End-to-end Accounting
End-to-end solutions refer to the process where a system or service is carried out from beginning to end without assistance from a third-party. A solutions provider strives to deliver a fully functional system, service, or project from start to finish. For example, there will only be one vendor supplying a system’s software and hardware components including installing, implementing, and maintaining a new technological system.
End-to-end is considered a type of process improvement to help improve the efficiency and performance of information technology in a business. It also allows the company to better monitor the process from the planning stage to the execution stage, ensuring that the project produces the results that the company desires. Note that there can be different variations of the process, depending on the needs and requirements of the specific project that the company is undertaking.
Receivable Management
Why is receivables management important to enterprises? You need cash to flow at all times to keep a company running efficiently and smoothly. By ensuring the accounts receivables are received by you on time, you ensure that you have the money needed to pay your suppliers promptly. Hence, you need to manage the accounts receivable and accounts payable efficiently.
It also comprises businesses or clients from whom the business is money owed because of the credit facilities availed for business purposes. The accounting language calls such firms, clients, parties, companies Sundry Debtors. These can consist of cash receivables, trade receivables etc., and are an asset to the firm.
Payable Management
This is all done to efficiently control a company’s working capital.
The short-term liabilities section of the balance sheet is where the accounts payable should lie. It mostly consists of the short-term financing of things like accrued expenses, inventory purchases, and other valuable short-term operations.
Reconciliation
Reconciliation is an accounting process which SMB owners and their accountants need to perform to ensure that the correct balances are recorded within their accounts. The task requires comparing two pieces of data – typically one created internally and the second by a third party such as a bank, supplier or customer – and ensuring that they match up to give the same value on a specific date.
Completing reconciliations gives SMB owners the confidence that the values recorded in their accounts are accurate, and allows them to record their cash position and accurately forecast their cash flow.
Preparation of Financial Statements
Financial statements, though often feared as a very intimidating portion of small business accounting, are just a matter of putting the trial balance amounts onto properly formatted statements. Learn how to prepare these documents you’ll need for shareholders, potential financiers and your own insight.
After you have prepared your adjusting entries in the general journal, posted the general journal totals to the general ledger, and footed the general ledger accounts, you are ready to prepare financial statements. Like most of the accounting tasks we’ve reviewed, your accounting software can alleviate much of the legwork.
Sales Tax Filing
Business or trade has become an essential element of world history. Desire to explore trading has led many to do traveling from one country to another, doing voyages for finding more partners to trade. It results in changing of the entire demographic world. Because of the trade, all purchases and sale of good takes place. Sale tax is being paid to governing bodies based on the sale of goods and services.
Sale tax falls under the category of Indirect Tax which is levied on the purchasing and exchanging of goods and services that falls under the taxable slab. It is levied on the percentage basis. The rate of slabs is decided by the preceding government after enforcing the individual policies which are usually easy and simple to collect and calculate.
Budget Variance Analysis
Budget variance analysis is the practice of comparing actual results to the budget values for the same period and analyzing the variances. Since the budget is created to act as a guide for the business to accomplish its goals and objectives, it is important to periodically measure how well the business was able to stick to it.
While the process of comparing actual results to budgeted values is simple, the most important information is derived from the analysis of the variances. Analysis is typically performed whether results are favorable, meaning they exceeded expectations, or negative, meaning they were worse than expectations.
Working Capital Management
Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to their most effective use.
Working capital management requires monitoring a company’s assets and liabilities to maintain sufficient cash flow to meet its short-term operating costs and short-term debt obligations.
Working capital management involves tracking various ratios, including the working capital ratio, the collection ratio, and the inventory ratio.