By Terry Cartwright

The difference between bookkeeping services and accounting may be unclear to the uninitiated while both are of vital importance to financial success. Bookkeeping is an important part of the accounting function and is essentially the record keeping of the financial transactions. Accounting is while incorporating the record keeping also includes the presentation, interpretation and financial control functions including interpretation of the numbers for the financial health of a business of which taxation can play a major part.

Bookkeeping stems from the recording of financial transactions and the accounting term for a business accounts as books. In effect the accounting function prepares a record of the monetary affairs of a business and stores the information in files called books. Hence the term bookkeeping often misspelled as book keeping which is the function of a librarian not that of a bookkeeper.

The financial affairs of a business involve many aspects and start with the recording of what is termed the prime documents. The task of a bookkeeping service which some businesses outsource is to record the prime documents, those prime documents being the sales, purchases and cash/bank transactions. All small businesses do bookkeeping and the most successful use the bookkeeping records as a basis for an accounting function to generate a more efficient financial service.

All business involves buying or selling something and the consequent function of receiving or paying money to the value of those transactions. Recording these transactions in larger business organisations is done by accounts clerks who work under the supervision of the accountant.

Invariably medium and larger businesses use a double entry system for recording transactions. Double entry accounting evolves from the fact that every transaction as a double effect on the business of which these are prime examples.

A sale is made. That creates a record of income for the business which is taxed on that income the other side of the financial transaction, the double entry, is the fact that the organisation who was sold the goods now owes the value of that sales invoice to the business. That is the double entry, record the sales income and also record the debt due from the customer who is now called a debtor.

Someone who owes the business a debt is called a debtor.

A purchase is made. That creates a record of expense for the business which can be deducted from income and lowers taxes and the other side of the financial transaction, the double entry, is the fact that the organisation who supplied the purchase on credit is now owed the money. That is the double entry, record the sales income and also record the credit due to the supplier who is now called the creditor.

Someone who has supplied goods on credit is called a creditor.

The third type of prime transaction is the transfer of money between the debtors and creditors and the business.

When a debtor pays his sales invoice the double entry is to add that amount of money to the business financial records and the opposite double entry goes to the debtor account to reduce the amount owed to the business since it has now received the cash.

When a creditor is paid the amount owed the money is recorded as reducing the cash resources of the business by for example deducting the money from the bank balance and the double entry reduces the amount the business now owes to the creditor account since it has reduced the credit received.

The bookkeeping function is to record these prime transactions. Since every financial transaction has an equal and opposite entry in the books there has to be a mathematical check that both sides of the transactions add up to zero. This check process is called a trial balance where both sides of the entries should be in agreement and normally the point at which the bookkeeping service is deemed to be complete.

Double entry bookkeeping is required for all businesses that require to produce a statement of its assets and liabilities. This statement of assets and liabilities is the total of all the balances from the trial balance and is called a balance sheet.

Many small businesses do not require a balance sheet. In the UK the production of a balance sheet is optional for every self employed business as it is not an obligatory requirement of the self assessment tax return form. A self employed bookkeeping system is not required to produce a balance sheet because the business effectively belongs to the owner and is that owners personal business.

Limited companies must produce a balance sheet under various financial acts and submit the balance sheet to both Companies House and the tax authority each year. The different rules applying to a limited company is because the accounts including the balance sheet are public records available to the members of that company and not necessarily the property of a single individual or partnership.

The self employed bookkeeping system can be simpler being produced from a single entry style of bookkeeping rather than double entry. Single entry bookkeeping makes a single entry for each financial transaction which is sufficient to produce an income and expenditure account, a profit and loss account, but does not make the reciprocal entry that establishes the value of the assets and liabilities.

Single entry can be as simple as making a list of the sales income and the purchase expenses. Such a bookkeeping system is valuable to the smaller business as it requires little or no bookkeeping or accounting knowledge. A smaller business can produce its own accounts without the need for a bookkeeper or accountant particularly if it has access to bookkeeping templates through bookkeeping software to produce the accounts in the accounting format required.

About the Author: Terry Cartwright designs Payroll and Accounting Software

diyaccounting.co.uk

with UK payroll software for 1 to 20 employees at

diyaccounting.co.uk/payroll.htm

Source:

isnare.com

Permanent Link:

isnare.com/?aid=212753&ca=Business+Management

By Naz Daud

Business management combines an interesting mix of theory and practice, and it is a particularly good topic for management and entrepreneurial types to study. Finding a business management style that suits your personality and the nature of your business is both important and worthy of time investment, as being self-aware and being able to identify strengths and weaknesses of various approaches will enable more effective personal development and ultimately more effective management.

While many have their own individual business management styles, these are traditionally broadly categorized into three main classes of business management approaches.

Autocratic Management

Firstly, there is what has come to be known as the autocratic approach to management, which installs more trust in the leadership as opposed to the individual staff. This involves pulling rank and leaves employees in no doubt as to whom the management is or what decisions are being made. Rather than engaging employees within the decision making process, this business management style typically concerns businesses that require direct, effective leadership to produce results, often under pressure of working in a tough environment. Upon hearing the term autocratic, many tend to visualise a dictatorial approach to management. While that is perhaps the case, it is seldom as strict as this and it is often a necessary management style, for example in the armed forces or in a high-paced trading environment, where there is no margin for deliberation and group consideration.

Democratic Management

Alternatively, there is a business management style known as the democratic style, where employees are effectively engaged in consultation before decisions are made. While some consider this to be more motivating and more enjoyable to work under, it does nevertheless have its own disadvantages. Giving employees a say may undermine the authority of the management, and may ultimately cause inefficiencies in the decision making process. It is also time intensive, and perhaps not as effective in larger organisations with thousands of employees. While of course at a board room level this kind of decision making goes on everyday, it’s one that works most effectively in slower paced business where decisions can be fully deliberated and considered.

Laissez Fair Management

An alternative to those two business management styles and the third main category is what’s known as the laissez fair management style. This is by definition a more hands-off approach to management, which puts the trust of running the business within the hands of employees themselves, and allows a greater degree of autonomy than would otherwise be the case. While this is strong in creative industries, some business people find that this style of management can lead to a fragmented approach to doing business and is less organised and perhaps less professional.

Whichever business management style you liken yourself to; there are advantages and disadvantages of that approach. What’s important is not that you recognise which of these categories you fall under, but rather that you’re aware of the improvements that can be made to make your management more effective and efficient while also improving the relationships you share with employees at all levels of the organisation.

About the Author: Naz Daud – CityLocal Franchise & Business

UK Business Directory & Franchise Opportunities

Business Opportunity & Franchise Opportunities

Ireland Business Directory & Internet Franchises Working from Home

Source:

isnare.com

Permanent Link:

isnare.com/?aid=257692&ca=Business+Management

By Sam Miller

Software interface testing is just one among the many types of software testing that are used by software engineers for software development. Automated testing is one of the most common software test approaches these days. With this, engineers would not have to perform tests or quality assurance manually.

Nonetheless, automation of software test requires that a prior manual testing procedure should be set up and that this conforms to a formalized testing process. To automate the process, special software is used to control test executions, to ready pre-conditions or requirements for the test, and to compare actual outcomes to predicted results. While automated testing enables developers to save time and energy, manual testing is still needed for more complex tests. One of the testing methods that cannot be entirely automated is interface testing.

Interface testing is one of the most important software tests in assuring the quality of software products. In a nutshell, human beings are able to communicate with hardware through an interface. Interface is actually software that consists of sets of messages, commands, images, and other features that allow communication between a device and a user. Various companies use this type of software testing to make sure that their customers will not encounter any problem when using a particular software product once it is delivered to them. In addition, developers usually want their products to be supported by more than one language thus, their need to understand the interface. In this test, developers come up with changes or revisions and introduce these to a software application by taking note of the feedback from end-users. Usually, each end-user is assigned a specific task. During the course of this test, the program flow is checked and evaluated to determine if it matches the natural strategy of the user in navigating within the application. Moreover, this test determines which application areas are initially and usually accessed and its user-friendliness as well.

A moderator is often tasked to undertake this quality assurance test. Throughout the process, he does not need to communicate anything to the end-user. Rather, he will only be documenting or recording the reaction of the user towards the application. At the session’s end, he interviews the end-users and endorses their feedback to the software developer. This way, interface testing improves the software’s overall acceptance and the consumer’s user experience. Factors like functionality, performance speed, the time needed to use the program, the ease with which the user remembers using the program, user satisfaction, and the rate of user errors are the usual criteria that developers have for a well-designed user interface.

Other software testing types aside from interface testing include component testing, system testing, acceptance testing, and release testing. Component testing requires testing all individual components of software design. System testing, on the other hand, involves testing the functional and non-functional requirements of application systems. Acceptance testing evaluates and compares the system against pre-set requirements. Lastly, release testing is conducted to determine if a new system is compatible to the current technical environment.

About the Author: If you are interested in

software interface testing

, check this web-site to learn more about tool interface testing.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=265075&ca=Computers+and+Technology

By Simon Volkov

Cash for inheritance refers to a financing method where inheritance property rights are sold in exchange for lump sum cash. There are many reasons to sell, but the most common is when property is suspended in probate for long periods of time.

Entering into cash for inheritance agreements is an important decision, so it’s best to conduct research to determine if this is the best financial strategy. The first consideration is the depreciation of value for property rights exchange.

Funding sources do not pay face value for inheritance property. They assume considerable risk when buying rights to probated inheritance. A lot of things can go wrong in probate that requires the sale of estate assets. If the process is prolonged, property values can depreciate.

Due to depreciation factors and the length of time it takes for probate to settle, funding sources typically charge between 25- and 40-percent of the appraised value. If Uncle Bob leaves a collection of coins valued at $50,000, heirs would receive around $30,000 in upfront cash. However, they might be taxed on the full $50k.

Once heirs sell property rights for cash, the deal is complete on their end. Assignment of property rights is filed through probate court and once the estate settles the property is distributed to the funding source.

The first step in selling probated gifts is to locate a cash advance provider. This could be a probate cash company, private investor, or investment group. The process varies, but most sources require documentation to verify entitlement to inheritance, such as the last Will or a certified statement from the estate’s personal representative.

Heirs typically must undergo a credit check to determine if they have liens or judgments against them that could interfere with property transfers. Sources often shy away from those who are in the midst of personal bankruptcy or have outstanding taxes, child support, or spousal alimony.

Funding sources may impose a minimum limit for cash advances. Many prefer assets to be valued over $10,000 and are more apt to provide funds when inheritance gifts consist of financial portfolios or real estate.

The process for inheritance funding can take a few days to a few weeks. Once funds are distributed, heirs can use the money for whatever purpose they desire. However, when selling inheritance rights it is best to use money for something life improving.

Spending inheritance cash frivolously is counterproductive. It can be beneficial to realize the decedent worked hard to acquire assets they have passed along to relatives. They bequeathed assets in hopes of making the lives of their loved ones better. It is meaningless to waste probate cash on material things. Instead, make a plan to invest in the future so that you can pass gifts along to your loved ones.

It is wise to consult with a probate lawyer prior to seeking out cash for inheritance funding. It is also wise to conduct research to locate funding sources that provide the highest offer for inheritance gifts. Take time to calculate the risks and rewards before signing away property rights to minimize risks.

About the Author: Simon Volkov is a real estate investor who specializes in probate liquidation and

cash for inheritance

advances. He is currently buying probate real estate located in SoCal, Arizona, Washington, and Nevada. Learn more about selling probated inheritance assets at

SimonVolkov.com

.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=763643&ca=Finances

By Derek Rogers

Flash memory, flash drive, pen drive and memory drive are just some of the names that are used to refer to USB flash drive. It is a compact device that was developed to be a secure and safe data transfer as well as data storage gadget. While this travel data storage device may seem to be perfect, it is still possible that it might corrupt your data. Just like in any other technology, a USB flash drive is also prone to technical problems that often lead to the corruption or loss of data. Assuming that its hardware is undamaged, doing a re-format can solve USB problems.

USB formatting is as easy as A-B-C.

First, you have to right click on the removable drive corresponding to where the USB was inserted, and then click on the

“format”

option. Or you can try using the file system drop down, where options

“FAT and FAT32”

are available. Choose the FAT option, it will reveal format utilities, then click on the

“Quick format”

option then press on

“start”

to initiate format operations. This way, all the data that the USB contains will be deleted, but the errors will hopefully be gone. Usually, errors or malfunction occurs during file transfers or data storage. For simple drive errors, scanning and re-formatting can work. In this manner, all the bad sectors of the USB will work like new.

When formatting does not solve your USB problems, you can make use of an alternate method. For more complicated USB problems, you will need to check the bios first to determine the actual problem. Before doing that, it is advised that you backup all the files from your hard drive to another hard drive, CD or DVD, and then turn off your computer. Insert your problematic USB on the drive port and turn on the computer. When the system bios are prompted, immediately press the F8 key. For some computers, it is the delete key or F2 key that initiate bios checking and take note of the operators that are listed on the screen. Using the cursor keys, navigate the bios and boot the CD drive first, save and then exit. Insert your operating system restore disk, save and restart. Simply follow the cue that initiates installation of your operating system. When the USB disk appears on the list of which drive format comes, then your USB is in the clear.

Depending on the options, you must opt out the re-installation of the operating system at this point. If it is still running, simply quit and leave the other drives alone. Try to reset the computer to boot from the disk instead of the CD drive as before. If your USB flash drive is already usable, it must now be detected in windows. If you fail to do this operating system re-installation, then just continue following the installation instructions. However, never try to install the operating system onto the USB disk drive.

Before going over your USB problems and trying out some troubleshooting tricks, have all your files backed up first, this task is something that must not be taken lightly. Although formatting seems easy, it is a lengthy process that needs to be done by somebody who fully understands the application. If everything else fails, get hold of your USB’s warranty so you can get it fixed from customer support.

About the Author: Derek Rogers is a freelance writer who writes for a number of UK businesses. For logo branded

USB Flash Drives

, he recommends Flashbay.com.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=328225&ca=Computers+and+Technology