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- Cash Vs Accrual Based Accounting in QuickBooks CPA Arlington Tx realizes that for start up businesses that are just now thinking about the accounting process seriously, there is a great need to further define the two main accrual types. It is important to start out on the right foot. Here Penny discusses these types and how they relate to a Quickbooks type accounting software package. Cash Vs Accrual Based Accounting in QuickBooks By Penny Crull In my opinion, one of QuickBooks’ best features is its ability to run financial reports, like a Profit and Loss, on both a Cash and Accrual Basis. But I am often asked by my clients “What does that mean? What is Cash vs. Accrual?”. I’ll try to answer that question here on a level that applies to the Small Business Owner evaluating his or her Profit and Loss Report and Balance Sheet. I’ll try to leave out the accountant-speak and technicalities. Your Profit and Loss Report is a snapshot of your business’ income and expenses for a specified period of time. Your Balance Sheet report is basically a report of what you own, what you owe, and your business’ Equity (the difference between what you own and what you owe) as of a certain date. Let’s talk about Accrual basis first. When you are looking at your Profit and Loss report on an Accrual basis, your income will include everything you billed customers for during that time period, whether or not you have been paid by those customers. Your expenses will include bills from vendors that you have entered into QuickBooks for a that time period, whether you have paid the bills or not. On an Accrual Basis, the Balance Sheet report will include what is owed to you (customer invoices, called Accounts Receivable) and what you owe (outstanding bills to your vendors, called Accounts Payable). In order to achieve good Accrual-based reports in QuickBooks, you need to use the Customer Invoicing and Enter/Pay Bills features. It’s also a good idea to pay attention to the dates you bill your customers and bills you enter from your vendors, to be sure they are posted in the period they were incurred. Most businesses file their taxes on a Cash Basis, so why would you want to evaluate your finances on an Accrual basis? I ALWAYS recommend evaluating your business’ financial performance on an accrual basis at least monthly, because what you have collected from your Customers and what bills you have paid aren’t necessarily indicitive of your business’ earnings performance. Let’s look at a professional services business like mine, for instance. First of all, we bill many of our clients on an hourly basis, so I make sure to bill out as much time as possible on the last day of the month. That way, when I run our Profit and Loss Statement, I can see what we earned that month, not necessarily what we collected, but what we earned. Like any business should, we know what we need to earn every month…
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- 7 Reasons to Outsource Your Payroll Services When we read this article we knew we must pass it on to you. Jamie Simpson knows how to boil down to seven points the advantages of outsourcing your payroll services. We at CPA Arlington TX feel that we couldn’t have said it any better. 7 Reasons to Outsource Your Payroll Services By Jamie Simpson Outsourcing your payroll has many advantages. Here are 7 ways in which a company would benefit from using a payroll service. 1 Free Up Your Resources When you outsource your payroll services you and your employees can use the time spent processing payroll on other matters such as growing your business. 2 Low Cost Outsourcing Your payroll is not expensive, especially when you consider the time and aggravation saved. Most companies will find the benefits far outweigh the cost. 3 Experts A payroll processor provides you the knowledge and assistance needed to tackle all those issue that creep up as your company grows. For instance, if you hire a new employee in a different state that can create many different issues that need to be researched before you can add the employee to your payroll. Your processor can help assist you in getting your company registered with the new state. You don’t have to worry about knowing the payroll tax rates for the new state and getting them set up in your payroll system as your outsourced provider will be able to do it in an instance. 4 Employees and Uncle Sam Get Paid on Time When you outsource your payroll services you eliminate the worry of cutting employee checks or making the electronic transfer of funds into their account. Your payroll provider will take care of all that for you. Most will also take care of submitting the required payroll tax deductions to the correct government agency. This eliminates the need for you to remember to transfer your tax payments to meet the time requirements of all the different government agencies. 5 Your Software will be Kept Up to Date for You When payroll tax rates change you don’t need to fight with your company’s payroll system to update messy tables to the new required withholding rates. Your payroll provider will automatically keep this information up to date so you don’t need to worry about it. 6 Complete Data at your Fingertips Most payroll services have great software that will allow you to view payroll reports and even create custom reports. You can create overtime reports to give to department heads, easily see vacation or sick days remaining for an employee and many other types of reports and information. Many providers will work with you to create a data file than you can upload directly into your accounting system to create the required general ledger postings to record the payment of your payroll. 7 Reconciliation is a Breeze If you are still doing your payroll in house then you have to deal with reconciling the bank account your payroll checks are paid out of….
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- Arlington Payroll Accounting CPA Arlington Tx realizes that there comes a time when your small business gets large enough that you have to put on employees. At that point you have to deal with payroll issues and all that is involved, i.e. Federal, State, and local issues. Things like withholding taxes, insurance, and other benefits really complicate the accounting process. Having to deal with these very issues have prevented many a small business person from taking that next step in the evolution of their company. A CPA accountant can handle all that for you. You need not fret over payroll. You can outsource the work to a competent accounting professional. Here is an article that will open your eyes to what services a CPA provides with respect to your company payroll. Should Small Businesses Outsource Their Payroll? By Jamie Simpson Outsourcing is a process where a company will choose to pay a specialized third party to manage specific work functions. For small business owners, outsourcing can prove to be a valuable asset in providing payroll management assistance as well as accurate records and detailed reports. Payroll outsourcing allows a small business to concentrate on its core responsibilities while payroll services are handled efficiently. This can lead to improvements in operations, customer service and sales. Payroll Outsourcing Services Companies that specialize in payroll outsourcing provide numerous valuable services. Among these include: * Tax Remittance: Payment of all the required federal, state or local payroll taxes on time and with guaranteed accuracy. * Direct Deposit: The employee’s paycheck is deposited into their individual account precisely on the predetermined day. * Tax Changes: Any alterations in federal, state or local payroll laws and regulations are promptly implemented. * Payroll Reports: Accurate and detailed payroll reports are usually available online 24/7. * Form Generation: Employees and independent contractors are supplied annually with W2 and 1099 forms. * Pay Stubs: Automatic creation of both hard copy and digital employee pay stubs. * Payroll Data Security: All payroll data is securely encrypted to ensure privacy and safety. The Many Outsourcing Advantages Small businesses can benefit substantially from using a payroll services company. In addition to the convenience, outsourcing payroll can provide significant cost savings when compared to a full time employee or dedicated department. In fact, studies show that savings can be as high as 40% per employee in some instances. Overall payroll costs become fixed and only increase as the business grows. Reliability and timeliness are extremely important in matters pertaining to payroll and taxes. Utilizing payroll services ensures that employees receive their paycheck on the specified day with the exact amount of withholding submitted to the appropriate government entity. Since meeting payroll is time critical, losing a key payroll employee can result in disruption to the overall business operations. This can occur for a variety of reasons including sickness or attrition. Outsourcing payroll eliminates unwanted distractions and helps guarantee that payroll functions will be smooth and consistent. Payroll is a relatively complex process and the typical small…
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- CPA Arlington Texas, Getting Prepared For CPA Bookkeeping CPA Bookkeeping is a strange term to use, I know. I mean that you need to have a clear idea about things a Certified Public Accountant in Arlington Texas, or any other city for that matter, needs each month. Courtesy of CPA Arlington Tx, here are steps you need to take before interviewing a CPA. We assume that you are already doing business and need to decide between using software and hiring a CPA. If you give your CPA, bookkeeper, or professional accountant all the data they need, your life will be much easier. With a certified public accountant on your team you are just outsourcing the money management part of your business. You should choose someone you feel is a partner in your quest to make your business a success. Choosing the appropriate type of bookkeeping system is your first hurdle. The two main types of bookkeeping systems in use today by small business are single-entry and double-entry. Single-entry is suitable for personal finances, and double entry bookkeeping is more appropriate for businesses. It tracks two accounts at the same time. You see an example of single entry when you balance your checkbook. It involves a single checking account that is being credited or debited. With double-entry accounting each transaction is recorded in two accounts. Assets = Liabilities + Owner’s Equity. Each transaction on one side of the equation must have an opposite and equal entry on the other side. If you carry inventory, you must choose double-entry. Software programs like Quickbooks, allow you to do your own books. A certified Quickbooks consultant can help you get set up. Doing your own bookkeeping is not for everyone, so don’t feel bad. You need a CPA if your business is dependent on timely and precise records or is operationally complicated. Unless you already feel comfortable with terms like accounts receivable, accounts payable, vendor invoices, credit entries, debit entries, monthly statements and of course “tax preparation“, then now is the time to outsource accounting to an expert! Daily gather all your financial documents: purchase orders, sales receipts, bank statements, and so on. Any lost receipts, etc, cause uncertainties on your books. This can stress the working relationship with your accountants/bookkeepers. It also makes an audit more bearable. Always keep every document, receipt, etc. for data entry. When the unexpected happens, software can give little advice to help you out. You may need to call a Quickbooks consultant for help. You are professionally and legally responsible for every activity your business conducts. You, as the owner, must keep a good paper trail. Proper bookkeeping reveals useful things such as overdue accounts, losses and profits, and the company’s monthly expenses. You must keep all records (income, outgo, deposits, etc.) complete and up to date. Failing to enter a change into your accounting software can cost you a lot of money and customer “good will”, not to mention frowns from the auditor. We here at CPA Arlington Tx hope this has helped you get started toward effortless financial accounting. For more information on choosing an accountant for CPA Bookkeeping in the Arlington, Fort Worth, Grand Prairie, Mansfield, Hurst, Euless, and…
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- CPA Arlington Tx Yes, I realize that is an odd name for a website, but their is a reason for choosing this particular combination of words. You see, if you live in Arlington, Texas or anywhere in the DFW metroplex and you need some help with your accounting, be it a little Quick Books training, or a full service accounting solution, there is a pretty good chance that you will log on to your computer and type in: CPA Arlington Tx… or maybe Arlington Tx CPA in order to find a company to handle your needs. And, I wanted you to find my website because unlike other sites that may pop up, I do not own my own accounting firm. In fact I am not even an CPA. I’m actually an impartial consumer who was once in your shoes and had a bad enough experience looking for and hiring local accountants that it motivated me enough to create this site to help protect you. It was kind of my civic duty to do so! Now, I am not going to bash any accounting firm but I will make a solid recommendation of a very good accountant Certified Public Accountant that you can trust to take care of you. In addition to this, I want to educate start-up business persons on the basics of the accounting process and give you enough knowledge to confidently make an informed decision should you need to hire a CPA in Arlington, Mansfield, Grand Prairie, Fort Worth, Dallas or anywhere in the DFW metroplex. So, if you have a desire to start up your own business but are anxious about how to do the books, this site is for you. The topics covered on this website will be basic, but I hope they will be helpful. I won’t try to convince you that I had a really tough time finding my CPA to do the taxes for my new business. Some would say I was lucky. I call it divine providence. I was spared the grief of trial and error with something as important as my finances. Before I started in my quest to find a reputable conscientious CPA in my area, I couldn’t tell my assets from my liabilities. If you had asked me “What is a CPA?”, I wouldn’t be able to tell you. I didn’t even know how to balance my own checkbook, or even know what the value of doing this was… maybe you don’t either? I can guarantee you that when you are in business – for real – the IRS has their eye on you and so does the state. If you are like me, you want to focus on making money and not doing a lot of bookkeeping. It is, however, absolutely necessary that you at least understand about the financial side of your business. No worries! I will cover all of this at CPA Arlington Tx. This website is targeted to people in my own “stompin’ grounds”, but the concepts are universal. We’ll look at the basics of bookkeeping for your business and how accounting should…
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