Tag Archives: business accounting

Benefit Plans, New Business setup

Audits: Keeping Your Business Activities Pure

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Many new businesses might not know of or heard of the word ‘‘audit’’. It is a planned and recognized action of qualified personnel to analyze the acceptability and compliance with the established processes and the effectiveness of application.

An audit is a vast field that monitors and analyses the different departments of a business like accounting, project, quality management, internal controls and energy conservation. The term ‘‘Audit’’is divided into two categories:

  • Internal Audit
  • External Audit

Internal Audit                                                     

This function has a separate department in a business setting where it operates independently and reports to the audit committee.  Employees of an organization are the members of an audit committee and perform both, financial and non-financial audits.

The internal audit has the key function of looking over the business environment for risk possibilities and managing those risks to achieve company’s objectives.

External Audit

This department is independent of the organization and functions outside. They have a sole focus on financial statements of a company, their accuracy and reliability and for this purpose; the shareholders do the appointment of the audit team.

The external audit team performs the statutory annual audit and provides an opinion on the truthfulness and fairness of the financial position of a business.Their responsibility includes the examination and assessment of internal controls that are in place to negate risks related to financial accounts and to determine their intention.

An auditor works on a specific criterion using a company’s adopted policies, procedures and requirements for reference. The internal audit is a detailed internal inspection of the organization conducted by its independent employees because it is hard for the management to view the several activities in the organization. It is necessary for a company to observe the processes and match their performance with a proposed criterion.

Apart from the major function performed by external auditors, they also help the owners of a business and other organizations to place reliance on a company’s financial statements. Some stakeholders, other than the shareholders that count on the accuracy of the audited financial statements are:

  • Tax Authorities
  • Financial Institutions
  • Management

Some companies do not know the exact work an auditor performs. What they do not do is:

  • Audit information provided by members of the organization like the director’s report.
  • Check every financial statement figure because audits are a product of selective testing.
  • Judge the suitability of an organization’s activities, strategies and decisions.
  • Test appropriateness of the internal controls of an organization.
  • Comment on the quality of directors and their governance, to the shareholders.

What auditors cannot do is:

  • Predict the future and provide assurance on a forward-looking strategy.
  • Be at the organization at all times because audits require defined timeframes.

Audits are conducted to eliminate inefficiencies in the business process and to help present the true and fair financial position of the business.

At SK Financial, we specialize in providing audit protection. Visit www.skfinancial.com for more information.

Financial Planning, HR and Payroll

Effective Accounting and Payroll is Crucial for a Booming Business

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Many of you might not exactly know the true essence of accounting and payroll, especially to those who are starting up a new business. An idea and a business plan are important to start a business and a strategy is paramount for building a business. However, no one has ever thought of accounting, which is the building block to a booming business.

Why is Accounting Important

Accounting provides entrepreneurs with a clear picture of the business, the rate of success and failure. Though entrepreneurs are not a fan of going through heaps of financial documents, though they are the most important and informative documents of a business. Effective record keeping is essential and helps keep owners informed of the expenses and revenues.

Owners also keep copious records for legal and tax purposes. Accounting is a collective term comprising of various types like cost, management, finance etc. Accounting helps focus on costs of running a business, which involves production and non-production costs, and management. For a new business, focusing on and managing costs is the key to success.

Payroll in Relation to Accounting

Another factor crucial to managing a business is payroll. It is a branch of accounting, which relates with production units, time or a fixed salary. It is the financial record of employees, their wages, salaries, net pay, bonuses and deductions. It is very important to pay your employees on time, no matter what size of amount is paid. Effective payroll calculations and timely transfer might not be as important to employer as it is to the employee.

Employers can also lose huge amounts if execution of the payroll process consists of errors. In small companies, an accountant will deal with all of the financial statements like, payroll, journals etc., whereas in large companies, different individuals are hired to perform different roles. A company’s payroll system influences the morale of its employees and motivates them to work harder especially if bonus payments or share options are linking to the basic pay.

Managing Payroll System

Managing payroll system is also important for tax deductions and lowering tax bills. Often companies use accounting and payroll software, who forget to ask themselves these important questions:

  • What are my ongoing annual costs, and what does it include?
  • Can I use the same software as my competitor?
  • Is the software compatible with others I use?
  • What are the limitations in functions offered by the software?
  • Is the support staff experienced enough to provide the technical support needed?
  • Is the software easy for everybody to use at my company?

Businesses spend a lot of time and money in searching for the right software. Integrating unsuitable software in the business system can be costly to replace and disrupt the day-to-day business functions. No software is compatible with every business and not all software covers every function of a specific business.

Outsourcing a business’s accounting and payroll functions is very common these days and effective results are achieved. Large firms often have their own accounts and payroll departments but outsourcing can help reduce costs and time spent, and a test run might help to lock in on your choice.

Bookkeeping Services

Bookkeeping Tampa Florida Services and Why Your Small Business Needs One

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If you’re starting a business in Tampa, the first thing you need to find is a bookkeeping Tampa service to do your monthly accounting for you. The internet is the best place to do that, but it is a good idea to search locally, and not globally when it comes to your businesses’ books. Bookkeeping is the most critical accounting service every organization needs, whether they are big or small. The main reason is many transactions take place daily, and they need to be recorded accurately. As well, a Tampa bookkeeping service knows all State tax laws.

Outsourcing Monthly Bookkeeping Services in Florida

The only way to keep accurate records is by bookkeeping. Rather than doing them yourself, and taking the chance for errors; a skilled bookkeeping Tampa service has all the qualifications, skills, experience and software necessary to keep track of all credit and debit balances.

Outsourcing Saves Money

When you delegate your bookkeeping in Tampa services to an outside firm, you don’t have to provide them with office space, equipment or software. This of course saves money for your business long-term, and releases a lot of your duties.

A Bookkeeping Tampa Service Provides Audit Protection

If business records aren’t recorded properly it can mean serious repercussions if the IRS audits the business. A bookkeeping service will resolve notices and audits. And if your business gets audited, they can handle all the details for you. As we all know, the IRS is intimidating to deal with.

Reconcile Bank Account and Credit Card Statements

A bookkeeping Tampa service also reconciles bank accounts and credit cards. This is important so you can make sure there are no errors or discrepancies between your records and your bank account and credit card statement.

Bookkeeping Service for a Clear Financial Picture

bookkeeping servicesA bookkeeping Tampa service allows you to know where your business stands financially every month so there is no guesswork. You get a clear idea of how much your business is spending, and how much money is coming in or is owed. This gives you more time to spend on the more important aspects of your business because it frees up a lot of your time. Especially if you are like most people, and don’t like math, or dealing with numbers. As well, it makes estimating your yearly budget a lot easier.

A Bookkeeping Tampa Service Also Analyzes Expenses and Income

Along with monthly bookkeeping, an agency can also analyze expenses and income. Sometimes these tasks are taken care of on a regular basis, but a specialized service can also:

  • Prepare customer reports
  • Provide a cost analysis for employees
  • Determine how profitable, or unprofitable certain expenses are
  • Employee payroll
  • Tax planning
  • Advice with regard to tax reduction strategies
  • Personal and business income tax returns
  • Consultation and guidance to help your business increase profitability and manage costs to help your business grow.

If you have a business, and need a professional bookkeeping in Tampa, you can visit SK Financial and have a free consultation with one of our staff.

Financial Planning

Interview Strategy for Hiring an Accountant in Tampa

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Finding the right accountant can be a complex process depending on one’s individual or business needs. Finding an accountant in Tampa considering the variety of quality CPAs, but one must find the right fit for one’s unique needs. An accountant can either provide limited services come tax time, or become an integral part of one’s business life, acting as a financial and business consultant.

When searching for a CPA in Tampa, it is important to go into process with a full awareness of what ones priorities are and what role they need the accountant to fill. Once one has decided which services they need the accountant to perform, and then the search can begin. An accountant is qualified to perform complex services outside of tax and auditing is not difficult to find, if one knows where to start looking. Generally it is a wise decision to consult ones friends, family and colleagues to see if there are any suggestions or recommendations that they might have. Most individuals and businesses have had to use a variety of financial services at one point or another, so it stands to reason that one’s inner circle will have both good and bad experiences.

Referrals from people that are trustworthy are a good way to begin ones search for a qualified and competent CPA. One must always keep in mind however, that simply because somebody has referred a qualified CPA, does not mean that this individual in particular is specialized or experienced enough in the areas that one requires. When one finds a qualified accountant in Tampa that fits ones expectation of the role they must fill, the interview is the next important step. When choosing accountants, the more questions asked the better; as the more information gathered, the better the relationship can be fostered. If one is a business owner, ask about previous businesses that the CPA has worked with, and what services they provided. The more detail the better, as to reflect the confidence that the CPA exudes when speaking on the subject.

Throughout the interview, if the CPA appears reluctant to share their previous experiences or provide references, then this might very well be a red flag. References should be readily given, and descriptions of previous employment given, in order to provide a picture of competence in the candidate. However, the candidate should not reveal confidential details about the financial affairs of any specific business they work for; one must be sure that the accountant in Tampa be trustworthy enough to handle ones private affairs with professionalism. Throughout the interviewing process, the client and the candidate should be able to develop a connection, whereby the subsequent working relationship could be amicable and fruitful.

Whether one is looking for a simple bookkeeper to manage ones affairs, or a full blown financial firm, like ours, for your business – the right CPA is out there. The interview process is vital to finding the right match for an individual or ones business. Be sure to ask for references and develop a connection with the accountant in Tampa before hiring them. This way, the best relationship can be developed, and might prove to be beneficial for a long time to come.