To fulfill the requirements of immediate cash, is done through by applying early payment discount on account receivable. By giving a 1 % discount you can save up to 18% of the interest. In this presentation, learn how and when you need to apply discount on account receivable and how it is beneficial for you.
For every small business firm who is at the initial stage should keep one thing in mind, “ Never take your eyes off the Cash flow, because it’s the blood of business”. All the entrepreneurs are aware of the fact that Cash is King..!!! Without proper cash flow management, a company cannot accomplish their business goals, they should look after their finance and accounting services very precisely for future analysis. A firm should have planned strategies before starting the business. The capital amount is the only cash they’ll be having at the inception of the firm, and appropriate small business accounting will help them out to avoid shortfalls.
How to maintain accounts payables, accounts receivable and increase the profit rapidly, is all in the hand of the Owner. Proper management of assets and liabilities must be the main concern of the small accounting firm. While running the business, cash flow should be frequently verified and observed just to save you from a shortage of cash, which will lead to increasing liabilities of business.
Following are the important factors that an entrepreneur should keep in mind:
- A Regular analysis of Cash Flow Management– Every business firm, not only the startup companies but also the successful companies must keep a regular check out on cash flow management, just to avoid upcoming shortfalls, which will affect the flow of cash and can lead the firm to excessive liability.
- Diminish Costs– Plan appropriate strategies to reduce your unusual costs that include insurance that is no longer in use or utilities, rent, etc. In this way, you can try to cut down your expenses and focus more on productivity to earn more profit.
- Recover Receivables– Try to push your customers to pay you periodically. Keep your credit limit up to Net 30 and Net 60 terms in contracts to a minimum extent, so that your account receivable will be vacant and you can run your business risk-free. Give some benefit to the customers by keeping offers, discounts, etc in order to receive timely payments from them.
- Setback payables– When it comes to payments of vendors or suppliers try to look for a maximum limit of net60 to net 90 terms so that you can get enough time to pay your liabilities to the maximum extent. You should always try to clear your account payable by selling your assets that are not in use anymore or find out other ways.
- Use Updated Technologies– To simplify the workload, in this modern world use updated technologies and methods that will help you to evaluate the cash flow work within a fraction of the time, instead of following long procedures that are time-consuming. Some updated software that is commonly used documents cloud, automated clearing house, lockbox, quick deposit and much more.
- Initiate creative ideas for sales– To run the business with proper coordination, it is necessary for every firm to come up with innovative ideas and rewards for the employees by keeping some incentives, tours, etc. This will motivate the team and initiate them to achieve their targets. In short, this initiative can lead you to maintain your cash flow, as it will help you to decrease your liabilities.
- Focus on cash flow rather than Profit– When you are in the initial stage of your business and have a small accounting business, try to focus on cash flow system instead of profits. This may sound awkward, but reducing the liabilities as early as possible will be extremely beneficial for your firm.
- Nominate a Cash flow monitor– Assign the task of monitoring cash flow to a trustworthy employee, who can inform you, when you are going to reach your threshold- suppose your cash flow is going to hit $1,000.
So, the above content gives you a clear idea of how cash flow management is an essential factor for every business firm, whether it is small scale or large scale, this is a continuous process.
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In every business organization accounts payable and accounts receivable play an important role. The healthcare organizations are not an exception in this regard. In a healthcare firm, the main functions are obviously related to patient care. So there is always a chance of healthcare accounts receivable and healthcare accounts payable functions getting ignored. Not giving proper importance to these functions can nullify the efforts put in by the team towards offering patient care services.
In such a scenario, automating the medical accounts receivable and payable functions by using the latest technology is the best option.
The various benefits of accounts receivable automation have been discussed below:
- Reduced outstanding payments- By using the automation option, the invoices would be prepared and delivered to clients at the right time, thus leading to quicker payments.
- Opportunity to offer e-invoicing- Many clients ask for e-invoicing facility which can be easily offered by latest software like QuickBooks. This can help in offering better service to clients and hence enhancing the customer base.
- Opportunity to employ staff on core functions- By automating the accounts receivable process, the medical firms with a lesser number of staff members can focus more on the core functions of the organization, thus leading to enhanced productivity and efficiency.
- Lesser customer inquiries- As automating will ensure that invoices will reach the clients on time, your customer care employees will have to answer lesser number of customer inquiries.
- Improved cash flow- With better management of accounts receivable, the medical firms will have better cash flow, leading to greater operational efficiency.
The various benefits of accounts payable automation have been discussed below:
- Helpful in keeping records of payments made or missed- There is always a chance of certain payments being missed or being made twice by mistake. But with the option of paper invoicing through automation, these mistakes can be avoided.
- Aids in availing discounts- Early payments help in availing the discounts offered by the suppliers. Automation can play an important role in this process.
- Useful in maintaining good relationship with suppliers- By making payments at the right time, good relations with the suppliers can be maintained which is useful for the long term success of the business.
Cogneesol has emerged as a top class provider of outsourced accounts receivable and accounts payable services to business organizations from all over the world at affordable costs. These services can help the business firms in maximizing their potential and reducing overheads. By hiring these services, focus competencies can be prioritized and make your venture more successful. To get more information, contact us at email@example.com.
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Bookkeeping is an important aspect of any business. Poor management of bookkeeping services could lead to problems like poor cash flow and wrong tax filings. It is often said that good bookkeeping is the stepping stone to success for any business. In order to ensure that their bookkeeping operations remain in order, business entrepreneurs are using ingenious strategies like outsource bookkeeping etc.
Below mentioned are some tips which can help in ensuring the efficient execution of bookkeeping practices:
- For tax returns hire professional services– Tax preparation can prove to be a difficult and time-consuming process. This task could create pressure on the in-house accountants and lead to mistakes in the bookkeeping process. By using services of third-party firms offering outsource bookkeeping services, taxation services etc, the pressure on the in-house team with regards to filing the tax returns will be eased.
- Don’t leave the bookkeeping tasks completely to a bookkeeping outsourcing company – Bookkeeping is so important that it cannot be assigned completely to a third party firm. You need to keep at least one in-house bookkeeper to keep an eye on the validity of operations. Bookkeeping outsourcing services can be hired for performing a major portion of the work, but at least one in-house person should be kept.
- Choose the right software– Nowadays, many efficient software like NetSuite, QuickBooks etc, have emerged which have made bookkeeping an extremely simple task. But every business organization has its own unique bookkeeping requirements. So before purchasing a particular software you must find out whether it is compatible with your requirements. Outsourced bookkeeping services also have access to the latest software for performing these tasks.
- Keep a record of the processes– Every time the owner or the accounting team performs the bookkeeping processes, there is something to be gained by the process. The lessons learned can be used for improving the quality of the bookkeeping process.
- Keep the record of the expenses and incomes– Keeping a record of the business transactions is essential for a business. All these records can help in making the bookkeeping process simpler. All the invoices whether inbound or outbound should be kept.
- Look at accountants as useful business processes– Many business owners make the mistake of looking at their accountants as an unnecessary expenditure. Instead, they should be looked at as useful resources who can offer advice on financial planning.
Cogneesol is among the leading bookkeeping outsourcing services providers in the world. These services are aimed at helping the business firm managements in boosting their productivity by concentrating on their strengths. They have access to high quality, well trained and experienced staff and latest software like NetSuite, QuickBooks etc, for performing these functions. They have earned favorable reviews from clients for their quality service and customer support. Cogneesol has created a special niche for themselves in the world of bookkeeping outsourcing.
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Accounting is among the main functions of any business enterprise. The object of any business venture is to make profits. It is accounting which helps in keeping a proper record of all the business transactions which helps in determining the revenues. Keeping these records also helps in determining the factors which can help in future growth and planning accordingly. But in general the business managements don’t place as much emphasis on this function as much it deserves.
Accounting for retail store can prove to be a difficult and time-consuming function due to the huge number of transactions involved. They have the option of hiring in-house retail store accounting staff or outsourcing bookkeeping for retail business services.
The various benefits of using outsourced retail accounting services have been offered below:
Save valuable time– Most of the retail business organizations have a limited number of staff members. So by using the outsourcing option, you can free up the staff from accountancy tasks and employ them on the more important tasks of the organization. Outsourcing can also help in saving the valuable time of the owners or the higher management which would have been lost in interviewing, hiring and supervising the accounting staff. This can help in giving high priority to the planning and execution of the significant functions of the organization.
Cost cutting and enhancing profitability- Outsourcing offers the opportunity to downsize the staff, thus reducing the payroll expenditure of the firm. It also helps in eliminating the need for offering infrastructure to employees. The outsourcing firms only charge for the number of hours they have worked for or for the amount of work assigned. By employing the staff on the productive activities of the organization, you can enhance the profitability of the organization.
Get useful business advice– The outsourcing accounting firm can also offer useful advice on matters related to future financial planning and taxation. They can help in enhancing the revenue and enable cost cutting by reducing the tax by suggesting tax deductions.
Helpful in cases of urgent requirement- There might be certain scenarios in which a firm requires urgent accounting services. In such cases, the firms based in US or Canada can take advantage of the differences in time zones with nations like India, China etc., and get their tasks completed in a prompt manner.
The year 2017 has begun and all the business owners and professionals must start preparing for the new tax season. The main objective of this article is to offer an accurate and complete information all the tax filing deadlines of 2017.
All the required information is mentioned below inforgraphic :
Cogneesol has created a special niche for themselves in the world of taxation outsourcing. To get more information, contact us at email@example.com or call us at +16466882821.
Outsourced tax credits services offer great advantages to the CPA firms who are generally assigned the task of performing the tax returns of their clients in a manner which promotes maximum savings. Different clients have different requirements depending on their budget. In order to ensure that all the clients get services as per their requirement, the CPA’s have to devote a lot of time and energy.
The popular CPA firms are generally overloaded with work, making it difficult for them to execute their operations in such a manner that the unique requirements of each and every client are fulfilled.
In such a scenario, outsourcing the tax credit services to third party firms based in developing nations like India, China etc, would be an ideal option. The various benefits of using outsourcing tax credit services have been discussed below:
Helps in saving valuable time – Outsourcing enables tax consultants to concentrate on the more important tasks by allotting the less important tasks to the third party firms and giving priority to the more important tasks. CPA’s who prefer bookkeeping, accounting tasks over the tax preparation tasks can devote their time to their preferred tasks by using the outsourcing services.
Offer audit support – Audit support is an important factor while assessing a clients claim regarding the tax returns. The outsourcing firms are well known for their expertise in this field. So hiring the third-party services can prove beneficial in this regard.
Helps in covering all the services – There are certain CPA firms which specialize in either accounting, bookkeeping and tax preparation services. By using the third party services, a CPA firm can enhance its customer base by offering services in which they don’t specialize. This can help in enhancing the profitability of the CPA firm.
Helps in fulfilling rare requirements – People might not apply for tax credit services regularly. So giving a regular salary to a taxation expert might not be a viable idea. In such cases, outsourcing services can prove to be a good option.
Helps in reducing costs – The cost of hiring in-house staff in nations like US, UK etc, is much more than the cost of hiring outsourcing services based in nations like India, China etc. So a lot of money can be saved on salary and infrastructure.
In the present business scenario, the commercial organizations are facing intense competition and are looking for new ways to save time and costs. There are very few business organizations who can claim to be in complete control of their business.
In a business which is expanding and growing, the accounting and bookkeeping functions need to be made stronger. But these functions are obviously not the core activities of the organization. Most of the companies hire in-house staff but outsourced bookkeeping services can be used as an option.
Outsourcing bookkeeping services based in off shore nations like India, China etc., have become very popular for business organizations based in developed nations like US, UK, Canada etc. The main reason behind this phenomenon is the overloaded work schedule which hardly offers the in-house staff, the opportunity to concentrate on back office tasks like accounting. Gaining access to the latest technology and experienced staff without having to incur infrastructural costs is also an encouraging motive.
Below mentioned are some points which will offer a genuine insight regarding the significance of outsourced bookkeeping services for business owners:
Simplifies the Business Processes, Reduces costs and Optimises Revenue- Using in-house staff for functions like bookkeeping; can only enhance the burden on the in-house staff and increase the overhead costs. You can very well understand the hassles involved with using in-house staff in terms of hiring, training and overhead expenses.
Outsourcing makes the business processes simpler. It offers the opportunity to pay higher priority to the core functions of the organization and maximize the revenue earning potential. More over there is an old saying in the business world that every penny saved is a penny earned. Outsourcing can certainly help in saving a lot of overhead costs. It eliminates the need to spend on offering infrastructure, pay roll expenditure etc.
Helpful in Future Business Planning– An outsourced bookkeeping team cannot only make the bookkeeping tasks simpler but also offer the much-needed advice related to financial matters to the higher management. The owner or the higher management can take advice on important issues like taxation, future financial planning etc. without having to pay anything extra. In this manner, outsourcing can add value to your business operations by offering you guidelines when you require them the most.
Access to High-Quality Staff and Technology– Companies offering outsourcing services have access to high-quality staff and the latest technology for performing the bookkeeping operations. They offer services of the highest quality as it is their bread and butter. So outsourcing enables a business organization to have access to quality staff without actually hiring them.
Useful in Cases of Urgent Requirement– Suppose your business requires urgent bookkeeping services, then in such a scenario outsourcing services can be of great help. A business firm based in nations like the US, Canada etc. can assign bookkeeping tasks to a third-party outsourcing firm based in India and get the task done by the beginning of next day’s working hours. This is possible due to the 10-12 hour difference between the time zones of the nations.
All these points can encourage a business organization to consider outsourced bookkeeping services.
Cogneesol is among the leading outsourcing companies offering various financial services to business firms all over the world over the past eight years. These services are meant for enabling the business organizations to concentrate on their core activities or the activities in which staff is good at, reduce costs and maximize profits. Cogneesol possesses expert staff and latest technology required for performing the tasks as per customer satisfaction. By offering prompt and quality results, they have earned the goodwill of their clients.
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Accounts Payable is one of the most important factors for a business. By ensuring that accounts payable are paid on time, a business can ensure good relations with the suppliers which can help in the long- term success of a business. Handling the accounts payable is not a simple task. It requires a carefully planned strategy and dedicated staff. Like other business aspects, owners are also looking for innovative solutions for handling the accounts payable process in a systematic way.
Below mentioned are some steps which can help in handling accounts payable solutions in a better manner:
Instead of paper checks utilize electronic payments- When you make payments by check, you have to bear the cost of paper, postage etc. Electronic funds transfer can help in saving these costs. Moreover, electronic payments can be made at any time as per convenience.
Ask the vendors for PDF Invoice Copies- For a majority of the business organizations, electronic data exchange is not an option for sending or receiving bills. But if this strategy is followed then a lot of time can be saved by eliminating the need to open the documents and copying them. In order to make your accounts payable process better, you can request your vendors to provide you with PDF invoice copies of the accounts payable bills.
Manual Data Entry should be avoided- Using manual data entry for processing the accounts payable documents is an unproductive decision. A lot of time and energy is wasted in this process, which can be utilized for other tasks which are more important for a business. Now days, numerous data entry software are available which can help in performing the accounts payable data entry in an accurate and prompt manner.
Ensure that errors are eliminated- Even a minor mistake while maintaining the accounts payable records can lead to overpayments or underpayments. This could lead to losses and deterioration of relations with suppliers which can prove to be harmful for the business in the long run. Using software can prove to be a good solution in this regard.
Ensure that the deadlines are followed- By strictly following the deadlines given by the suppliers, a business organization can take advantage of the discounts available and escape from the penalties of late payments. More it also helps in building a relationship of trust and goodwill with the suppliers which is beneficial for the long-term health of the business.
Consider the outsourcing option- Outsourcing the accounts payable services can help in ensuring that these tasks are completed in a timely and accurate manner. The outsourcing firms have access to capable staff, latest technology and also charge an affordable remuneration. This will help in eliminating the need to hire people and offer infrastructure.
By following the above-mentioned measures, a business organization can certainly enhance its accounts payable operations.
In the last eight years, Cogneesol has created a niche for itself as far offering outsourcing accounting services to different types of business organizations around the world at affordable costs is concerned. By utilizing these services a business organization can limit its day to day costs and optimize the revenue earning potential. To get more information, contact us at email@example.com or call us at +16466882821.