5 Financial Activities Commonly Outsourced to a Bookkeeping Firm
Most business owners are aware of outsourcing accounting services but often find it hard to choose which tasks to delegate to a third party. Many concerns complicate the decision, such as budget constraints as well as issues with authority. In which case, the most sensible solution is to determine which functions yield the most return of investment.
Indeed, while the question of what to outsource varies according to the needs of each company, there are specific activities most likely delegated to a third party, regardless of the unique requirements of the business.
Repetitive business tasks
Financial tasks are always repetitive. Some examples include preparing accounts receivables and accounts payables. According to www.kenbellaccounting.co.uk, many medium enterprises today rely on accounting software to simplify these functions. But, if your business doesn’t have the same capabilities, the next best solution is to outsource to a bookkeeping firm that can manage these tasks efficiently.
Tasks completed manually
Despite how computer-dependent most businesses today are, there are still some financial tasks typically completed manually. Usually, these activities are reserved for an experienced accountant or bookkeeper. The problem with manually completing tasks is the higher likelihood of committing errors. Having to correct mistakes isn’t only time-consuming, but also detrimental to the business if left unchecked. The benefit of outsourcing these activities is the peace of mind and confidence knowing that the company handling the tasks is experienced, capable, and highly competent.
Payroll operations
One of the commonly outsourced financial functions is payroll. Most businesses today prefer to outsource payroll-related tasks because of the complexities and nuances associated with these activities. A bookkeeping firm has the resources, such as the right software to use, which will make payroll management and implementation more efficient. Also, having a dedicated team working on all payroll-related issues will ensure that all concerns are directed and resolved by the same team.
Tax-related functions
Most companies dread tax season because of the amount of work it takes to prepare and file taxes. There’s always a possibility of missing out on write-offs if the taxes aren’t filed correctly. Instead of taking chances, it’s best to outsource tax functions to an experienced bookkeeping company. They’ll be able to include all activities qualified to receive incentives. Also, an expert bookkeeper has updated knowledge and expertise on regulations and laws that apply to business taxes.
Tax activities specific to each locality
Paying sales taxes can be confusing if local rates and national rates apply for each transaction. Nevertheless, even if only one sales tax applies, each payment should be precisely tracked and recorded. Any mistakes made in charging and paying for these taxes could result in penalties and fines for the company. The good thing is, … Read more
Tips for investing in Gold Bullion
It is really hard to believe that there are still individuals who do not invest in anything. Of course, some people might just be saving money. But you should have your money working for you. Just count how much money you could earn instead of losing it because of inflation.
You know, the world situation is not always stable, especially now. So, maybe it is better to think about your future and your kds? Of course, you can get a business going. But it is crucial to realize that not all the people are born businessmen and you take huge risks making your own product. What if you want to develop your business slowly, hence hindering your financial success?
You have an opportunity to invest in bank deposits, real estate (both residential and commercial), company stocks, numerous hedge funds, and so on. But one of the most classy and reliable methods is precious metals investing. Gold always goes up in value. And it does not lose ground. According to Wikipedia, “compared to other noble metals used for investment, gold has the most effective safe haven and hedging properties across a number of countries.”
What you need to know for investment in precious metals
Speaking about gold, why is it so valuable all over the world? It is so for a reason that there are a small number of gold mining spots on our planet. Moreover, gold mining is a laborious and long-lasting process. Gold as metal can boast of unique physico-chemical parameters like anti-corrosion, high plasticity, and excellent electrical conductivity. As an investment product, gold is known for:
- High liquidity. Not depending on the word situation or any crisis, gold can be sold. It can become more expensive or cheaper, but in any case, it will never be depreciated.
- Stability. The gold value rises slowly but steadily.
- Recognition. At all times gold was a universal medium of exchange.
Purchasing gold you can save your money from inflation, devaluation, and loss of purchasing power. There are also different methods of gold investment. Your gold may be invested in coins, bullions, exchange trading, and depersonalized metal accounts. But buying gold bullions seems to be one of the easiest and profitable options.
If you are determined to make the right choice and invest in gold bullions, we highly recommend you to refer to professionals. One of them is Auctus Metals which will help you from the beginning of your way to gaining a real income.
However, if you are still not ready for purchasing gold, you have an alternative. And it is Silver bullions investment. What are the pros of silver investment?
- A low value;
- The metal deficit which
3 Ways To Improve Your Financial Health
“Personal finance” is a term which refers to the way you manage your money and how you plan for the future. All of your current financial decisions and activities have an impact on your financial health, both now and in years to come.
Often, we are guided by certain phrases or “rules” which have been passed through the generations, such as “don’t buy a house which costs more than 3 years salary” or “you should save 10% of your monthly income for your retirement”. Whilst many of these wisened quotes stand the test of time and truly are helpful, it is important that we take a closer look at what we should be doing in general when it comes to improving our financial health and spending habits.
Work out your net worth and personal budget
Money comes in, and then money goes out. For many, this is pretty much as far as their understanding of money and personal finance goes. Rather than ignoring your finances and chancing whether you have the money needed for your planned purchases, a bit of budgeting can help you to reevaluate your current financial health and determine how you can reach both your short and long term financial goals.
As a starting point, it is vital for you to calculate your net worth, which is the difference between what you own and owe. To do this, you need to calculate your net worth by taking note of your assets, which you own, and your liabilities, which you owe.
If you have property, or own business properties, then you should list these and you may want to discuss this with a chartered surveyors, Manchester based if you believe there may be a change in the property valuation. By tracking your net worth over time, this allows you to evaluate your successes and identify potential areas which require improvement.
Recognise inflation
Most individuals will spend more money if there is more money to spend. When people advance in their careers and go on to earn higher salaries there is often a correlating increase in terms of spending, which is something known as lifestyle inflation.
Whilst you might be able to still pay your bills, lifestyle inflation can be extremely damaging in the long run as it limits the ability to build wealth. It isn’t uncommon for people to feel the need to match the lifestyles of their peers and friends. It’s easy to overlook the fact that actually, this way of spending leads to a lot of debt as people battle to keep up.
If you own business properties, then you might want to review the rent you currently charge. Due to inflation, you may find … Read more
6 Benefits of Using an Electric Car for Daily Use and Companies
Along with the changing times, now technology is increasingly developing and making various interesting discoveries that can benefit humans. Including developments in the automotive field, in the automotive sector, various automotive companies are increasingly competing in the production of electric cars as one of the innovations and solutions to overcome problems to reduce pollution, save fuel and various other problems. If you want to try using an electric car without buying an electric car you can try “electric car leasing deals“, So what exactly are the benefits of an electric car? The following explanation.
1. Without Emissions
One of the advantages of electric cars is that they contribute to protecting the environment and do not produce emissions. Several studies explain the use of electric cars can greatly affect the environment compared to using cars with petroleum fuels, especially in the level of air pollution. Also, other benefits will, of course, make the air quality even better.
2. Quieter When Driving
Another benefit of electric cars is that they provide more comfort when traveling. This is because its superiority is quieter and smoother, so it impacts on comfortable driving because it doesn’t cause much air pollution. This is different from most cars with petroleum fuels, especially as in cars with diesel engines whose engine performance is noisier.
3. Faster
Electric cars have incredible acceleration. Why? because electric cars can send torque in a fairly fast time to the wheels. For example, the Tesla car with the S model has an acceleration of around 3 seconds for speeds of up to 100 km / h.
4. Cheaper Prices
Who does not want to have a car at a cheap price? It seems everyone will make the purchase price of a car as an important factor in buying a car. If you buy an electric car, then you will incur a much lower cost, especially in terms of car use, of course also will reduce the costs used for fuel. Especially if you have a company that uses a lot of vehicles such as trucks or minibusses, or even companies that provide vehicle facilities for company workers, in addition to buying lots of vehicles at lower prices, it also reduces vehicle operating costs for each day. If you are interested in using electric cars for your company, you can visit “Business electric car leasing” for more information.
5. Minimal care and not complicated
A car certainly requires maintenance, one of them is like car engine maintenance. But on electric cars, it doesn’t need much maintenance. This is because electric cars do not have exhaust systems and do not need to change car oil, even spare parts on the combustion … Read more
Advantages of Finding Funds through Receivables and Factoring Funding
Slow cash flow movements are often a problem that prevents your business from developing more successfully. One of them concerns the problem of accounts receivable (granting loans to other people or companies). The receivable collection process is quite long causing delays in the smooth running of the company’s balance sheet.
If it continues, this can cause serious problems for your business. It is not possible, right, you run a variety of operational activities without having an adequate availability of cash. Therefore, it is important to deal with it well from the beginning to avoid the impact or risk that will arise.
In this problem, entrepreneurs will usually take away to finance receivables or by using factoring. This method is considered as an alternative to short-term or long-term financing according to a mutual agreement or quick solutions to get funds that can make cash flow stable again.
Before deciding to choose one of these solutions, you need to understand the difference between receivable financing and factoring financing. If you are interested in getting more complete information or want to consult more clearly you can visit: factoring companies.
Receivable Financing
Receivable financing or known as invoice financing/invoice discounting is an act of borrowing several funds against several company receivables that are running in a company.
Broadly speaking, factoring-brokers will lend you the funds as borrowers as long as the receivables are still running and have not been billed. Then, when the consumer has paid your loan, you must return the funds to the investor. Of course the loan repayment and all the interest following the agreement that was agreed upon from the beginning.
If you have urgently needed funds to run the company’s operations, and are confident of being able to collect receivables from those who pay you in quick time, then this credit financing solution is suitable for you to choose. But keep in mind, you should still consider the risks that will arise if the collection of receivables does not go according to your estimates.
Benefits of Receivables Financing
1. Receivables financing can expedite cash flow in a short time.
2. Can overcome a variety of urgent financial problems for your business, especially if you can no longer find other sources of loans in a fast period.
3. Company activities can continue to run well and normally, until the time the receivables can be disbursed.
Factoring
Factoring is an act of financing by purchasing company receivables. Understanding factoring is financing activities in the form of purchases or transfers, as well as the management of receivables or short-term bills of a company from domestic and foreign trade transactions.
Broadly speaking, the understanding is, the owner of the receivables will sell … Read more
Last Updated: August 4, 2020 by Ginger
Bookkeeper vs. Accountant vs. CPA: What’s the Difference?
When managing business finances, it’s common to interchange the words CPA, accountant, and bookkeeper. But these aren’t the same and refer to different levels of professional expertise. Not only that, but each individual also has a specific set of tasks and licence scope. And although all are involved with financial data, it’s critical to understand and distinguish between them, especially if you’re looking to hire one that fits your company’s requirements. In this article, we’ll distinguish them based on what they do to determine when to hire an accountant, a CPA, or a bookkeeper.
Accountants
An accountant is someone who has earned a bachelor’s degree but not necessarily related to accounting. An accountant can keep company books, but that function is typically reserved for a bookkeeper. All accountants in Central London typically work with detailed financial information necessary for management decisions. In addition to preparing these statements, they can also audit ledgers, books, and other data necessary for filing taxes. However, an accountant doesn’t have the authority to represent a company when it’s time to file taxes. They can’t sign any of the official documents submitted to the government.
Hiring an accountant is ideal when the company needs help analysing and preparing reports to gain a better view of the company’s finances. Making sense of massive amounts of data can be time-consuming, and accountants can lend their expertise in condensing information and painting the “big picture.”
Bookkeeper
Bookkeepers do most of the repetitive tasks associated with recording financial data. The brunt of the work usually falls to bookkeepers: updating ledgers, tracking invoices, and other statements. These days, however, they use software to automate some functions and work more efficiently. The main task of a bookkeeper is to keep an eye on the company’s cash flow. For most small businesses, it’s usually the owner who does the work. But as the business gets bigger, it’s better to hire a bookkeeper as things can easily get overlooked if you don’t have a person dedicated to working primarily with financial matters.
Most bookkeepers don’t need to earn a college degree, although some may have completed associate courses related to bookkeeping. They make considerably less than an accountant but are essential to businesses as they make sure daily transactions are detailed and organised.
Certified public accountants
A CPA is someone who has an accounting degree and has also passed the examination requirements to hold a licence. Although a CPA can also perform the same tasks delegated to an accountant, they’re primarily hired as consultants that audit and review financial documents. CPAs are also authorised to represent businesses when filing tax returns.
Which finance expert does your company need?
All businesses need someone who can … Read more