Wednesday, 27 June 2018

3 tips for better accounts payable invoice management



A business accounts payable department is responsible for vendor invoice processing, approval, and payment. Within these functions, there are several other workflows that need to be equipped with practical ideas. So here is the list of 3 major tips that will help you guide your accounts payable team to overcome the difficulties that come in the way.

Start early: 
Being punctual about the things may give you the time to work attentively, without rushing. This would help to save you from data entry errors caused due to pressure towards completing the work.

Cross off finished items: 
Crossing off a completed task from the to-do list gives you a great feeling of accomplishment. Seeing too many tasks on the list make you feel occupied. So it’s better to remove the task from the list so that you can stay focused over the things needs to be done immediately.

Review records for optimization:
Effective workflow management relies on being able to review the improvements those were previously found. Optimization may lead to better cash flow within your business. Follow the key tips for better accounts payable invoice management and bypass the tedious tasks that are associated with manual invoice processing.

Tuesday, 26 June 2018

Things to Consider While Forecasting Cash Flow

Cash flow is a key for running a business successfully. It plays a crucial role to understand the financial position of the company and predict upcoming cash surplus or shortage to help you make some contingency plans.

The main thing to keep in mind is you need to be as perfect as you can while assessing different types of cash-in and cash-out.

Here are 4 tips on how to do cash flow forecast accurately:

1)    Estimate how much you will bring in monthly/weekly
Before estimating how much money you will bring in the current year, look at the past year's performance. When you take reference from previous sales history you will come to know your monthly sales earned that year and how much you expect to see this year.

2)    Consider the terms on which you will be paid
If you are equipped with enough knowledge than you can understand that may not earn money immediately for every product you sold out. For many of your sales, you might be waiting for 30 days to receive the cash. Hence, it is essential when doing a cash flow forecast estimate when you expect payment from your sales. 

3)    Estimate how much money you will spend
When you are marking your cash forecast it is difficult for you to estimate how much your company spends both fixed and variable. In this case, estimate what bills you will have and when they will need be paid? Calculate all your expenses for last year, once estimated be sure to add these costs to your cash flow forecast.

4)    Gather all the numbers
Read all the above points and then gather them properly to estimate your expected income and expenses. Now it’s about to bring all the numbers together so you can make good use of them. Remember that the accuracy of cash forecast depends on how often you forecast.

Final words

Cash flow forecasting may be a difficult task, but it is important. This critical process will not only tell you how much cash your business is likely to generate but how many funds your business may require for future expansion and working capital. Cash flow shows overall growth objectives of your business so to manage cash flow is really important to achieve long-term success. However, your forecasts will never be 100% accurate. So for predicting the future, you should have proper resources to cash flow.

Thursday, 14 June 2018

How to Improve the Efficiency of Accounts Payable Process?


As a small business owner, you have to spend on items to run your business. So, you might have vendors and suppliers who supply material for the manufacturing of your product. And you may receive an invoice with every purchase from your vendors, which is important. 

Thus, it is an important aspect of accounts payable and is tough to manage.

Every organization witness a skills gap; 75% CEOs feel their in-house team isn’t proficient enough to keep up with changing business environment. Keeping that in mind, it is always helpful to define clear, precise and well-defined workflows and practice in every business process.

Here are some common mistakes in the AP process:
1.    Fail to issue purchase orders.
2.    When order deliveries do not match contractual term.
3.    Lack of processes to prevent under and over payments, duplicate or missed payments.
4.    Lack of quality, operational efficiencies, and corporate finance.

Here are the steps you can follow for improving the efficiency of your accounts payable process:

1.    Accept electronic invoices
a)    Eliminate paper invoices and accept only electronic invoices.
b)    Certain systems today achieve electronic invoices without expensive EDI infrastructure.

2.    Centralize effective data and eliminate data entry
a)    Centralized scanning solutions are now available for those vendors who do not supply electronic invoices.
b)    Perform all the data and functions automatically with invoice and improve your accounts payableprocess.

3.    To simplify and standardize
a)    Organize the functions with standardized and streamlined accounts payable process.
b)    Receive accurate payments much more quickly.

4.    Budget your expenses
a)    Proactively creating business budgets can help you improve AP process and avoid late payments.
b) Use your accounts payable sheet in the dashboard to keep yourself updated about all the bills that you need to pay.

5.    Expand your cash reserve
    In the day, when your cash flow is little slow, you might need to use your cash reserve and make keep your AP process on track.

6.    Always compare with the original
    It is advisable to try and pay against the original invoice but if paying from a copy, compare the invoice number and charges indicated.

7.    Audit trial is imperative
    Even if you don’t plan on paying the entire invoice amount, it would help the audit trial to mark it as billed. At these instances, use credit memos.

If you maintain the efficiency of your AP process in a long run, below are some effective tips that you should adopt for your business:
    Eliminate excessive data entry for accounts payable process improvement.
    View the progress of invoices with the easy reduction of time.
    Hire external experts at reasonable prices
    Adopt tools for faster automation of approvals.

Thursday, 31 May 2018

Outsource Real Estate Accounting- All in One Business Solution!


In the real estate sector, the accounting process varies from other business industry and it poses a different set of challenges. Whatever business segment of your firm is; whether you are an agency owner, or the owner of a commercial or residential space that you lease or you are managing a property management team; it has been observed that daily operations and accounting tasks consume a lot of time and efforts that sidetrack you from core business activities those are crucial for the growth of your business. So, here we have discussed some common challenges that real estate accounting poses:

  • Change in rules and regulation- Regulation deals with valuation, expenses, ownership, taxes and more, no doubt it’s a challenge for business owners to keep up with such norms. These regulations change on an annual basis, so it’s important for real estate agency owner to work with professionals who can keep your business top of these changes and make sure that you stay competitive in the market.

  • Payroll obstacles- Mostly, real estate agencies pay commission to its agents, that means your payroll process is precise and of great importance. Staff paychecks fluctuate week to week, which eventually complicates the payroll process. With the help of technology, you can automate your commission process, but keep in mind that commissions are subject to income tax and keeping records is a must. So at the end, you need an accountant who can accurately manage your payroll process and save your precious time.

  • Managing remote employees- The real estate agents are out of the office most of the time. So cloud-based property management software help your agents to be connected and you will have a real-time information on transactions, which is again challenging for owners to track the activity of each and every agent.

  • Common accounting mistake- Being from a non-accounting background, it is obvious that you are going to make some accounting mistakes such as incorrect classification of costs, using the business cash for personal use, lack of record keeping and much more. So it becomes necessary to hire a professional so that you can focus on revenue-generating tasks.

A successful real estate owners are those who perform right things in an efficient manner. For instance, business structuring, tax preparation, deduction management and real estate accounting are important aspects that need to be handled diligently. Here are some of the benefits you can earn by hiring an accounting professional for your real estate business:

  • Structure the operations in a tax-efficient manner- Typically, accounting professionals participate in budget, planning, investment and tax reporting activities and advise real estate investors or owners to make a wise decision. Usually, the accountant analyzes and records all the real estate transactions that include rentals, property sales, time sharing and leases and help with real-time information.
  • Access to accounting twists- The professional accountant usually takes their study time to understand the industry investments on behalf of their employers to master the trends and tax changes that may be relevant for client’s investments. Hence, the professionals work with real estate owners to ensure that there is creative financing. This gives an access to the client’s to understand various twists in the accounting process.
  • Hiring other professionals- Professional accountant also helps you hire different professionals that include finding the best insurance agents, attorneys and other professionals because usually, it is a tricky affair for real estate investors. Moreover, an accountant is well acquainted with different business structures, level of legal protection and different financial perspectives.

  • Decision making- A well-experienced accountant helps you to make better business decision by analyzing the financial reports who have an attitude of saving a lot of money for your agency. He can advise you better deals and keep you up updated with different tax deduction.

Key takeaways:

It has become a necessity for real estate industry to hire a professional accountant who can manage their real estate accounting process with efficiency. But, hiring an in-house accountant is a costly affair. Nowadays, every industry is outsourcing accounting process to reliable third party companies to grow their business in a right direction because, “ It’s about your company, your business, your success”.

Tuesday, 15 May 2018

How outsourcing policy administration tasks is beneficial for insurance businesses?

Insurance Outsourcing

In this competitive era, profitability & business growth is the key objective of every organization and insurance industry is no exception in this regard. In the insurance business, policy maintenance and administration is very important. Right from policy checking to policy maintenance- everything requires enormous time and efforts.

Increasing competition has brought more challenges to the insurance industry including demand for effective policy administration system to satisfy customers, enhanced product development capabilities, and to comply with regulatory changes. So while looking for ways to overcome challenges, insurance businesses discovered insurance outsourcing services.

Insurance businesses can outsource their non-core tasks including policy management process, commission management process, claims management process, etc., by transferring the in-house responsibility to the outsourcing companies those have latest technology & provide cost-effective solutions.

Outsourcing insurance services enable an organization to increase its business efficiency and meet the requirements of valuable customers.

Go through this Slide Share presentation & get to know about other major benefits of Outsourcing Policy Administration Services for the insurance businesses

For any further assistance, you can fill out the form to reach us. We will be happy to help you with all your queries.  

Monday, 7 May 2018

7 Essential Features to Consider in Retail Accounting Software


retail store accounting

Today’s retail environment is totally different than ever before. Customers have endless options, which have increased competition among stores and retailers. Moreover, to understand demand and deliver accordingly, retailers are choosing retail accounting software as it is much capable of handling transactions rather the point-of-sale (POS) system. Now retailers want to integrate their every business facet to excel in this dynamic market.

Here are 7 features one must consider before choosing a retail accounting software:

1) Retail accounting – Accounting for retail store is essential as it helps businesses to reduce errors and save time and money. Go for an integrated platform that manages sales, purchasing, and inventory management. The software should help you in importing all the transaction data, record purchases, and produce a real-time view of our gross profit.

2) Customer Relationship Management (CRM) – A retailer can understand its customers and their buying habits, what and when they’re likely to buy. So, a retail accounting software must have inbuilt CRM feature that help retailers to plan unique strategies.

3) Supply Chain Management (SCM) – A supply chain management includes order management, fulfillment, warehouse management, returns and more. Every retailer uses different combination of tools for SCM. It would be great for a retailer if there is one system having SCM and accounting features. This can help to speed up the SCM and accounting processes.

4) Inventory Control – Inventory tracking requires a solution that can meet the unique requirements of retailers as there are various products to sell and ways to sell them. Those products move among several warehouses or stores. So, for retailers, there should be an accounting solution that can track inventory also, which helps to increase the profitability and reduce overhead costs.

5) Multichannel Selling – If you are managing an e-commerce store or e-commerce website or both(a physical and virtual store), then the software should have a feature to automatically update each sales channel with product availability information. Look for such a software that can reserve stock on new orders to reduce the risk of selling out of stock products.

6) Point-of-sale (POS) – More than a cash register, POS not only enhances customer experience but also provide necessary information to your sales associates.

7) Reporting Features –Find a solution that can help with analytics and reporting tools to identify the areas of improvements and increase profitability in the business.

Your accounting solution should be easy-to-use and help to stand out in the marketplace. So consider which retail accounting software suits your business requirements.

Cogneesol is a leading global business process outsourcing service provider that can help you to manage your accounts. For reliable virtual bookkeeping services contact us at + 1 646 688 2821 or write to us at info@cogneesol.com 

 

You May Also Like These Articles :


Wednesday, 7 February 2018

5 Accounting Tips for Real Estate Agency Owners

real estate accounting services


If you are into real estate business, there are many challenges that you may face while managing your accounts. Real estate business owners need to concentrate more on their business rather than accounting. Other than accounting, there are some important tasks that play an important part in a real estate business:

  • Maintaining good relations with the clients.
  • Meetings and traveling which needs a lot of time.
  • To be up-to-date with changes in the real estate industry where fluctuations can occur anytime.
  • Take care of the buildings that are under construction.
  • Management of residential sales and letting services you are providing.
  • To keep a record of the work of agents under you. 

While managing all these you also need to manage your books, which is complex and time-consuming too. Here are some accounting tips for real estate business owners that can help you to generate better revenues as expected in the real estate industry.

  • Spend at least some hours on weekly basis to reduce the overburden of record keeping in the last days of a month. This can reduce chances of errors.
  • Keep proper corporate records. Review your business records and analyze whether you are on the right track to meet your goals.
  • Maximize your tax deductions in order to maintain your bank balance.
  • Keep all the receipts and expenses organized to avoid any kind of cash flow problems.
  • Keep your personal and business accounts separate to avoid inaccuracy while calculations and to make sure that you don’t use any profit amount for your personal expenses.

If you are not from accounting background or you are not getting time to manage your books then outsourcing real estate accounting services is the better solution, as hiring an in-house accountant will cost you a lot. There are many real estate accounting firms that specialize in providing accounting services like accounts payable, account receivable, management reporting, tax preparation, payroll processing and a lot more.

How we can help – Cogneesol is a leading global business process outsourcing service provider that can help you to manage your accounts. For reliable virtual accounting services contact us at + 1 646 688 2821 or write to us at info@cogneesol.com