accounting – Page 2 – Beck & Company

Finish the Year Off Well with this EOY Checklist

2016 is quickly approaching which may have you feeling a little stressed about closing out the year. Understandably, the holiday season can interrupt workflow and make it difficult to fully focus on year end tasks. In order to simplify the process we have provided you with a year-end check list to ensure you begin 2016 on the right track.

Print yearly reports– From financial and general ledgers to payroll and accounts receivable/accounts payable, we recommend that you print these reports for financial reporting reasons. You will want to have a hard copy of your historical company information, especially if you get audited.
Print and finalize payroll forms- Tax returns should be filed and completed for the year that you are closing.
Back up all company data- You can save the backup on a CD or flash drive. Save the backup with a name you will recognize in the future. We recommend that you include the words “Year-end” and the year you are closing in the file name. Both the paper documents you printed and this electronic data backup are essential for future reference and future audits.
Plan strategically- The end of the year is a natural time to start re-evaluating your financial processes, procedures, and goals. Focus your efforts on maximizing your impact in the next year while minimizing your expenses.
Import your current budget, analyze it, and create a new one- Learn from this year’s mistakes and create an effective budget for the year to come.
Evaluate your financial records- While it is important to straighten out your financial records due to legalities, it is also important for properly managing your organization. Inaccurate financial records often results in poor decision making and missed opportunities, not to mention trouble from the government.
Update donor records- Make sure that your donor records are in order by the year-end because donors will be expecting their annual contribution statements at the beginning of the year.
Hold an end-of-year meeting- Have a year-end meeting to discuss the challenges of the past year and focus on the necessary improvements for the year to come. Prepare for your end-of-year meeting by creating the necessary financial reports.
Finalize payrolls- Make sure everything is in order to ensure your employees receive their W2s in a timely manner.

Here at Beck & Company we are here to help you in any way that we can. Contact us to see how we might be able to assist your nonprofit organization in finishing off the year well.

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.

Mid-Year Checklist for Small Business Financial Planning

Running a small business requires a lot of planning and effort. While many small businesses focus their attention on the year-end, it is just as important to revisit your company’s financial plan mid-year. Financial planning is an ongoing process for small business owners and taking action now can help you prepare for future success.

Keep the following checklist in mind as you prepare to go over your company’s financial plans this summer:

1. Meet with a tax consultant.

Many small businesses make the mistake of waiting until tax time to begin thinking about their taxes. By then, it is too late to take action and reduce your tax payments. By meeting with a tax consultant earlier in the year, you will have plenty of time to go over your company’s financials and discuss your best options. More importantly, you will still have time to act on your tax consultant’s suggestions for the year.

2. Assess your estimated tax payments for the year prior.

Now that you’ve hit the mid-way point for the year, it is time to assess your estimated tax payments for the rest of the year. Review your business’ year to date financial earnings and forecast your earnings for the rest of the year. Once you have totaled your small business’ estimated earnings for the year, assess your estimated tax payments to avoid any underpayment penalties. Make sure you adjust your final two estimated tax payments as needed.

3. Re-evaluate your business entity.

Mid-year is the perfect time to re-evaluate your small business entity. Many small businesses start out as partnerships or sole proprietorships only to transition to another entity further down the road. If your small business is not incorporated, you may want to consider incorporating it (as a C Corp, S Corp, or LLC) to possibly save money on taxes and protect your company from some financial risk. Some companies are formed with one entity target in mind and may need to reassess the entity for a different revenue level. Whatever your situation, make sure that you adjust your entity before it’s too late. Failure to adjust your entity due to revenue can be a costly error.

Make sure you discuss your situation with your tax consultant prior to making any decisions. He or she will guide you through the process, determine the right entity for your situation, and let you know when to change it.

4. Assess your company’s recordkeeping process.

In order to run effectively and efficiently, your business needs to keep up accurate records. If your business could use some help in the recordkeeping department, mid-year is the perfect time to assess your current processes and procedures. If you have not been keeping track of your business expenses, now is the perfect time to catch up. If your employees are struggling to accomplish certain administrative tasks, look for an alternative solution (such as outsourcing, investing in a technology solution to accomplish the job more effectively, or dedicating a set amount of time each week to that specific task).

It may seem like a lot of work now, but you will be grateful for the updated books come tax-time.

As you can see, there are plenty of tasks your small business can perform mid-year to get ready for tax-time. Plan for any equipment maintenance that needs to be done on equipment still under warranty. Re-evaluate your small business budget for the year and redistribute expenses as needed. Do everything you can to ensure that your company’s financials are in tip-top shape come tax-time. While it may seem like you just filed your return for this year, it is never too early to start preparing for the next tax year.