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How do you improve accounts payable in your business?

With years of experience and analysis, our experts have come up with some of the best practices which you must follow during accounts payable to ensure the best operations.

Track invoices: Ensure to manage and store vendor and supplier details in one place including other details for payment terms, credit period and more. You can manage the master vendor file.

Payment reminders: Don’t make a mistake to miss another due payment date. Keep reminders, schedules or online reminders to make you aware of upcoming priority payments.

Streamline payment process: Work to streamline and simplify the payment process, and make it easy to pay the vendors via their payment channels. Identify and keep track of such channels to eliminate lengthy processes.

Summary generation: Create and maintain summaries and reports to see outstanding amounts, paid amounts, upcoming amounts for various vendors and more. It allows the forming of further payment strategies.

Simple reconciliation: The reconciliation process is very important and must be followed to ensure your bank records match with your payments to look for discrepancies or issues.

Leverage technology: The use of technology is very essential as it leads to automation and reduces the time taken for efficiency and it can easily adapt to vendor platforms for automated payment and eliminate late payment charges.

You can use accounting software, AI and other unified online payment channels, etc.

Supplier relationship: Maintaining strong relationships allows one to easily resolve conflicts, extend credit period when needed, and have low-rate resources, etc.

These are some of the important practices which your business should ensure for effective, accurate and efficient accounts payable management.

Accounts payable is very essential for your operations to keep going, and thus knowing core concepts and using best practices for AP ensures strong relationships, savings and organisational growth with competitive advantages.

Does this all seem like a headache to you? Don’t worry at IntQBooks; our accounts payable recording services offer all of these. We leverage technology with experienced bookkeepers to ensure the best accounts payable management.

Get reports for your business’s financial health clear recording for every transaction, and proper access. Contact us today; and schedule a free meeting today to know how exactly we can help you.

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How does the accounts payable process work?

To understand the accounts payable and its importance, one must know how AP works and how it is recorded, categorised and settled. The process is explained with one simple example.

Receiving goods and services: Upon ordering for cotton (for textile), the suppliers and vendors send the required goods and services to your organisation.

Review the invoice and its processing in the system: The supplier sends the invoice for the cotton with details for rate, quantity, amount, payable amount, due date, credit period, and payment terms such as early payment discounts, late payment charges and more.

Approve invoice: By matching the invoice with the purchase order and the received goods, the invoices are sent to accounts for approval and initiating its payment process. Various departments that received the goods, including inventory, warehouse, and purchase manager approve the same.

Transaction recording: Assume the credit period to be 30 days; the amount for the cotton on credit is recorded in accounts payable in the accounting system.

Process payments: Payments on any outstanding accounts are done at this stage considering the priority of early payment discounts, late pay interest or charges and the need for further orders, etc. Upon payment, the cotton amount is deducted from the accounts payable entry.

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What does accounts payable mean?

What is accounts payable is the major question most of the people have, and the simple answer to this is that, it is the current liability which occurs when you purchase goods from the suppliers, but the payment is whole or partially pending.

The outstanding amount or the amount for which the goods are been credited is been recorded under account payable in the journal entry during bookkeeping.

After payments are done, the deducted amount from AP is been added to other expenses for sales, purchase or other expenses based on nature of transactions.

In short; accounts payable (AP) is the amount which is pending to be paid, and it is temporarily recorded in accounts payable until it is paid and deducted to be added in relevant other entries.

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What are the different types of audits?

There are various audits are found for various reasons, and some of them include;

Internal: The organisation creates an audit team from various teams across the business to review and evaluate internal controls. It is used to improve the system.

Tax audit: Tax audits are conducted by organisations and governments to check for tax return information and its accuracy. It is done to check whether the records match with the amount filed for tax return, and audit tax and advisory services are provided.

Compliance audit: Compliance audits are done further to ensure compliance of organisational policies and procedures with local laws and industrial standards.

Financial audit: Such audits are conducted to ensure that the information recorded in bookkeeping held in financial accounts reveals the true nature of the business.

Customised audit needs: Organisations such as IntQBooks provide customised audits based on unique organisational needs, and help to evaluate various strategic and vision efforts.

There are many more, contact us to know them all, and implement them in your business.

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What do auditing and assurance services mean?

Both audit and assurance services are used interchangeably and are used to enhance client trust and ensure proper compliance to avoid future fines.

The terms software great importance for a business to secure financial support and client trust.

It is important to consider that; both terms carry different meanings. Audit is the common phrase which means examination and evaluation of organisational transactions, operations, procedures and controls by an independent authority (Auditor) which leads to fairness of the business.

Auditors follow generally accepted auditing standards (GAAS) to examine the organisational records and reports.

Assurance on the other hand is the set of services which includes auditing as a part of it. Assurance services ensures data reliability.

It further includes reviews, agreed procedures and tailored processes that match with standards for better decision-making.

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Who are We at Global Level - About Us | IntQbooks Solutions

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Interpreting Balance Sheet Ratios: A Comprehensive Overview

Delving into the intricate terrain of financial analysis, the endeavor to understand a company’s financial health surpasses a cursory examination of the balance sheet. It beckons us to plunge deeper into the abyss of financial intricacies by exploring the nuanced world of balance sheet ratios. This comprehensive overview transcends conventional boundaries, unveiling the profound significance embedded within key ratios derived from the balance sheet. These ratios are not mere numbers; they are the heartbeat of financial interpretation, pulsating with insights into a company’s performance, stability, and overall fiscal vitality. Beyond the numerical surface, this exploration aims to illuminate the interpretative dance of these ratios, shedding light on their nuanced meanings and strategic implications. As stakeholders navigate through this comprehensive guide, the goal is not only to decipher the ratios but to cultivate a discerning perspective, enabling them to extract valuable insights that transcend the numerical realm, offering a panoramic view of a company’s financial narrative.

DECODING BALANCE SHEET RATIOS

Deciphering Balance Sheet Ratios is pivotal for a comprehensive financial analysis, offering valuable insights into a company’s operational efficiency, liquidity, leverage, and profitability. Let’s delve deeper into the nuances of each ratio:

1. Current Ratio: Assessing Short-Term Liquidity

Calculated as the ratio of Current Assets to Current Liabilities, the Current Ratio provides a quick assessment of a company’s ability to meet short-term obligations. Ratios above 1 indicate a healthy liquidity position, signaling the capability to cover immediate financial commitments. However, excessively high ratios may suggest that assets are underutilized, prompting further investigation into asset management strategies.

2. Quick Ratio: Measuring Immediate Liquidity

Derived by subtracting Inventory from Current Assets and then dividing by Current Liabilities, the Quick Ratio offers a more stringent measure of liquidity. It excludes inventory to focus on assets readily convertible to cash. A higher Quick Ratio implies stronger immediate liquidity, indicating the company’s ability to meet obligations promptly.

3. Debt-to-Equity Ratio: Gauging Financial Leverage

The Debt-to-Equity Ratio, obtained by dividing Total Debt by Equity Held by Shareholders, serves as a critical indicator of financial leverage. A higher ratio suggests increased financial risk, emphasizing the need to evaluate a company’s debt management practices and risk tolerance.

4. Return on Assets (ROA): Evaluating Asset Efficiency

Calculated as Net Income divided by Average Total Assets, ROA gauges how effectively a company utilizes its assets to generate profit. A higher ROA signifies efficient asset utilization, highlighting the company’s ability to generate profit relative to its asset base.

5. Return on Equity (ROE): Assessing Profitability for Shareholders

ROE, computed by dividing Net Income by Shareholders’ Equity, measures the return generated for shareholders. A higher ROE reflects efficient use of equity capital, indicating the company’s ability to generate profits for its shareholders.

6. Asset Turnover Ratio: Analyzing Asset Efficiency

The Asset Turnover Ratio, obtained by dividing Revenue by Average Total Assets, assesses how well a company generates revenue from its assets. An increased ratio signifies superior asset efficiency, indicating the company’s effectiveness in generating revenue with its existing asset base.

7. Gearing Ratio: Understanding Financial Structure

The Gearing Ratio, calculated as a percentage of Long-Term Debt to the sum of Long-Term Debt and Shareholders’ Equity, unveils the proportion of a company’s capital structure financed by debt. A higher Gearing Ratio suggests increased financial risk, prompting a closer examination of the company’s financial structure and risk management strategies.

Leveraging these ratios for Informed Decision-Making is crucial for stakeholders:

1. Risk Assessment:

Ratios such as debt-to-equity and gearing ratios serve as pivotal tools for assessing a company’s financial risk. Higher ratios indicate a greater reliance on debt, subsequently elevating overall risk.

2. Operational Efficiency:

Asset turnover and ROA ratios offer crucial insights into how efficiently a company utilizes its assets to generate revenue and profit. These metrics are indispensable for evaluating operational efficiency and resource utilization.

3. Investment Decision-Making:

ROE and return ratios play a pivotal role in assisting investors in evaluating the return generated for shareholders and the overall profitability of the company. These metrics are vital considerations for making well-informed investment decisions.

You can contact us by

Phone: +1 (315) 557-6525

Email: at info@intqbooks.com

Website: INTQBOOKS SOLUTIONS: YOUR GATEWAY TO EFFICIENT BUSINESS OPERATIONS

Visit us: 701 Market Street, Suite 110 PMB1424 Saint Louis, MO 63101, United States.

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Understanding Debits And Credits: A Comprehensive Guide To Financial Precision

In the intricate tapestry of accounting, where precision serves as the bedrock of organizational vitality, the fundamental concepts of debits and credits emerge as the indispensable keystones supporting the robust structure of the double-entry system. These concepts are not mere abstract notions; rather, they constitute a dynamic and structured language, providing a systematic and organized approach to the meticulous recording of financial transactions. This comprehensive guide aims to delve beyond the surface, unraveling the often-confusing world of debits and credits. Through a lens of clarity, it seeks to demystify these accounting keystones, unraveling their nuanced meanings, exploring their practical applications, and illuminating their profound impact on the overall financial tableau. As we embark on this journey, the goal is not just to comprehend the mechanics but to gain a holistic understanding, empowering individuals to wield the power of debits and credits with confidence. This understanding ultimately contributes to a more accurate and informed financial narrative.

DEMYSTIFYING DEBITS AND CREDITS

Definition of Debits and Credits:

In accounting, debits and credits are notations used to record changes in accounts. Certain account types are increased by a debit, while others are increased by a credit. Understanding which accounts are affected is crucial for accurate financial recording.

Debits:

Assets: Debit increases the value of assets. For example, the cash account is debited when cash is received.

Expenses: Debit increases expenses. When a company incurs a cost, the corresponding expense account is debited.

Credits:

Liabilities: Credit increases the value of liabilities. For instance, when a company takes on a loan, the liability account is credited.

Revenue and Equity: Credit increases revenue and equity. The revenue account is credited upon the completion of a sale.

Double-Entry System:

At least two accounts are involved in every transaction; one is credited and the other is debited. By doing this, the accounting formula—Assets = Liabilities + Equity—is kept in balance.

Effect on Financial Statements:

Debits and credits impact financial statements differently. Debits increase assets and expenses on the income statement, while credits increase liabilities, revenue, and equity.

Practical Application

Transaction Examples:

Cash Sale: Debit Cash (asset), Credit Revenue (equity).

Loan Repayment: Debit Liability (loan), Credit Cash (asset).

Accounting Equation in Action:

If a company purchases equipment with cash:

Debit Equipment (asset) for the cost of the equipment.

Credit Cash (asset) for the amount paid.

Trial Balance:

The trial balance is a tool used to ensure that total debits equal total credits in the accounting system. It is a snapshot that aids in detecting errors and maintaining accuracy.

Impact on Financial Analysis:

Understanding debits and credits is vital for financial analysis. It allows stakeholders to assess the financial health of a company and make informed decisions.

You can contact us by

Phone: +1 (315) 557-6525

Email: at info@intqbooks.com

Website: INTQBOOKS SOLUTIONS: YOUR GATEWAY TO EFFICIENT BUSINESS OPERATIONS

Visit us: 701 Market Street, Suite 110 PMB1424 Saint Louis, MO 63101, United States.

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Introduction To Financial Accounting: Principles And Concepts

In the grand tapestry of corporate operations, financial accounting stands tall as the bedrock, an unyielding foundation that not only shoulders the weight of record-keeping and reporting but also orchestrates a harmonious symphony of fiscal intricacies. It transcends its utilitarian role, metamorphosing into a meticulous curator, fashioning a structured framework that not only captures the pulsating lifeblood of financial data but also distills it with an artistry that communicates the narrative of a company’s economic health. This narrative, far from being an internal affair, unfurls itself as a luminous guide, casting its glow on a diverse audience—perceptive investors seeking insight, discerning creditors evaluating risk, and regulatory entities ensuring compliance. In this introductory odyssey, we embark on a deliberate exploration into the foundational principles and bedrock concepts that breathe vitality into financial accounting, unraveling its profound influence on the intricate labyrinth of the business world.

Understanding Financial Accounting

1. Purpose:

Financial accounting aims to provide accurate and timely information about a company’s financial performance and position. This information is essential for decision-making, investment analysis, and ensuring accountability.

2. Principles:

Financial accounting is guided by a set of principles known as the Generally Accepted Accounting Principles (GAAP). These principles ensure consistency, comparability, and reliability in financial reporting across different organizations.

3. Accrual Basis vs. Cash Basis:

Financial accounting follows the accrual basis of accounting, where transactions are recorded when they occur, not when the cash is exchanged. This method provides a more accurate depiction of a company’s financial reality over time.

4. Double-Entry System:

The foundation of financial accounting lies in the double-entry system. Every transaction affects at least two accounts, with debits and credits ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.

5. Financial Statements:

Key financial statements generated through financial accounting include the Income Statement, Balance Sheet, and Cash Flow Statement. These reports offer a comprehensive view of a company’s performance, financial position, and cash flows.

Core Concepts in Financial Accounting

1. Entity Concept:

The entity concept asserts that a business is a separate economic entity from its owners. This principle ensures that personal and business finances are distinct, providing clarity in financial reporting.

2. Going Concern Concept:

The going concern idea expects that a business will keep on working endlessly. This allows financial statements to reflect long-term plans and investments, contributing to a more accurate portrayal of the company’s financial health.

3. Historical Cost Concept:

Financial accounting often values assets at their historical cost, representing the original amount paid for them. While market values may change, historical cost provides a reliable and verifiable basis for financial reporting.

4. Consistency Concept:

Consistency in financial reporting is crucial. Companies should apply the same methods and principles consistently over time, allowing stakeholders to compare financial information across different periods.

5. Materiality Concept:

Materiality focuses on the significance of an item or event in financial statements. If an item’s omission or misstatement could influence decision-making, it is considered material and must be accurately reported.

You can contact us by

Phone: +1 (315) 557-6525

Email: at info@intqbooks.com

Website: INTQBOOKS SOLUTIONS: YOUR GATEWAY TO EFFICIENT BUSINESS OPERATIONS

Visit us: 701 Market Street, Suite 110 PMB1424 Saint Louis, MO 63101, United States.

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The Importance of Continuous Professional Education for Accountants

The world of accounting is in a perpetual state of evolution. As financial regulations change, technologies advance, and business landscapes shift, accountants must adapt to these dynamic conditions. Continuous professional education for accountants is not just a recommendation; it’s a necessity. This article delves into the critical importance of ongoing learning and development for accountants, emphasizing the benefits of staying informed, relevant, and effective in their roles. The accounting profession is multifaceted, requiring professionals to navigate a complex web of regulations, tax codes, financial standards, and technological innovations. Continuous professional education is vital to keep accountants at the top of their game and ensure they remain competent and capable in an ever-changing environment. In this rapidly changing field, learning never truly ends, and embracing this mindset is essential for success. Whether you’re a seasoned accountant or just starting in the field, continuous professional education is a fundamental part of career growth.

Staying Informed About Regulations

1. Evolving Tax Laws

Tax laws are constantly changing at the local, state, and federal levels. Continuous education helps accountants remain informed about these changes, allowing them to provide accurate tax advice and ensure compliance for their clients.

2. Financial Reporting Standards

Accounting standards, such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), are updated regularly. Staying educated in this regard ensures that accountants can prepare financial statements in compliance with the latest standards.

3. Ethical Practices

Proficient morals are at the center of the bookkeeping calling. Continuous professional education reinforces ethical principles, maintaining the integrity of the profession and the trust of clients.

4. Regulatory Compliance

Accountants must adhere to various regulations, such as the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. Continuous education helps accountants understand and comply with these regulations.

Embracing Technological Advancements

1. Accounting Software

The accounting landscape is being reshaped by accounting software and cloud-based solutions. Continuous education ensures accountants can effectively use these tools to streamline processes and enhance productivity.

2. Data Analytics

The ability to analyze large volumes of financial data is increasingly important. Continuous education equips accountants with data analytics skills, enabling them to extract valuable insights from financial information.

3. Cybersecurity

As financial data becomes more digital, the importance of cybersecurity grows. Continuous education helps accountants understand and implement cybersecurity measures to protect sensitive financial information.

4. Automation and AI

The automation of routine tasks and the emergence of artificial intelligence (AI) are transforming accounting. Continuous learning allows accountants to adapt to these changes and focus on higher-level strategic tasks.

You can contact us by

Phone: +1 (315) 557-6525

Email: at info@intqbooks.com

Website: INTQBOOKS SOLUTIONS: YOUR GATEWAY TO EFFICIENT BUSINESS OPERATIONS

Visit us: 701 Market Street, Suite 110 PMB1424 Saint Louis, MO 63101, United States.

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A Glimpse Into The Future: Blockchain’s Impact On Accounting

Blockchain technology, initially known for its association with cryptocurrencies, is making inroads into the field of accounting, promising to reshape the way financial records are managed. In an era marked by the need for enhanced transparency, security, and efficiency, blockchain offers a glimpse into the future of accounting. This article explores the potential impact of blockchain technology on accounting, providing insights into how it can transform the profession, streamline processes, and provide greater confidence in financial data. In recent years, the accounting industry has witnessed a surge in interest in blockchain technology. Initially developed to underpin cryptocurrencies like Bitcoin, blockchain’s inherent features, such as decentralized ledgers and immutable records, hold immense potential for addressing long-standing challenges in accounting. This technology offers the possibility of not only automating certain processes but also fundamentally altering the way financial transactions and records are verified, stored, and accessed.

Transparency And Immutable Records

1. Immutable Ledger

One of blockchain’s core features is its immutable ledger, where once data is recorded, it cannot be altered. This feature ensures the integrity of financial records, making them resistant to tampering or fraud. Every transaction is time-stamped and securely added to the blockchain, creating a transparent and tamper-proof audit trail. For accountants, this means greater confidence in the accuracy of financial data.

2. Real-time Verification

Blockchain enables real-time verification of financial transactions. This immediate transparency allows for faster identification of discrepancies and errors, reducing the time required for reconciliations and audits. Accountants can access accurate financial data without the delays associated with traditional accounting processes.

3. Smart Contracts

Blockchain upholds savvy contracts, self-executing concurrences with the particulars of the agreement straightforwardly composed into code. Smart contracts automate financial transactions when predetermined conditions are met. This can streamline processes like invoicing and payments, freeing accountants from routine tasks and reducing the risk of human error.

4. Enhanced Trust

Blockchain’s transparency and immutability foster trust in financial transactions. Businesses, investors, and regulators can all benefit from this increased trust, knowing that financial records are secure and reliable. Accountants can provide clients with a higher level of assurance and transparency, strengthening client relationships.

5. Simplified Auditing

Blockchain simplifies the auditing process by providing a comprehensive and real-time view of financial transactions. Auditors can access a secure and complete ledger, making audits more efficient and effective. The reduced complexity of auditing leads to cost savings for businesses and clients.

Security and Data Protection

1. Encryption

Blockchain employs advanced encryption techniques to secure data. This robust security protects financial information from unauthorized access and cyberattacks. For accountants, this means improved data protection and reduced risks of data breaches.

2. Decentralization

Blockchain operates on a decentralized network, eliminating the need for a central authority to manage financial records. This decentralization reduces the risk of a single point of failure or manipulation, enhancing the security and reliability of financial data.

3. Access Control

Blockchain allows for fine-grained access control, ensuring that only authorized parties can view or modify specific records. This access control provides greater data security and privacy for sensitive financial information.

4. Data Verification

Every transaction on the blockchain is verified through consensus mechanisms, making it nearly impossible to introduce false data. This verification process enhances the accuracy and security of financial records, reducing the potential for fraudulent entries.

5. Data Recovery

Blockchain offers built-in data recovery mechanisms, ensuring that financial records are protected from loss or damage. In the event of a disaster, accountants can rely on blockchain’s data recovery features to prevent data loss. The security measures inherent in blockchain technology not only safeguard financial data but also provide accountants and businesses with a robust defense against data breaches, fraud, and unauthorized access.

Efficiency and Cost Reduction

1. Faster Transactions

Blockchain facilitates faster financial transactions, reducing the time it takes for payments to clear and funds to be transferred. This speed can significantly improve cash flow management for businesses.

2. Reduced Intermediaries

Blockchain’s decentralized nature eliminates the need for intermediaries in financial transactions. This reduction in intermediaries streamlines processes and minimizes associated fees.

3. Automation

Smart contracts automate various financial processes, from payments to record-keeping. Automation reduces the need for manual intervention, increasing efficiency and reducing operational costs.

4. Reduced Errors

Blockchain’s immutable ledger reduces the risk of errors and discrepancies in financial records. This accuracy minimizes the time and effort required for reconciliations and corrections.

5. Cost Savings

The increased efficiency and reduced operational costs associated with blockchain ultimately lead to cost savings for both businesses and accountants. These savings can be reinvested in growth or passed on to clients.

The future of accounting will likely see a shift from manual record-keeping and auditing to automated, secure, and transparent processes driven by blockchain technology. Accountants stand to benefit from reduced workloads on routine tasks, allowing them to focus on data analysis, financial strategy, and providing higher-value advisory services.

You can contact us by

Phone: +1 (315) 557-6525

Email: at info@intqbooks.com

Website: INTQBOOKS SOLUTIONS: YOUR GATEWAY TO EFFICIENT BUSINESS OPERATIONS

Visit us: 701 Market Street, Suite 110 PMB1424 Saint Louis, MO 63101, United States.

[intqbooks]

Audits and Assurance Services for Your Business

What do auditing and assurance services mean?

Both audit and assurance services are used interchangeably and are used to enhance client trust and ensure proper compliance to avoid future fines.

The terms software great importance for a business to secure financial support and client trust.

It is important to consider that; both terms carry different meanings. Audit is the common phrase which means examination and evaluation of organisational transactions, operations, procedures and controls by an independent authority (Auditor) which leads to fairness of the business.

Auditors follow generally accepted auditing standards (GAAS) to examine the organisational records and reports.

Assurance on the other hand is the set of services which includes auditing as a part of it. Assurance services ensures data reliability.

It further includes reviews, agreed procedures and tailored processes that match with standards for better decision-making.

What is an audit?

It is a comparison process where an external auditor compares the financial statements with the organisational status and performance to check whether the organisation correctly represents itself or not.

Areas such as operations, cash flows, financial positions and more are analysed.

The primary reason for the audit is to create trust among clients and investors for business and investment; respectively.

Types of audit

There are various audits are found for various reasons, and some of them include;

Internal: The organisation creates an audit team from various teams across the business to review and evaluate internal controls. It is used to improve the system.

Tax audit: Tax audits are conducted by organisations and governments to check for tax return information and its accuracy. It is done to check whether the records match with the amount filed for tax return, and audit tax and advisory services are provided.

Compliance audit: Compliance audits are done further to ensure compliance of organisational policies and procedures with local laws and industrial standards.

Financial audit: Such audits are conducted to ensure that the information recorded in bookkeeping held in financial accounts reveals the true nature of the business.

Customised audit needs: Organisations such as IntQBooks provide customised audits based on unique organisational needs, and help to evaluate various strategic and vision efforts.

There are many more, contact us to know them all, and implement them in your business.

What are assurance services?

Assurance services are more of the accuracy check, and they analyses procedures and policies in additions to transactions analyses the reliability and credibility.

Assurance can focus on the analysis of procedures for the development of financial statements, or it can perform specific procedures and checks to see whether everything goes well as desired and recommend changes. Know More

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10 Types Of Accounting Services Small Business Needs

Having and operating your own business is so exciting, isn’t it? These small businesses have complex financial needs with the rise in global market competition and the rise of SMEs in all industries.

A new business lacks the experience to know what local laws and standards govern the industry, what report formats, what way to file taxes, management of tax and tax planning, headaches for payroll management and more.

So, in this blog, we have come up with 10 fundamental services which all small businesses must have to focus on their core operations to grow.

Grow competitively with rivals and medium enterprises by leveraging the types of accounting services. Below is the list of the 10 most important services which your business must have.

Bookkeeping

Bookkeeping is the most basic and essential part of effective operations, it keeps track of all your business transactions including your purchases, sales, credit, transfers, pending payments, loans, payroll and day-to-day small transactions.

One of the major benefits of seeking professional help in bookkeeping is that the experts know what transactions to categorise in which journal entry and how to add them to the ledger thus excellent accountants in small business for excellent management.

It saves time and cost for the employees and the least monitoring needs to be done while ensuring compliance with legal standards it is effective for tax planning and decision-making for financial health.

Business advisory

Though you may be a professional or expert in handling business as an owner, but the best suggestion is possible by the one who overlooks your business operations.

Professionals leverage years of experience to gain insight and recommend the best and proven strategies and advice for you to grow.

As a beginner get advice on what successful organisations do at technical and granular levels.

Accounts Receivable and payable

Business can be a cash-on business, and credit is required when receiving and paying bills, and the task becomes complicated when such pending bills from numerous suppliers and clients are there.

Managing such a task is difficult, especially when you have a new start-up and have lots of other important things to focus on thus leveraging accounts payable and receivable can help you a lot while avoiding errors and thus huge losses.

The earned amount which is not received yet comes under account receivable while the amount which is not been paid yet for goods purchased and services used comes under accounts payable.

Since paying amounts on time leads to good relations and support in establishing brand image, and receiving income on time leads to proper cash flow and thus managing these both is important, and professionals do it your way.

Payroll processing

Whether it is a start-up or a new business, employees are needed, and the employees need salaries. But managing salary and related benefits, tax deductions, management of leaves, compensation, and more is again complex.

Small businesses can leave it to professionals to calculate salaries and pay them on time considering; benefits, leaves and local laws. Timely payment leads to happy employees; it’s worth it. Know More

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Accounts Payable: Understand the Basic Fundamentals

In the business, the flow of funds in and out of the organisation is very essential as it provides enough money for the organisation to operate effectively. Accounts payable and receivable are like blood flow for the organisation.

When any amount which is still pending to be paid after receiving related products or services, then this amount is categorised as accounts payable, and is entered in the same journal entry.

Proper management of accounts payable improves organisational image, and strong supplier relationships, supports to enjoy trade and credit discounts upon payment and increases business credibility in the market.

This blog will make you understand the reasons and concepts behind accounts payable, and why it is equally important to pay your bills on time.

What does accounts payable mean?

What is accounts payable is the major question most of the people have, and the simple answer to this is that, it is the current liability which occurs when you purchase goods from the suppliers, but the payment is whole or partially pending.

The outstanding amount or the amount for which the goods are been credited is been recorded under account payable in the journal entry during bookkeeping.

After payments are done, the deducted amount from AP is been added to other expenses for sales, purchase or other expenses based on nature of transactions.

In short; accounts payable (AP) is the amount which is pending to be paid, and it is temporarily recorded in accounts payable until it is paid and deducted to be added in relevant other entries.

How accounts payable works

To understand the accounts payable and its importance, one must know how AP works and how it is recorded, categorised and settled. The process is explained with one simple example.

Receiving goods and services: Upon ordering for cotton (for textile), the suppliers and vendors send the required goods and services to your organisation.

Review the invoice and its processing in the system: The supplier sends the invoice for the cotton with details for rate, quantity, amount, payable amount, due date, credit period, and payment terms such as early payment discounts, late payment charges and more.

Approve invoice: By matching the invoice with the purchase order and the received goods, the invoices are sent to accounts for approval and initiating its payment process. Various departments that received the goods, including inventory, warehouse, and purchase manager approve the same.

Transaction recording: Assume the credit period to be 30 days; the amount for the cotton on credit is recorded in accounts payable in the accounting system.

Process payments: Payments on any outstanding accounts are done at this stage considering the priority of early payment discounts, late pay interest or charges and the need for further orders, etc. Upon payment, the cotton amount is deducted from the accounts payable entry. Know More

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Bookkeeping for Beginners: 6 Basic Concepts to Get You Started

Business owners know why it is important to have records of all small and big transactions and why having clear knowledge of such transactions for their formats, way of recording, its impact on accounts and more. It is essential to know bookkeeping and its principles to ensure record transparency for business growth.

Don’t get confused for debits, credits, double entry and more. We have come up with this unique and easy-to-digest guide to help you understand bookkeeping and have bookkeeping tips for beginners.

Clear concepts and principles make it easy to adapt bookkeeping as per your needs and ensure transparency in your business.

The accounting equation

This is the most basic concept you need to understand as the business works in a manner to balance the two sides’ income and expense to ensure records are maintained for all transactions that occurred during the given financial year.

A clear accounting equation lets you know and understand what to record and what to categorise as debit, credit and other entries in a journal to have a proper balance sheet. It makes the bookkeeping easy.

Assets =Liabilities+Ownerr’s equity Machine, equipment, money=Bills, salary, credit+Owner’s investment in business

Always remember that, in any case, both sides of the equation try to balance each other, and the balanced equation after recording transactions in the bookkeeping ensures that transactions are recorded as they occurred.

Example: Purchasing machinery for a factory via a bank loan raises the asset and liability, and thus the owner’s equity decreases to maintain the equation.

The same can be understood as the rise in the debt and interest via loan reduces the leftover profit amount known as owner’s equity to balance the equation.

Chart of accounts

The chart of accounts is even essential for beginner small business basic bookkeeping because it includes the set of accounts or categories in which the majority of business transactions and financial activities and transactions are recorded.

Imagining yourself to purchase goods from vendors, purchasing loans, and selling goods on credit and vice versa, making investments, savings, bonds and more. In bookkeeping, all of these need to be recorded, and the chart of accounts shows the headings in which all of these transactions and activities are recorded.Know More