Accounting Systems and Technology

Proper organization and document processes are reviewed and examined in this section. From the filing system to the best software for the office, learn about accounting systems and technology.

Job Costing

Job costing is one of the forms of cost accounting.  It is used in conjunction with financial accounting to alert management about profitability with production. A common thread that binds job costing is a signed contract. 

QuickBooks Online – An Accountant’s Review: ‘D+’

QuickBooks Online

The first time I used QuickBooks, it was the DOS version.  That was over 20 years ago.  Today, there are a multitude of versions for QuickBooks.  QuickBooks Online doesn’t measure up to Intuit’s Enterprise versions.  It isn’t even close.  There are many issues the Online version has and thus the end reporting function is limited.  However, there are a few interesting advantages.  This accountant’s review helps the reader to understand the advantages and issues the Online version has.

Class Accounting With QuickBooks

Class Accounting

Class 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. 

Gathering Data from Sales

Sales Data

In 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.

Perpetual Inventory

Perpetual Inventory

Most 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.

Internal Controls – Fixed Assets

Internal Controls - Fixed Assets

Internal 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 second risk is financial in nature related to errors in determining cost basis, useful life, and depreciation assigned; all of which can affect value.

Each risk uses a separate set of controls to minimize or eliminate the exposure and reduce management’s concern that the financial value as reported is incorrect.  This article explains the standard set of controls for each risk group.

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