping!
IRS acceptance
If the IRS approves it, the income of a non-profit entity is exempt from federal income tax.
Donation Recipients' Taxability
Nonprofits are exempt from paying taxes on donations received.
State-level taxes and sales tax
Non-profits are also required to pay sales tax and other taxes based on state requirements.
The Employment Tax
Even if they are exempt from federal income tax, non-profits must pay employment tax.
A GUIDE ON HOW TO WORK REMOTELY | MERU ACCOUNTING
For many years, the future of work has been portrayed as bleak. And now, in the aftermath of the Covid19 situation, we've all been forced to embrace it unexpectedly.
The current pandemic is keeping us indoors and wreaking unimaginable havoc. That means that even companies that have never had employees work from home before are now forced to do so out of necessity.
Working from home introduces a whole new set of challenges. When employees are removed from a team environment, their productivity may suffer.When team members are not in the same location, collaboration becomes difficult. People will rely on technology to do their jobs more than ever before, so it's critical that they have the right collaboration and business process management tools.
Pro Tip: In order to outperform their competitors, businesses must also find and hire the best tech contractors.
Keeping employees productive:
Working from home may be ideal for some people, particularly individual contributors such as writers and coders, but it is not for everyone. This is due to the numerous disadvantages associated with it.
For starters, you're prone to distractions, you're lonely, and you lack motivation. Let's look at what can be done to make remote work enjoyable and productive for teams, whether they are in customer service, marketing, or a dedicated development team.
1. Overcommunicate (brevity is out of the question)
Miscommunication is all too common when working remotely. This is why: When communicating with our team, we frequently keep our messages brief on text. You may believe you've made your point, but your colleagues may be wasting time and effort attempting to interpret what you're saying.
2. Do not overuse follow-ups.
The great thing about remote working is that you can collaborate with coworkers via a variety of channels, including email, text, phone, Slack, and others. That can be both a blessing and a curse.
Many teams have colleagues who are constantly following up on a task across multiple channels. This is nothing more than a constant abuse of the digital medium. When someone constantly pings you for updates, it's natural to feel more stressed and distracted.
3. Make the day more structured.
Working from home has a significant impact on your daily routine. You don't have an office to go to, no coworkers to look forward to, and no reason to dress nicely.
You have a habit of waking up late, staying logged in throughout the day, and eventually extending your work hours far beyond the norm. According to a Buffer survey, the most common issue with remote work is the inability to unplug. This can have serious consequences for your health in the long run. According to a United Nations report, 41 percent of remote workers reported high levels of stress, compared to 25 percent of office workers.
4. Reducing distractions
Don’t be surprised if working from home feels extremely distracting. A recent survey said that 47% of the people who worked from home had difficult
MASTER THE BOOKKEEPING METHODOLOGY FOR YOUR COMPANY | MERU ACCOUNTING
MASTER THE BOOKKEEPING METHODOLOGY FOR YOUR COMPANY | MERU ACCOUNTINGMeru Accounting Private Limited
How to Keep Records for your Business?
Financial records are one of the most important records to keep, especially for small businesses. In reality, most startup companies and small business owners often overlook this aspect of their business record keeping, either because they don't know how to do it correctly or because they simply don't have the time. Many business owners believe that doing it themselves will save them money because hiring a professional to assist them will be too costly. Unfortunately, this mindset can lead to problems later on, as legal record requirements require businesses to keep accurate and timely records.
The most convenient way to keep and maintain your company's financial records is to use accounting software. When you first start your business, organize your records and put them into accounting software. Here are seven more tips to help reduce the stress of financial record keeping and make the task easier.
1. Open Business Bank Accounts
A business must be distinguished from its owners, and the simplest way to do so is to open bank accounts solely for the business. This not only distinguishes the business from the owners but also separates business activities and expenses from personal ones. A business bank account enables you to easily track your company's income and expenses.
2. Do Not Use Cash
It is especially difficult for business owners to keep and maintain proper business financial records when they spend money without proper documentation. Without proper documentation, it is easy to forget how and where money was spent. It is preferable to use a credit or debit card, or a check, rather than cash, because there is a paper trail to follow, and this practice will aid in keeping track of expenses. When you pay with cash instead of other methods of payment, you may be missing out on write-offs because there is no documented proof. If you must use cash, withdraw funds from an ATM and make a note on the receipt of the purpose of the transaction.
3. Establish a Weekly Timetable
If you are going to keep and maintain your company's records, make sure to set aside a specific time each week to keep your records up to date. Spend time each week reviewing your income and expenses, as well as managing your accounts receivable and payable. Setting a schedule will help you stay on top of your financial records, provide you with the necessary overview of how your business is doing, and allow you to control your cash flow.
METHODOLOGY OF WORK FOR VIRTUAL ACCOUNTING PROCESS | MERU ACCOUNTING
What is a Virtual Accountant?
Simply put, a virtual accountant is an accountant who works online. A virtual accountant is available through online communications rather than working in your office or being outsourced locally. Virtual accountants work online to provide complete, boutique accounting services on demand.
What Services Can a Virtual Accountant/Bookkeeper Provide?
A virtual accountant can do everything that a traditional accountant can do for you as a business owner. A virtual accountant assists you in setting up your books, keeping your records accurate and up to date, and performing A/R and A/P tasks.
Accounts receivable: Collect and process incoming payments on time to ensure the company's cash flow.
Accounts payable: Ensure that bills are paid on time, maintain vendor relationships, and avoid cash flow issues.
Reporting: Provide income/expense reports and general ledger reports to ensure that business owners understand their financial situation.
Check that bank accounts are reconciled within accounting software and that the accounting software is accurate.
Even better, virtual bookkeeping services can provide small business owners with general accounting services at a fraction of the cost of traditional bookkeeping services.
Rather than hiring an internal bookkeeper, a business owner can supplement their operations with a virtual bookkeeper.
Virtual bookkeepers are much more affordable and accessible to business owners and can be hired at a much lower rate.
Traditional Accounting vs. Virtual Bookkeeping
Working online is what distinguishes virtual bookkeeping from traditional accounting. A virtual bookkeeper will provide the same services and have the same credentials in every other way.
Virtual accountants can provide accounting services to clients at a lower cost than traditional accounting firms because they do not have to pay for overhead, such as large brick-and-mortar offices.
A virtual bookkeeper should be able to perform virtual bookkeeping to the same or higher standards as an in-person accountant.
Meetings with your virtual bookkeeper will most likely take place via video conferencing software such as Zoom.
What Do You Need to Begin?
How do small business owners begin offering bookkeeping services? To get started with any accounting services, you should have the following items on hand:
Your most recent year's tax returns, as well as any payments you've made.
To manage it, you'll need access to your accounting software.
Any other financial management software you use.
Statements from your bank and credit cards
Data on hiring or other business decisions.
Any asset accounts? (such as retirement accounts).
Any debt accounts? (such as credit cards and loans).
BOOKKEEPING METHODOLOGY | MERU ACCOUNTING
Bookkeeping Objectives
Understanding the bookkeeping objective will assist us in easily understanding the methods and types.
Absolute transaction recording- It is concerned with keeping a complete and permanent record of all transactions in a systematic and logical manner in order to demonstrate their financial impact on the business.
Determining the financial impact on the business- It is concerned with the overall impact of all transactions made during the accounting period on the financial position of the business.
Bookkeeping System Types
The two most common methods are single-entry and double-entry bookkeeping. While each has advantages and disadvantages, the business must select the one that is best suited to their needs.
Accounting Software
System of Single Entry Bookkeeping:
a. The single entry bookkeeping system necessitates the recording of one entry for each financial activity or transaction.
b. A single entry bookkeeping system is a basic system that a business can use to record daily receipts or generate a daily or weekly cash flow report.
System of Double Entry Bookkeeping:
a. Each financial transaction must be recorded twice in the double-entry bookkeeping system.
b. The double entry system ensures checks and balances by recording a credit entry for every debit entry.
c. The double-entry bookkeeping system is not based on cash. When a debt is incurred or revenue is earned, a transaction is entered.
Bookkeeping Methods
Bookkeeping Methodology Manual
It is a traditional and paper-based method of bookkeeping.
Transactions are manually recorded by hand using a paper book of accounts such as a journal-register, ledger books, and so on. This method is commonly used by small businesses with less complex business transactions.
Cheaper and easier to maintain, but requires a lot of skill and time, and can be a tedious task at times.
Bookkeeping Methodology Using Computers
A novel approach to recording business transactions.
For recording transactions, accounting and bookkeeping software such as Tally.ERP 9 is used.
A simpler, faster, and more convenient method of recording business transactions.
Eliminates the time-consuming tasks associated with manual bookkeeping.
Financial reports that are reliable and accurate are possible.
BOOKKEEPING FOR SHOPIFY SALES | MERU ACCOUNTING
Shopify is a popular online selling platform. However, Shopify bookkeeping presents some unique challenges. The main issue is that customers can pay in a variety of ways, each of which deposits to your bank differently and charges different fees. In this post, I'll go over the best practices for recording Shopify sales and fees in QuickBooks Online.
When selling on an ecommerce platform like Shopify, you should make sure that your ecommerce bookkeeper or ecommerce accountant understands how revenue and fees are paid. It is critical that all revenue be recorded, as well as all fees. The cash deposits you receive are usually net after fees have been deducted. You may also be using Shopify's payment plan options, which require you to record the transactions in accordance with how the funds are received.
An ecommerce bookkeeper should be familiar with the Shopify reports. They should be able to pull the reports and enter the necessary data without your assistance. They should also be able to advise you on the permission levels they require to work independently.
ACCOUNTING AND BOOKKEEPING FOR TRADING FIRMS | MERU ACCOUNTING
Many trading businesses operate with only a few accounting details, which can be detrimental to their brand reputation. As a result, at Adequate Bookkeeping, we provide the best accounting solutions for trading firms all over the world. We have been providing account outsourcing services to sole traders in a variety of industries for many years, including medical instrument suppliers, engineering equipment manufacturers, healthcare, textile companies, agricultural product suppliers, and clothing companies.
Our experts understand your specific business needs and provide the best solutions. We also assist you with the bookkeeping process, taxation law in your country, and duties. In short, we are a one-stop shop for all of your needs!
Accounting and Bookkeeping Services for Stock Brokers
Payroll Administration
We have a lot of experience with payroll management at Adequate Bookkeeping. This is possible thanks to our simple and efficient solutions for paying site workers and employees.
Management of Receivables
Our highly trained experts provide accurate receivables management services to our clients by ensuring on-time invoice delivery and payment.
Typical Accounting Statements
Our clients receive regular account statements. As a result, they can take a close look at their companies' current situation and make informed decisions.
Management of Cash Flow
Through regular account monitoring, we aim to provide the best cash flow management services to our clients. As a result, any discrepancies and cash flow shortages can be easily avoided.
Tax Preparation
Our clients benefit from our accurate and efficient tax analysis services. As a result, they can plan their taxes ahead of time, avoiding last-minute panic.
Batch Profitability
Our clients can assess their profitability per batch for completed trades using our services. As a result, clients are empowered to maintain proper inventory control and management, as well as accurately track profits.
Taxation
Our clients receive the best taxation services available. So that they don't have to waste time preparing data and filing taxes, they gain the freedom to work on important aspects of their business.
Accounting Is Important in the Trading Business Accounting is an important aspect of the trading business that must be managed properly. For many years, we have provided the best trading bookkeeping and accounting services to stockbrokers. Throughout the fiscal year, we maintain close contact with our clients and provide services based on their needs. Our experts have been trained to provide practical assistance and advice in the areas of business planning, tax planning, financial report preparation, and personal financial planning.
Accounting can be a difficult task to manage when you are new to the trading business. That is why we are here for you; our accounting experts will advise you on how to effectively manage your business in terms of filing taxes.
So, what are you waiting for? Get in touch with us!
ACCOUNTING FOR GEMS AND JEWELRY EXPOETERS | MERU ACCOUNTING
There are some risks associated with the Gems and Jewellery export industry, such as gold prices, foreign taxes, currency fluctuation risk, credit risk, and so on. Adequate Bookkeeping understands these risk factors and offers the best solution to address them. Similarly, we cover all accounting aspects of the Gems and Jewellery export industry.
Our professionals will assist you in organising all of your inventory and accounts. As a result, you will be aware of your cash flow pulse. We always believe in efficiency, automation, and modern technology when delivering our services so that our clients receive added value.
Sales and Use Tax Bookkeeping and Accounting Services for Jewelers and Gem Exporters
We have many years of experience in providing Jewellery specialty services, which enables us to effectively guide your business in complying with local, state, and federal Sales and Use Tax requirements.
Preparation and Filing of Taxes
Our specialists will assist your company with understanding, preparing, and filing annual, quarterly, and monthly payroll, income tax returns, and sales and corporate reporting.
Money Laundering Prevention
Adequate Bookkeeping assists Gems and Jewellery exporters in maintaining compliance for a comprehensive Anti-Money Laundering programme.
Profit Increase
Our primary goal is to assist businesses in increasing their profit margins by handling tax compliance.
Bookkeeping
We can assist your business in keeping accurate, complete, and up-to-date financial records. In this manner, we concentrate on regulations, accounting processes, and other requirements for Gems and Jewellery businesses.
Receipts and Invoices
Invoicing can be a difficult process to manage for the Gems and Jewellery export industry. We are skilled at setting up recurring invoices for our clients, which would effectively handle this prospect.
Receivables Administration
Adequate Bookkeeping completes all accounting tasks for your company on time. As a result of our services, managing receivables will become very simple and quick.
Inventory Control
We keep track of inventories with trade deals by using the best accounting software designed specifically for your needs.
Capital Cost Management
Our expert professionals understand the importance of capital cost management in the jewellery industry and can help you with it.
Why Should You Use Our Gems and Jewellery Accounting Solutions?
Accounting solutions for jewellers assist them in effectively organising their inventory and accounts. Bookkeeping is a critical component that must be managed using modern technology. Our goal at Adequate Bookkeeping is to manage your company's bookkeeping and financials. We act as your financial partner to help you manage your Jewellery business effectively.
We design a creative problem-solving approach that ensures the smooth and effective execution of your business processes in order to meet your business objectives.
BOOKKEEPING FOT THE WHOLESALE INDUSTRY | MERU ACCOUNTING
Accounting for Wholesale/Distribution
Running a wholesale and distribution business entails keeping track of your cash flow and inventory in order to turn a profit. Shannon & Associates can help you make the most of your money. Our experienced accountants and consultants can help you understand the relationships between your inventory, margins, and cash flow by translating your business numbers into real information. We've assisted other wholesale and distribution companies in growing, and now it's your turn.
Manage your cash flow
Understand when and how much to invest in inventory, as well as when to make capital expenditures. We'll give you advice on timing and tax implications that will affect your bottom line.
Keep track of your inventory.
Because of our extensive accounting experience, we can assist you in managing your inventory in a cost-effective manner. We will assist you in optimising your warehouse/facilities use and flow, as well as balancing your working capital requirements against the inventory you must keep on hand, so that both the cash flow and the stock are at optimal levels.
Transportation expenses
The cost of transportation is a major concern for the distribution industry. When gas prices rise, for example, your costs will rise, and you must act quickly. With our firm assisting you in determining your true costs, you will be able to respond skillfully to any changes in transportation costs.
Conducting business elsewhere
Filing and paying income tax outside of the state is dependent on the distribution. Do you know how to pay taxes in another state or country? We do. And we'll make certain you pay the correct ones. Our membership in Nexia International keeps us connected to resources all over the country and the world. As a result, we have access to tax experts in other states and countries.
Make well-informed decisions.
We can assist you in making sound capital investment decisions. If your company has outgrown its current location, for example, we'll consider the factors you'll need to make a financially sound decision about moving, such as whether to lease or buy, or what time of year works best for your accounting system. Or maybe it's time to invest in a large piece of equipment: what's the best way to finance it? Will the timing of a purchase affect the financial implications? We can help you make smarter financial decisions now to improve your future profitability by looking ahead and investigating every possible outcome.
We can also advise you on complex transactions ranging from mergers and acquisitions to business structure. Please contact us for more information.
Power & Infrastructure.pptx
In the power generation industry, effective operational management is always required to maximise return on investment. Electricity is widely regarded as the world's fastest-growing form of energy consumption. In this regard, the power systems are constantly evolving from small and isolated grids to integrated national and international markets.
We, at Adequate Bookkeeping, understand that electricity is generated in a variety of ways such as solar, coal, geothermal, wind, tidal, hydrogen, biomass, wave, hydroelectric, and so on. As a result, we provide the best accounting services in the power infrastructure industry in accordance with the industry's specific and extraordinary requirements.
Management Reporting and Bookkeeping Services for the Power Industry
Our primary goal is to provide you with the best management reporting services possible, including income statements, balance sheets, cash flow statements, trial balances, bank reconciliation reports, and so on. Our periodic reports will assist you in making important business decisions.
Payroll Processing and Administration
We offer power infrastructure firms the best payroll processing services, including payroll setup, payroll tax calculations, and form filling. We ensure that your payroll is managed efficiently and that it runs smoothly. In addition, we offer the simplest and most efficient methods of compensating both site workers and employees.
Depreciation Analysis
We provide a proper analysis of the depreciation along with the valuation of the assets for effectively calculating the operating expenses. We understand that in the Power Industry, the equipment used holds the most importance, and thus, we tailor solutions especially for you.
Taxation Requirement
We, at Adequate Bookkeeping, are involved in providing taxation-related information based on the specific sector and country requirements. It would eliminate all your worries related to calculating and filing taxes.
Accounting Services
We offer the best bookkeeping services to assist in the proper identification and bifurcation of various accounting charts applicable to the energy industry.
Accounts Receivable
We also offer invoice scanning and storage services, as well as vendor inquiries. Not only that, but our experts help with online payment processing and approval.
Accounts Payable
Our experts are capable of providing high-quality services in the areas of customer ageing, collections management, cash forecasting, and reporting. We ensure that payments are received on time so that the cash cycle continues uninterrupted.
In this regard, our experts perform accurate financial analysis that helps our clients in these fields to survive in the future uncertainties. With the help of our efficient accounting management services, we provide our clients with an overview so that they can easily and rapidly grow. After all, our motto is to grow as our clients grow!
BOOKKEEPING FOR TRAVEL & TOURISM | MERU ACCOUNTING
TAKE GOOD CARE OF THE TOURISTS, AND WE WILL TAKE GOOD CARE OF YOU.
Tourism is the second most prosperous industry. Travel agencies have seen an increase in travel trends as a result of digitalization. Remote ticketing and hotel reservations have accelerated the travel agency business even further. Because they provide round-the-clock online service, accurate bookkeeping for travel agencies becomes technical. To properly perform accounting for a travel agency, a professional hand is required.
Improve the travel and tourism experience by improving every stage of hospitality. Concentrate on digital and comfort-conscious clients. Alter Services is here to help you with your travel agency's bookkeeping. We take exceptional care of our customers. We guarantee:
-Cash flow management that is effective
-Keeping the general ledger up to date to monitor the health of the travel agency
-Appropriate cash method revenue recognition
-Regularly maintain a transparent income statement to demonstrate your travel agency's profitability.
BOOKKEEPING FOR TAX RETURN FOR IT SECTOR | MERU ACCOUNTING
Do you own a company in the IT industry? Are you looking for dependable accounting, human resources, or tax consulting services? With the assistance of an experienced firm, you will be able to save money on taxes while focusing on what is most important - growing your business. Working with us ensures that your business runs smoothly and that all documentation is kept correctly and on time. We provide a variety of services, such as bookkeeping, payroll, and tax advice.
Accounting for IT firms: What to look for and what to avoid?
1. An extensive range of services
Our offices provide companies in the IT industry with the following services as part of a comprehensive service for the company:
1. Accounting services,
2. Human resources and payroll services,
3. Cost accounting,
4. Profitability analysis of products,
5. Services, and projects; assistance in fixed asset stocktaking,
6. Financial statement preparation and consolidation with group reports,
7. Support during merger and acquisition procedures, business valuation.
2. Understanding of the specifics of the IT industry
When selecting an accounting firm, an IT company should ensure that the accountants and tax advisors are well-versed in the technology industry and will apply solutions that are tailored to the specific revenue and costs of this type of business. Many technology companies are among our clients. We have the necessary experience to provide dependable service in this industry.
Accounting firm employees who have never worked in the IT industry may struggle to properly record costs for specialised equipment, paid subscriptions or licences for software, or copyrights for unusual (in other industries) works such as source codes.
3. Human resources and payroll - Understanding IT professionals' expectations
Employee issues such as employment type, billing and rewards for IT professionals, and regular non-wage benefits may raise some concerns for less experienced HR personnel.
Our professionals have years of experience in accounting and payroll services for IT companies. Some of them honed their skills in accounting or human resources departments of technology companies, so they understand their characteristics and which issues to prioritise.
IT companies frequently sell their products and services internationally, despite language or legal barriers. This can make the sales process more difficult and limit the company's efficiency. Having local legal and tax advisors on board can assist businesses in addressing these issues and providing better support to international customers.
We can handle all tax and legal paperwork for you and provide you with all necessary documents. We have a strong global network of partners in 153 countries. As a result, we can both help your company expand internationally and provide local services.
ACCOUNTING FOR LOGISTICS INDUSTRY | MERU ACCOUNTINGS
Accounting advice for logistics and transportation firms
A logistics company is one that manages the movement and storage of goods between their point of origin and their final consumption destination. The overall process of acquiring, storing, and then transporting a product to its final destination is referred to as logistics.
We will provide accounting guidance for companies involved in logistics and transportation in the following segment. A list of accounting guidelines for logistics and transportation companies is provided below-
- Follow the International Financial Reporting Standards- Logistics and transportation companies must follow the rules and guidelines established by the International Accounting Standards. This is critical accounting guidance because logistics and transportation companies operate globally and engage in cross-border transactions.
- Follow the guidelines outlined in local legislation- Logistics and transportation companies should adhere to the local rules and guidelines outlined in local legislation. Transportation companies operate on a global scale and engage in cross-border transactions. As a result, they must adhere to international financial reporting standards as well as local authorities' guidelines.
- Produce accounts on a monthly basis- Logistics firms have high transaction volumes. As a result, transportation companies must frequently prepare financial forecasts, cash flow statements, and income statements. This accounting guidance principle is followed in order to effectively manage finances and reduce financial risks. Shipping costs, freight charges, storage costs, oil prices, and other variables are all associated with logistics companies and must be recorded.
- Use the most recent accounting software- For recording financial transactions, logistics and transportation companies should use the most recent accounting software. This is due to the fact that new accounting software provides cloud-based central servers, which allow for faster collaboration and the automation of manual tasks.
Logistics and transportation companies are extremely important in today's world. They deal with hundreds of thousands of financial transactions every day. The accounting process can be complicated due to the sheer volume of these transactions. As a result of the accounting principles mentioned above, we can effectively manage financial recording and accountants in logistics companies.
For more information contact us and visit MERU ACCOUNTING website.
ACCOUNTING FOR PHARMA INDUSTRY | MERU ACCOUNTING
Many businesses, including pharmacies, hire outsourcing partners based on their extensive knowledge and financial management skills. They assist businesses in avoiding tax mistakes when calculating a company's income and expenses. They record all transactions, including costs and income, and prepare financial statements to aid in the preparation of the company's future strategy and planning.
Hiring a perfect bookkeeper who provides the best bookkeeping service is also essential for business success because proper planning can be carried out on a daily basis. The bookkeeper will help clients save time and money while also providing valuable advice and experience. Hiring expert bookkeepers reduces the possibility of making financial mistakes.
Outsourcing and its Advantages: Pharmacy Accounts
Accounting is an essential component of any business; in other words, it is the foundation of any financial institution. Accounting information that is accurate and complete saves businesses money and time.
With all of the necessary information in the records, business accounting service assists in the proper management of costs, inventory, income, and expenses. It also closely monitors invoices and accounts receivable, allowing overpayment of taxes to be avoided.
The outsourcing of accounting service is necessary for pharmaceutical companies as it helps in:
1. Providing various financial information for business activities that will aid in understanding a company's financial position.
2. Management must make an important decision.
3. Accounting systems are used to enter accurate account details.
4. Maintaining and organising invoices within the time frame specified.
5. Providing financial reports that include information about cash inflows and outflows.
6. Budgeting-related information.
7. Strategy and planning for the company's growth.
8. Invoicing information for goods and services provided to clients.
9. Estimated tax liabilities and tax assessment information Personal and business tax preparation is also available.
ACCOUNTING FOR MANUFACTURING BUSINESS | MERU ACCOUNTING
Accounting for a Manufacturing Company:
Accounting for a manufacturing company is concerned with inventory valuation and cost of goods sold. These concepts are uncommon in other types of entities or are dealt with at a more basic level. The ideas are expanded on below.
Inventory Assessment
A manufacturing company must use a certain amount of raw materials, work-in-process inventory, and finished goods in its manufacturing processes, and any ending balances must be properly valued for inclusion on the company balance sheet. The following activities are required for this valuation:
-Assignment of Direct Costs
Inventory costs are assigned using a standard costing, weighted-average cost, or cost layering methodology. For more information, see the standard costing, weighted-average method, FIFO, and LIFO topics.
-Assignment of Overhead Costs
Factory overhead costs must be aggregated into cost pools and then allocated to the number of units produced during a reporting period, increasing the inventory's recorded cost. To reduce the amount of allocation work for the accountant, the number of cost pools should be reduced.
-Testing for Impairment
This activity, also known as the lower of cost or market rule, involves determining whether the amount at which inventory items are recorded is greater than their current market values. If this is the case, the inventory must be written down to market value. This task can be completed at relatively long intervals, such as at the end of each fiscal year.
-Recognized Cost of Goods Sold
At its most basic, cost of goods sold equals beginning inventory plus purchases less ending inventory. Thus, the accuracy of the inventory valuation procedures just described drives the calculation of the cost of goods sold. Furthermore, any out-of-the-ordinary costs incurred, such as excessive scrap, are not recorded in inventory but are instead charged directly to the cost of goods sold. This necessitates a thorough scrap tracking procedure. Costs can also be assigned to specific jobs (known as job costing) and then charged to the cost of goods sold when inventory items in those jobs are sold to customers.
BOOKKEEPING FOR MINING BUSINESS | MERU ACCOUNTING
If investments are made carefully, the mining industry offers numerous opportunities. Adequate Bookkeeping offers a detailed analysis of books of accounts for businesses in the mining industry. We can assist you in determining the viability of your Mining venture. The analysis of books of accounts can aid in the clear determination of account entry and exit times. We can assist you with payroll, accounting, process costing, mineral property & claim allocations, heavy equipment depreciation and identification, inventory, financial reporting needs, depletion, and much more.
Adequate Bookkeeping also offers the best services for daily bookkeeping, payable and receivable management, and so on. We follow a proper system, reporting expenses from the beginning to all processing phases, such as mine digging. We've got your back.
Why MERU ACCOUNTING Bookkeeping?
- We are proficient in various types of bookkeeping services such as double-entry bookkeeping.
- Our qualified resources and infrastructural setup help us in delivering uninterrupted services to our clients.
- We have years of experience in providing the best services to our clients across the globe.
- Our services are affordable along with being of the best quality and advanced.
Mining companies face numerous challenges while in operation. These range from resource access to social and geopolitical risks, a lack of infrastructure, and cost control. Mining companies require an ERP system to position themselves for growth, maintain cost-cutting strategies, and perform performance measures in order to deal with volatile commodity markets. To maintain performance and manage costs, quick response and data alignment across the business are required.
To know more, get in touch with us now!
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BOOKKEEPING METHODOLOGY| ODOO | XERO | MERU ACCOUNTING
- 1. XYZ Company 1 | P a g e Bookkeeping methodology for XYZ Company using Odoo Accounting software and Xero Background: XYZ Company does not keep stock of the fruits and all the fruits are owned by the suppliers and they are kept in XYZ Company warehouse for sale. XYZ Company Manages to get customer for that and sells the fruits to customers. The payments received from the customers are wholly paid to the suppliers. Suppliers are charged a service fees and reimbursement of expenses incurred for them Fruit purchases and sales for YVF are always equal in a particular date as YVF does not have any stock of fruits. Customer pays YVF for the amount of fruit sales and the suppliers are tagged in Food Farms against the said OUTDOC number. The payments are processed to suppliers on a single date and they are paid for the remittances received. How we account in Xero for Same? Fruit purchases are entered in Xero against the amount of payment done to the suppliers. Sales invoices are created for the amount received from the customer and they are settled against the receipts from the customer. Sales invoices and purchases are created on the same date to ensure that the fruit purchases and sales remains equal on a particular date. Fruit purchases and Sales do not have GST element in that. Cluster Invoices Cluster invoices are accumulated in Food farms and are accounted for as sales at the end of month. The fruit purchases is increased by the amount of cluster invoices by a manual journal in Xero. Cluster invoice mainly consists of following element: At the end of month Following Journal is entered for Cluster invoices accumulated till month end: Journal to be passed at end of month Freight income Fruit Levy Service income Settlement Discount Supermarket Discount GST Payable
- 2. XYZ Company 2 | P a g e Particulars Debit Credit Freight income XXX Fruit Levy XXX Service income XXX Settlement Discount XXX Supermarket Discount XXX GST Payable XXX Fruit Purchases XXX Total XXX XXX Another journal is also passed for supermarket discount as the fruit sales are recorded as net of supermarket discounts. This journal is as under Supermarket Discount charge Dr. XXX To, Fruit Sales Cr. XXX Accounting for Fruit Purchase and sales in Xero: A file is prepared matching the totals of the suppliers invoice and customer invoices based on the date on which the payment is processed in Food farms. The file has fruit purchases and sales figures matching with each other to ensure that the suppliers are paid the exact amount and no underpayment or over payment to the suppliers. The receipts in Xero bank are matched with the sales as per the file and the payments are matched with the purchases as per the file. Both are on the same date. Hence fruit purchases and sales match in Xero. Profit and loss account of that particular date is extracted from Xero and placed in the sheet as a part of reconciliation process of Fruit Purchases and sales. The remittances which are yet to be processed remain un reconciled in Xero. At the end of reporting period they are transferred to Suppliers pending payment as no suppliers are paid against the receipts from the customers. Accounting for Expenses in Xero: A master file of all the invoices received is prepared by the bookkeeper and all the invoices are recorded in it. All the invoices are numerically numbered in order to ensure that they remain traceable. The same are attached with the entry in Xero. Freight is tagged by inventory to get a report of freight expense per state which is compared with the freight income per state. Any over receipts/ Over payments in Freight expenses are adjusted by the % of freight charged in Cluster invoices. Payroll is processed through calculation in Xero. Payment of Various taxes: Fruit Levy: A report for fruit levy payable is extracted from Food farms ERP and is paid at end of every quarter. PAYG Withheld: A report of PAYG withheld is prepared from Xero and the payment is done accordingly.
- 3. XYZ Company 3 | P a g e GST: The Amount of GST credit receivable is set off against GST payable in Xero and a report is generated for GST amount to be paid. Supplier payments pending at end of period: There might be some customer remittances at the end of Accounting period for which the suppliers are yet to be paid. (Accounting period means: Quarter end for Finalization of BAS and Year end for Finalization of Annual accounts). These are the customer remittances received but not yet paid to the suppliers. They are pending to be processed at the period end. Such receipts from customer are in fact a liability for XYZ Company as the Suppliers are to be paid for the money received by YVF on their behalf. Hence at the period end such payments are transferred to "Creditor's payable Food Farms"(Code 201-A in Xero) and they appear as a liability at the end of period. (The total amount consists of part amount payable for fruit purchases and part amount for the cluster invoices towards the revenue of XYZ Company and shall be accounted for accordingly when the corresponding payments are made).