Questions and Answers About Starting an Accounting Career

An accountant plays a very important role in the functioning and efficiency of a corporation. They provide a number of vital business services to clients including the management of financial matters, auditing, and handling tax issues. However, the specific duties performed in an accounting career will differ depending on what field the practitioner works in, be it public accounting, management accounting, government accounting, or internal auditing.

Accountants will generally use computers and special accounting programs to assist them in their duties. Accountants can summarize and organize data in particular formats to make them more suitable for storage or analysis. The programs also remove a lot of the tedious manual work of accounting out of the job. For this reason, accountants will generally have a very high level of competence with computers and many employers will require them to be proficient in these programs to help keep their work accurate.

The environment in which an accountant works will generally vary depending on what field of accounting he/she is in as well as what type of company or organization he/she works for. The vast majority of accountants work in an office setting, often with many other coworkers and colleagues; although, some accountants are self-employed and may be able to work part of their job at home as well. Most accountants work a standard 40-hour week; though, there are exceptions especially in the case of tax specialists and self-employed accountants who may work longer hours during certain times of the year.

Public accounting firms often send their accountants to their clients' place of work or residence to perform audits. In this scenario, there can also be a lot of traveling involved. Accountants who travel often will most likely use a laptop to allow for the increased mobility of their accounting programs, data, and other information needed on the job.

Accountants, regardless of their chosen field, require a proficiency in mathematics as well as business. Many accountants are unlicensed, especially in the fields of government accounting, management accounting, and internal auditing. A bachelor's degree in accounting or a related field is required to become licensed as a Certified Public Accountant (CPA), Public Accountant (PA), Registered Public Accountant (RPA), or Accounting Practitioner (AP). Some companies will require their accountants to hold master's degrees as well.

There is a large demand for accountants, and as more businesses are created in the coming years, the demand is expected to increase. The rapid expansion of business is also expected to have a large effect on the types of responsibilities accountants will have. Nevertheless, these jobs can be very competitive, and many businesses are increasing their standards by which they hire and the qualifications they demand.

Accountants who have a great knowledge of computers and many different accounting software will have a better change of employment. Also, those who have more education, training, and experience will also have an edge in the job market. It is also important for accountants to demonstrate interpersonal skills as this will also help them perform their job more effectively and get along better with clients.

Find the Right Type of Accountant to Hire

 In today's world of regulated business, there is increasing pressure on companies to have transparency in their financial statements. This push from shareholders and government agencies has caused a large increase in the need for external accounting, transforming audit and tax services into a commodity. The fact that these firms are now so popular means they will offer you many discounts and incentives to obtain your business as a client. In order to obtain the correct firm, it is important to know what type of service professional you need.

First, you need to prioritize the main reason in reaching out to a professional. If you are looking specifically for help with taxes or tax planning there are many small firms available to assist your business. Many of these firms can be franchises such as H&R Block or LedgerPlus or they can also be local private firms. Before committing, it is important to look at the tax firm's employees. Many will have what is called an EA, or enrolled agent. These are licensed tax professionals who are certified by the IRS after taking a test covering all types of business taxes from public to private. This type of professional will be able to do sufficient work for a small business and can be significantly cheaper than hiring a larger or public accounting firm.

If your company is in need of an audit for shareholders, or you are a private firm looking for a professional audit, it is a good idea to go with a public accounting firm. These large firms consist of Certified Public Accountants, or CPAs. CPAs are held to the highest standards by the PCAOB and have to pass a rigorous test and continue education throughout their career. Although public firms will bill you more, they hold themselves to a much higher standard for quality of work. Also, public accounting firms will do a preliminary audit of your business before they decide to take on your company as a client. This is to make sure they do not see any red flags or feel that they could give your company an adverse opinion.

Because of this, you can trust these public firms more being that they do not want to be liable for assuring your financial statements if it later comes out your company has committed fraud. Another bonus of a public firm is their representation if there is ever any litigation against your business. Many times upset shareholders want to sue a publicly traded company because they lost their investment based on so called misleading financial statements. In this case the accounting firm will stand up for you in court and defend your numbers against the prosecuting party.

These are just two basic reasons to choose an accounting firm to help your business. It is very important to evaluate your individual situation before deciding on a specific accounting professional.

4 financial basics you should know before you outsource bookkeeping for your restaurant

 All restaurant businesses operate on a very tight profit margin. It is hence of vital importance that you, as a restaurant owner run a tight ship. You need to know the basics of accounting and bookkeeping for your restaurant before you outsource bookkeeping to a professional. Such a basic idea on your part will not only prepare you for working alongside the firm you outsource bookkeeping to, it will also ensure that you are aware of the financial position of your restaurant. The following are some financial basics to keep in mind for your restaurant when you are outsource accounting or bookkeeping.

Management of your restaurant’s cash flow

When you manage your cash flow, you are essentially tracking the cash which goes out as well as comes into your restaurant. When you outsource bookkeeping, this function is basically taken care of by the bookkeeping firm. However, it would help both you and your bookkeeping firm if you know the basics of how to manage your cash flow. Through it, you will also know the business patterns of where your money is coming in and going out from. So whether you have decided to outsource bookkeeping or outsource accounting, knowing how to manage your cash flow will help.

Keeping the restaurant inventory

A restaurant generally has a lot of stock and supplies coming in regularly, which keeps it running. When you outsource bookkeeping, your bookkeeping firm needs to carefully review your restaurant inventory so that you can avoid losing money on inventory. Taking a regular look at the restaurant inventory like supplies, products and food ingredients should be part of your day to day activities. This will help in managing your restaurant’s bookkeeping efficiently. The decision to outsource bookkeeping will come handy in eliminating the losses related to inventory. You can also learn a lot while interacting with the professionals when you outsource accounting.

Keeping records of your restaurant

When you outsource bookkeeping, your record keeping remains updated at all times. You will hence be able to see the profitability and overall financial position of your restaurant at all times. An expert firm generally processes invoices and receipts within 24 hours of receiving them. Interact with your bookkeeping firm and know the basics about keeping records. This way, you will be able to keep track of your finances well.

P&L Statement

A profit and loss statement holds a lot of importance for your restaurant. As the statement gives a summary of the inventory, income and expenses, you will be able to see the month-by-month progress of your restaurant. When you outsource bookkeeping, the expert firm you hire will provide you with a monthly or weekly P&L statement, which will help you in taking strategic decisions and maintaining the profitability of your restaurant.

Thinking to outsource bookkeeping? Take care of these aspects

 The decision to outsource bookkeeping is in the best interest of your business as it saves a lot in costs. When you outsource bookkeeping, you ensure that your books are being taken care of by an expert, so that you can finally focus totally on business activities. However, outsourcing bookkeeping services to the right firm is of utmost importance if you want to reap benefits of outsourcing. You need to check the credentials of the bookkeeping firm properly to ensure that its bookkeeping services suit your requirements perfectly. Be sure to check for the following aspects when you outsource bookkeeping:

Is the bookkeeping firm experienced?

Experience of the firm you outsource bookkeeping to is the most important factor. You need to ask relevant questions to the bookkeeping firm and know about the experience it has. This will give you an idea of whether it will be able to fulfill your business requirements or not. If possible, get references of past clients you can speak to, so you can know the quality of outsourced bookkeeping of the firm in question. There are also some industry-specific companies for outsourcing bookkeeping services that you can inquire about.

Are the bookkeepers qualified?

Your decision to outsource bookkeeping is made on the assumption that your books will be taken care of well. For that to happen, the bookkeeping firm needs to have expert bookkeeping professionals on their payroll. While inquiring about a specific firm for outsourcing bookkeeping services, check about the kind of professionals working there. An experienced bookkeeper working on your books will ensure that your finances will be well maintained and updated at all times.

Which services will be included? Is there enough flexibility?

Is the outsourced bookkeeping package you are availing flexible enough for your business? Your bookkeeping firm may provide services like payable management, accounts receivable management, bank reconciliations, inventory management, recording and reconciling payroll transactions, revenue reconciliation with bank deposits etc. Most firms are also offering flexible services to suit business requirements today, so you need to check the details and determine if you can scale your requirements up or down at any time. Once you ensure that the package is flexible enough, you can go ahead and outsource bookkeeping to that firm.

Is it within your bookkeeping budget?

By outsourcing bookkeeping services, you can save from 40 to 50% in costs; that is the most important objective when you outsource bookkeeping. But you still need to make the most of the package the bookkeeping firm offers you. Have a budget in mind so that you can save the most from your bookkeeping package. You would do well to also negotiate with other bookkeeping firms so that you know the best rate being offered.

The decision to outsource bookkeeping will help your business only if you select the right firm to partner with. So while outsourcing bookkeeping services, take note of the above-mentioned points to ensure you hire the right bookkeeping firm.

Score over your competitors by outsourcing accounting services

 Accounting is undoubtedly an integral part of running and developing a business successfully. In addition to helping run the day-to-day functions smoothly, accounting also ensures that the financial picture is clear in case you are looking for an acquisition or a buyer for your business. However, taking care of the accounting functions is no small task. After all, you are not an accounting expert. That is why outsourcing accounting services may be the best decision to achieve your business goals. Hiring an expert for accounting services not only ensures that your finances are in the right hands, it also frees you to take care of strategic decisions so that you can stay competitive in the business.

Outsourcing accounting services to an expert

Many business owners try to take care of their accounting functions by hiring a full-time in-house accounting staff. This is a very expensive option, as hiring, training and retention takes up a lot of business resources. But now, in the cut-throat business scenario, it is financially more viable to use a professional accounting service provider who has the potential to save 40-60% of accounting costs. When you outsource accounting, your work is done by expert accountants, reducing the chances of errors and producing impeccable records. Due to the growing popularity of outsourcing, the number of accounting service providers has also increased exponentially. If outsourcing accounting services can save you significant costs as compared to in-house hiring as well as get the work done efficiently, why would you want to have an in-house accounting department?

What you can expect from accounting services

When you outsource accounting, you will have a team of accountants working dedicatedly on your business financials. Most companies provide custom services, tailored to meet your business requirements, so that you do not have to pay for any service you don't require. Such custom solutions are also scalable, you so can change your workload at any time. However, discuss the details with your accounting service provider so that you know the details beforehand. When you are outsourcing accounting services, also check out other services of the company like bookkeeping, tax preparation, payroll etc. which could be useful to your business. Also iron out the other details with your accounting service provider and discuss how your financial information will be protected and which firewalls and encryption are used by the company.

When you are outsourcing accounting services to a professional company, you can focus completely on your business activities and get a competitive edge that sets you apart in the market.

Outsourcing bookkeeping: Is it the right decision for your business

 To outsource or not to outsource bookkeeping is the question today for a lot of businesses. With the focus on saving costs in the tough economy we have today, a lot of businesses are turning to outsourcing for their non-core activities like bookkeeping and accounting. While most trust a bookkeeping service provider to maintain their books of accounts efficiently, some are still in the dilemma of whether to outsource bookkeeping or not. If you are one of those business owners still doubting the feasibility of outsourcing your financial functions, read on.

Most business owners are not experts in accounting and bookkeeping and hence find tasks related to their business finance cumbersome and tedious. Moreover, as they are not experts in bookkeeping, they might end up making mistakes which might affect the business bottom line. Hiring in-house staff becomes an expensive option, with payments related to office space and bonuses eating up business profits. In such a situation, outsourcing bookkeeping to a professional firm may be the best decision a business owner can make.

Some reasons you can outsource bookkeeping to an experienced bookkeeping firm are:

1. Many businesses like restaurants operate on very thin profit margins. A single error in their books of accounts can mess up a lot of their business functionality. When you select an online accounting bookkeeping firm, you are handing over all your bookkeeping functions to experienced professionals. You can hence outsource bookkeeping and then quit worrying about mistakes in your finances, knowing that a professional is taking care of them. You can also ensure that your bookkeeping is being done correctly by having 24/7 access to your books.
2. There are a lot of firms to which you can outsource bookkeeping functions to. Such fierce competition has resulted in online accounting bookkeeping services being available at very low rates, which saves significant costs to small and mid-sized businesses. It is also easier to find out the most reputable and experienced service provider by asking current clients of the bookkeeping firm in question and inquiring about the firm's reputation in general. The costs which are saved through outsourcing bookkeeping can then be re-invested into the business for expansion or diversification.
3. Outsourcing bookkeeping functions to a professional bookkeeping firm ensures that your books are up-to-date at any given period of time. With such impeccable financial records, you can take strategic decisions with ease. Such updated records also give the true financial picture of your business, so you can run it efficiently.

As a business owner, the decision to outsource bookkeeping will benefit you the most. You can save costs as well as get your non-core work done without spending time on it personally. Just look for a reputable bookkeeping firm, and outsourcing bookkeeping will work well for you.

Want to make outsourcing accounting a success for your restaurant? Follow a weekly accounting system

 The restaurant industry is a harsh one, with more changes in ownership than most businesses. In such a tough situation, you need to make your restaurant business strong financially by outsourcing accounting. Handing over your books of accounts to an accounting firm ensures that your financials are in good hands so that you can focus on your business better. However, even after you have selected the firm for outsourcing accounting, your role as the owner of the restaurant doesn’t end; you need to ensure that the accounting service provider you have hired is taking steps in the best interest of your restaurant.

The turnover of a restaurant is very fast, with income, expenses and inventory coming in and going out each day. So even when you are outsourcing accounting, you need to keep close tabs on such details so that you can avoid a month-end chaotic situation. Having a weekly accounting system for your restaurant will benefit you in this case. In case you have a small staff, you won’t be able to handle a weekly accounting system easily. The decision to outsource accounting can be in your best interest in that situation.

Industry experts believe that outsourcing accounting and having a weekly accounting system is the best step for a restaurant business. Getting weekly updates on accounting of your restaurant will allow you to respond quickly to any financial situation your business faces, which in turn, will help you stay stable in the restaurant business. While outsourcing accounting functions to an expert firm, ensure that they can follow the weekly accounting system, through which you can get the relevant updates and reports for your restaurant.

There are a number of accounting service providers today which specialize in the restaurant industry. Such outsourced accounting firms have an exact idea as to the requirements of a restaurant, so they will be able to help you out with your finances. You can make inquiries with various firms who provide accounting services and check out the packages and the services they include in them.

A good firm for outsourcing accounting will be able to customize its package according to the requirement of your restaurant. Getting a weekly accounting report from such a firm will be an easy task and will help you in running a profitable restaurant for a long time.