Accounting – Page 3 – Beck & Company

Benefitting with Outsourced Nonprofit Services

The partners and staff of Beck & Company, Certified Public Accounts are dedicated to providing high quality professional services to our clients. We will maintain the highest moral, ethical, and professional standards. We realize that we can only be as successful as our collective clientele; therefore, we dedicate all of our resources to the long-term success and general well-being of our clients. Over the past few weeks we have taken a deeper look into the services offered here at Beck & Company, CPAS. We have delved into the different client accounting and audit services. Today we wanted to focus on our Nonprofit Services.

At Beck & Company we specialize in not-for-profit accounting and auditing. We understand the unique challenge of balancing the needs of your various stakeholders – contributors, members and your board, too. We have experience serving not-for-profit organizations such as unions, homeowner’s associations, religious organizations, charities, and social service organizations. Our Nonprofit Services team is committed to assist you with your back-office accounting and financial needs so you can focus on your mission. Our nonprofit specialists provide professional advice and assistance in a number of areas, including:

Financial Statement Audits
Reviews or Compilations Accounting
Bookkeeping Services
Tax Preparation and Reporting

In addition we provide CFO Services such as business planning, budgeting, cash flow analysis, executive search, and information security.

At Beck and Company, CPA’s we offer controllership services like monthly close, financial statement preparation, financial policy review and development, operational procedure review and improvement and accounting staff evaluation and management. Additionally we offer not-for-profit Account Services which include bookkeeping services such as Accounts Payable and Payroll. Audit Services, Tax Solutions, Transaction Support, Enterprise Resource Planning and SAS 70 and SSAE 16.

Danny Gray, Secretary Treasurer, Fairfax Fire Fighters and Paramedics knows first-hand the benefits of our nonprofit financial services. He stated, “Beck & Company, CPAs is truly exceptional. The fact that they have stood by our side through three different Presidents and several Secretaries and Treasurers proves that they are committed to their clients. After all, we are firefighters, not accountants. We depend heavily on the firm, and they do not disappoint. Beck & Company, CPAs has become an extension to our organization; it really has been – and continues to be – an exceptional relationship.”

Today, many nonprofits are moving toward outsourcing their accounting services. There are five primary reasons why nonprofit organizations would consider outsourcing their finance and accounting functions:

Reduce costs and save money on internal staffing
Gain a higher level of specialized accounting expertise
Save time while maintaining accurate with meaningful financial information
Improved business processes and controls
Eliminate risks associated with poor internal hires

Outsourcing is oftentimes a good fit within smaller organizations who don’t require a full-time accounting staff, but needs someone with an accounting specific education and experience. Or when the organization can’t afford or would prefer not to afford accounting staff. Whatever your reason we here at Beck and Company, CPAS are different because we’ve been where you are – either in our professional experience in running our practice and business or we’ve seen situations similar to yours when working with clients much like you. Our broad base of managerial accounting and systems experience and our deep understanding of business process and technology enable us to apply knowledge from the past, together with up-to-date best practice know-how to help you solve your challenges and capitalize on the opportunities you face. Our creative and innovative team of experienced professionals with senior or owner involvement in all client engagements ensures you know you have direct access to specialized expertise on which you can rely and trust.

Beck & Company CPA’s Client Accounting Services

Founded in 1987, Beck & Company, Certified Public Accountants and Business Advisors is an independent certified public accounting firm serving the Greater Washington D. C. metropolitan area with clients also along the Eastern Seaboard. Our firm has been built upon a tradition of service, technical expertise, and creative thinking. Did you know that here at Beck & Company, Certified Public Accountants and Business Advisors, we provide audit, tax, accounting, nonprofit, and consulting services? Our goal is to help our clients’ financial endeavors flourish while exceeding their expectations. Our background and experience in public accounting and business allow us to offer qualified assistance in practically any area of your business. Over the next few weeks we would like to take a deeper look into the services we provide so that you can take full advantage of our expertise, to help your organization meet its business and personal financial objectives.

Last week we took a look at the Accounting and Audit Services provided by Beck & Company, CPA’s. More than audit services we provide an array of accounting and other services for small and middle market organizations, privately owned companies, partnerships, not-for-profit organizations and other forms of businesses. Another valuable service is our:

Client Accounting Services

Reduce cost while increasing the value delivered by your accounting functions and better utilization of accounting resources. Nonprofit organizations are constantly looking for ways make the best use of their resources to focus on their cause. The complexity of managing the business aspects of a nonprofit organization while furthering its mission may inspire the need to seek outside support for some elements.

Almost every nonprofit can benefit from the insights and expertise of a chief financial officer (CFO) or a Controller, but unfortunately, few can afford to staff that position full-time, at this level and if they do, they may only have five to ten hours of work for this person per month. Overcoming this objective by outsourcing these functions, your organization will be positioned to access CFO and Controllership skills, tailored to meet your specialized needs.

Reducing Costs through Business Process Optimization (BPO)

With a thorough assessment and analysis of your operations and the reorganization and optimization of your processes, which can reduce cost and increase efficiency.

When you outsource some or all elements of your accounting, you will:

Significantly reduce overhead – The finance and accounting function is a cost center and does not generate income.
Optimize processes and improve workflow.
Allow management to spend more time and effort on your operation.
Improve operational efficiencies that impact your bottom-line.
Re-direct finance and accounting expenses to pay for new programs and events.
Gain faster, better financial information to help direct your leaders and drive your mission.

Beck & Company, Certified Public Accountants and Business Advisors is an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. At Beck and Company, CPAS we’re different because we’ve been where you are – either in our professional experience in running our practice and business or we’ve seen situations similar to yours when working with clients much like you. Our broad base of managerial accounting and systems experience and our deep understanding of business process and technology enable us to apply knowledge from the past, together with up-to-date best practice know-how to help you solve your challenges and capitalize on the opportunities you face. Our creative and innovative team of experienced professionals with senior or owner involvement in all client engagements ensures you know you have direct access to specialized expertise on which you can rely and trust.

Helping companies reach their financial goals through Accounting and Audit Services

Founded in 1987, Beck & Company is an independent certified public accounting firm serving the Greater Washington D. C. metropolitan area with clients also along the Eastern Seaboard. Our firm has been built upon a tradition of service, technical expertise, and creative thinking. Did you know that here at Beck & Company, Certified Public Accountants and Business Advisors, we provide audit, tax, accounting, nonprofit, and consulting services? Our goal is to help our clients’ financial endeavors flourish while exceeding their expectations. Our background and experience in public accounting and business allow us to offer qualified assistance in practically any area of your business. Over the next few weeks we would like to take a deeper look into the services we provide so that you can take full advantage of our expertise to help your organization meet its business and personal financial objectives.

Accounting and Audit Services Overview

We provide an array of accounting and audit services for small and middle market organizations, privately owned companies, partnerships, not-for-profit organizations and other forms of businesses. They include:

Financial Statement Audit In a financial statement audit we will examine an entity’s financial statements and accompanying disclosures and provide a report which attests to the fairness of presentation of the financial statements and related disclosures. This service provides the client with the highest level of assurance.
Financial Statement Review A financial statement review of the annual and quarterly financial statements, will include some analytical procedures and result in limited assurance. We will verify that there are no material modifications that need to be made to your financial statements for them to be in conformity with the applicable financial reporting standards, such as GAAP, General Accepted Accounting Practices.
Compilations of Annual and Quarterly Financial Statements. A process in which we will read through financial statements and considers whether they are appropriate in form and free from obvious material errors.

Additional accounting and audit services include, financial statement preparation, bookkeeping and payroll services on an interim or long-term basis, outsource CFO or controllership services, and other services as needed for public companies where Beck & Company is not the auditor of record. In public companies where we are not the auditors, Beck & Company can assist the audit committee and management in a wide variety of services that are considered prohibited, non-attest services; services that cannot be provided by the auditor of record. Simply stated, we are a full-service firm committed to providing you the best possible service. Our goal is to earn your trust and respect and to be considered part of your team

At Beck and Company, CPAS we’re different because we’ve been where you are – either in our professional experience in running our practice and business or we’ve seen situations similar to yours when working with clients much like you. Our broad base of managerial accounting and systems experience and our deep understanding of business process and technology enable us to apply knowledge from the past, together with up-to-date best practice know-how to help you solve your challenges and capitalize on the opportunities you face. Our creative and innovative team of experienced professionals with senior or owner involvement in all client engagements ensures you know you have direct access to specialized expertise on which you can rely and trust.

Nonprofit Changes Coming Following Updated FASB Accounting Standards

In an effort to increase transparency and continuity in the preparation of financial statements, the Financial Accounting Standards Board (FASB) has proposed significant changes for nonprofits. In the past 20 years, generally accepted accounting practices (GAAP) have not clearly specified a way of reporting performance. That is all going to change. Nonprofits can be optimistic that these changes will have great benefits for them. They will allow nonprofit organizations to become more comparable, generating easier-to-interpret financial statements that will aid in the evaluation of financial statements for the purposes of obtaining stakeholders and loans.

Changes to net asset classification

The proposed Accounting Standard Update (ASU) changes the nonprofit accounting requirement for what information must be presented in the statement of financial position. The current three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) will now be reduced to two classes of net assets (net assets with donor restrictions and net assets without donor restrictions). This change is intended to simplify financial reporting.

In addition, the FASB has revised how underwater donor restricted endowment funds are to be classified. They believe it is confusing to classify the spending from underwater endowments as unrestricted, and thus, the FASB has proposed that underwater amounts be classified in net assets with donor restrictions. The FASB is also now requiring disclosure of the combined amount of funds that are underwater and the original endowment amount, along with any rules or restrictions on spending from such funds.

Statement of activities

Along with the changes to net asset classification, a corresponding change to the statement of activities has been proposed. Now, all nonprofits are required to report income or losses from operating and non-operating activities separately. This is because certain non-operating activities, like investment earnings or losses, can affect the operating bottom line. The FASB believes this will help to clearly show both income and costs that are related to accomplishing the nonprofit’s mission.

Presentation of Cash Flow

Changes to the statement of cash flows have been proposed in order to provide more useful information to key stakeholders on the overall operating performance of the nonprofit. First, the board is proposing the use of the “direct method” of reporting cash flows from operating activities. The second change will realign the reporting of certain items to be consistent with how items in the statement of activities are being reported. Items such as operating, financing, and investing categories will be affected. The FASB believes these changes will result in easier-to-read financial statements which will prove to be more useful for the average user of financial statements.

Assessment of liquidity

The FASB has also proposed changes they hope will result in a clearer picture to stakeholders of an organization’s liquidity. Donor-imposed restrictions and confusion about how they affect the availability of assets have caused a lack of clarity regarding the assessment of liquidity. The proposal requires both qualitative and quantitative information regarding the liquidity of assets and cash demands as of the reporting date. Along with the changes to net assets, classification of this information should allow users to assess the liquidity risk of the nonprofit.

Impacts

As with any change, an investment of time for nonprofits and their accountants will be necessary to implement the required changes. The FASB’s proposal will allow stakeholders to better examine financial performance as well as the need for funding and overall stewardship of donor funds. In the end, the nonprofit should experience significant benefits from the extra work as better information is provided to decision makers

At Beck and Company Certified Public Accountants and Business Advisors, we would love to be of service to you as you consider implementing these required changes for your organization. We are a certified public accounting firm serving the Greater Washington D. C. metropolitan area with clients also along the Eastern Seaboard. Our firm has been built upon a tradition of service, technical expertise, and creative thinking. Our services are highly personalized, cost effective, accurate, and dependable. Our commitment to excellence is demonstrated in our team’s understanding of your business and personal financial objectives and then delivering innovative solutions to achieve them.

Accounting For Corporate Sponsorships

Many nonprofits receive donations from corporations wanting to support their endeavors. These “corporate sponsorships” have been in question by the IRS as to whether or not they would be subject to certain taxes. The IRS released regulations concerning these corporate sponsorships in 2002 prompted by several rulings in court cases. The core of these rulings identify whether donations will be considered “corporate sponsorships” which are excluded from unrelated business income or considered advertising which would be subject to unrelated business income tax. The IRS would see advertising to be a “substantial return benefit”.

The bottom line is an exemption from the unrelated business income tax (UBIT) for donations that qualify as a corporate sponsorship. Income generating activities for Exempt organizations such as a trade or business which is regularly carried on; and unrelated to their exempt purposes will be subject to UBIT.

However, exclusions from UBIT do exist such as “corporate sponsorships” and provide guidelines for activates and/or actions for which taxes will not be incurred. The final rulings declared six elements of corporate sponsorship that would not be considered “substantial return benefits”.

Listing the name, logo, or product line of the sponsor;
Awarding exclusive sponsorship
Providing logos or slogans that do not contain any qualitative language or comparative description of the products;
Listing the payer’s locations, addresses, phone numbers, and Internet addresses;
Providing value-neutral descriptions of the sponsor’s product display; and
Listing the sponsor’s brands or trade names.

On the other hand, there are also four things that would be deemed substantial return benefits, including “advertising.” They are:

Advertising;
Designating a sponsor as an exclusive provider;
Providing facilities, services, or other privileges to the sponsor unless they are of “insubstantial value;” and
Granting either exclusive or nonexclusive rights to use the sponsor’s intangible asset (e.g., name or logo).

Let’s take a look at a hypothetical situation. The local little league, an NPO considered exempt is given a $2,000 donation from the local sporting goods store. In return a banner is created to display on the outfield fence of the home field. This banner contains the name of the store, its logo, and website address.

According to the regulations this banner would not cause the sporting goods store to be taxed and would qualify as a “corporate sponsorship”.

There are a few areas within the rules that can be tricky and cause problems:

Substantial return benefits
Services provided
Internet issues

Substantial Return Benefits

The question of what is a substantial benefit can cause some confusion. According to the rule, if a sponsor receives anything in return for their donation it must have a value of 2% or less of the sponsorship payment. Should its market value be more than 2% then the entire value of the return benefit would be subject to UBIT.

Example 2:

A music teacher donates $500 to the local community theater. The teacher receives a notation in the program with her name and website listed. In addition she receives 2 season tickets to the three productions for that year. The market value of these tickets is $120. Given that the value of the tickets is more than 2% of the $500 donation, the $120 “return benefit” would be considered the value of the advertising and subject to UBIT.

Services Provided

Should a sponsor make a donation and in return require the beneficiary to provide a service, the value of that service may be considered return benefit and be subject to UBIT. Once the services are rendered, the fair market value of those services would be considered unrelated business income. It can be tricky to accurately assess the value of said services.

Example 3:

Remember the little league team from Example 1? Let’s say that same situation occurred however in addition to the banner the sporting goods store agrees to provide the entire little league team with one specialty coaching session. The fair market value of the coaching session is $500.

Because services are required as part of the sponsorship agreement, the $500 fair market value of the training received is considered unrelated business income.

Internet Issues

Although the IRS has not released specific protocol in the area of internet promotion it is important to also consider the following. Should a sponsor require a hyperlink to their website is included on the organization’s website you will need to be sure unrelated business income is not generated. Up until now hyperlinks to a sponsor’s website are not supposed to result in unrelated business income providing the tax-exempt organization is not endorsing the sponsor’s products.

Example 4:

The same little league from Example 1 includes the sporting goods store logo on its team website, along with a hyperlinked logo to the sponsor’s website. As long as the team website only includes the sponsor’s logo with a link to the website – and does not have any promotional language or endorsements no unrelated business income should be generated from the linked logo.

Recent Tax Reform

In early 2014, the House Ways and Means committee released a draft with several proposed changes to the tax code. This draft includes revisions specifically to how sponsorships are treated for UBIT purposes. Based on the proposal should an organization use the name or logo of a sponsor’s produce line, then that sponsor’s donation would be considered unrelated trade or business income.

It is expected more information will be provided regarding these potential changes in the coming year. Here at Beck & Company, Certified Public Accountants and Business Advisors, we want to help you. We are an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. Ultimately we want to see your nonprofit reach its goals and we would love to help you. Contact us to learn more.

Cloud Computing: Improving Financial Reporting and Strengthening Security

As we’ve looked at solutions for increasing effectiveness in financial reporting over the past couple weeks, one solution we’ve explored is Cloud computing. We learned that it is an effective way to have financial reports be accessible anywhere at any time and is a trend that is set to become even more widely used in 2015. But, you may be left wondering if the Cloud truly is a solution that can help in strengthening security instead of compromising it. Financial records are so important that your data security should not be taken lightly. Beck and Company Certified Public Accountants and Business Advisors know that there is too much at stake to not be putting your organization’s safety as the number one priority. Without safeguarded data and accurate records, you could be in serious trouble. If your data is stored in the Cloud, will it truly be safe? Let’s take a closer look.

What are Cloud backup services?

These are becoming more and more popular throughout the world because they are both cost effective and flexible. Storing your information and data in the Cloud not only protects it from disasters of all kinds, but it also does not require additional resources such as hardware or software. Because content is transferred automatically, it ensures data is protected from threats that are either physical, digital, or environmental. Recovery time, in case of an emergency, will be reduced substantially because of this. This gives all constituents the peace of mind they need to know that information is safe and recovery will be quick and easy if something happens.

This backup protection is even more important because so much of the data you have is financial information. Your financial reporting and accounting records, when used through the Cloud, are protected as well. This information is just too precious to risk losing, but the Cloud allows for this protection.

For the sake of clarification, there are other backup services available besides on the Cloud, but they are not as comprehensive. Local backups are one example. This means storing data on a hard drive, CD, or flash drive. Unfortunately, lost or broken data storage tools present a problem, and the backup needs to be done at least weekly and done manually to be sure nothing is lost. Offsite data storage is another example. They may offer more protection from physical dangers (natural disasters, theft, etc.), but they require more planning and resources. They require numerous and portable media, a secure location offsite to store the media, and a plan to be sure data is being regularly backed up and transported to the location.

Beck and Company CPAs offer technology consulting services and would be happy to help you understand the Cloud more. We can help you with your technology needs so you can ensure you have easy access to all of the financial reporting capabilities your business needs while strengthening security of the information instead of compromising it. Find out more about our technology consulting services here.

Is the Cloud Safe?

While the first impression of the Cloud may be a good one, businesses still question whether the Cloud really is a safe solution in which to store their business-critical data and accounting information. Like many new technologies, the Cloud has come under serious scrutiny. How, then, can a data backup solution that is maintained online be safe?

First of all, the Cloud has strong data encryption to prevent hackers (and even your backup service provider) from unlocking your data and violating your client confidentiality. The encryption technology is so advanced, in fact, that it offers complete confidentiality of all of your data stored in the Cloud. Make sure that your data is encrypted prior to (and during) transmission and that it remains encrypted while it is stored in the Cloud for safekeeping.

Your online data archive will also be fully protected with a digital encryption key. In order to keep your data locked up tight, make sure your provider allows you (or a designated person in your office) to be the only one with access to the encryption key.

Contact us here at Beck and Company CPAs to find out more about the best ways you can accurately record financial information whether through a Cloud computing solution or by partnering with one of our accountants to help you get your business finances in order.

Financial Reporting Made Easy and Accurate with the Cloud- 2015 Trends

Last week, we took a look at a cure for financial reporting management mistakes. This week, we’ll take a look at another way to help your financial reporting to be more efficient and on track with the times. This is through Cloud computing.

Our fast-paced world means it is likely you don’t spend every minute in your office and are more reliant than ever on mobile technology. No matter where you are, you likely have times when you have a need to instantly access company information about finances and financial reports. Technological advancements have meant that it is now possible to send emails, check account balances, and view reports anywhere, any time, and on virtually any device. With a mobile framework quickly becoming the norm, there is also an increasing need to have instant access to accounting information and other vital statistics at any time. All of this is achieved through The Cloud. Cloud computing allows businesses to have this flexibility of instant access of data from any device for any constituent that is needed today.

Do ever fear that information stored on the Cloud is less accurate than that of the data stored on-premise? Well, you have no need to fear. The same data that is used for financial reporting at the office is simply saved to the Cloud so the information you access on the go is just as accurate. Essentially, it is the exact same data in a mobile format.

With the trend being that more and more organizations will transition to the Cloud in 2015 and that the Cloud offers many capabilities beyond what an on-premise solution can, the time is now to consider it. Beck and Company’s Certified Public Accountants and Business Advisors offer your business a variety of technology consulting services if you would like more personalized information about the Cloud and its application to meeting your company’s needs. Find out more about our technology consulting services here.

What, exactly, are the trends in Cloud computing as we finish out 2014 and look toward 2015? These will help you see that Cloud computing is likely to not be just a technology trend of the time but one that transforms the business world. In fact, it has the staying power and potential to forever change the way we do things. Through automation of manual processes, streamlining of tasks, and instant access to your company’s information and data, the Cloud has made nearly anything possible.

What does Cloud Computing’s Future Look Like for 2015?

1. More companies will transition to the Cloud in 2015 than ever before

For some companies, this will mean simply deciding if they will transition to the Cloud while others will move their Cloud solution to the hybrid Cloud that offers the security of a private Cloud with the scalability of the public Cloud.

2. Disaster recovery services will transition fully to the Cloud

No longer will companies use Cloud services as a simple backup. With continued reliability of the Cloud being proven, many organizations will chose to move everything to the Cloud in terms of disaster recovery service.

3. Those currently using the public Cloud will transition over to the private Cloud

Security concerns and control issues are contributing to this transition already.

4. Apps that are powered by the web are likely to become top tools for companies

The unmatched efficiency and scalability of mobile apps means they will become even more prominent.

Contact us here at Beck and Company CPAs so we can help you start off on the right foot in 2015 by transitioning your financial reporting to a Cloud-based operation through our technology consulting services. Stay tuned next week as we look at if the Cloud is truly a safe and secure solution for storing your important financial information and reports.

The Cure for Unhealthy Financial Reporting

Are you feeling like your financial management is ineffective and inaccurate? Do you need a CURE for “unhealthy” financial reporting practices and records? Look no further. We have just the financial management treatment you need to nurse your financial records and reports back to health. And, there is no better time to do this than now as you finish up the year 2014 and look to the new year of 2015. Having your financial reports in order now will help you with upcoming budgetary and company decisions that you will be making and will keep you on track to get a clean bill of health throughout all of 2015. This will also set you up for success in being prepared with reports at a moment’s notice upon request. Who doesn’t want to be healthy in the New Year?! We all do. Your business needs to be in a healthy place, too, and financial reports that are accurate and organized are vital lifelines in this health and are important tools and resources for constituents of your company or organization.

If you are in need of personalized help and attention in the area of financial reporting, Beck and Company’s Certified Public Accountants and Business Advisors are trained professionals who can help you reduce costs through business process optimization. This involves improving workflows and operational efficiencies that can ultimately have a positive impact on your bottom line. Learn more about our client accounting services here.

In addition to the personalized accounting services we offer, here are some general tips for what characterizes good and healthy financial reports and statements. As a general rule of thumb, keep in mind that the information contained within the reports should have the needs of the users of the reports in mind. Consider the audience when creating reports so the needed information is included and information that is not pertinent is not included. Not all audiences are created equal so not all reports should be created equal. Regardless, though, the reports must be correct, and more detailed information must be available upon request when more concise reports are shared. Just think of C.U.R.E., and you’ve got the cure you need when it comes to healthy financial reports!

C- Comparability

The information must be comparable to the financial information presented for other accounting periods so that users can identify trends in the performance and financial position of the reporting entity.

U- Understandability

The financial information must be readily understandable to users of the financial statements. This means that information must be clearly presented with additional supporting information supplied as needed to assist in clarification.

R- Relevance

The information must be relevant to the needs of the users, which is the case when the information influences the economic decisions of users. This may involve reporting particularly relevant information or information whose omission or misstatement could influence the economic decisions of users.

E- Error-free

The information must be reliable and therefore free of material error and bias while also not being misleading. Thus, the information should faithfully represent transactions and other events, reflect the underlying substance of events, and prudently represent estimates and uncertainties through proper disclosure.

In addition to the CURE above, there are many other characteristics of effective financial reports. These include showing context and keeping investors in mind, being compliant with rules and regulations, following the Disclosure Management Cycle, creating the reports in collaboration with others within a business team, etc. You can learn more here. Please contact us to learn more about how we can help you and your business to succeed in all areas including in the financial realm with your financial reporting practices and efficiency. Stay tuned next week for another cure to the financial record mismanagement blues!

Tips for Cleaning Up Accounting Records

With all that goes into smoothly running a business, it is likely that some tasks will end up getting less attention than others. Don’t let your accounting records be one of those areas. Instead, make sure that they are a priority and are updated regularly. Whether you manage all finances in house or need outside help from an accountant, having your records in order is still essential. Without proper records or records that are disorganized, it will be difficult for you or your accountant to properly track and record financial information. If you are looking for accountant assistance for your business, Beck and Company’s Certified Public Accountants and Business Advisors are here to help you with these needs. We provide many accounting services.

It may be that you feel financially illiterate and have no idea where to even begin with organizing accounting records. It could also be the case that you have not had the discipline nor the systems in place as a company to keep records cleaned up. Regardless, you likely are aware that having these records organized and efficiently laid out would be immensely helpful in so many ways. With a fast-paced business world and so much at stake, there is no need to spend valuable time sorting through messy records time and time again. Instead, creating a system for a month-end accounting process clean-up will allow you to make informed decisions with ease and quickness while also helping you to focus more time on the future of the business instead of on financials alone.

How can your records be cleaned up so financial reporting is both possible to do and accurate, too? Below are some tips to do just that on a monthly basis. This checklist will help when evaluating the performance of your own accounting support and will make outside help from an accountant easier thanks to records that are ready to use and organized.

Do retained earnings agree with my tax return? If not, do I understand exactly why it’s different? You don’t have a good starting point if this isn’t right.
Cash accounts are reconciled and agree with bank statements. Items that are not reconciled are investigated.
Fixed assets are appropriately capitalized. This means that you look at accounts in your profit and loss for lease payments and other purchases that should be capitalized.
Other assets are appropriately stated. If you have an asset account that hasn’t changed, look into whether or not it’s still realistic.
Credit cards are reconciled.
Unrelated party loans (e.g. lines of credit, bank loans) agree to statements, and interest is booked appropriately.
Related party loans (e.g. inter-company) agree on both sets of accounting records (if you own more than one company and loan money back and forth).
If your balance sheet is accurate (steps 1 – 7), review your profit and loss statement. Are expenses within tolerable thresholds relative to prior years and periods?

If you do all of this, you know you have good data, and you can make decisions based on accurate information or have an accountant help you with this. It also ensures that, when asked, you can produce financials at a moment’s notice to interested parties. Beck and Company CPAs can help you in this process of preparing accounting records for accurate financial reporting so you are ready when the need arises for these records. Please contact us to learn more about how we can help you and your business to succeed in all areas including in the financial realm.

Cloud Computing and Accounting: What You Need to Know

Last month we introduced Cloud computing and how it differs from traditional on-premise solutions. Unlike on-premise software, Cloud computing requires no hardware and little to no maintenance, making it an ideal solution for companies and non-profit organizations who can’t afford to have a full-fledged IT department on staff. Now that you have a thorough understanding of what Cloud computing is, we’d like to discuss how businesses and non-profit organizations can use Cloud-based solutions to manage their accounting tasks.

Cloud Solutions are Rising in Popularity

Businesses and non-profits are constantly on-the-go and, in order to remain effective, need to have instant access to their operational and financial information. The progression of technology has made it possible for business executives and non-profit leaders to send emails from airport lines, check bank balances on mobile phones, and view reports on tablets and similar devices. As more and more organizations move to a more mobile framework, having access to your accounting software from any location at any time will be a key factor to your success.

Cloud computing is on the rise, as recent surveys have revealed. In fact, according to a recent study performed by IBM, 13% of organizations have successfully implemented Cloud technology and 21% are currently moving to the Cloud. The study also revealed that 90% of the companies and organizations surveyed are planning to use the Cloud in some capacity within the next few years. To say the Cloud is growing is an understatement; it truly is exploding onto the business and non-profit scene.

Benefits of Cloud Accounting Software
While it’s never a good idea to jump headfirst into technology trends, Cloud computing has made a name for itself as a reliable solution for both businesses and non-profit organizations. Before you decide if the Cloud is for you or not, however, you need to be aware of some of the key benefits, particularly related to accounting. Take a look at the benefits of pairing Cloud computing with your accounting software:

Instant access to important financial information and reports. With Cloud-based accounting software, you can access and edit your financial information from any location at any time. All you need is a connection to the internet. This allows you to have full visibility while you’re on the road or simply away from the office.
Improved performance. Cloud computing allows businesses and non-profit organizations to support the changing demands in financial strategy. Users can generate financial reports in real-time, providing them with enough information to suggest new approaches for improved performance.
Easily customizable. Cloud-based software is easy to customize, allowing you to build a solution to strategically meet your business or organization’s needs. Because Cloud-based accounting software is offered on a subscription-based model, it can be scaled down (or up) depending on your needs at the time. This makes the Cloud desirable for many non-profits and businesses.
Improve multi-company management. Many businesses have multiple entities, and it can become difficult to financially manage the entire business. With Cloud accounting software, you can access financial records from each company instantly. Users can hone in on information from a particular company or view it all simultaneously. With the Cloud, creating reports and reviewing information for multiple companies is a lot easier.
Reduced costs. Unlike on-premises accounting solutions, Cloud-based accounting software does not require any extra hardware. This helps companies and non-profits gain more control over their expenses and allows them to redirect their money to more important ventures, such as new programs or products.

If your business or non-profit organization is interested in Cloud computing, give us a call today. We offer a variety of technology consulting services to help you invest in technology that will truly make a difference. Stay tuned for more information about the Cloud and how it is impacting businesses and non-profits all around the world.