Thursday, 29 December 2016

What Is Bank Reconciliation?

A bank reconciliation statement provides information relating to your banking and business activity that reconciles your business organization’s bank account with its financial records. The statement summarizes the deposits, withdrawals, and other activities that have an impact your business’ bank account for a specific period of time. All businesses, whether big or small, take the help of this tool for various reasons. The importances of your bank reconciliation statement for your business are mentioned below.

Identifies Difference Between Bank and Book Balance

With the help of a bank reconciliation format, you can identify the difference between the bank balance and the cash book balance. This is necessary as sometimes the transaction may not be settled in your bank account due to various reasons and your cash book may show a different figure. As a result, there can be a mismatch and this mismatch is easily identified with the help of a bank reconciliation format. Moreover, it helps your accountant to make any necessary adjustments and correction in the books of accounts.

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Wednesday, 21 December 2016

Why Should You Have A Christmas Party?

Your employees would be eagerly waiting for some celebration during the holiday season. For small or medium businesses, parties can indeed be a costly affair. So even if you plan an office party, you might cut down on certain things and minimize the cost. However, this may not be a good idea if your party lacks certain elements (the ones that cost more than others like some fine delicacy or drinks, live DJ). Such parties tend to be boring and it would’ve been much better if you didn’t have one instead. In fact, having a good party has many benefits for the organization. Since Christmas is near, you can have a Christmas party for your employees. Here are some of the benefits why you should celebrate Christmas at the office.

Enhances Employee Engagement

One of the reasons to have a Christmas celebration at the office is because it enhances the employee engagement. Parties act as an ice-breaker and employees socialize with each other. Moreover, as people begin to talk to each other it helps to develop a good rapport among the employees. This leads to increasing the morale of the employees. So having a Christmas party has some long-term benefits for your organization.

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Wednesday, 14 December 2016

What is Break-Even Analysis?

Every business involved in the manufacturing or production of goods should be aware of the break even analysis. With the help of the break even analysis formula, you are able to calculate your break-even point. It is the point at which the total expense equals the total revenue. So, there is no net profit earned or any loss incurred by the business at the break-even point. Let’s take a look at the break even analysis in more detail.

Break Even Analysis

The break even analysis can be presented in form of the number of units or the amount of revenue earned. For any company, there are two types of costs-fixed cost and variable cost. The fixed cost remains fixed for a considerable period of time. As and when the level of production reaches beyond the optimal limit, the fixed would increase. This cost is incurred by the firm even when they are no units produced. Examples include salary to the supervisor, rent, power bills. The firm is liable to pay for these costs irrespective of the level of units produced or not.

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Tuesday, 6 December 2016

Year-End Checklist For Your Business

When the year comes to an end, things can become a bit complex. Updating your books of accounts, getting ready for filing your taxes, planning for the next financial year and other work related to your business are some of the things that may turn up at the end of the year. As a result, there is every possibility that you might miss out on certain things. Therefore, it is important that you prepare an accounting checklist for the end of the year. This end of the year checklist will make sure that you have completed all the required work for the current financial year and are well prepared for the next financial year. Here are some of the things that you need to have in your accounting checklist for the end of the year.

Check Your Cash Flows

Small businesses usually operate in small volumes and hence, they may face the problem of insufficient cash. As a business owner, you do not want your business activities to stop at the start of the next year due to insufficient cash. Therefore, you need to make sure that you have sufficient cash with you for the upcoming financial year. Moreover, when you check your cash flow statements, you will be able to figure out from where the money is flowing in and going out. Thus, this will give you some idea on where you can cut down on certain costs and ensure that there is a better earning in the next financial year than the current year.

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