Monday, April 16, 2007

Bookkeeping From Home - Make Money At Home Doing Basic Bookkeeping

By Elaine Currie

Basic Bookkeeping
Bookkeeping as a full time career or part time job is a perfect way for people to earn money working at home. You can take up a bookkeeping career from home without having to buy any expensive equipment or worry about planning consents or increased insurance for your premises.

Bookkeeping is not hard to do, anyone with the ability to do simple arithmetic will be able to learn to be a bookkeeper. If you are tidy and methodical and enjoy bringing order to chaos, a career as a bookkeeper could be ideal for you. If you are prepared to study, you can obtain a bookkeeping qualification studying from home or taking a part time course at a local college.

Many people who have no formal bookkeeping training do bookkeeping work from home quite successfully. Indeed, many small business owners who are sole traders do their own bookkeeping at home for their annual tax returns. To do bookkeeping for a small business, it is necessary to know and be able to apply the various rules of taxation etc. and keeping a clear accurate record of all income and expenses of the business. Doing basic bookkeeping for others as your own small home based business can be financially rewarding but, if you are ambitious and want a well-paid career from home as a freelance bookkeeper, you should first study to gain a bookkeeping qualification.

Bookkeeping Law And Tax
Every business, large and small, is required by law to keep books of accounts. This involves the recording of all financial transactions of a business. This can be done manually using ledgers, or by entering the figures into spreadsheets on a computer or by using dedicated bookkeeping software.


As well as the legal requirement for a business to keep books, the bookkeeping records are needed by the business owners for them to know exactly how profitable the business is and if there are areas that need financial adjustments. A vital element of bookkeeping is ensuring that the correct amount of tax is paid at the appropriate time in order to avoid financial penalties.


Bookkeeping In A Shoe Box
There are millions of small business owners (sole traders in particular) who rely on manual bookkeeping. For a large number of these traders, bookkeeping means saving invoices, estimates, receipts, utility bills and odd scraps of paper in a shoe box. When tax time comes around, the shoe box is handed over to a bookkeeper who will (as if by a miracle) transform the mess into a neat record of the business's financial dealings. Many small business owners prefer to wokr at their business instead of spending time preparing their own accounting records to go with their collection of receipts.


If a small business owner hands the shoe box straight to an accountant, the basic bookkeeping tasks will be charged at the accountant's hourly rate. For this reason a good bookkeeper, who will charge a more modest hourly rate, will always be in demand to write up the books and collate the paperwork (even by owners of limited companies who need the services of a qualified accountant to file their annual accounts).

Bookkeeping Software
Many businesses (even quite small concerns) use bookkeeping software to keep their books because the software is inexpensive and easy to use. The use of bookkeeping software does not replace the need for a bookkeeper, it merely makes the bookkeeper's job easier: The software cannot do the job of a human brain. Bookkeeping software needs human intervention to work properly, a software program won't know for itself things like what items can legitimately be offset against tax.


Bookkeeper As A Career
People of any age and background can become bookkeepers and work from home as freelancers. Many are mothers wanting a well-paid career running a bookkeeping business from home whilst bringing up their family. Some are seniors who want to keep active or need extra income to supplement their pensions. For young persons looking for a good career, a bookkeeping professional qualification can be the first step to becoming a qualified accountant and this opens doors to all sorts of well-paid career opportunities.


Bookkeeping Classes
Bookkeeping classes are available at most local colleges or you can choose to follow a distance learning program. Taking a bookkeeping course online is a very convenient way to study alongside other commitments. Taking a bookkeeping course on the Internet is a highly flexible way of obtaining a professional qualification while working at an existing job or looking after children at home. You can study during any hours that suit you and, provided you meet the deadlines, you can complete the assignments when you like.


Bookkeeping Certification
In the USA information regarding certification can be obtained through the American Institute Of Professional Bookkeepers and in the UK through the Institute Of Certified Bookkeepers.
If you want to make money online, visit Elaine Currie's Work At Home Directory.
Article Source: http://EzineArticles.com/?expert=Elaine_Currie

Accounting Outsourcing is a Profitable Business Strategy

By Allies Harbor

Outsourcing is a business process through which one can handle their excess workload without too much of a hassle. Each business has specific requirements and that is why specific work must be done in the direction of achieving those results and goals. Setting deadlines is not only a necessity, but priority for all business undertakings and business owners must take special care of this aspect. Accounting outsourcing is a simple method through which business owners can take care of all their business needs. Mostly business owners are not people who can take care of the accounting and financial aspect of their business. So in such a scenario the best thing which one can do is opt for accounting outsourcing, a business process which will benefit them.

Undertaking any method that is new will not be a difficult task, if you gather all the knowledge regarding the process. So this means that you must do proper homework and research on accounting outsourcing as a business process. The web is the best source for gathering information of any kind and accounting outsourcing is no different from the other methods. Read about the news reports that you can find about the whole process of accounting outsourcing and you can find a clear picture of the going ons in the market. Find out all the statistics that you can about the whole process of accounting outsourcing and see what the success rate of success is.

So now that you have all the knowledge about the process and also know how well the process is doing, undoubtedly you will want to adopt the process for your business. Your next task is to find out an accounting outsourcing company that will handle your work and help you get the best business results. There are many companies that are working towards providing accounting outsourcing and finding out the best company among the lot can be a tough task. Find out the testimonials of the company given by customers who had used the services before. You can know the kind of work which they have done and then decide if the company is worthy of being handled over your accounting outsourcing work or not.

This is your business and you have to take this crucial decision. One more thing which you can do is talk to anyone that you know personally who have undertaken the work. You can talk to them about the entire process and the kind of work which have been done for their business. Accounting outsourcing is a sensitive work and this is the reason why you must make sure that you hire the services of the best companies that are operating. Accounting outsourcing will be beneficial for your business in more then one way. First you will get to save huge amounts of money; in fact this can be an unbelievable amount as your work will be accomplished at a much lower cost then what you pay to get the same work done by professionals in house. That is not all you can free up the workload of your employees and use this resource to focus on other core sectors of your business.

Allies Harbor is a writer for http://www.ifrstaffing.com - IFR Staffing offers services for Accounting outsourcing, Business Process Outsourcing,India outsourcing accounting. You can have benefits of SEO outsourcing India,Outsourcing SEO Services.

Article Source: http://EzineArticles.com/?expert=Allies_Harbor

Saturday, April 14, 2007

STANDARDS: IAS 40 INVESTMENT PROPERTY (PART 3)

Resousec : iasplus

Disclosure

Both Fair Value Model and Cost Model [IAS 40.75]


  • whether the fair value or the cost model is used;
  • if the fair value model is used, whether property interests held under operating leases are classified and accounted for as investment property;
  • if classification is difficult, the criteria to distinguish investment property from owner-occupied property and from property held for sale.
  • the methods and significant assumptions applied in determining the fair value of investment property.
  • the extent to which the fair value of investment property is based on a valuation by a qualified independent valuer; if there has been no such valuation, that fact must be disclosed.
  • the amounts recognised in profit or loss for:

- rental income from investment property;
- direct operating expenses (including repairs and maintenance) arising from investment property that generated rental income during the period; and
- direct operating expenses (including repairs and maintenance) arising from investment property that did not generate rental income during the period.

  • restrictions on the realisability of investment property or the remittance of income and proceeds of disposal.
  • contractual obligations to purchase, construct, or develop investment property or for repairs, maintenance or enhancements.

Additional Disclosures for the Fair Value Model [IAS 40.76]

  • a reconciliation between the carrying amounts of investment property at the beginning and end of the period, showing additions, disposals, fair value adjustments, net foreign exchange differences, transfers to and from inventories and owner-occupied property, and other changes.
  • significant adjustments to an outside valuation (if any)
  • if an entity that otherwise uses the fair value model measures an item of investment property using the cost model, certain additional disclosures are required.

Additional Disclosures for the Cost Model [IAS 40.79]

  • the depreciation methods used;
  • the useful lives or the depreciation rates used;
  • the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period;
  • a reconciliation of the carrying amount of investment property at the beginning and end of the period, showing additions, disposals, depreciation, impairment recognised or reversed, foreign exchange differences, transfers to and from inventories and owner-occupied property, and other changes;
  • the fair value of investment property. If the fair value of an item of investment property cannot be measured reliably, additional disclosures are required, including, if possible, the range of estimates within which fair value is highly likely to lie.

IAS 40 INVESTMENT PROPERTY PART 2

STANDARDS: IAS 40 INVESTMENT PROPERTY (PART 2)

Resource : iasplus
Measurement subsequent to initial recognition

IAS 40 permits enterprises to choose between: [IAS 40.30]

  • a fair value model; and
  • a cost model.

One method must be adopted for all of an entity's investment property. Change is permitted only if this results in a more appropriate presentation. IAS 40 notes that this is highly unlikely for a change from a fair value model to a cost model.


Fair value model
Investment property is remeasured at fair value, which is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction. Gains or losses arising from changes in the fair value of investment property must be included in net profit or loss for the period in which it arises. [IAS 40.35]


Fair value should reflect the actual market state and circumstances as of the balance sheet date. [IAS 40.38] The best evidence of fair value is normally given by current prices on an active market for similar property in the same location and condition and subject to similar lease and other contracts. [IAS 40.45] In the absence of such information, the entity may consider current prices for properties of a different nature or subject to different conditions, recent prices on less active markets with adjustments to reflect changes in economic conditions, and discounted cash flow projections based on reliable estimates of future cash flows. [IAS 40.46]


There is a rebuttable presumption that the enterprise will be able to determine the fair value of an investment property reliably on a continuing basis. However, if, in exceptional circumstances, an entity follows the fair value model but at acquisition concludes that a property's fair value is not expected to be reliably measurable on a continuing basis, the property is accounted for in accordance with the benchmark treatment under IAS 16, Property, Plant and Equipment (cost less accumulated depreciation less accumulated impairment losses). [IAS 40.53]
Where a property has previously been measured at fair value, it should continue to be measured at fair value until disposal, even if comparable market transactions become less frequent or market prices become less readily available. [IAS 40.55]

Cost Model
After initial recognition, investment property is accounted for in accordance with the cost model as set out in IAS 16, Property, Plant and Equipment – cost less accumulated depreciation and less accumulated impairment losses. [IAS 40.56]


Transfers to or from Investment Property Classification


Transfers to, or from, investment property should only be made when there is a change in use, evidenced by: [IAS 40.57]

  • commencement of owner-occupation (transfer from investment property to owner-occupied property);
  • commencement of development with a view to sale (transfer from investment property to inventories);
  • end of owner-occupation (transfer from owner-occupied property to investment property);
  • commencement of an operating lease to another party (transfer from inventories to investment property); or
  • end of construction or development (transfer from property in the course of construction/development to investment property.

When an enterprise decides to sell an investment property without development, the property is not reclassified as investment property but is dealt with as investment property until it is disposed of.


The following rules apply for accounting for transfers between categories:

  • for a transfer from investment property carried at fair value to owner-occupied property or inventories, the fair value at the change of use is the 'cost' of the property under its new classification; [IAS 40.60]
  • for a transfer from owner-occupied property to investment property carried at fair value, IAS 16 should be applied up to the date of reclassification. Any difference arising between the carrying amount under IAS 16 at that date and the fair value is dealt with as a revaluation under IAS 16; [IAS 40.61]
  • for a transfer from inventories to investment property at fair value, any difference between the fair value at the date of transfer and it previous carrying amount should be recognised in net profit or loss for the period; [IAS 40.63] and
  • when an entity completes construction/development of an investment property that will be carried at fair value, any difference between the fair value at the date of transfer and the previous carrying amount should be recognised in net profit or loss for the period. [IAS 40.65]

When an entity uses the cost model for investment property, transfers between categories do not change the carrying amount of the property transferred, and they do not change the cost of the property for measurement or disclosure purposes.

Disposal
An investment property should be derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The gain or loss on disposal should be calculated as the difference between the net disposal proceeds and the carrying amount of the asset and should be recognised as income or expense in the income statement. [IAS 40.66 and 40.69] Compensation from third parties is recognised when it becomes receivable. [IAS 40.72]

IAS 40 INVESTMENT PROPERTY PART 2

Next IAS 40 INVESTMENT PROPERTY PART 3

STANDARDS: IAS 40 INVESTMENT PROPERTY (PART 1)

Resource from : iasplus


Definition of Investment Property

Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both. [IAS 40.5]

Examples of investment property: [IAS 40.8]

  • Land held for long-term capital appreciation
  • Land held for undecided future use
  • Building leased out under an operating lease
  • Vacant building held to be leased out under an operating lease

The following are not investment property and, therefore, are outside the scope of IAS 40: [IAS 40.5 and 40.9]

  • property held for use in the production or supply of goods or services or for administrative purposes;
  • property held for sale in the ordinary course of business or in the process of construction of development for such sale (IAS 2 Inventories);
  • property being constructed or developed on behalf of third parties (IAS 11 Construction Contracts);
  • owner-occupied property (IAS 16 Property, Plant and Equipment), including property held for future use as owner-occupied property, property held for future development and subsequent use as owner-occupied property, property occupied by employees and owner-occupied property awaiting disposal;
  • property that is being constructed of developed for use as an investment property (IAS 16 applies to such property until construction or development is complete). However, IAS 40 does apply to existing investment property that is being redeveloped for continuing use as investment property; and
  • property leased to another entity under an finance lease.

Other Classification Issues

Property held under an operating lease. A property interest that is held by a lessee under an operating lease may be classified and accounted for as investment property provided that: [IAS 40.6]

  • the rest of the definition of investment property is met;
  • the operating lease is accounted for as if it were a finance lease in accordance with IAS 17 Leases; and
  • the lessee uses the fair value model set out in this Standard for the asset recognised.
  • An entity may make the foregoing classification on a property-by-property basis.

Partial own use. If the owner uses part of the property for its own use, and part to earn rentals or for capital appreciation, and the portions can be sold or leased out separately, they are accounted for separately. Therefore the part that is rented out is investment property. If the portions cannot be sold or leased out separately, the property is investment property only if the owner-occupied portion is insignificant. [IAS 40.10]

Ancillary services. If the enterprise provides ancillary services to the occupants of a property held by the enterprise, the appropriateness of classification as investment property is determined by the significance of the services provided. If those services are a relatively insignificant component of the arrangement as a whole (for instance, the building owner supplies security and maintenance services to the lessees), then the enterprise may treat the property as investment property. Where the services provided are more significant (such as in the case of an owner-managed hotel), the property should be classified as owner-occupied. [IAS 40.11]

Intracompany rentals. Property rented to a parent, subsidiary, or fellow subsidiary is not investment property in consolidated financial statements that include both the lessor and the lessee, because the property is owner-occupied from the perspective of the group. However, such property could qualify as investment property in the separate financial statements of the lessor, if the definition of investment property is otherwise met. [IAS 40.15]

Recognition

Investment property should be recognised as an asset when it is probable that the future economic benefits that are associated with the property will flow to the enterprise, and the cost of the property can be reliably measured. [IAS 40.16]

Initial measurement

Investment property is initially measured at cost, including transaction costs. Such cost should not include start-up costs, abnormal waste, or initial operating losses incurred before the investment property achieves the planned level of occupancy. [IAS 40.20 and 40.23]

IAS 40 Accounting Property PART 2>>>

Monday, April 2, 2007

Review On Business Accounting Software By Sage And Microsoft

By Javier Fuller

Accounting is one of the most vital processes in any business. To say the least, it is even more important than manufacturing goods and selling them. Flow of revenues and expenditures ultimately decides the fate of a business as does its proper management. The requirements of every business may vary, but the general requirements of a business like collection, classification and analysis of financial data is what constitutes the crux of accounting.
Nowadays, it is becoming a norm to purchase accounting software before starting a business. You can find accounting software for both small business as well as large businesses. In fact, a whole basket of accounting software programs is there to choose from. Depending on the type of business you have and how you run it, you have to choose the accounting software that compliments your business, instead of being a limiting force to it.
Before reviewing any accounting software, it is important to classify the market of accounting software in the following manner:
a) Small business/personal accounting software is targeted at home users. Such software are simple, easy to use and inexpensive. They perform simple functions such as management of budgets quite at ease.
b) Low end accounting software is known for its 'single entry' products. It serves a single national market quite easily.
c) Mid market accounting software for mid-level businesses serve multiple national accountancy standards. You can do accounting in numerous currencies.
d) High end accounting software is also known as Enterprise Resource Planning or ERP software. These expensive solutions cater to the needs of huge organizations.
Since the mid 1990s, with the entry of Microsoft and Sage, accounting software market has simply evolved. In fact, it is simply increasing at a break-neck pace. There are various good accounting software in the above categories of accounting software. Selecting the best one is not that easy.
In the small business/personal accounting section, the best accounting software would doubtlessly be the Intuit's QuickBooks Accounting Software pro edition for small business. This accounting software has all the accounting features necessary for small businesses. QuickBooks Small Business 2006/ 7, through its time-saving features and improved functionality aids management of business. By applying online accounts management of bank statements, this software easily helps in integrating bank records in a smart way. With this software, you can rule your growing business accounts effortlessly and productively.
One excellent software, targeted at the low-end accounting software market is Sage MAS 90 ERP/MAS 200 ERP. This software is also applicable in mid-market accounting software market. This software encompasses different worthy solutions. Some of them are e-commerce, payroll, financial reporting, customer relationship management, core accounting and much more. This is an award-winning accounting software. With key processes like bill of materials, inventory management and job costing, it aids in the management of business. The advanced version MAS 200 ERP has the extra function of a client/server platform. It is known for its scalability and reliability.
In the high end accounting software market, several excellent accounting software, from some well known manufacturers like Microsoft and Sage are competing with each other for the market pie. No doubt, selecting the best one is difficult. Still, I would go with the ACCPAC Advantage Series which is known for its world-class multi-tiered functionalities. ACCPAC accounting software is perfect in the sense that it allows a business to tune its functionalities according to the needs. The ACCPAC Advantage Series is available in three editions- Enterprise Edition, Corporate Edition and Small Business Edition.
The Sage ACCPAC ERP system/Enterprise edition helps you to increase the productivity of your entire enterprise with end-to-end solutions, such as CRM. This high end software provides integrated set of end-to-end business management applications. Like other Sage software, this accounting software is known for its seamless integration, reliability and high performance which a large organization desires for keeping its competitive advantage over its rivals.
To get more information about accounting, accounting software and types of acconting software visit http://www.managemyaccounting.com/.
Article Source: http://EzineArticles.com/?expert=Javier_Fuller

Key Concepts of Internal Control

COSO Definition of Internal Control


Internal control is a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

  • Effectiveness and efficiency of operations
  • Reliability of financial reporting
  • Compliance with applicable laws and regulations



Key Concepts

  • Internal control is a process. It is a means to an end, not an end in itself.
  • Internal control is effected by people. It’s not merely policy manuals and forms, but people at every level of an organization.
  • Internal control can be expected to provide only reasonable assurance, not absolute assurance, to an entity’s management and board.
  • Internal control is geared to the achievement of objectives in one or more separate but overlapping categories.

Resorce : InternalControl Key Concepts

7 Things to Consider Before Buying Small Business Accounting Software

By William Siebler

The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.

Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals.

1. Scalability

Businesses change over time so it's critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily upgraded when needed with minimum disruption and cost to your business.

2. Support

It is important that any software has great support for when something goes wrong (and it always does). Most major companies offer support but you also need to think about support in your local area. It's often much easier to have someone locally come in and do things you need done with your software than have someone trying to help you over the phone. Make some enquiries with other businesses about the package they use and who helps them.

3. Accountant Interface

It's most unlikely you will handle every aspect of your businesses accounting. Your accountant is an important factor in making the right decision. What software are they used to working with and what do they prefer? Can you easily supply them data and reports from your package without the need for any extra work (which you'll have to pay for). Don't be afraid to ask their opinion as they live and breathe this stuff.

4. Best Value For Money

Once you have selected the right package for your business you may as well get the best value. Shop around as the price can vary greatly and the product is exactly the same. Online merchants such as Amazon may offer better pricing because of the sheer volume of products they sell. However price is only one part of the equation so if their is great merchant locally with support or installation assistance this may be far more valuable.

5. Major Brands

There are two major players in the small business accounting software market. They are QuickBooks and Peachtree. Microsoft is expected to enter the market soon. I recommend choosing a major brand so that you can get regular updates and you know the company will be around as long as your business needs them.

6. Ease of Use

Ease of use is a personal thing but it is worth trying the software before you buy it if you can. Remember to get the person who will be the main user to test the software as well. Also consider how well the package can interact with other software you use. This is an advantage the Microsoft package may have when it's available.

7. Features Needed

I touched on this earlier when talking about thinking ahead as to where you business will be in 5 or 10 years time. Most accounting software packages come in several different versions. If you don't need certain features now and can't see a need for them in the future then don't buy them. The major differences are usually - number of users allowed, inventory management capability and number of reports available.

To sum up think ahead when planning your purchase of small business accounting software. You will make a much smarter business decision that will save you plenty of trouble and money in the future.

Please visit us for more information and a feature by feature comparison of: Small Business Accounting Software

Article Source: http://EzineArticles.com/?expert=William_Siebler

AICPA: Scholarship for Accounting Student

There are 4 types of scholarship;

1. Scholarships for Minority Accounting Students

This scholarship program provides awards of up to $5,000 to outstanding minority students to encourage their selection of accounting as a major and their ultimate entry into the profession. These awards are funded by the AICPA Foundation from monies contributed by the AICPA, its members, public accounting firms, and others. The program has been in existence for more than 20 years and has awarded more than $6 million in scholarships.

2. Accounting Scholars Leadership Workshop
The first leadership workshop, which is an additional component of the AICPA Scholarships for Minority Accounting Students program, was launched in July, l995. The objective of the workshop is to strengthen the scholarship recipients' leadership, team building, presentation, and communication skills. The workshop also helps expand the students' knowledge of the accounting profession, build relationships among the scholarship recipients and encourage their participation in AICPA activities after they become CPAs. The Workshop is an invitational program for selected award recipients who are in a graduate level program or entering the final year of an undergraduate program. Public accounting firms and private industry companies provide instructors and assist in developing the program content.
In January 1994, the Minority Initiatives Committee implemented a mentor program, Partnerships for Success, as a new component of the scholarship program. In this program, each scholarship recipient is matched with a CPA mentor who can provide support during the students academic career to help improve the students opportunities for success. Partnerships for Success is a joint effort between the AICPA and participating state CPA societies. Participating state CPA societies identify and match mentor volunteers with scholarship recipients, and monitor and evaluate the mentor student relationship.
This scholarship program provides financial assistance to liberal arts degree holders pursuing graduate studies in accounting. These awards are intended to encourage liberal arts undergraduates to consider professional accounting careers.
Applicants must have obtained a liberal arts degree prior to enrolling in a graduate accounting program. Applicants must be liberal arts degree holders of a regionally accredited institution in the United States. Applicants must be accepted into, or in the process of applying to, a graduate program in accounting that will enable them to sit for the CPA Examination at a college or university whose business administration program is accredited by the AACSB - The International Association for Management Education or the Association of Collegiate Business Schools and Programs (ACBSP). Applicants must express the intention to pursue a CPA certificate. The scholarship will be awarded contingent upon the applicant's acceptance into a graduate program. Students who are already actively participating in a graduate accounting program are not eligible for the scholarship. All applicants must be U.S. citizens.
Scholarship recipients must begin their graduate program within the year that the scholarship is awarded. Recipients must be full-time students throughout the period during which they receive the scholarship.
The amount of the scholarship is $5,000 for one year and is renewable for an additional year of study provided satisfactory scholastic progress is maintained. Recipients of Carey Scholarships are not precluded from accepting other scholarships or awards.
Recipients are selected by the John L. Carey Scholarship Task Force. Up to seven scholarships are awarded each year. The selection is based on demonstrated outstanding academic achievement, leadership and future career interests.

Budgeting and Forecasting Tips for Small Business

By Natalie Aranda


Small businesses have to be careful when it comes to their finances because one small error, like ordering too much inventory, could spell financial disaster. That’s why budgeting and forecasting tips for the small business are incredibly important for the small business owner. Knowing how much money can be spent and on what is the most important thing for a small business to stay afloat. Two things that can help small businesses with this include forecasting software and budgeting software. Installing this information on your computer will allow you to keep track of the business’s past, present, and future and forecast different trends not to mention manage the budget. The following information will show you just how important budgeting and forecasting are for small businesses.

First of all, any time the business needs a loan a budget will be required before any financing is offered. The reason this is important is because lenders want to see where money is spent and overall where money is being made. Also, when you use a budget you will always know how much you can spend, what risks you can take, and how your business is doing at a particular time. When you create a budget for your business you will need to sit down with last months’ bills to include them in the expense portion of your report. You don’t want to just throw out random numbers. Instead, you want to know for sure the number you are using are ones that correspond to your business. In your budget you will also want to include expectations, or a forecast, of your business’ growth. If you don’t know how to do this on your own then the forecasting software will really help you. Make sure you include the individuals in your business who know the information you are looking for. Sales managers, accountants, and the like can offer you information on your business’ growth that you can include in your budget.

Once you have your budget created you will need to review it to make sure that what you have makes sense. Also, while creating your budget you need to decide if you will be creating a monthly budget or even a yearly budget. The more information you have the better off you will be. Plus, the budgeting software will make this really easy for you as long as you have all the necessary information to plug in. When your budget and forecasts are completed you can have a good look at the situation your company is in and if things go as planned how the company will be in the forecasted time period.

Natalie Aranda writes about business. Small businesses have to be careful when it comes to their finances because one small error, like ordering too much inventory, could spell financial disaster. Two things that can help small businesses with this include forecasting software and budgeting software. Plus, the budgeting software will make this really easy for you as long as you have all the necessary information to plug in.

Article Source: http://EzineArticles.com/?expert=Natalie_Aranda

IASB publishes draft IFRS for SMEs

The International Accounting Standards Board (IASB) is today publishing for public comment the Exposure Draft of its International Financial Reporting Standard for Small and Medium-sized Entities ( IFRS for SMEs ).

The aim of the proposed standard is to provide a simplified, self-contained set of accounting principles that are appropriate for smaller, non-listed companies and are based on full International Financial Reporting Standards (IFRSs), developed primarily for listed companies. By removing choices for accounting treatment, eliminating topics that are not generally relevant to SMEs and simplifying methods for recognition and measurement, the resulting draft standard reduces the volume of accounting guidance applicable to SMEs by more than 85 per cent when compared with the full set of IFRSs. As a result, the Exposure Draft offers a workable, self-contained set of accounting standards that would allow investors for the first time to compare SMEs’ financial performance across international boundaries on a like for like basis.

In order to assist companies in preparing accounts based on the proposed IFRS for SMEs , the requirements of IFRSs have been simplified and redrafted using plain English where possible. However, SMEs that decide to upgrade to using full IFRSs would find the transition eased because both sets of standards are based on the same underlying principles.

Introducing the Exposure Draft, Sir David Tweedie, IASB Chairman, said:

Our goal has been to produce a standard for use by smaller and unlisted companies that offers the comparability of full IFRSs while reducing the burden on the preparing company. When completed, the SME standard will make the accounting requirements more accessible to smaller preparers in both developed and emerging markets. With this publication, we are now actively seeking the views of companies, banks, the audit profession, and other interested parties as part of a broad consultation to see if we’ve taken out too much or not enough or if we’ve got it about right.

The adoption of the IFRSs for SMEs will be a matter for each country or adopting jurisdiction to decide. For example, the EU requires listed companies to comply with International Financial Reporting Standards (IFRSs), but will leave it to Member States to decide which standards SMEs should follow. The IASB proposes that listed companies, however small, would not be eligible to use the IFRS for SMEs .

The Exposure Draft is available for e IFRS subscribers from today and will be freely available on the Website from 26 February 2007. The IASB invites comments on the Exposure Draft by 1 October 2007. As a step to facilitate broader consultation, the IASB will for the first time publish a proposed standard in translation. The Exposure Draft will be published in French, German and Spanish in April 2007: see the IASB Website for more details.

How to Become US CPAs

How to Prepare

The Uniform CPA Examination measures professional competence and helps to establish the CPA license as evidence of professional qualification. The examination is a 14-hour computer-based test (CBT) with four sections: Auditing & Attestation, Financial Accounting & Reporting, Regulation, and Business Environment & Concepts.
Once candidates are deemed eligible by a board of accountancy, they can take one or more exam sections at a time. They cannot, however, take the same section more than once during any testing window (the quarterly period during which the exams are available). Generally, candidates have 18 months to pass all four sections and retain credit; but check with your state board as some states may differ.
The AICPA does not provide or recommend exam practice materials. However, candidates are advised to review the examination content specification outlines (CSOs), and other content-related documents or materials available via the links on the right side of this page.
Information has also been developed to help educators prepare students for the CPA Examination. Click here for Educator Resources. Steps to Become a CPA

Congratulations on your decision to become a Certified Public Accountant! Follow these 5 easy steps to begin the journey to a rewarding career:

1. Decide where you want to be licensed and apply to that jurisdiction.
Specific requirements for becoming a CPA, and the rights and obligations of a licensed CPA, are set forth in the laws and regulations of 54 United States jurisdictions. For a summary of the requirements of each jurisdiction, click here. Scroll down page to interactive state map.
If you have previously taken the CPA Exam, re-apply to the state board of accountancy in your jurisdiction.

2. Review the Uniform CPA Candidate Bulletin.
The bulletin is intended for individuals who plan to take the Uniform Certified Public Accountant (CPA) Examination. This document will help you understand how to apply, register and take the examination, and offers general information about examination content and preparation. The bulletin is only available online. To download a copy of the Uniform CPA Candidate Bulletin, click here.

3. Apply to take the Exam
Where to get an application or re-apply:
The state boards of accountancy in the following states use CPAES as their agent. Candidates in these jurisdictions needing CPA Exam applications should call CPAES at 1-800-CPA-EXAM or go to
www.nasba.org: Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin
Washington state candidates should contact Castle Worldwide at 1-800-655-4845. Candidates from all other states should contact their boards of accountancy. Click here to find contact information for the board of accountancy in your jurisdiction.

4. Complete and Submit Forms, Pay Fees
First-time candidates must complete and submit the application forms, along with any required documentation, to the proper address. Because the rules vary by jurisdiction, follow the information about fee payment provided by your board or its designee. Your board of accountancy, or its designee, will contact you once the application has been reviewed. It is estimated that this initial application process will take six to eight weeks; the goal is to continue to shorten this time as the new year-round application process is implemented.
Note: Make sure applications are complete and contain accurate information. Completeness and accuracy dramatically affects the amount of time needed to process the application.
Re-examination candidates: Follow the process set by your jurisdiction. The processing time for re-examination candidates is much shorter; many states are working toward a 24-hour turn-around.

5. Schedule a Test Appointment
After you have applied to take the exam and been deemed eligible, you will receive a Notice to Schedule (NTS) for each exam section you are approved to take. Once you receive an NTS, schedule your test appointment as soon as possible. Since each NTS is only valid for a finite period of time, we recommend you take your exams as soon as you are prepared – you don’t want to lose a testing opportunity or run out of time.
Go to
www.prometric.com/CPA to schedule your exam(s) and get instant email confirmation of your appointment. You can also schedule your test by calling the Candidate Services Call Center at 800-580-9648.

Examinations must be scheduled at least six days in advance. You select the test center location, time and date of your exam(s). While every effort is made to accommodate CPA Exam candidates, appointment times depend on seat availability at the test center. So schedule as early as possible to get your first choice! It is recommended you schedule 45 days in advance.
CPA Examination sections are offered on a continual basis two out of every three months throughout the year (the “testing windows”). For example, in 2004, you can take any section of the exam during: April-May; July-August; and October-November. The test is not available one month each quarter to maintain and refresh the databank.

How to be a Thai Auditor

Base on AUDITOR ACT, B.E. 2505 (1962)

Section 15. To be eligible for registration as an authorized auditor, person must:


(1) have degree in accountancy or hold certificate in accountancy recognized by the B.S.A.P. as not lower than the bachelor degree in accountancy, or have a degree or a certificate not lower than bachelor degree toward which the course includes accountancy studying and which is considered by the B.S.A.P. as fit for being an authorized auditor;
(2) have experience in auditing and considered by the B.S.A.P. as fit to become an authorized auditor;
(3) have completed his twentieth year of age;
(4) be a citizen of Thailand or of a country which permits Thai citizen to become auditor in that country;
(5) not be a person of bad conduct or who lacks in morality;
(6) have never been sentenced to imprisonment in a case considered by the B.S.A.P. as may bring discredit to the profession;
(7) not be an insane or mentally unsound person;
(8) not engage in any other occupations which are not suitable or which will deprive him of the freedom to perform the duties of auditor.
Section 16. An authorized auditor licence shall be valid for five years from the date of its issuance.

Lucky in your career opptunities in Thailand!



FASB Lunched Statement 133

Statement 133 Implementation (Derivatives)

Statement 133 Implementation Issues provide guidance on questions that companies may face when implementing Statement 133. Implementation issues are authored by the FASB staff and represent the staff's views, although the Board has discussed the issues at a public meeting and chosen not to object to dissemination of that response. Official positions of the FASB are determined only after extensive due process and deliberation. Prior to April 2001 these issues were prepared with the assistance of the Derivatives Implementation Group, as described below.
When considering future Statement 133 Implementation Issues the FASB staff expects to follow procedures consistent with the issuance of FASB Staff Positions.
Implementation issues finalized before March 2004 are incorporated in the updated edition of Accounting for Derivative Instruments and Hedging Activities, which can be purchased from the FASB (Purchase Information). Issues finalized subsequent to this date are available on this website (Guidance on Statement 133 Implementation Issues).
The Derivatives Implementation Group was a task force created in 1998 concurrent with the issuance of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, to assist the FASB in providing guidance on questions that companies would face when they began implementing Statement 133. The FASB's objective in forming the group was to establish a mechanism to identify and resolve significant implementation questions in advance of the implementation of Statement 133 by many companies.
The role of the Derivatives Implementation Group was different from that of other task forces previously assembled by the FASB because it was established to address issues related to a new Statement that had not yet been implemented by most companies. The responsibilities of the Derivatives Implementation Group were to identify practice issues that arose from applying the requirements of Statement 133 and to advise the FASB on how to resolve those issues. In addition to members of the implementation group, any constituent or organization could have submitted questions to be debated by the group by sending a detailed letter to the group chairman, which has been either the FASB Vice Chairman or the Director of Research and Technical Activities. The FASB staff also sought input from the implementation group on selected technical inquiries that it resolved.
The model for the Derivatives Implementation Group was the Emerging Issues Task Force (EITF) with the key difference being that the Derivatives Implementation Group did not formally vote on issues to reach a consensus. Instead, the Chairman had the responsibility to identify an agreed-upon resolution that emerged based upon the group's debate. Implementation group members were free to submit written objections to any issue where the group had reached an agreed-upon resolution. In instances where no clear resolution of an issue had emerged, the issue would be discussed further at a future meeting or handled by the FASB staff.
After each meeting of the Derivatives Implementation Group, the FASB staff had the responsibility of documenting tentative conclusions for each issue. Those tentative conclusions were publicly available on the FASB web site typically several weeks after a meeting of the Derivatives Implementation Group. Those conclusions remained tentative until they were formally cleared by the FASB and became part of an FASB staff implementation guide (Q&A). The Board was typically not asked to formally clear the staff's tentative conclusions at a public Board meeting until those conclusions had been publicly available on the website for a 35-day period. That delay provided constituents the opportunity to study those conclusions and submit any comments before the Board considered formal clearance. The cleared Implementation Issues as well as any tentative conclusions are available for reference on this FASB website.
Meetings of the Derivatives Implementation Group were held at the FASB offices in Norwalk, CT and were open to public observation. The group met bimonthly from Mid-1998 through March 2001 when companies were planning for transition to the new accounting requirements. (Statement 133 was effective for all fiscal quarters of fiscal years beginning after June 15, 2000.) The Derivatives Implementation Group no longer meets.
The members of the Derivatives Implementation Group and their affiliations are:

Chairman

Members

Mr. Philip D. Ameen, Vice President and Comptroller,
General Electric Company

Mr. Tim Bridges, Vice President Derivative Products,
Goldman, Sachs & Co.
Mr. Michael Joseph, Partner, Ernst & Young
LLP

Mr. Ira Kawaller, President, Kawaller & Company,
LLC
Mr. Carlos Mello, Managing Director, Olson Mobeck Investment Advisors (a subsidiary of People's Bank Connecticut)

Ms. Deidre Schiela, Partner,
PricewaterhouseCoopers

Mr. David H. Sidwell, Chief Financial Officer, Morgan Stanley

Mr. John T. Smith, Partner, Deloitte & Touche
LLP (part-time Board Member, International Accounting Standards Board)

Mr. John E. Stewart, Managing Director, Financial Reporting Advisors, LLC
Mr. Enrique M. Tejerina, Partner, KPMG LLP

Observers

Mr. Scott Taub, Deputy Chief Accountant, Securities
and Exchange Commission

Mr. Robert Storch, Chief, Accounting Section,
Division of Supervision, Federal Deposit Insurance Corporation-->
More About Statement 133 Implementation See Guidance on Statement 133 Implementation Issues

About Thai Accounting Standard

Transparency (Accounting Standards)

Even though Thailand does not adopt the US GAAP (General Accepted Accounting Principle) or the IAS (International Accounting Standard) in its entirety in the financial reports of listed companies, companies listed on the Stock Exchange of Thailand (SET) have to follow the Thai GAAP which implements 21 out of 34 standards set out by the IAS. Moreover, it is the policy and goal of the Institute of Certified Accountants and Auditors of Thailand (ICAAT) that within four years all the IAS that are applicable to Thailand will be adopted by the Thai GAAP. The complete list of Thai GAAP that has adopted the IAS is shown in Standard Adopted as Thai GAAP.

In addition to compliance with the Thai GAAP, companies that are listed on the SET are subjected to rigorous disclosure requirements. Their financial statements have to be reviewed by external and independent auditors and disclosed to the public on a quarterly basis. Their annual financial statements have to be audited by independent auditors and a majority of listed companies have the 5 international audit firms as their external auditors. These auditors apart from having to be licensed by the ICAAT, they also have to be registered with the Thai SEC and their work and standards of auditing are reviewed by the Thai SEC and the ICAAT on a regular basis.

The Thai SEC also requires listed companies to file their annual disclosure statements (Form 56-1) (see Appendix B). Contained in those statements must be extensive information on risk factors that the companies are facing, management discussion and analysis on past performance, and financial position as reflected in the financial statements. In case where there is any negative effect on performance of the companies, discussion in the annual statement should also provide detailed description of plans to avert the problems. The annual statement must also provide information of related parties transactions during the year; the significant ones of which are required by the SET to be approved by shareholder meetings. Discussions on the level of internal control and management control over the companies through audit committees, whose composition includes independent directors, must also be disclosed. The Thai SEC conducts random reviews of approximately a quarter of total number of such disclosure documents. Any company that fails to disclose such information are subjected to sanction by the Thai SEC.

Resource : Thailandoutlook.com

Saturday, March 31, 2007

To Be An Accountant

To Be An Accountant.

What is the work of accountants? Accountants help entities be successful, ethical, responsible participants in society. Their major activities include observation, measurement, and communication. These activities are analytical in nature and draw on several other disciplines (e.g., economics, mathematics, statistics, behavioral science, law, history, and language/communication). Accountants identify, analyze, record, and accumulate facts, estimates, forecasts, and other data about the unit’s activities; then they translate these data into information that can be useful for a specific purpose.
The data accumulation and recording phase traditionally has been largely clerical; typically and appropriately, this has been called bookkeeping, which is still a common and largely manual activity, especially in smaller firms that have not adopted state-of-the-art technology. But with advances in information technology and userfriendly software, the clerical aspect has become largely electronically performed, with internal checks and controls to assure that the input and output are factual and valid.

Accountants design and maintain accounting systems, an entity’s central information system, to help control and provide a record of the entity’s activities, resources, and obligations. Such systems also facilitate reporting on all or part of the entity’s accomplishments for a period of time and on its status at a given point in time. An organization’s accounting system provides information that

(1) helps managers make decisions about assembling resources, controlling, and organizing financing and operating activities; and

(2) aids other users (employees, investors, creditors, and others—usually called stakeholders) in making investment, credit, and other decisions.



The accounting system must also provide internal controls to ensure that
(1) laws and enterprise policies are properly implemented;
(2) accounting records are accurate;
(3) enterprise assets are used effectively (e.g., that idle cash balances are being invested to earn returns); and
(4) steps be taken to reduce chances of losing assets or incurring liabilities from fraudulent or similar activities, such as the carelessness or dishonesty of employees, customers, or suppliers. Many of these controls are simple (e.g., the prenumbering of documents and accounting for all numbers); others require division of duties among employees to separate record keeping and custodial tasks in order to reduce opportunities for falsification of records and thefts or misappropriation of assets.
An enterprise’s system of internal controls usually includes an internal auditing function and personnel to ensure that prescribed data handling and asset/liability protection procedures are being followed. The internal auditor uses a variety of approaches, including observation of current activities, examination of past transactions, and simulation—often using sample or fictitious transactions—to test the accuracy and reliability of the system. Accountants may also be responsible for preparing several types of documents. Many of these (e.g., employees’ salary and wage records) also serve as inputs for the accounting system, but many are needed to satisfy other reporting requirements (e.g., employee salary records may be needed to support employee claims for pensions). Accountants also provide data for completing income tax returns.

Generally Accepted Accounting Principles


The Financial Accounting Standards Board (FASB) is a research organization, made up primarily of accountants. The FASB, along with the entire accounting profession, has, over time, developed a series of rules called generally accepted accounting principles (GAAP). In addition, the FASB publishes what are called FASB Bulletins. These are a series of more than one hundred publications that describe what corporate reporting methodologies should be. Most of these methodologies have been adopted and are now incorporated into accounting practice. A broad analogy is that the GAAP rules are the basic constitution and the bulletins are proposed amendments. Here are some of the GAAP rules.


1. The Fiscal Period
All reporting is done for predetermined periods of time. Reports may be issued for months or quarters and certain reports are issued annually. Accounting fiscal periods usually coincide with calendar periods, although not necessarily with the calendar year. For example, a company’s fiscal year may be July 1 to June 30 or February 1 to January 31.
2. The Going Concern Concept
When accountants are keeping the books and preparing the financial statements, they presume that the company will continue to be in existence for the foreseeable future. If there is serious doubt about this, or if the company’s ceasing operations is a certainty, the financial statements (essentially the balance sheet) will be presented at estimated liquidation value.
3. Historical Monetary Unit
Accounting is the recording of past business events in dollars. Financial statements, and in fact all financial accounting, report only in dollars. While units of inventory, market share, and employee efficiency are critical business issues, reporting on them is not within the realm of financial accounting responsibility. Financial statements depicting past years are presented as they occurred. The selling prices of the products and the value of assets may very well be different today, but reports of past periods are not adjusted.
The principle of conservatism requires that ‘‘bad news’’ be recognized when the condition becomes possible and the amount can be estimated, whereas ‘‘good news’’ is recognized only when the event (transaction) has actually occurred. One example of this is the allowance for bad debts on the balance sheet, which is recorded before the losses are actually incurred. Another example is reserves for inventory writedowns, which are recorded before the dated or out of style products are actually put up for sale at distress prices. Revenue, however, is not recorded, no matter how certain it is from a business point Generally Accepted Accounting Principles: A Review 53 of view, until the product is actually delivered or the service is actually provided. Payment in advance, while assuring the certainty of the sale in a business sense, does not change the accounting rule. Revenue is recorded only when it is earned.
4. Quantifiable Items or Transactions
The value of the company’s workforce and the knowledge the workers possess may in a business sense be the company’s critical competitive advantage. However, because that value cannot be quantified and expressed in dollars, accounting does not recognize it as an asset. The value of trademarks and franchise names is also generally not included. Coke, Windows, and Disney are certainly franchise brand names with worldwide recognition. While the business value of a franchise name can be almost infinite if it is maintained, franchise names are not assets on the balance sheet because that value cannot be quantified.
5. Consistency
Accountants make many decisions when they are preparing the company’s financial statements. These include but are not limited to the choice of depreciation method for fixed assets and the choice of LIFO or FIFO accounting for inventory. Once these decisions have been made, however, later successive financial statements must employ the same methodology. When a major change is made in accounting methodology, the accountants must highlight that change and redo past financial statements (the reference points) to reflect that change. Only then can comparative analysis and trends be valid.
6. Full Disclosure
When a major change in methodology occurs, accountants must take steps to be certain that readers of the financial statement 54 Understanding Financial Information are fully aware of that change and how it affected the financial results.
7. Materiality
An event that is material, or significant, is one that may affect the judgment, analysis, or perception of the reader of the information. Events that are perceived as material must be disclosed separately and highlighted accordingly. This is a relative concept. Something that is significant in a company with annual revenues of $20 million might be largely irrelevant in a multibillion-dollar enterprise.

How to study accounting?

How to Study Accounting...
by Ken Harper,
Instructor Sharon Miller, Assistant
1. Cumulative Study -- Accounting is certainly not a mystery, and is easy to learn. The major secret to learning accounting is remembering that it is a cumulative study subject based on the first five chapters. Each learning objective builds on the previously learned concepts and procedures. The accounting course is organized so that you learn the most fundamental concepts and procedures first, then you will be required to build on these concepts and procedures. To learn accounting, you must master the first five chapters. These fiver chapters are the basis for the next sixteen chapters. When students run into difficulty, it is generally because they have either forgotten the earlier material or have not learned it well enough to move forward.
2. Maintain a good attendance record -- You need to hear from me what topics are important, why they are important, and how to use them. Copying notes from other classmates may not always show you the what, why and how. Participate actively in class -- Arrive at your classroom a few minutes early. Choose a seat where you can hear and be heard. Don't be afraid to ask or respond to questions. Try to overcome your shyness. Commit yourself to ask or answer questions in class. Remember someone else in the class is probably wondering about the same thing.
3. Do not use memorization as a substitute for understanding -- You need to understand both the reasons and the mechanic of accounting. Memorizing information will hurt you later on in the course.
4. Take notes -- A recent study indicated that you will remember 10% to 15% of what was said in class. However, if you write it down, your retention rate increases to 85%. Note taking is essential to learning accounting. You must learn to take notes efficiently, accurately, and quickly so you will not jeopardize your ability to listen effectively.
5. Make friends by studying in a group -- Exchange telephone numbers with at least two classmates. Make arrangements to study with these friends on a regular basis. Working in groups has benefits. These benefits include increasing your knowledge of accounting and improving your critical thinking and communication skills. If you are able to explain and demonstrate (verbalize) the learning objective to other group members, then you really understand the concepts. Don't be afraid to change study groups if you are unhappy with your original group. Finally, don't allow you study group turn into a gossip group, stick to your accounting.
6. Be prepared -- Before going to class review the textbook, study guide, homework assignment, and class notes. Make a list of questions you have to ask me. Writing out your questions makes it easier for you to ask me in class.
7. Keep up with the work -- Waiting until the last minute does not give you the opportunity to completely understand the learning objectives. If you have completed your homework and are able to verbalize the learning objectives to other members in your study group, then you will do well on the test. If however, you are trying to complete the reading and homework assignments the night before the examination, you will be unprepared. There is a saying, "He who does the homework ahead of time gets the A or B. He who doesn't do the homework ahead of time gets the C or D."
8. Tape record the class lectures -- This procedure has two benefits. First, you will not be overly concerned about taking notes. Secondly, recording gives you another opportunity to hear the lesson. It especially lets you review words that you are not familiar.
9. Find out what resources are available to you -- Resources available to you are:
Study guide Tutorial - Sharon Miller Your fellow classmates Your instructor: F41 Phone 408.864.8589 Electronic Mail School harperken@fhda.edu Electronic Mail Home: drkenharper@yahoo.com