Do You Have Employees?Making the decision to hire employees should not be an overnight thought. The process of hiring an employee is not just about deciding the day to day responsibilities of that person it also includes understanding the additional expenses to account for and reporting requirements as an employer. Wages expense is the hourly compensation cost incurred by a business for its hourly workers. This can be one of the largest expenses incurred by a business, especially in the services and production industries where there are many hourly employees. The amount recognized as wages expense in an organization's income statement varies, depending on whether it uses the accrual basis or cash basis of accounting. Under the accrual basis, the amount of wages expense recognized is the amount earned by workers during the reporting period. Under the cash basis, the amount of wages expense recognized is the amount paid to workers during the reporting period. Did you know? Salaries and wages paid to employees of your small business are tax-deductible expenses. However, other items also qualify under the salary and wage category with regard to employee wages. A partial list includes sick leave, vacation pay, bonuses, education expenses, and reimbursements for employee business expenses. These are also tax-deductible.A full list and explanation of each can be found in IRS Publication 334. Source: AccountingCoach; BizFinance Problems are not stop signs, they are guidelines." -Robert H. Schuller
0 Comments
How Does Your Business Control it?Petty cash is a small amount of cash that is kept on the premises of a business in order to make incidental cash purchases and reimbursements, such as for delivered meals. Petty cash can mitigate the effects of the more cumbersome accounts payable process. The essential petty cash process is to authorize the payment of a certain amount of cash (such as $300 in bills and coins) into a petty cash fund, which is then controlled by a petty cash custodian, such as the office manager. The petty cash custodian pays out cash as requested in exchange for some form of evidence, such as a receipt or a voucher. The aggregate total of all remaining bills, coins, and evidence of receipt in the petty cash fund should always match the authorized amount of cash for that fund. Once the amount of bills and coins in the fund runs low, the custodian takes the receipts and vouchers to the accounting department and swaps them for a replacement amount of bills and coins. This cash replacement brings the total amount of cash in the fund back up to the originally authorized amount of cash. The mishandling of petty cash could paint the wrong picture for management as they review and forecast revenue for the business. The Houston Chronicle published an article providing 5 steps on "How to Keep Track of Petty Cash", review article and share with a colleague. Source: AccountingTools
Take-home pay is the amount of cash that an employee is paid after all payroll taxes and other deductions are removed from the person’s gross pay. This residual amount of cash is what an employee has available for spending or investment purposes. The deductions that can be taken from gross pay to arrive at take-home pay include (but are not limited to) the following:
Source:AccountingTools
Are you ready to own your own brokerage? The Houston Chronicle published an article with 9 Tips to get you started and on your way to entrepreneurship. Just don't give up trying to do what you really want to do. Where there is love and inspiration, I don't think you can go wrong." -Ella Fitzgerald Establishing a small business does not mean your team of experts cannot be the best team in the business. Maintaining an effective team is a critical tool to meeting customer deadlines, preparing for future expansion and all while working with a limited staff. My managerial experience has shown me that building a cohesive team is possible when the 4 strategies below are implemented and communicated correctly:
What great thing would you attempt if you knew you could not fail?" - Robert H. Schuller Success is not final, failure is not fatal: it is the courage to continue that counts." - Winston Churchill
Source: AccountingTools
Accounts payable is the aggregate amount of an entity's short-term obligations to pay suppliers for products and services which the entity purchased on credit. There are many responsibilities involved in running a business successfully, but maintaining strong control over accounts payable is among the most critical. If organization leaders do not have proper oversight of these processes, it’s possible for errors to negatively affect the bottom line and even a company’s reputation. According to Inc. Magazine, there are a few primary reasons that supporting cash flow and cultivating positive business relationships are among the most important functions of accounts payable. If best practices are not being adhered to, it’s possible for problems such as late or duplicate payments to occur, and these errors can severely damage a company's reputation. Source: Technologyinsight; AccountingTools When you reach the end of your rope, tie a knot in it and hang on." -Franklin D. Roosevelt It does not matter how slowly you go as long as you do not stop." - Confucius As an entrepreneur, when starting your business the key to deciding how to market your business can be a challenge.
The Houston Chronicle published an article "The Best Place for a Small Business to Invest Marketing Dollars" with great information for entrepreneurs and small business owners. Forensic Accounting uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud. It is listed among the top 20 career paths of the future. The job of forensic accountants is to catch the perpetrators of the estimated $600 billion per year of theft and fraud occurring at U.S. companies. This includes tracing money-laundering and identity-theft activities as well as tax evasion. Insurance companies hire forensic accountants to detect insurance frauds such as arson, and law offices employ forensic accountants to identify martial assets in divorces. Forensic accountants often have FBI, IRS or similar government experience. Source: Financial and Managerial Accounting
What do Investors want to know?Net earnings figures in the operating activities information is hard to dispute; either the business was profitable, or it was not. The Income Statement is intended to help investors accomplish the following objectives:
The period of time that the statement covers is chosen by the business and will vary. For example, the heading may state: "For the Three Months Ended December 31,2015" (The period of October 1 through December 31, 2015.) "The Four Weeks Ended December 27, 2015." (The period of November 29 through December 27, 2015.) "The Fiscal Year Ended June 30, 2015" (The period of July 1, 2014 through June 30, 2015.) Keep in mind that the income statement shows revenues, expenses, gains, and losses; it does not show cash receipts (money you receive) nor cash disbursements (money you pay out). Source: Accounting Coach; Money Instructor
|
Archives
July 2022
Categories
All
AuthorMy mission is to offer the best accounting and operations solutions and tips for entrepreneurs and small to mid-size companies worldwide seeking to close their process gaps with actual solutions. |
We Work to Provide Unique Solutions"Our team of innovative professionals use their knowledge and experience to set your business and team of professionals up for success. Our extensive accounting and operations skills are a start and key tools to company growth, building team cohesiveness, establishing clear purpose and goals, and improving process inefficiencies. Our services are key to businesses of all sizes. We handle providing the detail framework to your business so that you may focus on building your business. |
Contact UsSTAY CONNECTEDNEWS & TIPS IN YOUR INBOX
|