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Not all business transactions are cash and carry, so properly managing your debtors is an important skill for any business owner. Debtors, clients and customers who owe you money, become accounts receivable in terms of your books. Keeping track of who owes what and when it’s due can play a big role in financial statements, income reports, and profit and loss projections. While revenues have yet to be realized, the sales have, and should be recorded appropriately. However, debtors are not just accounts in your books, they are your customers too. It takes attention to detail and good business acumen to balance both sides – the customer and the account.

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There are so many different tips on the basics of book keeping for new business owners, it’s hard to figure out what’s good, what’s bad, and what’s not worth your time looking. Let me help – these are our top three basic book keeping tips, and they’re all important for different reasons.

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If you’re trying to figure out how to handle small business accounting jobs and responsibilities for your business there is a lot of information that you need to keep track of. Whether you’re using a piece of software or not to keep track of your financial issues, there are several things that are going to be important. Preparing a general ledger, revenue accounts, balance sheet, and income statement are all crucial parts of small business accounting jobs.

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Company tax is also known as corporate tax and is generally imposed by the federal and by most state governments. This kind of tax is vital to the existence of any business and all business owners know better than dodging this one. Any company doing business is subject to taxation laws of the country it works in. This knowledge is basic and there are more complex rules for each type of institution.

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If you are starting up a new business or if your existing business needs to raise funds for expansion, you could benefit greatly from cash flow forecast software. This type of software is the ideal solution for beating your cash flow crisis and for producing a forecast in minutes, making business planning easy.

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Most of us would like to believe that all people are honest and can be trusted. Unfortunately, the reality is that both creditors and debtors need to be on the lookout for collection agency scams. A collection agency is a legitimate way to collect funds owed. However, creditors must use one that is reputable and debtors must know that they are giving their money to the right people.

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For decades, multitasking was used to describe the parallel processing of computers. According to wikipedia* definition, “In computing, multitasking is a method by which multiple tasks; also known processes, share common processing resources such as CPU. In the case of a computer with a single CPU, only one task is said to be running at any point in time, meaning that the CPU is actively executing instructions for that task. Multitasking solves the problem by scheduling which task may be the one running at any given time, and when another waiting task gets a turn. The act of reassigning a CPU from one task to another one is called a context switch. When context switches occur frequently enough the illusion of parallelism is achieved. Even on computers with more than one CPU, multitasking allows many more tasks to be run than there are CPUs.”

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Every business, at one time or another, finds themselves in a situation where they need to collect unpaid debts from customers. This can be uncomfortable, especially for the small business owner who may have a more personal relationship with their clients. To avoid and unpleasant confrontation and get paid as soon as possible, consider using a commercial collection agency.

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An order entry software system allows you to electronically enter, process and save orders. Typically, it is a component that works along with an accounting and/or inventory management software system. Using it can save a business significant time and streamline processes, when compared to using accounts receivable without order entry. Consider the benefits of order entry, and you will get a much clearer picture of whether it is right for your business.

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Business difficulties are clearly becoming serious when suppliers and other creditors start on legal action to recover their money. This article briefly outlines the main procedures used in the UK, from County Court summonses to Statutory Demands which a company may face.

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The simplest way of defining a high risk merchant account would be one in which the commodity offered could involve the ease of credit card fraud or the short term turnover of the business in which you decide to participate. These accounts could be one located in one country but have sales nationwide. Or the volume of your business could have such a high volume of trade that the number of credit card users would be more likely to create a problem with fraud or cards that have expired. Business dealing in travel, debt collection, auto rental, and bail bond, are all considered high risk. These are just a few examples leading to the necessity of a higher risk merchant account.

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Part of a financial statement of your business is the balance sheet. This document records the difference between assets and liabilities that determines the market value of the business as well as the net worth, ether positive or negative of your business. A balance sheet is prepared monthly for most business owners, with a small business, the balance sheet can be quarterly.

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In order to compete successfully businesses today need be able to accept payments made by credit and debit cards. To allow transactions using credit cards businesses must have a merchant account. But some businesses such as coin shops, software sellers, cosmetic surgeons, insurance brokers, investment brokers or many other businesses are considered high risk businesses. Because of the nature of their activities they cannot qualify for a regular merchant account. They must use a high risk merchant account.

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Pro forma financial statements are a process of formally displaying financial projections for a given period of time and in a consistent layout. The word pro forma is derived from the Latin term which means “as a matter of form”. Most businesses make use of pro forma financial statements in the executive process for planning and control as well as for reportage to owners, investors, and creditors. A pro forma financial statement is utilized as the foundation stone while comparing and analyzing information in order to give a feel to the management, investment analysts, and credit officers about the nature of the business’s fiscal organization under different conditions. The American Institute of Certified Public Accountants (AICPA) and the Securities and Exchange Commission (SEC) both ask that standard formats be used when presenting or forming these types of statements.

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Are you tired of crying Uncle when it comes to finding the right QuickBooks Help? Rest assured, you’re not alone. Hiring the right QuickBooks expert can sometimes be a daunting experience, especially when you have a lot on your plate. Remember, the reason you’re seeking outside QuickBooks help is you were smart enough to realize that accounting is complex and is best handled by an accounting professional. In the long run it will save you time, money and aggravation!

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If you are a small businesses owner and looking to optimize your operations, this list of do’s and don’ts on bookkeeping will help you save valuable time and money.

Let’s look at the DON’Ts first and rectify them now:

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Financial accounting may be the single most critical data system your company will need. Financial accounting aims to create two basic financial reports, the balance sheet along with the earnings and loss statements. Conventional software systems uses a ledger of accounts to categorize financial activities of one’s corporation. Usually, the ledger is divided into two major portions, the assets portion, typically envisioned as getting on the left aspect of the ledger, and also the liabilities and equity portion, that currently being on the appropriate aspect. Under assets you’ll have these kinds of accounts as the money account, accounts receivables, and fixed assets, which include inventory, buildings owned, and office equipment as well as other assets for which you paid money. Every account is also split into two parts, the left part getting the debits aspect and also the proper aspect becoming the credits part. Now, the ledger ought to be balanced this sort of that the assets aspect debit sum of all assets accounts is equal to the sum of all liabilities and equity on the credit part of the ledger.

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Many business owners fall into the trap of using a spreadsheet to record their financial information. Usually this is done to avoid the cost of purchasing an Accounting Software Program. I do not recommend using a spreadsheet for the following reasons:

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There are all sorts of different types of accounting software available, including that meant for personal use. Even if you don’t have a business or a lot of investments, this software could be useful for you.

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The Cash Flow Statement is derived from the Cash Flow Budget, which is a forecast of receipts and payments. The Budget shows if enough cash is available for expenses, equipment and goods purchases. Cash Flow also indicates whether external sources of cash are necessary. While many business owners think profits are the most important financial component of a company, the lack of cash is often the biggest reason for business failure. In fact, a business may be profitable; yet, it doesn’t have the liquidity to pay its expenses. Therefore, effective Cash Flow Forecasting, Planning and Management are essential to a Company’s success.

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