Accounting Systems and Technology

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INTRODUCTORY SLIDESHOW

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There are several different accounting systems.  Choose the system that best works for you  including the software needed to implement.  Test and manage the system, hire the right type(s) of accountants, and create a reporting system that will identify critical issues immediately.  Some of your best systems offer the solution to the problem.  The following is a short list of the types of systems discussed:

  • Accounting Programs
  • Inventory Control Systems
  • Fixed Asset Management Programs
  • Labor Management Programs including Time Management Software
  • Point of Sale Software (POS)
  • Industry Specific Software
  • Office Management Software/Programs

These articles are in-depth and educational in nature.  Please take your time to read and understand and if you have questions or concerns, please make a comment and I’ll respond back to you in a relatively short period of time.

FEATURE ARTICLES:

  • Choose The Right Accounting Software

    Accounting SoftwareOne of the more complicated aspects of running a business operation is the function of accounting.  The selection of the correct software to use can make all the difference in the success of the business operation.  
  • Use Phase Accounting in Construction – Part I

    New Home ConstructionThe most effective form of a financial feedback loop in residential construction is phase accounting.  Phase accounting is a subset of cost accounting and generates accurate information in the world of new home and residential additions for small contractors building up to 20 houses per year.
  • Create a File Structure for Accounting

    File Structure for AccountingCreating a file structure for accounting is critical for the overall success of the business.  If properly structured, data retrieval and information access add to the overall value of the company.  This article teaches the new business owner how to create a file structure to use with accounting. The primary goal of creating a file structure ...
  • Operating Control Reports in Business

    Operating Control ReportsA part of any information feedback loop is the operating control reports in business.  Depending on the nature and financial impact involved, these reports can be daily (Daily Operating Controls or DOC), weekly (Weekly Operating Controls or WOC) and/or monthly (Monthly Operating Controls or MOC) in management reporting.  Their value is to inform management of ...
  • Effective Internal Controls for Cash

    Effective Internal Controls for CashAll businesses should have internal controls to deter fraud, detect theft, and preserve assets.  Of all the assets, cash is the easiest to misappropriate.  Effective internal controls for cash prevent the proverbial hand in the cookie jar.
  • Chart of Accounts – Layout

    Chart of AccountsThe goal of accounting is to record the economic activity of the business.  This is achieved by entering each economic transaction into a set of books.  The books are formatted to reflect the balance sheet and income statement items.  The chart of accounts is designed to present the information in the prescribed format. 
  • Point of Sale System – Introduction

    Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity.  So what is a Point of Sale System?  How is it set up?  What information should we get from this system?  How does a small business owner benefit from this system?
  • Bank Reconciliations – Fundamentals

    Bank ReconciliationsThe bank reconciliation is a daily accounting function for every small business.  In order to fully appreciate its value, the small business owner needs to understand the fundamentals of how bank reconciliations are performed.  In addition, there are some higher level types of transactions that affect the cash position. 
  • Project Accounting – Introduction and Value

    Project AccountingIn the world of accounting, project accounting is a subset of financial accounting. Many folks believe it is a form of cost accounting and it is not.
  • QuickBooks – Best Accounting Software for Small Business

    QuickBooksFor small business, there is no software to match the value QuickBooks brings to the business operation.  I used Sage software and its predessor Quantum (Peachtree) for 20 years and still do to this day.  But QuickBooks is by far superior in all regards in comparison to Sage products. 
  • Control Accounts in Accounting

    Control AccountsAccounting uses accounts to sum up activity related to a particular function of business.  As an example the bank account has a register which identifies the activity in a ledger format of what transpires at the bank for this particular account.
  • Internal Controls – Fixed Assets

    Internal Controls - Fixed AssetsInternal control is a subset of the accounting system to aid in proper reporting of existing assets and liabilities.  Internal controls over fixed assets alleviate two distinct risks.  The primary risk is physical in nature and relates to the asset getting lost, stolen or damaged thereby affecting the value as reported on the financial statements.  The ...
  • Perpetual Inventory

    Perpetual InventoryMost small businesses use the annual inventory system to determine ending inventory value.  Any adjustments are to the income statement inside the cost of goods sold formula. This is acceptable if management only wanted accurate financial statements once a year. But this is unrealistic for a small business.
  • Gathering Data from Sales

    Sales DataIn business the best source of new business is the existing customer.  Discovering the customer’s habits and characteristics allows the sales department to expand into new geographical territories with similar customer characteristics and/or modify the existing product lines.  The key to success is gathering the proper information at the point of sale.
  • Item Codes – Fundamental Understanding

    Item CodesItem codes are broken out into two distinct types: Sales (Revenue) and Cost Codes. The primary purpose is group values and units together in an account for evaluation purposes.
  • Class Accounting With QuickBooks

    Class AccountingClass accounting is one of the options available with QuickBooks software.   Most accountants and bookkeepers misunderstand its purpose and how to properly implement this wonder tool of accounting.   If you are considering using class accounting and want to have a full comprehensive understanding, this is the article for you. 
  • Journals and Ledgers

    Journals and LedgersAccounting is the process of recording economic activity and organizing this information in a format to inform owners about financial results.  It all begins with the journals and ledgers.  The initial entry is recorded in one of many journals and then transferred to the respective ledgers where the data is summed and reported to the ...
  • Purchase Orders – Introduction to Fundamentals

    Purchase OrdersPurchase orders are requests to a seller to provide a certain product or service.   Purchase orders are a business tool to control both physical and financial outcomes related to operational activities.   For publicly traded entities, they are required as a function of internal controls to minimize defalcations.

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