Tag Archives: money

Benefit Plans, Financial Planning, New Business setup

The 14 Determinants of Management That Will Help You Manage Your Business Effectively

1 Comment

Management is an effective part of any business. It is also a process, which is crucial within an organization at every level of the hierarchy. Are you facing greater employee turnover, low employee motivation levels, a tensed office environment, confusion amongst your employees or any other thing, which is not going the way it should be? The answer to all these issues is proper management.

You ask yourself or others about what is management and you get an answer instantaneously like “Management is to control an organization”. However, it is not as unpretentious as it sounds. Many entrepreneurs who own a small dream, struggle with managing a business. It is not about treating people like your slaves because this will do you no good. The key is to act as one of them and communicate on their level, get to know their demands on which you act later to create a positive vibe in the environment, united to work towards a common goal.

To manage your business, acting on proper guidelines is vital. Working on the 14 principles of management presented by Henri Fayol, who was the father of modern management theory, has helped us steer our business in the right direction adapting the right work culture.

The 14 Principles of Management:

  1. Division of Work

Assigning tasks to employees in whom they excel brings out their true desire and passion to work for the business. It also helps them become more efficient and skilled in their tasks.

  1. Authority

The manager must have proper authority to give orders and should be responsible in giving them because every employee is working under him/her.

  1. Discipline

It is necessary in an organization to provide the employees with a base attitude and behavior to adopt while on work.

  1. Unity of Command

Having different controlling personnel is confusing. Supervision from a single person can help bring unity in work and a powerful command over employees.

  1. Unity of Direction

Having a manager to make the employees work in the same direction towards achieving a single plan is known as unity of direction.

  1. Relegation of Separate Interests to The General Interests

Interests of a single employee should not be the priority of action even if the manager’s personal interests are at stake.

  1. Remuneration

It is the most important factor upon which rests the satisfaction level of employees.

  1. Centralization

Balance of involvement of employees in the decision making process should be the aim for a more passionate workforce.

  1. Scalar Chain

Proper chain of command and hierarchy level must be known to all employees to make their working and reporting more specific and effective.

  1. Order

Everything at work must be clean and arranged in order.

  1. Equity

Managers must be kind, disciplined and handle their responsibility with care when communicating with staff.

  1. Stability of Tenure of Personnel

This refers to the management of employee turnover. Planning is the key to resolve this issue.

  1. Initiative

Staffs should be given the opportunity to think and carry out plans.

  1. Espirit De Corps

It is a combination of the above 13 principles. Promoting unity and team spirit brings about harmony in work and helps achieve this principle.

SK Financial is your destination for proper guidelines to management of your start-up business.

Benefit Plans, Financial Planning

Sticking To Principles from One Accounting Body Can Help Your Business Flourish in Global Markets

1 Comment

All businesses work on some principles to drive their organization on a pre-planned track that will deem effective in the end. Whether we talk about human resource, management, taxation, finance, accounting or any other function of the business, working with some principles provides for a clear direction and support in achieving the business goals.

Are you a booming business? But you are not clear about the accounting body you want to follow when preparing your financial statements? Then this article will be your guideline towards making an informed choice.

Two major accounting standards are followed in the United States.

US GAAP

The accounting standards used commonly in the US are known as US GAAP (Generally Accepted Accounting Principles) formulated by the FASB (Financial Accounting Standards Board) for governing of the financial reports of non-governmental organizations. There is also the AICPA (American Institute of Certified Public Accountants) who is responsible for developing the standards used in auditing private company’s financial statements.

US GAAP outlines the principles for maintaining the records of inventory valuation, short and long-term investments, taxation and every other component of financial reporting. The guidelines issued by GAAP educate on how to record accounting information properly, in a consistent and fair manner.

Although no company is required to follow these guidelines but large companies, do follow these to provide consistency when comparing organizational statements. Even investors look for proper financial statements that will give them the fair picture of the organization that can be trusted upon, is consistent, reliable, comparable, and relevant in disclosing the right information.

IFRS

This abbreviation refers to International Financial Reporting Standards by the IASB (International Accounting Standards Board). Previously these standards were also known as the IAS (International Accounting Standards) issued by the IASC (International Accounting Standards Committee). People still know the standards as IAS rather than IFRS but the principles are same.

IFRS’s are designed for the goal of communicating with the world through a common language of accounts in business that is comprehensible and comparable. IFRS’s have greatly benefited the international trade and overseas shareholding practices. These accounting standards are making progress across boundaries and becoming increasingly successful in replacing the national accounting standards.

Some general features of IFRS are:

  • Fair Presentation & Compliance

This refers to the faithful representation of transactions considering several events, conditions and respective definitions of components of financial statements.

  • Going Concern

Financial statements should be prepared to show the organization is in operation and should not be produced if management intends to liquidate.

  • Accrual Basis of Accounting

Assets, expenses, income, liabilities and equity should satisfy recognition criteria present in the IFRS framework.

  • Materiality & Aggregation

Every distinct item should be read separately unless immaterial. Similar items should be shown as one.

  • Offsetting

Although forbidden, some standards require this when explicit conditions are fulfilled.

Frequency of Reporting

IFRS guides to prepare financial statements at least annually although listed companies are required to publish provisional financial statements.

  • Comparative Information

As IFRS’s are globally adopted, information should be relevant, narrative, descriptive and comparable with the preceding periods.

  • Consistency of Presentation

Classification of financial statement items should be consistent from one period to next, to make it understandable and easily reviewable.

SK Financial is a Tampa based company that can help you with preparing your financial statements by adopting the accounting principles you reckon necessary for your business.

New Business setup

5 Ways to Finance your Small Business

1 Comment

Small businesses are the hardest to take off but with proper planning and good strategies, these small businesses can be turned into multinational corporations in a very short time!

One of the most difficult things about starting a small business is having access to resources. All resources, be it the finances or the capital assets, are limited and difficult to get hands on. To help all you new entrepreneurs, we have compiled the 5 easiest ways to obtain finances to kick start your small business!

Credit Cards

If you are a new business and your expenses are not that much, then credit cards are the best way to obtain finance. You can charge your card for all the expenses that you need to incur and make the minimum payment when due. The advantage of obtaining finances this way is that it is readily available. You do not have to look for lenders or give guarantees. All you have to worry about is the small amount of minimum payment that you can easily make as soon as your business gets going.

Home Equity

Obtaining a loan against your home equity is yet another easy way of obtaining finance. You can take out a loan against the amount that equals the value of your home minus the liabilities. Again, the method is readily available, has low interest rates and flexible clauses. These home equity loans are quite easy to obtain as compared to traditional business loans.

 Assets

There might be some capital assets at home that you can probably live without. For example, you may have an extra car or even only one car that you rarely use. You can sell such assets for a generous amount of money and can buy them back (and better), once you start hitting profits in your newly started business. This method of financing is liability free. You do not owe anyone anything, there are no interest payments to worry about and you can easily buy back the asset later on.

Angel investors

Angel investors are wealthy people with a high-risk loan profile. This means that these affluent people are ready to invest in risky ventures and therefore, easily lend money to new entrepreneurs. Angel investors expect a 20 to 25% return rate when the business hits off and are usually very smart individuals, who not only have the knowledge of the sectors they invest in but are also good businessmen. This means that apart from obtaining finances from them, you can receive free advice on business problems and get access to their valuable contacts too.

Pre-Sales

This is quite a risky method but if you are confident about your business, this method of obtaining finance is probably the most advantageous one. It requires you to have thorough knowledge of how you expect your sales to be and necessitates intensive marketing. With tactics like online marketing and rigorous salesmanship, you can easily coordinate with suppliers and customers so that your sales money can be used to pay off your inventory investments!

All of the financing methods have their own advantages and risks. With a good CPA, like a SK Financial accountant, by your side, you can easily obtain finances and hit profits in no time at all!

Tax Tips

Ten steps on how we save you money

Leave a comment

Save_Money1

Ten steps on how we save you money:

1. We save you money by automating your accounting department. By doing so, you save on direct/indirect payroll, overhead costs as well as technology costs. Your data is saved on our dedicated secure server in an SAS70 certified data center. You will have absolutely no computer or software costs. We also eliminate your hiring and training headaches. Our skilled, experienced professionals handle your daily accounting and bookkeeping. We will help you develop standardized and consistent policies and procedures to streamline the accounting process for you.

2. We save you money by implementing numerous tax strategies. You save on taxes with our proactive accounting and tax advice and guidance. We have more than 100 tax planning strategies, which we will gradually implement as we monitor the progress of your business. You will be amazed to see how the implementation of just one, sound tax strategy can help you save way more money than our fees for the entire year.

3. We save you money by not allowing you to pay any penalties to the IRS or state authorities. You are guaranteed never to pay any penalties due to our strict adherence to deadlines. We will handle all your required filings in the most efficient and timely manner. If we don’t file any forms or make a tax deposit on time, then we will pay any tax penalties on your behalf.

4. We save you money by valuing your time. Your phone calls and emails will be returned within 24 hours. We will finish any tasks requested by you within 48 hours. We are easily accessible through phone, email, chat, Skype and other social media. We will complete your bookkeeping by the end of every month, or you will not be charged for that month.

5. We save you money with our audit protection plan. If you get audited or receive a notice from the IRS, all you have to do is just forward it to us, and we will take care of the rest. We will represent you and correspond with the IRS on your behalf. You will not have to pay any fees for our additional work.

6. You save money by automating your payroll and HR process. We process your payroll online with direct deposit, make tax payments electronically, prepare quarterly payroll tax returns, 1099s and sales tax returns and submit them electronically. We will also automate your time sheets, vacation benefits, expense reimbursements and HR functions through our Human Resource Information System (HRIS).

7. You save money by having a CPA firm by your side throughout the year. We provide unlimited consultation regarding accounting, tax, marketing and business matters throughout the year.  You also have access to our resource library and your own online portal.

8. You save money with our marketing consultation. We meet with hundreds of entrepreneurs throughout the year, and will share with you the many outstanding marketing strategies that are being implemented by other successful businesses.

9.We save you money by automating your A/P and A/R departments. All you have to do is to scan, fax, or email your paperwork to us, your capable accountants, and your hassles are no more. For A/P (bills) we keep track of all your due dates, set an approval process and automatically pay on the scheduled date. For A/R (invoices), we email or post your invoices, so you have no more hassle with printing, postage and mailing.

10. Your savings will be significantly higher with our accounting packages than with any other accounting firm. You will know what your fees will be well in advance, so there will be no unpleasant surprises. On average, our fees are far less than our competitors’. So you receive superior quality of work for a low, fixed monthly fee.