Accounting Professionals: Are The Necessary?

Does your business needs an outside accountant?

It all depends. If you require an audited or reviewed financial statement, then, yes, you need a CPA. In any event, it is always a good idea to maintain a relationship with an accountant no matter how small your business. Whether your accountant is a CPA is up to you. The real question is: To what extent do you need outside accounting services? That also depends on you and the nature of your business.

I always start with the admonition: The Buck Stops With You! You cannot afford to dissociate yourself from understanding the meaning of your financial statements. If you solely rely on your accounting staff or accountant for completely accurate financial data, then you are asking for trouble. If you are going to own or manage a business, then you have a responsibility to learn how to speak the language of business. The language of business is accounting knowledge.

How involved you become in the accounting process will be determined by time schedules, your mental pre-disposition, desire for control, cash flow, etc. One scenario, if you can afford it, is to hire an internal accounting staff to prepare financial statements on a monthly basis and have an external accountant check them over. Another common scenario is to prepare part of the compilation yourself, such as preparing a sales journal and a cash disbursements journal, and then hire an outside accountant to prepare a bank reconciliation and the financial statements for you. Some do this on a monthly basis, others quarterly. Some business owners do the books themselves all year and turn them over to the accountant at the end of the year to verify the balances and do the depreciation entry for tax purposes.

There are numerous ways to work with an accountant. Regardless, you should learn enough about accounting to be able to communicate intelligently with your accountant. Since you are intimately involved in your business you may recognize danger signals that not even your accountant will see.

Selecting an accountant

Relying on the yellow pages to find an accountant can be risky. The best way to find any professional is by a referral. However, you need to interview prospective accountants before signing on. One of the first priorities is to find out what their experience level is. Your business may have very specific accounting and tax issues that require a certain amount of expertise. Perhaps you have a manufacturing concern. What does the accountant know about raw materials, work-in-process, and finished goods inventory accounting? Does the accountant know how to set up job-costing and overhead burdens? Ask for references from other like-kind businesses.

Keep in mind, that you may go to an established firm with a good reputation, but with whom are you going to have a relationship? Is your account large enough to warrant a relationship with a partner? You need to feel confident with the person assigned to your account. Perhaps a smaller firm with four or five accountants who are all seasoned veterans might work better.

You will also want someone with whom you can relate. The ability to communicate is a crucial factor. Your accountant may be technically proficient but can you understand what he or she is telling you? Does he or she listen when you ask questions? Don’t be afraid to ask for someone else if you are having difficulty communicating.

Another important criterion is “accessibility”. Is your accountant too busy to talk to you? Can you get your questions answered within a reasonable period of time? Do you feel important to him or her? Situations may arise where you need information immediately to make an important business or tax decision, will your accountant respond quickly?

Last, but not least, are the accountant’s billing practices. Billing practices vary from firm to firm. Some firms are very aggressive and put tremendous pressure on staff and partners to bill every minute they can. Some firms require a review process before any work goes out the door. This means that every person who performs any work on your account, including the person who puts the stamp on your envelope, bills you for it.

Find out in advance what happens if you call the firm to ask a simple question that takes less than five minutes to answer. Are you billed for five minutes or are you billed in increments of fifteen minutes even though you only talked for five? Some firms justify this increment billing by explaining that you are paying for the accountant’s expertise that may have taken years to acquire, therefore, they say, it’s worth it.

Some accounting practitioners charge a flat rate for services rendered or a combination of flat services and hourly charges. For instance, an accountant might charge $200 a month to prepare a monthly financial statement but charge $100 an hour for special projects. Within the monthly fee, the client can call to ask questions that last fifteen minutes or less for no additional charge. This way the client is not reticent about calling. Getting your question answered may prevent little problems from later becoming bigger more expensive problems.

Very often projects take longer to complete than anticipated. Complications arise and the practitioner should be paid for his or her work. Always insist that, if there are going to be additional charges over and above what has been agreed upon, that the accountant gets your approval first. Be sure to clarify these procedures before engaging an accountant in an “engagement letter”. This is a document that spells out the responsibilities of both parties and how the relationship is going to work.

Remember, there is absolutely no reason to be intimidated by your accountant. After all, you are paying for the services, and I promise you, the accountant wants your business.

John W. Day, MBA is the author of two courses in accounting basics: Real Life Accounting for Non-Accountants (20-hr online) and The HEART of Accounting (4-hr PDF). Visit his website at www.reallifeaccounting.com to download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues.

Related Information of Interest:

Avoiding A Traumatic Experience
Taking simple steps to protect our families from going through the “TRAUMATIC EXPERIENCE OF HAVING A LOST PET” can be as easy as registering your pet with an online service like RecoveryPets.Com. The services provided by this company includes registering the pet by name, a description, a photograph of the pet, along with up to ten contact phone numbers or email addresses of the pets owner. Plus, a pet tag that never becomes obsolete and contact information that can be updated FREE for the life of the pet.

Each year millions of pets are reported lost or found, but a vast majority of these family members are never reunited with their owners. The main reason for this is the lack of accurate identification, and this is because most pet collars or identification tags contain obsolete or outdated contact information. Fortunately there are companies like RecoveryPets.Com that provide services to increase the chances of recovering a family pet if they should ever become loss.

Protecting our pets should be one of our major concerns, and by providing a means for lost pets to be returned to their owners is the mission of RecoveryPets.Com. For more information on the services that they provide, visit their website at: www.recoverypets.com

About the Author

Thaddeus Collins is the owner of RecoveryPets.Com a company that specializes in the global recovery of lost pets using a unique tracking number that is registered on the companies website, and can be searched if the pet becomes lost. For more information visit www.recoverypets.com

Travel Jokes
Traveling can be a humbling experience, particularly when you travel to a foreign country. Such experiences, of course, give rise to travel jokes.

Travel Jokes

1. Three brothers are sitting at the bar in a Moscow establishment. An older man is sitting at a table behind them and has obviously had too much vodka. He stands, walks up to the first brother and says,

“Your mother is a vicious, greedy woman!”

The brother tells him to shut up and go sit down.

After about 5 minutes, the old man stands and walks up to the second brother,

“I sleep with your mother whenever I want!”

Disgusted, the brother tells the old man to bugger off.

A few minutes later, the old man stands and starts walking towards the third brother. All three brothers turn around and yell,

“Dad, go home!”

2. You’re at a bad hotel when the bed mint moves.

3. “Visi, Vermini, Vomnui” – I visited, I freaked, I threw up.

4. The President’s Vacation

George and Laura Bush take a vacation to Crawford and decide to go the grocery store. In the checkout line, Laura recognizes the man working at the register as an old high school boyfriend. After chatting, they leave the store and George says,

“Wow, imagine if you had married him. You’d be married to a grocery store clerk now instead of the President of the United States.”

Laura rolls her eyes and says, “No. I’d be married to the President of the United States.”

5. “Veni, Veneri, Vamoosi” – I came, I caught a disease, I ran away.”

Typically, just the act of traveling produces more than a few funny moments. Get out there and go.

Rick Chapo is with NomadJournals.com - makers of travel accessories. Visit us to read more about Internet travel articles.

Using Filters In Photography
Photographic filter is an attachment that will allow certain kinds of light to be able to pass through, and able to reduce or block out other unwanted light sources.In short, the term filter really means anything that modifies the incoming light in some way and includes: polarizing screens, multi-image prisms,close-up attachments, soft focus filters, neutral density (ND) filters, graduated ND filters, and color filters for black and white photography. Filters come in two main shapes: round and square.

Filters add color and a certain touch to a photo that complements the individuals style of photo taking. When you are using a black and white film with filters, you can darken or lighten the tone of the subjects color. The color filters that are used can darken the tone of an opposite color and brighten the tone of the color filter that is being used. For an example, a red filter will make the red leafs on an autumn tree look very rich and bright, while on the other hand the sky behind it that was blue, is now almost black.

Neutral density filters reduce the light entering your camera so that a slower shutter speed,or a larger aperture can be used. Graduated ND filters are used to balance out bright skies against darker foreground scenes.

A neat filter is called the star filter. This type of filter in photography is placed on the cameras lenses to create a star look effect form any source of light. This is very popular with television game shows and used for portraits to provide a soft overall diffusion. A split field lenses is really a full lenses but only half of it is close-up, it is great for taking a picture of something close-up at the bottom like a small flower or bug in focus. The top of the lenses is just blank or empty and the camera uses its lenses to background in focus, say the mountain in the distance.

Albreht Moy has many photographs for sale at his website.

Web Conferencing Is A Benefit To Business Big Or Small
No matter what kind of job you have or business you own, it seems like meetings are just a fact of life. They are necessary to make sure vital information is shared and employees are kept in the loop, but they can be a major expense to the employer.

This is especially true for corporations that need to fly employees across the globe for face to face meetings with other employees or clients.

Well thanks to the internet and the latest innovations in communications technology, meetings can now be carried out over the internet via web conferencing. Today’s web conferencing solutions are state of the art thanks in part to the availability of high speed internet access.

Corporations can hold meetings and the employees don’t even need to leave their offices. All they need to do is hook into their web conferencing application which works just as well as actual in person meetings.

The savings in time and money to business owners is quite substantial when you add up travel time, overtime, and man hours away from the job to attend meetings in an offsite location.

Productivity and efficiency remain at peak levels and the company saves money all at the same time. It is no wonder web conferencing has taken the business world by storm.

It isn’t only big business that benefits. Small businesses and startups that work from home can now compete on a global scale thanks to web conferencing and the ability to communicate instantly with anyone on the planet that has access to internet technology.

There are a couple of options to consider when it comes to web conferencing. The choice will ultimately depend upon the budget of the company. In any case, the money saved by utilizing the web conferencing solution will pay for itself in no time.

For higher end solutions, there are full featured stand alone video web conferencing applications. For most small companies however, a simple web conferencing program can be initiated right over the internet which saves the expense of purchasing equipment and dedicated communication lines.

Web conferencing is a particular boon to those who work at home. It is relatively inexpensive to set up a web conferencing system utilizing a home computer and high speed internet line. Web conferencing provides a link to employees that work from home and gives those with a home business a more professional outward appearance.

Jane Wyvern is an established freelance writer. You can find more of her writing at webtalkcentral.com and webhostmatters.com.