Small Business Accounting Edmonton: The Audit Preparation Checklist

Running a business and maintaining your financial accounts on a regular basis can be a difficult task. Doing your own accounting has its own pros and cons. With too many responsibilities in your hands, mistakes are bound to happen. Such mistakes create a problem for you during an annual audit. Here is an audit preparation checklist you should keep in mind when there’s an audit for your small business accounting Edmonton.

Get more information at Small Business Accounting Edmonton.

Why is Financial Accounting Important for your Business

There are multiple transactions that take place during the year therefore, it is important to have a record of those transactions. Financial accounting helps internal and external stakeholders make better business decisions. Without financial accounting, decision-making can have a negative impact on the company’s performance. Here’s why the importance of financial accounting cannot be neglected.

For more information, visit here.

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.

For more information, visit here.

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.

For more information, visit here.

How To Fix Accounting Errors

When an error is discovered in the auditing process, it should be corrected immediately to prevent the proceeding of wrong data as it results in unreliable financial statements. Mistakes due to the error in calculations, etc. require immediate corrections. But how you correct it, depends on the type of error and whether or not the error can be counterbalanced.

Accounting errors can have an impact on the financial aspect of working capital, cash flow, tax and so forth for your business. However, these accounting errors are not counted as frauds. Errors happen unintentionally, whereas accounting frauds are deliberate. There are numerous reasons behind these errors. We have listed a few common accounting errors and how you can make a correction of errors in accounting.


For more information, visit here.

How Is Inventory Management Beneficial For Your Business

Inventory management is important for a business in order to maintain a good cash flow. The practice of looking after and controlling the orders, storing and delivering the goods is known as inventory management. If you do not have an inventory management system, it may lead to overstocking or understocking. Also, you may end up having a low cash flow. The importance of inventory control system cannot be ignored and so, here are a few reasons why inventory control system is beneficial for your business.

Improves the Accuracy of Inventory Orders

Maintaining a proper inventory system will help you know how much stock is available in your warehouse. You will have an accurate knowledge of the items in your inventory. Once you know how much inventory is stored in the warehouse, you can send the required number of inventory to the retail store as and when you receive the order. This will help you have a stable count for the stocks in the retail store and your warehouse will have sufficient stocks to cater to the orders.

For more information, visit here.

What Is The Difference Between Financial And Cost Accounting

Financial and cost accounting are a part of the company’s operations. Both help the company control its finances and formulate strategic organization policies. An overall picture of profit and loss is provided by financial accounting, while cost accounting provides a detailed analysis of a product’s cost.

Meaning

Financial accounting keeps track of a company’s financial transactions for a given period of time which is usually for a year. Financial transactions are recorded using a standardized format and following certain guidelines and is presented in the form of income statement or balance sheet.

Cost accounting is a system of recording all the costs incurred in a business. It includes the cost of used to calculate each overhead product-wise, such as materials, labor, direct and indirect expenses, etc.


For more information, visit here.

Why Capital Budgeting is Important for your Business

The estimation to determine whether a particular  of expenditure or investment is worth funding for a significant amount is called capital budgeting. The large amount of money spent for these investments are called capital expenditures. These investments are mainly for acquiring fixed assets such as machinery, land and building, etc. For getting accurate results to determine whether the investment is worthwhile, the process of capital budgeting needs to be carried out effectively and efficiently. Here are a few objectives of capital budgeting.


For more information Visit Here

Why your Business needs to Maintain Financial Statements?

Accounting for business financial statements is a common function of all businesses. But ever wondered why your business needs financial statements? Whatever the type of your business, you need to be aware of its financial status on a regular basis. Apart from this, as a business owner, you need to comply with certain regulations and provide financial information as required by statutory and taxation authorities. These vital tasks can be obliged to by maintaining business financial statements. Financial statements allow you to analyze company status, make vital decisions, and oblige to requirements by taxing authorities. Hence, there are several reasons to maintain business financial statements. Here are a few.

For more information Visit Here

6 Tips to Get More Tax Refund

As you near the close of the financial year, you start anticipating taxes. When filing taxes most of us are looking to pay no more than we owe or rather boost our tax refunds. Tax refund is a boon, which helps you secure yours as well as your family’s future by saving more. While you are obliged to pay taxes, there are ways that will help you reduce your tax liability. Here are 6 tips through which you can get more tax refund.

Make Donations

Making charitable contributions to tax-exempt organization allows you to claim a substantial amount of non-refundable tax credit. Such tax-exempt organizations include religious organizations, charitable organizations, community groups, colleges, non-profit hospitals and more. When you make donations to the listed organizations, you are generally able to claim all or part of the amount, up to the limit of 75% of your net income.

For more information Visit Here

What To Do With Overdue Invoices?

Do you have some clients who always delay your payments? Are unpaid invoices affecting your cash flow? Is your client always busy or comes up with an excuse when you ask about the payment? Well, these are some of the commonly faced problems by small businesses. An untimely or worse unpaid invoice not only affects the profitability of your organization but also causes other problems in your finances. So how do you deal with overdue invoices? Here’s what you should do to overcome the problem of overdue invoices.


For more information Visit Here

5 Cash Flow Hacks

Are you experiencing cash crisis? Are most of your cash blocked in inventories and non-liquid assets? In today’s world, the use of the digital transactions is quite popular. However, businesses still need to have sufficient amount of liquid cash in case of any emergencies. If pure cash is not possible, then assets that can be quickly converted into cash should be present. Lack of cash or liquid assets can affect the smooth functioning of business transactions and therefore, you must improve your cash flow for the same. So how do you improve your cash flow? Here’s what you can do.

For more information Visit Here

Plan Your Business Finance For 2017

You never know what’s in store for your business in the new year. 2017 can present you with really good opportunities or threats for your business. Therefore, you should be prepared for what comes your way and thus, create a suitable plan to take advantage of opportunities and overcome any risks. One way to be prepared is to create a financial plan. Financial planning is important because any unforeseen events that affect your business can have a direct impact on your finances. So if you have not planned your finances for this year, here’s what you need to do.

Update the information

Before you begin planning your finances, keep yourself updated with the latest happenings in the business environment and also within your company. This includes analyzing your competitors’ strategies, evaluating of your marketing costs, settling transactions and others. Once you are aware of this information, it serves as a guide to planning for your finances.

For more information Visit Here

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.


For more information Visit Here

How To Save Taxes On Your Home?

Taxes can indeed take a large chunk of your profits. Your profits minus the tax may leave you with very little money for yourself. This is, even more, a worrying sign for self-employed people who operate from their home. However, with the help of home office tax deduction, you can get home business tax saving. Thus, you are able to reduce your tax amount. But, how do you reduce it? An accounting assistance in Edmonton will be able to help you to get the home office tax deduction. Some of the ways to get home business tax saving are mentioned as follows.

Deductible Expenses

When you operate from your home, you are allowed to deduct some of the expenses such as a part of the electricity cost, heating, and maintenance. Some of the expenses that would not be deductible include mortgage interest, home insurance, capital cost allowance and property taxes. So if you have missed out on the deductible expenses before, make sure you add them to the deductible taxable amount to get the exemptions


For more information Visit Here

Variable Expense Vs Fixed Expense

In order to increase the profitability of your firm, many factors come into play. Accounting services in Edmonton may tell you that you can increase profitability by improving your sales, raising the prices of your goods and services or by reducing your expenses. A company does not have much control over increasing its sales and prices as much as, it has on lowering its expenses. If you want to increase your profits by reducing expenses, then you should have some knowledge about expenses. There are two types of expenses, variable expenses and fixed expenses. The difference between variable expense and fixed expense is described in detail below.

Meaning

The expenses which vary with a change in the number of units produced are known as variable expenses. Examples of variable expenses include the cost of raw materials, wages paid to labor, packaging of products and others. These expenses are incurred only when you start producing the units.


For more information Visit Here

What You Need To Know About Adjusting Entries?

A business can maintain either cash or accrual basis of accounting system. The difference between cash and accrual system is necessary to understand so that you can choose the right accounting system for your business. In the cash system, the entries are made in books only when either the money is received or spent. Whereas, in the accrual system, revenues are recorded even if cash has not been received or if expenses have been incurred but no cash payment has been made. Adjusting entries are used in accrual system of bookkeeping. These entries are used to convert a company’s accounting records to the accrual basis of accounting. Here are few points that will help you answer the question, what are adjusting entries?

For more information Visit Here

What is a Shareholder's Agreement?

Every business corporation or enterprise needs to retain its lion share of investors. However, in times of economic expansion, investors are watchful for better chances to exit the business. To maintain a strategic distance from these burdens and reduce the risks associated with each new opportunity, it is critical for the shareholders to have a clear set rule that apply to them. It is important for every budding business visionary to understand the tax provisions relating to the ITA, before getting into the drafting stage. ATS Accounting gives in- depth tax consulting and business startup services required for individuals and organizations to incorporate into their USA, to enhance their profitability.