Tuesday, 16 May 2017

Few Things You Didn’t Know About Cloud Bookkeeping – Find Out Now!

In one of our previous posts, we discussed the most significant reasons that bookkeepers have to discuss with their clientele regarding cloud-based accounting program. Suppose you happen to be a bookkeeper or perhaps accounting professional yourself, nevertheless? Odds are, you might have learned about this type of software on a business website, nonetheless, you possibly won’t know about it from one of your business competitors.

That’s since there are a couple of points other bookkeepers and accountants certainly don’t prefer you to have knowledge of cloud-based accounting program apps:

Cloud-Based Accounting Applications Tends To Make Your Task Simpler

In case you’ve been a bookkeeper for over a couple of months, you understand the toughest aspect of the job IS NOT managing figures, creating reports, or analyzing bank statements it’s remaining atop your clients and obtaining the documentation you require from them.

With cloud-based accounting, these kinds of problems are cut down tremendously and use up way less of your time and effort. Since transaction entry could be automated, choices can be memorized for every particular client or bank account, and file-sharing may be accomplished electronically, a bookkeeper’s greatest time-wasters are flushed out. This implies more flexibility to accomplish your tasks, and lesser issues in the everyday operation of your bookkeeping business.

With Cloud-Based Accounting Program, It Is Easy To Take On a Lot More Clients:

Being an implication of all that time-saving, a bookkeeper or a bookkeeping outsourcing company that employs cloud-based accounting programs might take on more clients as compared to what they could in past times, and basically work lesser hours along the way. How much of a change will it cause in your life to assist more clients, carry out a better job for all of them, and benefit from a better work-life equilibrium?

A number of bookkeepers and accountants are amazed at simply how much they can thrive when they use the appropriate cloud accounting app to do the job. It may be the one key that unlocks a greater, better and more lucrative bookkeeping business for you heading ahead.

As Soon as You Switch to a Cloud-Based Accounting Program, it’s Tougher for Somebody Else to Steal Your Customers:

Generally, bookkeepers and bookkeeping outsourcing companies have to get through issues and challenges that lay far beyond their own influence. For example, you might have clients who seldom present prints of invoices, bills, or tax records at the occasions when they are expected to do so. Consequently, they might be plagued by fees, penalties, as well as other expenditures that cause them to be discontented with you, despite the fact that you did absolutely nothing inappropriate.

It’s not an incredibly far jump from that type of scenario to dropping the client or bank account completely. The truth is, the time your customer hears from a different bookkeeper – an individual who assures to magically resolve these problems that are beyond your control – your long term revenue from that business is at stake.

With cloud-based accounting, nevertheless, you’ll get a more convenient time retaining entrepreneurs and supervisors updated and in conformity. And the accounting procedure starts to feel less complicated for the women and men you work with. That, subsequently, causes it to be a lot more challenging for somebody else to swipe your customers off of you. 

At Cogneesol, we believe the advantages of cloud-based accounting talk for themselves, nevertheless, we don’t envision you’re likely to reveal to your co-workers and business competitors regarding it even after you’ve given it a go. Although it possibly won’t remain a secret for very long, it’s certainly smart to begin making the most of this technology at this time before somebody else makes use of it to try and swipe your clientele.

If you happen to be looking for a reliable company offering outsourced bookkeeping services, your search ends at Cogneesol. We have been in the finance and accounting industry for over 9 years now and can help you with all your finance management needs. To know more, get in touch with us at +1 646-688-2821 or info@cogneesol.com.

Monday, 8 May 2017

Obstacles in Finance and Accounting Operations Faced By Law Firms Nowadays

In comparison with a usual small business, the accounting preferences at law firms are different. The penalty fees for violations are a lot more upsetting as compared to a slap on the wrist or perhaps a huge fine — accounting infractions may result in disbarment. This aspect needs a “zero tolerance for error” rule in your law office along with the understanding to support it.

Law firm accounting is a fundamental, however enormously demanding, and task with regards to operating a law firm. Since attorneys are conventionally not accountants, law firm accounting often is extremely overwhelming, particularly for the small-scale firms. Since it fuels a law firm’s earning, prolonged success, and duty to abide by, accounting is important for any law firm.
Given that accounting is really important to a law firm’s prosperity, it is viable to have an understanding of where precisely these businesses most typically dwindle in their strategies. Listed below are the 5 most popular challenges faced by of law firms when handling legal accounting.

Client trust money is pooled into a single bank account:

Since attorneys utilize retainers to procure cash flow from clients in most cases, they have to account for each and every client's trust funds separately. Nevertheless, law firms face issues in this because all the money is pooled in a single bank trust account.
To make sure that one client’s money is not going to get mixed up with the other, law firms could certainly avert this situation through the use of legal-specific accounting software program that inhibits:

Over-drafting the client bank account book at the payment level
Adding transactions to an improper bank account
Not complying by ignoring the three-way bank account reconciliation approach

Addressing case costs similarly:

Just about all expenses charged from the outset of each case have to be accurately accounted for when managing law. Consequently, it is crucial for law firms to have an understanding that certainly not all costs can be considered as the same.
Based on the kind of case, you might have to address case expenses as possibly “Advanced Client costs” or perhaps “Reimbursable Expenses.” Although advanced client costs must appear as an asset on the firm’s balance sheet, reimbursable client expenses ought to be documented on the profit-and-loss declaration. Make sure to accomplish this correctly and regularly each time because inability to follow through can lead to IRS agreement concerns.

Furthermore, any kind of cost incurred by cash, loan, or even checks must also be accurately designated in an identical time period, or it will not be billed.

Filtering revenue and income:

A lot of law offices face issues with regards to differentiating revenue that includes incurred expenses from their precise income. To be able to prevent having imprecise figures in the books, a part of the revenue should first-be dispensed to incurred expenses whenever having to pay an invoice. This part must not be viewed as income and should be separately recorded.

Data entry mistakes whenever syncing the billing and accounting software program:

There exist law firms which make use of two separate platforms for their legal billing and accounts management, meaning to say all data has to be keyed in two times and completed across both platforms. Nevertheless, inability to correctly sync both of these programs of financial data leads to bookkeeping difficulties, billing issues, or ethics violations.

Thus, businesses ought to employ a practice management platform consisting of both billing and accounts management features in one set of data. This would prevent any kind of problems and put together a perfect set of data.

Making sense of the place the money originated from:

Last but not least, attorneys truly have difficulty checking income since it can be extremely complicated where the money originated from. Particularly any time the firm is lacking in correct data, this may have an effect on the attorney’s capability to make wise business decisions, leading to a deprivation in revenue.

Hence, law office management must maintain a record of their income by case nature, which results in new business possibilities along with worthwhile business intelligence for every distinct case type. Eventually, this enables the legal professional to invest its money more efficiently on assets and marketing.

Accounting for law firms often is a major, daunting hurdle for attorneys when managing their business; nonetheless, as long as they stay away from these five most typical challenges of legal accounting, they will get the chance to efficiently carry out their financial duties and expand their business.

Cogneesol is a well known ISO certified firm providing excellent accounting services in the reasonable price.  For further information, contact us at info@cogneesol.com or call us at +1 6466882821.

Tuesday, 2 May 2017

Switch to Cloud Accounting for your Restaurant Business

Restaurant industry has evolved into a form where a vast amount of data flows through the system. Data that simply cannot be managed the traditional way without compromising efficiency. Utmost efficiency is the goal of every restaurant business and taking advantage of modern techniques is the way to achieving the goal.

 Each different facet of accounting that a company has to take care of, namely payroll, tax, accounts payable, accounts receivable and other financial operations, requires communication of data which may be stored in different locations. This dispersed storage can cause slowdowns and inaccuracies which lead to errors in accounting. Enter cloud accounting for restaurants. Forget all the woes of having to grab financial information from different storage units. Cloud Accounting allows for all accounting data to be stored in a remotely accessible location. Data being accessible remotely severely cuts down time wastage as data wouldn't have to travel through numerous locations. 

There are plenty of other perks of using cloud accounting, let us have a look at a few:

It Helps Cut Down Costs

Manual management of vendor payments and payroll is a significant time and money sink and is also vulnerable to errors. The more locations through which invoices in your system have to travel, the longer the process will take. Cloud accounting for restaurants will allow you to save more than 33% time by eliminating the locations and reducing the risk of errors. You'll save money when you're not going to have to spend on postage, printers and other supplies. You'll also be able to keep a better track of due dates. An automated system can allow you to function with fewer employees as well since it would be more efficient, hence you'll be saving money on staff expenses.

It Provides Real-Time Financial Statistics

Imagine how much more you'll be able to improve your restaurant business if you got your key financial statistics daily. Certain cloud-based systems come with features that can do so. They can combine financial and operational statistics which you can view on a dashboard. These statistics, if delayed, can become irrelevant to you. Hence, a correctly set up cloud-based accounting system which will allow you access to those statistics daily would be ideal in helping you manage your restaurant.

Builds Synergy

With a cloud-based system, it becomes significantly easier to communicate financial information with different units within your organization or entities outside your organization over a traditional accounting system. A cloud-based system allows remote access to financial information through compatible 'smart' devices such as smartphones, iPads, and laptops. It also allows you to manage vendor documents easily and take care of any related required actions promptly.

Eliminates Embezzlement

Traditional accounting systems are riddled with loopholes and inefficiencies that allow for much easier fraudulent actions. No restaurant wants to become a victim of embezzlement. Cloud-based accounting systems offer significantly improved fraud prevention over traditional ones. You can install access controls in cloud-based systems which prevent unauthorized users from accessing financial records. They also keep a better usage record so you can know which user did what at what time.

Allows You to Shift Focus to Other Core Aspects

With all the time you'll have freed up after improving your accounting system's efficiency, you can focus on other core aspects of your restaurant business. Improve upon your customer service, or work upon employee performance or marketing your product or whatever it is that you need to take your business to greater heights.

The global restaurant business trend is shifting towards automation with a motive to eliminate as much manual work possible. This leads to greater efficiency as automated systems require lesser time and money input and are more reliable and accurate. If you're looking to improve your organization's accounting system, a cloud-based system is highly recommended. The benefits will definitely prove satisfactory.

Cogneesol is a well known ISO certified firm providing excellent accounting services in the reasonable price.  For further information, contact us at info@cogneesol.com or call us at +1 6466882821

Sunday, 30 April 2017

Accounting Fraud: How to Protect Your Small Business?

Various reports indicate situations of what can happen any time businesses depend far too much on their “trusted” bookkeeper. Examples of embezzlement as well as fraud can continue for many years before getting exposed, and usually have a damaging effect that may place the entire small business in danger. Even though it is very unlikely to get rid of all threats linked to internal and external scams, following ideal procedures can considerably decrease threat within your company.

Put into practice a risk management system
bank account reconciliation servicesThe starting point to minimizing your company’s chance of fraud would be to put into practice a risk Human Resources department regarding their recruitment techniques to ensure they thoroughly scrutinize their employees.
management system. Senior administration has to make it clear—through their thoughts as well as actions—that absolutely no kind of dishonesty is tolerated. For ideal procedures, evaluate your insurance plan on a yearly basis to make sure you are guarded against internal as well as external thefts, thereby making certain that your accounting company is effectively bonded. Furthermore, talk to your

Have confidence in but validate by putting into practice proper internal controls
Account reconciliations
Although profitable finance companies encourage a culture of faith, employing sufficient control structures could certainly validate your employees’ activities. With the intention to minimize scams and error threats, churn out a segregation of tasks by dispersing business roles to more than one individual or division. For instance, have distinct people arrange and authorize new vendors, authorize bills to be paid, mark checks/initiate electronic payments, authorize new hires, authorize and modify pay scales, payroll processing as well as reconciliation of bank accounts.

Everyone in the staff associated with handling the books and data of a business needs to be efficiently screened. Determine their work history, credit rating, and residence address and bankruptcy track record along with legal and civil court details. A lot of accounting professionals trapped in a scam are not prosecuted; hence they proceed to their next target. A complete background check will assist you in have an understanding of whether or not a potential employee corresponds into a high threat or low threat category.

Comprehend your numbers
With fiscal clarity, it gets far easier to recognize unanticipated expenditures or perhaps balance sheet problems that are sustained as a result of fraud by an accountant. That’s the reason why balance sheet reconciliation is essential and also comparison of your finance-related results with budget per month. Ensure that you:
  • Run each cash receipt through a company banking account. Although it might appear simpler to make use of cash from the cupboard to cover petty cash, this method results in an atmosphere wherein money can readily be misdirected.
  • Evaluate all bank as well as credit card statements. In the paper dependent community, it is suggested that entrepreneurs get the unopened bank statements instantly. In the digital environment, entrepreneurs can easily take a look at bank data on the internet on a regular basis and set up updates to inform them of any major or unexpected transactions.
  •  Have a finance outsourcing company assess your books on a consistent basis. A regular audit from an external finance company can make a substantial discouraging factor to scam.
  • Handle your books on an accrual principle. To minimize the differences that happen depending on the cash basis of accounting (documenting earnings whenever money is received and expenditures whenever checks are issued), make use of the accrual basis of accounting (documenting income any time received and expenditures whenever incurred). This helps you in identifying unforeseen results.
  •  Balancing your balance sheet on a monthly basis. Although the majority of entrepreneurs comprehend the significance of reconciliation of bank accounts on a monthly basis, it is equally crucial that you reconcile balance sheet financial records on a monthly basis. Ensure that dealings on the balance sheet are correct; consequently irrelevant items within these account balances do not hide the results provided in the cash flow statement.
  • Make sure books as well as records are safely stored. Regardless of whether your data are stored electronically or perhaps in paper manner, ensure you close each and every financial period and secure up records so past activities should not be modified.
  • Get rid of or secure up check stock. By making use of digital payment technologies, it is trickier to obliterate or conceal crucial documents. Whenever paper is utilized, ensure all checks are accounted for by administration.
Scams happen more regularly than the majority of businesses understand. By making use of bookkeeping ideal procedures, not just will you prevent a staff member from committing fraudulence; you are going to get a more lucid outlook of your businesses’ financial situation.

Thursday, 27 April 2017

5 Major Issues Faced by Real Estate Companies Lacking Accounting Processes

accounting for real estate agents

Ironically in the real estate sector, effective and suitable accounting platforms and procedures are usually viewed as a nice-to-have as opposed to a must-have. Although everyone knows that the exemplary company infrastructure will consist of a strong back office, assets time and again find themselves involved in the areas that yield revenue. Besides, there exists one issue in such logic—often areas that may not appear to be direct revenue earning areas can nevertheless have a huge influence on your net profit. 

In practice, a company that does not make use of dependable accounting for real estate agents processes can suffer from some actual pain, usually through skipped earning and pointless deficits. Listed below are certain issues normally faced by businesses that make an effort to function without the appropriate accounting services set up?

1. Deferred accounts payable

Accounts payable has to be handled meticulously to allow a business to succeed. Reputations could be affected in case your real estate company is unable to pay invoices by the due date, however, the actual risk can be found in incurring overdue fees, lower credit score, losing favored rates or dropping a dealer entirely. The more complicated the accounts payable, the more essential it is that it be handled in an organized way, paying close focus on bank account reconciliation and adding the data to the Profit and Loss.

2. Deferred accounts receivable

A company's accounting framework not just governs the outgoing expenditures. It is furthermore an important aspect in making sure that money continues to flow into the company. Attentive, systematic supervision of income and aging reports is totally crucial to ascertain a double business. Non-paying customers, slow paying clients, and neglected invoices could put a firm out of business in a single night.

3. Insufficient operational data

Productive accounting and bookkeeping for real estate agents present them with the clearest possible representation of how they are functioning, precisely what must be upgraded, and how the future is building up. All business blueprints and KPIs are eventually assessed against the balance sheet, therefore without a completely accurate depiction of existing financial overall performance, any kind of preparation is improbable to be of assistance and more bound to create obstacles.

4. Scams

Trust is an excellent thing to gain among your employees—until you all of a sudden do not have it. A 2016 research highlighted real estate companies that are devoid of internal fraud regulations like hands-on data monitoring suffered fraud two times more in comparison with their competitors that performed an active audit of their economic data. Financial statement scam was by far and away the biggest contributor to fraud on the whole. The easiest method to steer clear of this kind of loss is to assure regularity, transparency and consistent supervision in the accounting division.

5. Tax preparation

For real estate companies that fall short, just about the most typical reason behind the failure is an incapability to fulfill their tax needs. In speculation, appropriate tax management should never be an issue; however, tax liabilities at times prove to be deadly. The triggering agent is nearly often poor planning and coordination in the finance department. Profitable businesses possess a finance team that prepares for the future and takes into account tax ramifications as a part of a day-to-day regime, inclusive of making use of expert companies for a lot of tax requirements like payroll tax processing as well as quarterly filings.
Need to keep your company financially balanced? Check to see if outsourced real estate accounting services are appropriate in your case. Call Cogneesol at +1 646-688-2821 to know more.

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