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 Almost every business has to deal with debt collection. It’s just part of the business landscape. Customers can have more problems in today’s difficult economy than usual with loan payment. If invoices are not charged, it may be time to appoint a recovery officer to help settle the debts. Commercial collection firms are private debt collection specialists. There are good ways and poor ways to collect debt, as with any sector. Here are few ways to boost your accomplishment. Be prepared. Make sure you know all about the client when you initially reach out to the delinquent customer. C...

Why not start estimating simple accounting ratios before you regularly do all of the bookkeeping basics required for your company? The accounting ratios are measured using figures listed on the balance sheet and income statement to provide you with important details, both now and in the future, which will help you develop your management. What the Accounting Ratios are? Although you might find it difficult initially, accounting ratios are easy estimates using the figures in the financial statements of your company. Accounting ratios are not much of a problem to apply simple arithmetic logics t...

The financial statements of the company include the profit and loss statement (P&L), balance sheet, and statement of cash flow. The annual statement summarizes revenues, expenses, and benefits for a year. The balance sheet includes assets, debt & equity. The formula is Assets = Liabilities + Owner's Equity Cashflow statement and summarizes cash inflows and outflows. The presentation of the financial statements are important as well. Elements that leads to accurate financial statements Consistent bank reconciliation on each bank accounts and even credit card Creating and reviewing bank ...

Most CPA firms create financial statements for their clients. This blog post tells you how to review financial statements efficiently and effectively. The best way to review the financial statements is to have something to compare to. Two years of data are great to look at plus a 3rd and 4 column one showing the differences between the years and also one to show the difference in percentages.  This is called comparative financial statements For our clients, we would look at big differences that pops out. Once we identify them, we question them, why big differences exist. Keep in mid, we a...

Watch this video on What is cash flow management Among the most complex financial balance indicators faced by any organization is the control of profits. We see three critical ways in which the best organizations have true control of cash flow management, which have led to over 20,000 small and medium-sized firms solving cash problems. 1) Measuring cash flow: Cash flow analysis is the first major activity. Manual attempts and innumerable spreadsheets are also needed only to grasp the cash flow at any given time. In accounting system such as QuickBooks online, cash flow report is avai...

The worst nightmare of a boss – an employee is unsatisfied with his workplace and chooses to cheat or rob the company. There are several tales of these crimes being committed by workers and causing tremendous harm. You can lead a satisfied and efficient workforce by identifying signs of workplace fraud, and enforcing procedures to prevent it. Many forms of fraud indeed exist, but not many know much about work fraud. Why is it so necessary for firms to properly defend themselves? What is occupational fraud? Occasionally, occupational fraud is called in-house fraud, but also refer...

Simple, right? But we do not do this, or we do not know that we are doing this unless we take an inventory of our activities. Example: let us have a look at how productive your advertising is. Step 1: create a matrix either on a piece of paper or in Excel Step 2: come up with a heading, in this case advertising results Step 3: write down your advertising activities, this is a good practice to see what activities you do. For example, I heard a guy who complained that he cannot get any leads no matter how hard he tries. I asked him to give me a few examples. He had none, I do not ...

Accounting industry has benefited so much from the technology boom. Accounting and running a small business now adays have improved exponentially. It wasn’t long ago that some colleges and university were talking about “general Ledgers” “Books” and so on. Basically, accounting hadn’t changed in a long time. Now, I am pleasantly surprised when I see new apps are emerging that changing accounting and making it so much more efficient and effective to run a business. Business on your fingertips – literally This app will empower you to run your business even better, save time, your money, and your ...

Number 1:  Ask Five Questions QUESTION 1, WHAT BUSINESS AM I IN? The answer is not as simple as you think.  The new CEO of Coca-Cola asked management, “What business are we in?”  They responded, “Soft drink business.”  He said, “No, we are in the hydration business.  Every human has to consume a certain amount of liquid.  We want to hydrate them”.  You can clearly see how this question expanded Coca-Cola’s horizon and management saw more and more opportunities.  Same thing with Howard Schultz, the founder of Starbucks.  Howard wants to create the 3r...

A little misunderstanding about HST is causing a lot of cash flow issues for many small businesses. Even worst some tax accountants have also misunderstood this concept and are not warning their clients. When new clients come to us, after we migrate their data to QuickBooks Online and attach and integrate a few superpower apps such a Wagepoint, Receipt Bank, and a few more apps. we analyze their data as well and go through a few checkups. We have noticed and discovered that almost all of them have filed their HST incorrectly and inadvertently put themselves in a cash flow issue. (Updated) ...