Accounting Question For The Blog | Software Solutions
23/June/10 05:12 PM
Below is a blog question received.
Hello Judy,
My company's Vice President Austin Merritt found your web site while researching an article he just finished. The article talks about why fewer and fewer companies are choosing horizontal (i.e. generic, cross industry) accounting software.
He forwarded me the link to your blog hoping he could get your feedback. Here is the link to the article:
Is Horizontal Accounting Software Dead?
Given your expertise in the accounting realm, I think it would be interesting to read about whether or not you think horizontal accounting software is dead.
Would you mind posting a link or a short write up about his article on your blog?
Chris Thorman
Senior Marketing Manager
Software Advice
www.softwareadvice.com
(512) 364-0118
(800) 918-2764 (toll free)
(360) 838-7866 (fax)
chris@softwareadvice.com
Judy's Response,
I would think most small business will still need to use quickbooks as many business fields really can't afford to have a custom application developed. The construction industry has many quality software applications already developed and this industry has benefited greatly by industry specific adaptations. A business owner really needs to take the time to analyze the cost of the software with the time savings it will create. Companies that build industry specific templates and sell them at a discount to each segment will have a huge advantage as custom applications will be to expensive for many small businesses. If you are considering using a customized software for your industry try to demo the software and really identify time savings and figure out a payback. If you have an employee doing you're bookkeeping at $10.00 per hour and the software can save 5 hours a month for instance it would be a savings of $50 dollars per month or $600.00 per year. With a slow economy these savings are only realized when the employee is actually able to be more productive. Many offices are understaffed and investing in technology is often a way to help the current staff keep their sanity.
Hope this helps. I will answer specific questions about software if emailed.
Hello Judy,
My company's Vice President Austin Merritt found your web site while researching an article he just finished. The article talks about why fewer and fewer companies are choosing horizontal (i.e. generic, cross industry) accounting software.
He forwarded me the link to your blog hoping he could get your feedback. Here is the link to the article:
Is Horizontal Accounting Software Dead?
Given your expertise in the accounting realm, I think it would be interesting to read about whether or not you think horizontal accounting software is dead.
Would you mind posting a link or a short write up about his article on your blog?
Chris Thorman
Senior Marketing Manager
Software Advice
www.softwareadvice.com
(512) 364-0118
(800) 918-2764 (toll free)
(360) 838-7866 (fax)
chris@softwareadvice.com
Judy's Response,
I would think most small business will still need to use quickbooks as many business fields really can't afford to have a custom application developed. The construction industry has many quality software applications already developed and this industry has benefited greatly by industry specific adaptations. A business owner really needs to take the time to analyze the cost of the software with the time savings it will create. Companies that build industry specific templates and sell them at a discount to each segment will have a huge advantage as custom applications will be to expensive for many small businesses. If you are considering using a customized software for your industry try to demo the software and really identify time savings and figure out a payback. If you have an employee doing you're bookkeeping at $10.00 per hour and the software can save 5 hours a month for instance it would be a savings of $50 dollars per month or $600.00 per year. With a slow economy these savings are only realized when the employee is actually able to be more productive. Many offices are understaffed and investing in technology is often a way to help the current staff keep their sanity.
Hope this helps. I will answer specific questions about software if emailed.
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Accounting Tips
17/June/10 11:18 PM
Make sure to look over IRS website and read the FAQ and if you have any additional questions please email Judy Driscoll CPA and the answers will be posted in the blog. Good accounting tips generally are only useful if implemented throughout the year. Keep balanced business books and take the time to make sure you are on track at the end of the week, month, and quarter and your taxes will be a breeze.
Business Mileage Tips
09/June/10 10:53 PM
Business MileageBusiness Mileage needs to be recorded at the end of each day and needs to start after the first appoitment. Detailed logs are necessary incase of an IRS audit. Mileage is reimbursed at $0.55 per mile so a small error can equal large penalties. Many clients in the Tampa area log over 20,000 business miles a year and this tends to be one of the top 5 deductions for Florida businesses. If you have any specific questions about mileage reimbursement please email Judy Driscoll or call a qualified CPA. CPA's are able to assist in making sure your mileage logs are accurate and set up for proper accounting. Remember you can itemize or charge for miles but if you choose to itemize your car expense you can not later switch to miles you must itemize for the life of the automobile.
What is a Small Business
25/May/10 07:11 PM
Below is some information to consider if your small business in Tampa FL is really a small business or just a hobby.
Please remember to email Judy Driscoll CPA any accounting questions so they can be answered in the blog.
In order to make this determination, taxpayers should consider the following factors:
Please remember to email Judy Driscoll CPA any accounting questions so they can be answered in the blog.
In order to make this determination, taxpayers should consider the following factors:
- Does the time and effort put into the activity indicate an intention to make a profit?
- Does the taxpayer depend on income from the activity?
- If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
- Has the taxpayer changed methods of operation to improve profitability?
- Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
- Has the taxpayer made a profit in similar activities in the past?
- Does the activity make a profit in some years?
- Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?
Accounting Gulf Oil Spill
24/May/10 09:36 PM
The Gulf Oil Spill has effected the local Tampa Bay FL economy in more ways
than one including: Less people booking vacations in the coming and future weeks, fear from small business owners from decrease in travel, and damages to the environment. The below article is going to outline ways to keep your small business safe in these tough times.Things to do keep your business a float in the oil spill.
1) Be prepared for a decrease in business from the oil spill. Have workers on notice or try to staff part time help that can be easily told to go home if changes in business occur.
2) Try to build cash reserves to allow for at least a 6 month emergency fund based on your business operating at 50% capacity.
3) Offer discounts if visitors pre-pay to help reduce cancellations.
4) Offer rebates and incentives to encourage clients to book stays in the future with the oil concerns.
5) Be ready if you are not in the tourism business for these effects to trickle down to other industries.
The Florida tourism market is a multi billion dollar business and is the life blood of the Florida economy. If you are in the restaurant business you will be directly effected but if you are in another business you will get effected as the spending slows for other industry's. When managing your cash disbursements and auditing your books please allow for extra reserves.
Banks are not lending like they used to in the Tampa Bay area so make sure you address cash flow concerns at least 6 months before you need them.
Audit Accountant CPA Call Today To Schedule a Free Consultation Judy Driscoll CPA Located at: 250 N. Belcher Road, Suite 100 Clearwater, FL 33765
Office 727-441-6829
Judy Driscoll CPA is an Audit Accountant and CPA in Clearwater FL. Judy Has been helping small business with accounting, bookkeeping, Tax Preparation since 1983. Judy Specializes in Business Audits, 401k Audits, and Financial Statement Reviews.
Wordpress Blog added
23/May/10 02:09 PM
| judydriscollcpa.wordpress.com this will be a good place to post comments and view the blog in wordpress. Please email questions to Judy to be answered in the blog. |
Business Accounting Questions
21/May/10 04:25 PM
Please Email Judy any accounting questions and answers will be posted in the blog.
Useful Tax Tips
for self EmployedSeven Tax Tips |
| 1. |
P & L Profit and Loss Statement
17/May/10 05:44 PM
A
Major groupings should include revenue, cost of sales, gross profit and general / administrative expenses.
I hope this info is helpful.
Financial Planning and Analysis -- Profit and Loss (Income) Statements
These "P and L" statements depict the status of your overall profits. These statements include much money you've earned (your revenue) and subtract how much you've spent (your expenses), resulting in how much you've made money (your profits) or lost money (your deficits). Basically, the statement includes total sales minus total expenses. It presents the nature of your overall profit and loss over a period of time. Therefore, the Income Statement gives you a sense for how well the business is operating.
Income statement, also referred as profit and loss statement (P&L), earnings statement, operating statement or statement of operations,
P&L statement
can be set up for monthly and year to date reporting.Major groupings should include revenue, cost of sales, gross profit and general / administrative expenses.
I hope this info is helpful.
Financial Planning and Analysis -- Profit and Loss (Income) Statements
These "P and L" statements depict the status of your overall profits. These statements include much money you've earned (your revenue) and subtract how much you've spent (your expenses), resulting in how much you've made money (your profits) or lost money (your deficits). Basically, the statement includes total sales minus total expenses. It presents the nature of your overall profit and loss over a period of time. Therefore, the Income Statement gives you a sense for how well the business is operating.
Income statement, also referred as profit and loss statement (P&L), earnings statement, operating statement or statement of operations,
Finding A Good Accountant in Pinellas
15/May/10 06:07 PM
How to Find a Good Accountant in Pinellas County
Corporate Tax Return
10/May/10 04:12 PM
Corporate Tax Return
Please look at Judy Driscoll's qualifications to consider her for corporate Tax work. Corporate tax work is Judy Driscoll's Speciality and she offers a free consultation.
Please look at Judy Driscoll's qualifications to consider her for corporate Tax work. Corporate tax work is Judy Driscoll's Speciality and she offers a free consultation.
Financial Statement Review
09/May/10 12:27 PM
Please click here to read about Financial Statement Review in Clearwater FL
Financial Statement Reviews are critical to a business and it is important to find the right accountant for your business needs. If your business is faced with tough accounting needs please take advantage of sitting down and talking with Judy Driscoll CPA.
Financial Statement Reviews are critical to a business and it is important to find the right accountant for your business needs. If your business is faced with tough accounting needs please take advantage of sitting down and talking with Judy Driscoll CPA.
Accountanting tips for new business
08/May/10 05:24 PM
I noticed this article on Yahoo and thought it would offer some good insight to starting a new business. If you are thinking of starting a new business it is very important to consider how long it will take to start earning money. Many new businesses do not make money the first year and if a business plans on aggressive growth it can take longer. Please take the time to know what you are getting into before you do it. Taking risks can be rewarding but nothing is worse than taking the risk and having it work better than expected but run out of money. In large companies cash should be obtained at least six months before its needed. In a startup I would recommended to always be looking for credit lines.Read More CPA & Accountant...
IRS Business Expenses
07/May/10 08:17 AM
IRS business expense info
Business Expenses
Read More CPA & Accountant...
Business Expenses
| Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. |
Oil Slick
06/May/10 03:44 PM
Oil Slick and accounting.
I know many Tampa Bay Business are wondering how the oil problem in the bay is going to effect the tourism in Clearwater FL. It is crucial for business to be prepared and have strategies to deal with cash flow shortages. Hurricanes and Oil spills can have a serious effect on tourism and business need to be ready to act. Setting up lines of credit with banks and always having an 8 month emergency fund available is key to surviving cash flow shortages. When doing your budgets always be prepared for a an issue that could effect tourism as Clearwater FL and Tampa Bay depend on this industry.
I know many Tampa Bay Business are wondering how the oil problem in the bay is going to effect the tourism in Clearwater FL. It is crucial for business to be prepared and have strategies to deal with cash flow shortages. Hurricanes and Oil spills can have a serious effect on tourism and business need to be ready to act. Setting up lines of credit with banks and always having an 8 month emergency fund available is key to surviving cash flow shortages. When doing your budgets always be prepared for a an issue that could effect tourism as Clearwater FL and Tampa Bay depend on this industry.
Accountants in Clearwater FL
06/May/10 03:35 PM
I did a search today and found over 198 accountants in Clearwater FLRead More CPA & Accountant...
what is operation leverage
05/May/10 10:15 PM
Operating Leverage
What Does Operating Leverage Mean?
A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs.
1. A business that makes few sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makes many sales, with each sale contributing a very slight margin, is said to be less leveraged. As the volume of sales in a business increases, each new sale contributes less to fixed costs and more to profitability.
2. A business that has a higher proportion of fixed costs and a lower proportion of variable costs is said to have used more operating leverage. Those businesses with lower fixed costs and higher variable costs are said to employ less operating leverage.
Investopedia explains Operating Leverage
The higher the degree of operating leverage, the greater the potential danger from forecasting risk. That is, if a relatively small error is made in forecasting sales, it can be magnified into large errors in cash flow projections. The opposite is true for businesses that are less leveraged. A business that sells millions of products a year, with each contributing slightly to paying for fixed costs, is not as dependent on each individual sale.
What Does Operating Leverage Mean?
A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs.
1. A business that makes few sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makes many sales, with each sale contributing a very slight margin, is said to be less leveraged. As the volume of sales in a business increases, each new sale contributes less to fixed costs and more to profitability.
2. A business that has a higher proportion of fixed costs and a lower proportion of variable costs is said to have used more operating leverage. Those businesses with lower fixed costs and higher variable costs are said to employ less operating leverage.
Investopedia explains Operating Leverage
The higher the degree of operating leverage, the greater the potential danger from forecasting risk. That is, if a relatively small error is made in forecasting sales, it can be magnified into large errors in cash flow projections. The opposite is true for businesses that are less leveraged. A business that sells millions of products a year, with each contributing slightly to paying for fixed costs, is not as dependent on each individual sale.