In-House Bookkeeping Vs Outsourced Bookkeeping

Most businesses rely on an in-house bookkeeper to handle their bookkeeping needs. Usually, this in-house bookkeeper is an office assistant who handles bookkeeping in addition to various other tasks. Having bookkeeping handled by non-specialists is error-prone and expensive especially when you can outsource bookkeeping at a fraction of the cost while dramatically improving its quality. How is that possible, you may ask?

Until recently, outsourced bookkeeping was only feasible for the largest businesses. The advent of the Internet and access to a global pool of virtual resources has made outsourcing feasible for even small businesses. Anyone anywhere with access to a computer and Internet can provide bookkeeping services.

Outsourcing enables specialization and quality improvement not just with bookkeeping but throughout the business. The quality of bookkeeping benefits from access to a rich pool of virtual bookkeepers. Quality of other processes in the business improve due to more time that is now available. As a result, 

outsourcing enables the business to focus on what it does best and allows the service provider to deliver what they do best. So, outsourcing improves quality by enabling specialization throughout the business.

Outsourcing offers significant cost savings. By having access to a rich pool of talented virtual bookkeepers across the globe which includes low cost countries like India, the business can cut costs from lower hourly rates and from lesser number of hours it takes the bookkeeper complete tasks. Outsourced bookkeeping also reduces overhead. With an in-house assistant, you usually have to provide an office desk with computer and pay the assistant whether or not there is actual work. Such pay includes salary, vacation time, sick time, social security, medicare and healthcare. With an outsourced bookkeeper, you only pay for hours you use and there is no additional overhead.

Outsourcing reduces business liability in two ways. First, by letting a third party handle the books, any errors do not result in criminal prosecution as the business can easily point their fingers at the virtual bookkeeper. Second, having a specialist handle the bookkeeping drastically reduces the number of errors and associated liabilities.

If competition is staged between in-house bookkeeping and outsourced bookkeeping, the chances of in-house employee is slim because bookkeeping firms have larger workforce and professionalism compared to in-house employee. Bookkeeping firms engagement with business can be controlled based on the volume and can be slashed according to the requirements. Bookkeeping demands the specialization and vary among the nature of businesses. It is important that books are handled in precise environment, in order to lay down the road map for future engagement s. In-house bookkeeping is recommended only when the resources are high but the trend is slowly shifting towards bookkeeping firms as the precision and engagement is better. Bookkeeping firms entitle to perfect turnaround time and can be held accountable for entire bookkeeping process.

In time Bookkeeping, Outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Outsourced Bookkeeping : Transforming The Business Bottom-Line

Business operations are redefined every moment and the challenge lies in adopting new techniques. In order to deliver high performance, it is evident that business should be more focused on core values rather than non-core part of the establishment. Outsourced bookkeeping services will only reduce the concern and allows focusing more on central business values. Outsourcing accounts is the growing trend and has been endorsed by leading financial officers of mega corporations. Accounting outsourcing is not restricted to only big players and can be easily incorporated by all the players irrespective of business size. Outsourcing will only enhance the chance to reach the desired position in the market. Bookkeeping services will provide unique opportunity to reduce operation costs and allows infiltrating more on central business activity predominantly.

Accounting outsourcing is a larger idea to minimize the business efforts and has been ideally proved to be worthy for many business. Small business bookkeeping is easy but proves to be costly affair at the times where central business processes are more demanding. Accounting firms has evolved and proved its potential in managing the books. Outsourced accounting has more accountability than the internal accounting department as the books are dealt by professionals. Many studies suggest that business will reach its full potential only when core value is given its credible position.

An outsourced accounting firm holds the vital key as it triggers all its operations using cutting edge accounting software. Outsourcing accounts initiates to reduce the head count of the firm and allows one to dictate the terms to handle their books. Accounting outsourcing has been accepted by many mainly due to non disclosure agreement facility as it directly deals with sensitive information of the enterprise. Accounting firms mainly deal with basic transnational processes, such as accounts payable to more strategic functions, like budgets, payroll accounting, forecasts and internal audits. It covers the major portion of non core business and facilitates the business to consider central values.

Outsourcing accounts will simplify key characteristic and by empowering standardized procedures, company's financial outcome will significantly set the baseline of financial processes and better benchmark. With accounts outsourced, majority of financial process will be automated by accounting firms. Information can be gathered at point click away and reports can be generated to clear the books with perfect turnaround time. Every benchmark to accounting firms are assigned by chief financial officers, hence losing the control over the own book is out of the equation. Accounting outsourcing provides cloud environment and allows accessing the books online. With cloud environment being the strategy, saves time and money associated with documenting the process. Delivery of services will be hassle free and predominantly high quality. Inventories can accessed through every platform and solutions are provided to have greater grip on the process and one can expect to streamline management process with centralizing the data.

The real change is point click away.

Exquisite of outsourced accounts are:

• 24/7 access to accounting books

• Finance and accounting processes can be simplified

• Headcounts of the firm can be slashed

• Centralizing the data can be achieved easily

• Safe and secure environment as the books are dealt by professionals

• Operation costs are reduced

• Facilitates to concentrate more on management values

In time Accounting, Outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Are Your Social Security Benefits Taxable?

How much, if any, of your Social Security benefits are taxable? It depends on your total income and marital status. Generally, if Social Security benefits are your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.

If you receive income from other sources in addition to Social Security and your modified adjusted gross income is not more than the base amount for your filing status, then your benefits will also not be taxed (see below for more on base amounts).

This quick computation will help you determine whether some of your benefits are taxable:

First, add one-half of the total Social Security benefit you receive to all your other income, including any tax-exempt interest and other exclusions from income.

Then, compare this total to the base amount for your filing status.

The 2013 base amounts are:

$32,000 for married couples filing jointly
$25,000 for single, head of household, qualifying widow/widower with a dependent child or married individuals filing separately who did not live with their spouses at any time during the year
$0 for married persons filing separately who lived together during the year

According to the Social Security Administration, less than one-third of all current beneficiaries pay taxes on their benefits.

Eight Facts to Know if You Receive an IRS Letter

The IRS sends millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office. Here are eight things you should know about IRS notices and letters.

1. There are a number of reasons why the IRS might send you a notice. Notices may request payment, notify you of account changes, or request additional information. A notice normally covers a very specific issue about your account or tax return.

2. Each letter and notice offers specific instructions on what action you need to take.

3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.

4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.

5. If you do not agree with the correction the IRS made, it is important to contact us before responding. We'll help you to prepare a written explanation to send to the IRS of why you disagree and make sure it includes any information and documents the IRS should consider that support your case. You should hear from the IRS within 30 days regarding your correspondence.

6. Most correspondence can be handled without calling or visiting an IRS office. In order to handle any issues that arise more quickly, we ask that you please have a copy of your tax return, as well as any correspondence from the IRS available when you speak to us.

7. It's important to keep copies of any correspondence with your other tax records.

8. IRS notices and letters are sent by mail. The IRS does not correspond by email about taxpayer accounts or tax returns.

If you have received a letter or notice from the IRS and have questions or concerns don't hesitate to call us.

What to Do If You Haven't Filed an Income Tax Return

Filing a past due return may not be as difficult as you think.

Taxpayers should file all tax returns that are due, regardless of whether full payment can be made with the return. Depending on an individual's circumstances, a taxpayer filing late may qualify for a payment plan. It is important, however, to know that full payment of taxes upfront saves you money.

Here's What to Do When Your Return Is Late

Gather Past Due Return Information

Gather return information and come see us. You should bring any and all information related to income and deductions for the tax years for which a return is required to be filed.

Payment Options - Ways to Make a Payment

There are several different ways to make a payment on your taxes. Payments can be made by credit card, electronic funds transfer, check, money order, cashier's check, or cash.

Payment Options - For Those Who Can't Pay in Full

Taxpayers unable to pay all taxes due on the bill are encouraged to pay as much as possible. By paying as much as possible now, the amount of interest and penalties owed will be lessened. Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an installment agreement, a temporary delay, or an offer in compromise.

Taxpayers who need more time to pay can set up either a short-term payment extension or a monthly payment plan.

A short-term extension gives a taxpayer up to 120 days to pay. No fee is charged, but the late-payment penalty plus interest will apply.
A monthly payment plan or installment agreement gives a taxpayer more time to pay. However, penalties and interest will continue to be charged on the unpaid portion of the debt throughout the duration of the installment agreement/payment plan. In terms of how to pay your tax bill, it is important to review all your options; the interest rate on a loan or credit card may be lower than the combination of penalties and interest imposed by the Internal Revenue Code. You should pay as much as possible before entering into an installment agreement.

A user fee will also be charged if the installment agreement is approved. The fee, normally $105, is reduced to $52 if taxpayers agree to make their monthly payments electronically through electronic funds withdrawal. The fee is $43 for eligible low-and-moderate-income taxpayers.

What Will Happen If You Don't File Your Past Due Return or Contact the IRS

It's important to understand the ramifications of not filing a past due return and the steps that the IRS will take. Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions.

Tips for Safeguarding Financial Records

With the 2013 hurricane season now under way and memories of tornadoes and other natural disasters fresh in our collective minds, now is the time for individuals and businesses to safeguard their tax records by taking a few simple steps.

Take Inventory. Gather all of your documents and make an inventory list. You may find everything in a single location, but more likely than not, you'll have to hunt around to find all of your documents. Don't forget to check computer files, storage boxes, file cabinets, old and new computers and laptops, thumb drives, and external hard drives and backup disks.

Depending on how complex your finances are, you may opt for a single list or choose to make two separate lists. The first list might include items such as insurance policies, mortgages and deeds, car titles, wills, pension and retirement-plan documents, powers of attorney, medical directives, and so on. The second list might contain a list of less essential documents such as brokerage accounts, loans that have been paid off, end-of-year bank statements, and copies of old tax returns and supporting documentation.

Create a Backup Set of Records and Store Them Electronically. Keeping a backup set of records -- including, for example, bank statements, tax returns, insurance policies, etc. -- is easier than ever now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet.

Even if the original records are provided only on paper, they can be scanned and converted to a digital format. Once the documents are in electronic form, taxpayers can download them to a backup storage device, such as an external hard drive, or burn them onto a CD or DVD (don't forget to label it).

You might also consider online backup, which is the only way to ensure that data is fully protected. With online backup, files are stored in another region of the country, so that if a hurricane or other natural disaster occurs, documents remain safe. Contact us if you need assistance with this.

Visually Document Valuables. Another step you can take to prepare for disaster is to photograph or videotape the contents of your home, especially items of higher value. Call us for more help compiling a room-by-room list of belongings.

A photographic or video record can help prove the fair market value of items for insurance and casualty loss claims. Store the photos or video with a friend or family member who lives outside the area, or as part of your online document backup.

Update Emergency Plans. Emergency plans should be reviewed annually. Personal and business situations change over time, as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.

Check on Fiduciary Bonds. Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

In time Accounting  www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

What Income Is Nontaxable?

Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable:

• Child support payments;
• Gifts, bequests and inheritances;
• Welfare benefits;
• Damage awards for physical injury or sickness;
• Cash rebates from a dealer or manufacturer for an item you buy; and
• Reimbursements for qualified adoption expenses.

Some income is not taxable except under certain conditions. Examples include:

Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.

Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable.

All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering, such as the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.

If you received a refund, credit or offset of state or local income taxes in 2012, you may be required to report this amount. If you did not receive a 2012 Form 1099-G, check with the government agency that made the payments to you. That agency may have made the form available only in an electronic format. You will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you did not receive Form 1099-G.

Office Management: Delegation Works

Set Yourself Free by start delegating the tasks on your table

Delegation of Tasks will free up your time and brain. You’ll actually be able to think, not just react. All of those interruptions and the discussions about the routine have trained your brain to stay in the grip of daily work. When you stop wandering in the routine chores, your brain can fill the void with a grand vision for your company.

Set Your Employees free by start delegating the tasks on your table

You've come to believe that those who report to you, might be inept, not capable, less-than-bright, or down-right stupid. You think you need to fire the whole lot. If you could shift your thinking just a little bit, you might find that they are completely whole, capable, smart, competent human beings who know what needs to done. You've somehow managed to convince them that you are the only one who has all the knowledge needed for them to complete their work. Using a different way to communicate, you’ll help them to think for themselves. They’ll learn, become creative, and stop being dependent on you. They’ll be free. So be a guide instead. Think of yourself in that way when they come to get your answers. Ask them what they think they need to do and how they’ll do it. Listen to what they have to say. Let go of your need to have things done just so. Encourage them, thank them, let them know how much you count on them to do the job right their way, not yours. You’ll be surprised at how smart and capable they are. Happy broad-picture thinking!

You might fail if you don’t figure this out and think broader.So, try it now.

Bookkeeping Tasks Done? Check!

I’m a huge fan of checklists and couldn't live without them. They get me through my day and help me make sure I’m not forgetting something vital. It also saves me from a mountain of post-it notes and little “reminders” that get lost just when you need them. So, if you’re ready to get your bookkeeping organized and on schedule, here’s a list of bookkeeping tasks to help you get organized:

Daily:

• Update bank accounts using transactions downloaded from your bank and credit card accounts.
• Open incoming postal mail, looking for any financial items, then sort as necessary.
• Enter payments received by customers and create a receipt, if necessary.
• Enter new bills from vendors.
• Enter credit/debit card transactions made.
• Enter hand-written checks.
• Document petty cash expenses.
• Update your inventory if you receive or sell items.

Weekly:

• Invoice your customers as soon as work is completed or products are delivered.
• Make bank deposits and record all deposits, including credit card deposits.
• Take your receipts out of your wallet and file, as necessary.
• Review Accounts Receivable and contact customers, as necessary.
• Review Accounts Payable and pay any bills that are due.
• Review Profit-&-Loss for anything unusual.
• If you pay estimated taxes, set aside a percentage of your income for taxes.

Monthly:

• Do the weekly bookkeeping tasks that you skipped. ;-)
• Reconcile bank and credit card accounts.
• Reconcile and replenish petty cash, as necessary.
• Generate monthly invoices, if not already generated.
• Print and review monthly reports, including Profit-&-Loss, Balance Sheet and any special reports.
• Adjust any loan payments for principal and interest.
• Reconcile and pay sales tax, if you file monthly.

Quarterly:

• Review your Accounts Receivable and write off bad debt, as necessary.
• Reconcile and pay sales tax, if you file quarterly.
• Make your quarterly estimate payments, if you pay estimated taxes.

Tips on Income Tax

Income Tax return filing is very simple in US as compared to India. Here tax forms are very simple and easy to fill up. One need not know all about taxation laws, but still can very easily file tax return. Here in US there are two types of taxes. One is the FEDERAL Tax which is something like the Income Tax in India and the other is the STATE Tax. Last day of filing the income tax return is 15th of April. Accounting year is considered from 1st of January till 31st of December. US has a Tax treaty with India. Under this Tax treaty one can file his tax return either in India or in US as per the convenience. But you need to show your income earned in either of the country.

Suppose you come to US in the middle of the year. You must be definitely having some income in India before you came to US in that particular financial year. Also some part of salary is paid to you even when you are in US. This income is taxable and hence you pay tax on that income. Generally you pay tax on this income in India as in most of the cases income tax is deducted at source. So one pays tax on the income in India. So now you are liable only for the tax on the income that you earn in US. Here there are different types of forms for different category of people. For those who are US residents and who have status of Resident Aliens, they have to file the what is called 1040EZ form (form 1040 easy). Any person who is in the US for more than 183 days continuously, gains status of Resident Alien. Any person who is in US for less than 183 days in that financial year is considered as Non Resident Alien.

Non Resident Alien will not have some Tax benefits which any US citizen or Resident Alien will have. Here in particular, Non resident Alien will not get Standard deduction on their income. Also they have to pay Tax as per the Flat rate. So basically when you file your Tax return as NR you land up paying more taxes. But you have to file 1040NR when you are having status as Non resident Alien.

For filing Tax return form one can get help from the government body which is known as IRS ( Internal Revenue Services ). This is same as Income Tax department in India. Also one has to pay tax to the state government. Each state has a different tax law for the State Tax. Booklet of information on this is available on request. Tax forms are available freely at the public places like Post office, Public library where one can get the form that he/she requires. Also, government gives special services for the people who needs the guidance. One can get this information even on phone by calling them. One can even go in person to understand the form.

Apart from these facilities provided by the government one can even go to private tax consultants. They charge somewhere between $30 to $60. They take care of every detail and one need not bother about anything. Along with the tax you are supposed to send one form called "W2" form. This form is provided by the employer to all the employees. The form contains all the information based on the salary of the person. Also all the taxes paid by the employer to the State government as well as Federal government. Details about the social security taxes and the medical taxes paid by the employer is also included in this form.

There are three copies of this form. One copy is to be sent with the State Tax form, one with the Federal Tax form and one is for the employee's personal record.

Before sending the W2 form one should check the validity of the information in it. Most important is the correct social security number. If there is any change in any of the information one should inform the employer asap. Employer is supposed to send the corrected information to IRS and also a corrected copy to the employee which is called W2C form.

Many states and cities levy hotel taxes, usually as a percentage of the room rate. For example, in New York City, which already has an 8.25% sales tax, the progressive hotel tax can raise the tariff as much as 13% more to 21.25%. When you make room reservations, ask how much tax will be added to the basic rate.

There is no US value-added tax, but sales taxes are set by most individual states, and they can range anywhere from 3% to 8.25%. In some states, localities are permitted to add their own sales taxes as well. Exactly what is taxable, however, varies from place to place. In some areas, food other essentials are not taxable, although you might pay tax for restaurant food. Luxury items such as cigarettes and alcohol are sometimes subject to an extra tax (known colloquially as a "sin tax".) as is gasoline, on the theory that car users should provide funds used to provide roads.

Accounting Outsourcing: Get Error Financial Records

 Maintaining the books of accounts is a crucial aspect inevery business. Any business is not only the realization of the vision of anentrepreneur but involves the efforts of many individuals and multipleresources. Accounting is one such resource. In order to ensure a smoothfunctioning of each segment of the business organization, a business employsvarious employees. Keeping in-house employees for accounting work can prove to be a costly affair. The employees need to be given huge salaries plus allowances like medical benefits etc. Accounting outsourcing solves this problem by providing cheap working force to maintain the books of accounts.

Maintaining the books of accounts is a monotonous process. Only experts and professionals can do this type of work. However, accounting isan important task in any business. It is essential to maintain the accuraterecord of each and every transaction on a daily basis. Most of the businesshouses have realized that if they opt for accounting outsourcing facility, theystand to gain a lot. There are multiple advantages by opting accountingoutsourcing services. The biggest advantage is that the business owner can savehundreds of dollars in salary, which have to be given to in-house employees.This is because accounting outsourcing service providers charge less for hisservices. Accounting outsourcing work is done by qualified accountants who carry out the accounting work using the latest accounting software. The accounting professionals must keep in mind that the records must be maintained accurately. A slight mistake can pave the way to big problems. Deciding the financial position of the business firm can go wrong with a single error in the books of accounts.

By handing over the work to accounting outsourcing professionals, one can be rest assured that that the accounts work will be maintained in a proper and accurate manner. The work done by accounting outsourcing professionals helps in providing instant access to financial records. Tax auditors can access to these records easily. Maintenance of proper records gives an excellent impression of the company in the eyes of auditors, investors, creditors and general public. The business organization is freed from the time and costs involved in hiring the in-house employees. This time and money can be utilized in other areas through which the business organization can reap benefits.

Accounting outsourcing services provide a comfortable and secure option for maintaining the growth and expansion of business. Since the accounting outsourcing professionals update the work on timely basis, the decision makers can move to the next step while keeping in mind the financial position of the business. It is important to hire a reliable and competent accounting outsourcing firm to carry out the accounting work for a business house. Now days, research can be done through online mode also. One can search on the internet and choose the most suitable service provider. This process is hassle free. It saves both time and efforts as there is no paperwork involved in this process. Opting for the services of accounting outsourcing professionals can give an edge to the business over others.

In time Accounting www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Best Activities to Outsource in Your Small Business

Rather than wear every hat -- every single day -- small business owners need to think about regular activities that can be outsourced or subcontracted out. When you can get assistance with tasks you are probably not skilled at anyway, you will have more time for higher level activities like business development and project management. Great leaders know it is more productive to outsource work that is not revenue generating, but essential to business operations. Since time is such a prized commodity when running a small business, it is smart to leverage the talents of others rather than trying to do it all by yourself. Here are some of the best activities to outsource in your small business.

Subcontract Your Marketing Efforts: Marketing is the fuel of a small business. Your marketing efforts tie directly to your sales results. So if you are too busy working the business you already have to focus on closing the next sale, you need some help. Outsource your marketing efforts to a consultant or public relations specialist for your small business. Some marketing people will help you develop downloadable content for your website, conduct email marketing campaigns. Some will focus on reaching out to LinkedIn contacts; they can handle direct inquiries or pitch you for speaking opportunities. They can also develop media pitches and monitor HARO for media opportunities.

Subcontract Your Payroll: Unless you run an accounting firm, you should not be doing your own payroll. Listen, you can get in trouble faster with the IRS for not paying your payroll taxes properly than not paying personal income taxes. If you hire an outsourcing company to do your payroll, then you can rest assured that you and your staff will have no issue when income tax season rolls around at the beginning of each year. If you do the payroll in-house, then you need to stay on the top of rules for federal, state and local tax laws that often change. The fees to outsource payroll are not very expensive, so do yourself a favor, let a payroll service handle the deductions for withholding, social security, unemployment and worker's compensation. You can't afford to make a mistake.

Subcontract Your Social Media Marketing: There are plenty of solopreneur marketing consultants and social media marketing agencies that can handle developing your social media strategy, content development and social promotion for your company. When you perform these tasks in-house, you often fail to retain the consistency of doing them. Leverage the services of a 1099 consultant to handle this for you. I am pretty sure, if you hire the right person or firm, and give them a specific niche focus and strong message about your product or service, your marketing efforts will flourish over time. Just remember that social media is a long-term strategy, so be prepared to invest 12-24 months to achieve your goals.

Subcontract Your Bookkeeping: Bookkeeping is the number one task in small business that owners routinely neglect and struggle with managing in their operations. Do not let this happen to your small business. By the 15th of the month, you need to know how well your business did last month so you can make any adjustments. By outsourcing your basic accounting services to a seasoned bookkeeper, you will have the ability to use updated financial information to run your small business. A bookkeeper can do your accounting work a lot faster and more accurately than you can, and it is affordable. Ask your tax preparer or another entrepreneur for a referral to the right provider. Stop getting your accounting done for the year at tax time; outsource your bookkeeping services today.

In time Bookkeeping , www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Outsourcing is here to stay

The pressure on print publishers to save money in today’s marketplace is enormous. As pressure increases, more publishers — small, medium and large — have availed themselves of circulation outsource services. This isn’t a new concept; it’s been around since about 1985. Outsourcing works, and it’s an attractive option for many companies.

Some of the biggest benefits of circulation outsourcing include cost savings on salaries and administrative costs; access to trained, experienced and professional circulation experts; knowledge of what’s working best in today’s circulation source mix; and contacts among suppliers to the publishing industry, including fulfillment companies, printers, telemarketing firms, audit bureaus, list mangers and brokers and newsstand distributors.

If you can’t justify spending a lot of money on top circulation talent and think outsourcing this important publishing department might be worth investigating, here’s how to proceed:

First, make a list of the services you want to outsource, then research outsource companies in the trade press and on the Internet. Make the initial contact by phone or e-mail. Give everyone you talk with a clear idea of the publication(s) you want to outsource, including the magazine’s total circulation; whether it is paid or controlled, consumer or business-to-business, and ABC- or BPA-audited; its frequency; and a little background on your company. Any outsource management company without the resources to handle your business will tell you that during the initial contact.

After that first contact, develop a list of those companies you want to interview face to face. You need to meet in person for your comfort, as well as that of the service provider.

In time Accounting www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

It’s best to make the transition when your magazine is at the end of an audit cycle, not in the middle of a big direct mail or telemarketing push or converting to a new fulfillment company. However, outsource companies tackle tough challenges on a regular basis depending upon the needs of prospective clients.

The publisher determines what happens in circulation by setting policy, approving budgets and establishing goals and objectives for every magazine. During the initial meeting, be absolutely clear about the services you want as well as your goals. Outsource companies equate to in-house circulation management, but they are not fulfillment companies: They manage the fulfillment company along with all other circulation subcontractors.

Control of your circulation operation is always in your hands. That means you need someone in your company to whom the outsource company reports regularly. That might be the publisher, the CFO or GM, but it should be someone with authority to make budget decisions and someone fully aware of corporate circulation goals and objectives.

Outsourcing does not mean the publisher cannot use vendors of their own choice; valuable relationships built up by the publisher in the past can continue as the publisher chooses.

Today’s publishing environment makes circulation outsourcing an option almost all publishers can consider. Once you’ve decided that doing without an in-house circulation department makes sense for your company, you’ll be free to focus on finding the best management company and devoting more of your time to concentrating on other aspects of your business.

Best Small Businesses to Start

America's economic future is uncertain. Unemployment is up sharply. Credit is tight. People are worried about their savings. So is it a great time to start a business?

But it's not necessarily the right answer. Starting a business has always been a bold, risky move. Even in good economic times, the failure rate of new small businesses is high. But a well-conceived business can always catch on.

So how can a wannabe entrepreneur succeed? U.S. News's Best Small Businesses to Start springs from the idea that those who stand on the shoulders of giants can see the farthest. The entrepreneurs behind the types of start-ups we profile here have defied the odds, finding both profit and an enjoyable, independent lifestyle along the way.

"The first question you have to ask yourself [before you start a business] is which are the sectors where I have knowledge, skills, and contacts to operate in," says Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University. The 15 Best Small Businesses to Start include a variety of sectors.

Start with this economic trend: the millions of baby boomers who are beginning to retire now. Small businesses like Guava Home Care in Hockessin, Del., are filling the increasing demand for home healthcare, helping seniors stay in their homes and be more independent. Small businesses can offer the human touch and specialized service that larger ones may find hard to provide.

Another trend is globalization. More U.S. businesses than ever are connected with the world. There's a huge market out there for American entrepreneurs to sell to, and it's growing. "There's going to be an equivalent to the U.S. middle class created each year over the next decade" in the developing world, says Steve King of the Institute for the Future.

Some entrepreneurs—be they companies going global or outsourcing firms—educate and train businesses in the new game of globalization. Export managers link domestic buyers with foreign sellers.

The demand for energy efficiency and an environmentally friendly footprint is also spurring entrepreneurship. Energy auditors help businesses and homes save money by reducing energy costs.

In the increasingly competitive field of education, fledgling higher education services like New Mountain Ventures are finding ways to keep people in school. Parents worried about their kids' development are willing to pay top dollar to athletic trainers in hopes of creating the next star athletes. They also will hire professional tutors who can give their kids the individualized attention that the major test-prep companies maybe cannot.

Today's struggling economy may itself present opportunities. Businesses slammed by the economic slowdown often look to cut back and focus on their most essential tasks. That can mean contracting out jobs once done in-house. Outsourcing does not have to mean moving American jobs overseas. Indeed, the demand for corporate outsourcing has created a profitable opportunity for smart, nimble entrepreneurs who can help bigger companies save. Modern communication tools also make it easier for start-ups to get off the ground. Social networking sites and blogs help entrepreneurs, like career counselors and financial advisers, establish their expertise and credibility. And customers can find you today with a mouse click. Sellers of fresh produce are using the Internet to cater to the growing demand for organic food: You can place your order on online farmers' markets and have it delivered to your house.

Many of the Best Small Businesses to Start can be run from a home office, cutting start-up costs. It's not just old businesses that are being revolutionized. Some start-ups, like online consignment stores, are a brand-new type of business. Purely online businesses may be more recessionproof than traditional small businesses, as they're not "tied into any particular slowdowns in that local area," says Pamela Slim, author of the Escape from Cubicle Nation blog.

Tracking Expenses

Small business owners often wear many hats from head chef to chief bottle washer and everything in between. Bookkeeping is one of those many hats and one of the most important. Tracking accounts receivable and accounts payable are fairly simple but what about tracking all those varied and random expenses?

Create a filing system for receipts based on your expense accounts. Avoid using miscellaneous as a catchall account. Miscellaneous expenses should be rarely or singly occurring events.

Create a filing system for paid bills, bank statements, and credit card statements.

Keep a ledger to track petty cash and any loans made by the business.

Tax filings and payroll expenses should be tracked separately.

Keep a notebook in your car to track your mileage and auto expenses.  Another option is to use a mileage tracking app on your smartphone.

Review your expenses on a monthly basis along with payables and receivables to make sure your business is running in the black. 

Whether you're more comfortable using paper systems or using technology to track expenses, of all the filing systems you decide to use, the most effective ones will be the ones you use consistently. You don't want to be trying to sort out a massive pile of receipts two weeks before the tax deadline. 

Finance Accounting Outsourcing: the records in a cost-effective

In the present age, taking the help of an outsourcing company can give a home business than others. Outsourcing combines various supreme benefits and provides customers with an expert and cost effective way to manage finances. Outsourcing allows the organization of tasks adequately. Financial and accounting duties should not be taken lightly. Thus, there is always a sensible decision to manage the task by the gift of financial accounting outsourcing firm. With the help of finance accounting outsourcing services, business house can better focus on its core competencies. The reputation of the home business can be affected badly if it remains some defect or ignorance in the task of accounting. Finance Accounting Outsourcing handles the task is certainly not a mistake or error. Finance & Accounting Outsourcing takes into account the fact that there are mistakes that can undermine the relationship between society, the crucial financial decisions and the final declaration of the company. Keeping the accounts is a crucial task for any company, large or small. Not only a young tree needs help, but also a well-established need help finance & accounting outsourcing services. Extra-financial and human resources are needed to manage the books of accounts. Is because the internal employees must receive high salaries and other benefits. This can be expensive. Therefore, it is best to get the job done by an outside firm. Accounting & Finance firms provides an outsourcing solution. With the help of financial accounting services, entrepreneurs can obtain a good state of maintenance of accounts simply spend a bit ‘of money every month. This helps to maintain the viability of the task. Finance & Accounting Outsourcing helps to reduce the financial burden of the organization. The proprietor of a business can invest as much effort and money into another area that can help to reap the rewards. Then, it is necessary to maintain a separate accounting service. With finance outsourcing accounting services, home business can save a lot of money. Accounting is the most important aspect of any business. This is a task somewhat ‘tedious and requires the help of professionals and experts to manage the books of accounts. Accounting is one of the pillars so that decides the future and the success of any business. Thus, entrusting the task in the hands of a good finance accounting outsourcing firm is an option. Consider the reliability of the company before handing over the task to it. Because the house of negotiation is required to provide various types of information that may include some reservations, so we must be sure that the information is not abused by anyone. Finance Accounting Outsourcing makes use of high-tech procedures and technology to date. Finance accounting outsourcing business is completely up to date on changing laws and keep the books of accounts in relation to that environment. A home business has never worry about these updates, such as finance accounting outsourcing professionals have the experience to handle this situation.

In time Accounting www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Accounting Confusion : PEDAD CLIC

Whether you keep your own books or outsource the bookkeeping to a dedicated professional, it’s important to have a good grasp on bookkeeping basics. We all know our bank account debits and credits but what about all those other accounts we use? Here’s a handy acronym to help you remember how to record transactions properly.

Purchases and

Expenses have a

Debit balance just like

Assets and

Drawing

Capital

Liability and

Income accounts have a

Credit balance

These cover all the basic accounts you use for your business.

Purchases are the goods your business acquires to resell or to accomplish the goals of your business, such as parts to create a final product.

Expenses are any amount spent in order to operate your business. This can be a anything from entertaining a client to fleet vehicle maintenance.

Assets are anything owned by the business that can be liquidated. Assets can be either fixed, such as a building, or liquid, such as cash and accounts receivables.

Drawing accounts are set up for owners who rather than taking a standard paycheck choose to draw cash from the business.

Capital accounts cover the amount invested by the owners and the net worth of the business at any given time.

Liability accounts are debts owed by the business such as payments to vendors and utilities.

Income accounts are monies that are paid to the business. These can come from customers and interest on savings accounts and investment accounts.

All of the transactions in your business will happen between two accounts. The balances on all of the accounts will appear on the balance sheet and determine the net worth of your business.

The Need for Accounting and Finance Services

Businesses from across the globe are starting to understand the value of outsourcing their non-core functions, such as accounting and finance services. Outsourcing these non-essential tasks allow organizations to keep their focus on more critical tasks so that the business can stay competitive, along with many other benefits that outsourcing has to offer.

Today, CEO’s are challenged more than ever to create an effective and competitive advantage for their company. In order to achieve the goal of a strong company advantage, CEO’s should be constantly evaluating how they can use BPO to improve their organizations’ internal core. Outsourcing your finance and accounting services will help your company along the way to achieve success within your company.

Outsourcing many of your company’s accounting and finance needs will help your company as a whole. Here are some other benefits of outsourcing these services:

1. Your organizations business focus will be enhanced
2. Your company will have a more controlled cost structure, overall decreasing the cost your company spends on accounting and finance needs.
3. Puts discipline and priority back into a company’s financial and accounting needs, as they are often overlooked processes.
4. Gives your company access to the best professionals in the finance and accounting world.
5. Creates and sustains business value.

Accounting and finance outsourcing offers many benefits, but it also gives your

company new opportunities and the chance to improve even further. These may include reorganizing systems, optimizing performance, cutting costs, and strengthening competitiveness.

Financial and accounting tasks are often overlooked and not taken as essential processes, but they have the power to actually make or break your company. Not having a good solid financial and accounting system or not having enough finance intelligence will break your company in the long run. Having a solid finance system and understanding the nature of your corporation’s financial needs will make your company more competitive and more successful.

In time Accounting www.outsourcedbookeeping.com has expertise and appropriate resources to provide all the services like bookkeeping, accounting, payroll and taxation in cost-effective way.

Finance & Accounting Outsourcing

Outsourcing finance functions — like auditing, tax consulting and payroll processing — has been going on for many years. But today, companies increasingly are asking solution providers to manage business processes on more of a turnkey, full-service basis, rather than transnational or processing services. Suppliers like Exult and others lend credibility to the value that many companies have seen from outsourcing portions of their finance procedures.

The finance and accounting (F&A) business process —including accounts payable, accounts receivable, order management and tracking,treasury functions, financial reporting, tax consulting and internal auditservices — is expected to be one of the most widely outsourced business process categories in the near future. One industry estimate pegs spending on F&A outsourcing services at $65 billion by 2006, a 12.3 percent five-year compound annual growth rate. Even Dun & Bradstreet”s Global Barometer for Outsourcing predicts that F&A outsourcing will represent 10 percent of the total worldwide market for outsourced services by 2005.

All of this data shows the growing importance of F&A outsourcing and makes it one of the fastest-growing segments of the business process outsourcing (BPO) industry.

To understand what finance professionals — as the buyers of these services — truly think about F&A outsourcing, Financial Executive partnered with Ross Research of Cambridge, Mass., a firm noted for its research into outsourcing practices. Working with principal Lisa Ross, we developed a questionnaire on the subject that was emailed in December 2003 and January 2004 to FEI members. More than 100 members responded. Ross then tallied and interpreted the results and drafted a full report. Two sponsors, Exult and the law firm of Hunton & Williams, supported the research; neither organization was involved, directly or indirectly, in this project or the analysis of results. (For more about the methodology, see the box, “The Research Methodology.”)

Why Outsource F&A?

A myriad of factors drive companies to outsource F&A. The most important reasons listed by study participants indicate a growing sophistication on the part of outsourcing buyers – cost savings is no longer the preeminent reason for outsourcing, though it is still an important consideration. The most important reasons that executives said were primary drivers in their decision to outsource F&A include:

Access to better technology and systems

Cost savings (reduce and control operating expenses)

Increased service levels

The table below illustrates the importance levels that senior financial executives place on each factor as being a driving force behind the decision to outsource F&A functions.

Finance & Accounting

29%

Human Resources

29%

Other

22%

Customer Service/Call Center

21%

Logistics

16%

Procurement

15%

eLearning/Training

11%

Source:  Ross Research and SBPOA, September 2003, from Ross Research report titled: “BPO Buyer Demand Exposed: Buyers Reveal Their Readiness to Purchase”

What is Being Outsourced?

The types of F&A functions that have been outsourced to date, as noted by the senior financial executives in our study, represent relatively simple types of processes. The most widely outsourced F&A functions are:

Tax consulting

Payroll (Note: Some companies include payroll as a finance function, while others categorize it as part of the human resources business process.)

Two additional F&A functions that CFOs and other financial executives might consider outsourcing, if they are not already doing so, include:

Travel expense reimbursement

Risk management

The top three F&A functions that respondents would not outsource include:

Financial management activities (operating budgets/ forecasts, capital investments, treasury functions, equity financing/debt, cash management, budgeting, performance analysis, investor relations)

General accounting (general ledger, cost accounting/revenue, equity accounting/debt, statutory accounting, fixed asset accounting, business unit accounting)

Financial reporting and accounting We were surprised, frankly, at the high number of F&A activities that CFOs and other senior financial executives would not consider outsourcing; yet, we believe that over the course of the next year or two, smart organizations will change their minds and elect to outsource more of these F&A functions. Why? Three reasons:

Transactional F&A functions — like accounts payable/receivable, leases, order management and tracking, billing/customer invoice, customer credit and expense reporting — are becoming increasingly commoditized, making them ripe for outsourcing.

Today”s worldwide economic realities and competitive business environment are forcing finance departments to operate in a more strategic and “lean” manner.

The challenges of Sarbanes-Oxley compliance — both current and “Year 2″ — make outsourcing of certain F&A processes an extremely sound business decision.

Outsourcing service providers are typically in a better position to meet Sarbanes-Oxley compliance issues than the client company, according to sourcing advisory firm EquaTerra, since outsourcers already have to document workflows and processes. Service providers will not assume fiduciary responsibility, but will be responsible for the processes instituted during an outsourcing transition that enable the company to insert control points for far less cost than if implemented on their own.

Difficult Phases

The largest number of financial executive study participants believes that transition/implementation is the most difficult phase of the F&A outsourcing process. This phase is where the “real work” begins and everything starts being gauged — from the quality of the contract to service level agreements to the true capabilities of the service provider and the relationship between buyer and outsourcer. The next “most difficult” phase, according to respondents, is ongoing operations, followed by negotiation/agreements.

What ONE phase of the F&A outsourcing process do you feel is the most difficult?

% of total

Information Gathering

7%

Strategy Formation

9%

RFP/Provider Selection

3%

Negotiation/Agreements

11%

Transition/Implementation

41%

Ongoing Operations

21%

Exit or Renegotiation

6%

Total Respondents = 97

The transition/implementation stage is of utmost importance because it represents the first real task that the outsourcer is assuming on behalf of the client, so expectations of the client company”s financial executives are extremely high. Change is almost always difficult, but such a huge change — coupled with new processes, cultural issues and new worries about managing a function not in their control, so to speak — is particularly worrisome.

Some financial executives who participated in this study offered the following verbatim responses as to why the F&A outsourcing transition/implementation has been the most difficult phase for them:

Implementing change to internal processes

Cultural issues

Important to get it right and keep it transparent with our customers

Steep industry learning curve, coupled with adverse affect on morale

Risk of noncompliance if implementation is flawed or fails

Change management of our employees and their willingness to assist in the knowledge transfer process

This is the area where it will work or it would not.

Is F&A Outsourcing Working?

Despite some challenges, nearly all financial executives (90 percent) indicated that they are satisfied with their current F&A outsourcing arrangements. In addition, nearly half, or 42 percent, of study participants have every intention of outsourcing additional F&A functions. The executives noted that factors contributing to their satisfaction include: improved handling of the outsourced functions, cost effectiveness and delivery of reliable results.

They also are pleased that they can leverage their in-house staff and take advantage of specialized services from the outsourcer when they cannot afford a narrow expertise. One study participant even stated, “The board applauds the improved reporting,” demonstrating that F&A outsourcings benefits can be appreciated at an organization”s highest levels.

Not all, not surprisingly, are completely satisfied with their outsourcing arrangements. Several study participants indicated that their outsourcers lack industry specific skills. Others noted that their service provider “lacked intuitive knowledge of our company and related operations.”

What Will Make It Work Better?

Nearly half of all study participants said that they might hire an external sourcing advisor (lawyer, consultant, research firm) to assist their company with the F&A outsourcing process, while another 28 percent said they definitely would do so. These third-party advisors assist with the outsourcing lifecycle – from how it may fit into an overall business strategy to choosing a vendor, signing a contract and ultimately managing the deal.

According to an earlier Ross Research study, the “value” that external sourcing advisors bring to the table can be expressed in a number of ways: time and money saved, clarifying objectives, risk mitigation, instilling a methodology to the outsourcing process (including tools and templates) and leveraging experience. As a result, these financial executives must believe that by using an external sourcing advisor, they would get a better overall contract.

Hunton & Williams finds that customers are using more savvy and thoughtful deal processes to make sure that only the right vendors get selected, which ultimately leads to a more satisfying arrangement. “Old-fashioned planning, careful RFP [request for proposal] construction and focus on value become more important than ever in assuring that the deals that get signed actually deliver what they promise,” says Scott Hobby, one of the firms outsourcing attorneys. The firms attorneys often find themselves spending as much time thinking about the strategic elements of a transaction as the legal issues.

How to Ensure Success

Peer-to-peer recommendations about F&A outsourcing can serve as incredibly valuable sources of information. If you are considering outsourcing F&A or just are interested in “lessons learned,” consider the advice given by several participants in our study. We asked them to share with us what they like/do not like about their F&A outsourcing experiences and offer advice as to how prospective buyers should capitalize on this opportunity.

Moving Forward

The drive towards cost cutting and better financial reporting and regulatory compliance will force more chief financial officers than ever before to consider outsourcing finance and accounting (F&A) business functions in 2004 and beyond. Additional motivations include access to better technology and improved service levels. F&A outsourcing increasingly is being used as a tool not only for cost savings but also for business transformation. The industry is still in its early stages; yet, by all analyst accounts, and as shown by participants in this study, F&A outsourcing increasingly will become a more popular business and operational strategy for companies around the world.

Many organizations clearly embrace F&A outsourcing as a strategy for improving service levels, reducing expenses, increasing stakeholder value and gaining a greater competitive stronghold in their marketplaces.

“Our experience is that companies should approach BPO outsourcing like one would approach a marriage.” wrote one FEI respondent — “expensive to enter, more expensive if it ends in a divorce. To date, we are very pleased with our partners performance and look forward to a long relationship.”

Nonetheless, many organizations have yet to acknowledge the inherent value in outsourcing transactional F&A functions to an external service provider.

The word “transactional” is critical here: it would be difficult to find anyone who would advocate outsourcing highly strategic F&A processes. But outsourcing the transactional elements of F&A is not only a sound business decision but also one that should result in success- if researched, defined, contracted for and managed properly. The overall key to success, however, is building a strong, trusting relationship with a competent service provider that has deep process knowledge and is flexible enough to work within your industry”s and company”s constraints and guidelines.

To purchase a copy of the full 28-page research report, go to rossresearch.com

The Research Methodology

Of the 100 executives who filled out the questionnaire, which consisted of multiple choice and open-ended questions, nearly all represent chief and senior financial decision- makers within their organizations. CFOs represent the largest number of participants, and nearly 70 percent of participants hold the responsibility of recommending their company”s decision to outsource F&A functions.

They work for companies ranging from fewer than 1,000 employees to more than 75,000, with the largest number having between 1,000-5,000 employees. A wide range of industries is represented, with a particular concentration in the manufacturing and business services sectors. Among these were: ING U.S. Financial Services, Lillian Vernon Corp., Binney & Smith, Earle M. Jorgensen Co. and Solvay Pharmaceuticals.

Ross Research is the only outsourcing-focused market research and advisory firm in the industry. Since 1999, it has provided the outsourcing vendor community with actionable intelligence to get the most out of their business, marketing and sales initiatives. Ross Research focuses on four distinct topics and has deep expertise in each: Finance & Accounting Outsourcing, Human Resources (HR) Outsourcing, Offshore Outsourcing and Sourcing Advisor Research. It publishes research reports on a monthly basis and provides custom consulting services – such as marketing strategy advisory, competitive intelligence, virtual analyst time, webcasts and on-site sessions – for outsourcing service providers and advisors. Its products and services are available via an annual subscription package or off the shelf.

Clients include: Accenture, Caspian Group, EDS, Extreme Networks, Exult, Fidelity Investments, HROToday Magazine, Hunton & Williams, International Data Corp. (IDC), IT Services & Marketing Association (ITSMA), Kennedy Information, Lexmark, McKesson HBOC, Mellon HR Solutions, Rockwell Automation, Shaw Pittman, Sybase, TPI, Williams Communications and Wipro Technologies.

Survey Sponsors

Exult Inc. is a market leader in HR-led business process outsourcing for Global 500 corporations, with U.S. headquarters in Irvine, Calif., European headquarters in London and client service centers in North America, South America, Europe and Asia. Through its proprietary Exult Service Delivery ModelSM, Exult offers comprehensive, scalable process management solutions designed to manage clients Human Resource and related Finance & Accounting and Procurement functions.

Exult uses its expertise in HR and F&A functions, process management, MultiDeliverySM shared client service centers and its myHRSM Web-enabled applications to help Global 500 corporations improve productivity, reduce costs, streamline processes and provide superior HR services to their employees.

Hunton & Williams LLP is a U.S. law firm, founded in 1901, with a significant international presence. More than 850 attorneys serve clients in 80 countries from 17 offices around the world. The Outsourcing/System Integration Practice Group at Hunton & Williams assists its clients worldwide in executing large-scale BPO and ITO [information technology outsourcing] transactions, ASP [application service provider] arrangements, system integrations and voice and data network procurements.

Over the past 20 years, the group has completed dozens of transactions for the worlds largest utility, consumer products, aerospace, technology, insurance, financial services and other companies. The firm says, “We understand our clients demands for integrated solutions that quickly deliver reduced costs, improved performance and process transformation while maintaining core business operations. We share our experience in achieving these goals at every stage of each new deal, from pre-RFP planning through post-contract relationship management.”