Accounting Roles

accounting-degree-jobs-can-getjob-roles-of-accountant-accountingdegreetalk-7pge5hmpAccountants have long carried a stigma of being human computers that lack much of a personality, if any at all. Characteristics associated with accountants generally revolve around the nerdy and geeky image of a person sitting in a cubicle, crunching numbers away all day. Far from being an accurate stereotype, many do not realize how wide of a field the area of accounting is, as well as the work opportunities that come with being a professional accountant. In fact, the opportunities that exist for accountants are so vast that the word “accountant” simply doesn’t hold much significant meaning as a descriptive title anymore.

The role most commonly associated with accountants is the job of being a public accountant or bookkeeper. The accountants balances the books of a company, creating balance sheet s and income statements, keeping track of assets and liabilities, as well as monitoring accounts payable and accounts receivable. When it comes to tax time, these accountants also record and carry out taxation procedures for business each quarter, and can be hired by individuals to do it on a yearly basis. The common stereotype of accounting and their jobs generally revolves around these roles. It is a highly important role in every business, but most certainly not the only job that accountants are limited to.

Advantages Of Online Business Bookkeeping Services

Common-business-bookkeeping-mistakesTo ensure that a business organization functions in a proper manner, it is highly essential to have a record of the financial transactions of the organization. This is what called as book keeping and Business bookkeeping helps the company to acquire techniques useful for company’s value. Proper records are required for a company to prosper well, so a company should have a proper department whether for this purpose on-line or off-line. The department doing this work should be well organized and should be swift and good in managing the company’s data. It is one of the most vital departments of a good company. There are two types of bookkeeping. One is the manual thing and the other is the computerized version of it. The method to be followed depends on the size of the company. If the company is small, then manual option can be done but for a mid-size or a large company computerized option should be preferred.

Nowadays a lot of companies are using the on-line department as well for maintaining their financial records. It can be done for any sort of transaction. The main reason for using the services by an expert firm is to earn good revenues and profits for the company. The person performing the accounting functions or the remote bookkeeper in case of on-line bookkeeping brings the financial and other records to the trial balance stage where from the accountant may prepare the balance sheet or the income statement. The bookkeeping systems are of two types: the single entry and the double entry system. The single entry system is as simple as that of the cashbook. These days single entry type can be done with the help of the DIY software in order to speed up manual calculations.

In normal functioning of the course of the business invoice, deposit slips for lodgement to the bank and cheques are generated. Accounting for these has to be done and is done by recording for the source documents for these multi-columns journals. After a certain period that is a month the amount in the different columns is totaled to give a summary for the period. The process of transferring summaries or individual transactions to the ledger is known as posting. This whole process of business bookkeeping can be done on-line too using a web-based application. All entries made on-line are recorded and stored in a remote location. Thus can be accessed from anywhere around the world.

Summarizing, if done properly, whether on-line or off-line, bookkeeping generates all around prosperity and income for the company doing so and also brings the company to a managed and stable place.

If you are looking for business accounting, Websites for accountants provides services in bookkeeping, Payroll accounting, Quickbooks online services, bank reconciliation services and many more related services at the best price.

The Importance of Cost Allocation

iStock_000011406938XSmall_2When you work for a large company, the idea of cost allocation comes up frequently, especially anytime an important decision is made which results in the spending of the company’s assets. Cost allocation is defined as the assignment of costs to different departments, processes, or products within an organization. For example, if an investment company was to add a new department to the business, there would be many associated costs that both directly and indirectly get allocated to that new department. Some direct costs of the new department would be obtaining desks, supplies, and personnel to staff that specific department. Indirect costs could be the opportunity cost of the time that is being spent by human resources to hire the new employees, salaries paid to those contractors that build the structural addition to the building that will house the new department, and an increase in electricity bills paid by the company in order to build the new wing.

Every time costs are allocated, they are allocated to a cost object. In the example above, the cost object would be the new department being established. That is the reason the company is allocating costs, in order for the new department to exist.

Cost allocation is a main generator for revenue. Before the company decided to build the new department, they first probably weighed all their pros and cons. Although they knew they would need to put out a good chunk of money in order to fund the new department, they realized that the revenue they would make in the long run for establishing the new department would outweigh the money they saved if they chose not to, and used their current resources to produce the desired results. In other words, in deciding whether to use cost allocation for the new department, company executives who make these types of organizational changes first had to evaluate the efficiency of delegating responsibilities versus the efficiency of incurring unnecessary costs to have a new system/department put in place.

Another important factor to keep in mind when dealing with cost allocation is first before cost objects are set and money is allocated out, decisions need to be made as to which sector of the company should get the most money, least, etc. It is very common for large corporations to do some research on historical performances of each department to determine who has the potential to generate the highest annual revenue with what they are given. In other words, it would make sense to give the human resources department a large allocation this year since they will be directly working with the new department that is being created to ensure it is effective and efficient. On the other hand, a department that wasn’t closely related to or affected by the new department might get a lower stipend for that particular year. This other department, might even, in fact be considered an externality in this situation. Although they may have goals they are also required to achieve that are made easier with a larger allocation, they are “paying the price” for human resources and the new department getting the larger allocation. By definition, an externality is a cost or benefit imposed on other entities without their participation in the decision and without compensation for the costs or benefits imposed on them.