Monday, 16 October 2017

Steps To Do Your Own Bookkeeping

Bookkeeping and keeping a track of all the incomes, revenues, and expenditures of your organization are an important part of every business. Bookkeeping Edmonton provides you the current financial position of your organization and plan for future business projects. If you are planning to start with bookkeeping by yourself, then here is a step-by-step bookkeeping process for you.

Step 1: Create an Organized Structure

Before getting started with bookkeeping, you first need to establish a well-defined structure. This structure must include the kind of system you will use for bookkeeping, say automating the process with the help of an accounting software or doing it manually with the help of spreadsheets. Once you have a system in place, make sure you follow the same system for bookkeeping in the future.

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Tuesday, 10 October 2017

The Basic Steps Of Capital Budgeting

Capital budgeting is a multi-step process that is used to determine if a particular business project or plan is worth the investing. It is a long-term planning for financing of a proposed project such as purchase of a new machinery or equipment, investing in new products or projects, etc. Capital budgeting projects are categorized as follows:

  1. Replacement Projects for Maintaining Business - Projects for the maintenance and functioning of the existing business operations.
  2. Replacement Projects for Reducing Cost - Projects for replacing equipment, products, services, or functioning that may require lesser resources and funds.

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Thursday, 5 October 2017

Four Tax Saving Tips For Business Owners

Planning and preparing for tax payment well in advance can help you save both time and money. But, if you haven’t started preparing for the tax season, don’t fret. Experts from the top Edmonton accounting firms suggest the following tax saving tips for business owners.
Maintain Books of Account
Hire an accountant to maintain all your transactions in the accounting format. Maintaining books of account or bookkeeping can help you in keeping a track of all the income from different sources and the expenses of your organization. It will also help you to see where you can save taxes and claim returns wherever possible.

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Wednesday, 27 September 2017

Five Signs Your Business Needs A New Accountant

An accountant is one of the most important people in your organization. Apart from maintaining your financial transactions, you need an accountant for many other purposes. This may include filing your tax returns, systematic recording of books of account, assisting in making financial decisions, and looking after the accounts payable and receivables to name a few. However, if these simple routine operations are not done properly, then you should consider hiring a new accountant or outsourcing your accounting work to one of the professional accounting firms Edmonton. This is because a bad accountant will certainly create multiple problems and affect the smooth functioning of your organization. The following are some signs of a bad accountant and that you need to consider hiring a new one.

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Thursday, 21 September 2017

What Are The Objectives Of Accounting

Accounting allows you to keep a record of all the financial transactions of a business. Each and every expense incurred by the firm and the income received is recorded in a timely manner with the help of accounting. Accounting is a must for all types of businesses irrespective of their size and niche. The objectives of accounting are explained as follows.

Systematic Record of Statements

The most basic objective of accounting is to maintain all the transaction data that includes all the inflow of money and the various expenses incurred by your business on a day-to-day basis. Maintaining these records manually is a tough job and can lead to several miscalculations. Plus, you may miss out on certain transactions if they are not maintained properly. Thus, accounting saves a lot of time and efforts and ensures that there are no errors in your accounting statements.

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Wednesday, 13 September 2017

How To Improve Your Working Capital

Working capital is the capital used by a business for its day-to-day operations. The formula for working capital is current assets minus current liabilities. This capital has a direct impact on the cash flow as well as on the finances of a company. Being able to effectively manage the working capital can ensure that it meets the business obligations as well as avoids bankruptcy. Hence, follow these ways on how to provide working capital efficiency and manage it as per your business requirements.

Reduce Expenses

Review your fixed and variable costs to determine if there are areas to reduce your expenses. For instance, office supplies, equipment, and technology represent expenses that could be reduced by negotiating with the new suppliers. Thus, by reducing these expenses, you will have more cash available to you for your daily operations.

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Wednesday, 6 September 2017

Why You Need To Prepare A Cost Sheet For Your Business

A report of all the costs associated with the production, administrative, financing, selling and distribution of a product is called as cost sheet. Preparation of a cost sheet is done to calculate the margin or profit of a product. Also, it is used as a basis while setting the price of similar products in the future. Cost sheet should be prepared by every business before it starts with the operations. The importance of cost sheet is explained as follows.

Determining Selling Price

Cost sheet helps in fixing the selling price of a product or service. It is essential to prepare a cost sheet for determining the individual costs which lead to determining the cost of the product or service. Once you know your total cost, add the margin or the profit percentage to the total cost in order to arrive at the selling price.

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