The All-In-One Time Management & Payroll Online Software. Call now 1.844.777.2560

Category Archives: News

What is Accounting? Learn Basic Accounting Principles

[ad_1]

If you ever wanted to know what is accounting then this is your change to learn? Who is in charge of setting basic accounting standards that we all follow? Is there some type of regulatory system is place to investigate and arrest people for accounting fraud? Well guess what, there is, at least to a certain degree any way. So hear is a quick accounting principles education that can explain everything.

First, just what is accounting anyway? Well in simple terms accounting is the comprehensive system of gathering and recording financial information of a business for the purpose of preparing summaries for tax authorizing, investors, managers and other who make decisions within the companies or organizations that they are involved in. The accounting terminology or terms can get tricky at times and you may need to keep handy an accounting glossary that explains the terms in plain language if you are a beginner. To keep people from ethics frauds in accounting the United States top experts created the Financial Accounting Standards Board or (FASB) for short. This was established in 1973 and it replaced the Accounting Principles Board(APB). The job of the (FASB) is to analyze and review problems in the field that is brought to them. After much deliberation they will make an assessment of what type of action that will be taken when an accounting issue occurs.

This was mainly voluntary and it had very good success. Double-entry accounting was founded in Italy in the 1400’s and the accounting formula has change since then. The reason why the basic accounting concepts worked or well was that the business community would not be able to function properly if there were no consistency in the reporting of finances.The FASB has its’ own private financing and is not government organized. The American Institute of Certified Public Accountants(AICPA) are a big supporter of the FASB and many of our Certified Public Accountants(CPAs) are members of this prestigious organization. Accounting careers are shaped on you being a member. They are bound by the guidelines and principles that they offer as other countries also have similar boards that require a high level of accounting conduct.

The FASB created the basic accounting concepts code known as General Accepted Accounting Principles(GAAP). The idea behind this is if everyone uses the same business financial statement prepared according to GAAP, then who ever uses the information can trust or rely on the information more steadily than if prepare differently. Any business that prepare their statements without using the GAAP standards, like a lot of small businesses do, cannot say that their statements are created under GAAP guidelines and they should let the user know they are not and let the buyer beware.

To keep a watch out on everything the government relies on the Securities Exchange Commission(SEC) to sort of police the accounting world. They mostly focus on public companies because they are responsible for protecting investors from fraudulent misrepresentation. The SEC has established it own set of accounting standards and with the economy the way it is today they really have their hands full with this.

Accountants are now more involved with preparing income tax returns and they use their business financial statements. The Internal Revenue Service(IRS) may review those financial records when they perform an audit and not following the rules can get you in to big trouble risking fines and penalties.

As you can see the principles and standards in many ways are a combination of voluntary and regulatory guidelines. There is a push to create an international accounting standards board or (IASB) due to the growing globalization process. This will be a huge undertaking that will surely take years to build. Now that the stock markets around the world are in trouble it is obviously needed.

[ad_2] Source by Ellis Jackson Jr

Wealth Management – Your Next Career Step?

[ad_1]

As we’ve covered in earlier posts, the financial jobs sector is one of the most interesting and rewarding industries to work in. From IT jobs to investment banking and brokerage jobs, there’s something in this area for almost any potential employee. And for those seeking out a real challenge that leads to tangible rewards, wealth management jobs or private banking jobs present the next obvious career step.

But, as with the majority of financial jobs, wealth management can seem complex and intimidating to those with little or no experience of what’s involved. This article will teach you the basics and let you know just what’s required to get your foot on the ladder, so you can continue your climb to the top of this lucrative sector.

What is Wealth Management?

Wealth management, in a similar way to private banking, involves offering a tailored and bespoke service to individual private clients.

You’ll be working for some of the country’s leading business owners and other high earners in order to offer them advice, assistance and the benefit of your knowledge when it comes to ensuring that their money is working for them.

If you take up the challenge of entering the wealth management field, you’ll be expected to educate and support your client, ensure that their personal worth is protected, and that their finances grow year on year.

And to do that, you’ll need a range of skills specific to this very demanding and involving service.

What Background Do I Need?

As with all high level positions in this sector, a solid grounding in the financial services industry and relevant experience will be the bare minimum that you’ll need to move your career forwards.

You’ll need a working knowledge of tax liability, and the ability to recommend when and where your client should make their investments in order for the maximum possible return – so qualifications and experience in these areas will be beneficial.

However, each wealth management company will have their own specific needs tailored to their individual clients, so there’s no real one-size-fits-all background that will ensure you’re a successful applicant.

In order to get ahead, you’ll need expert assistance from someone who can prepare you for the challenges of your preferred role.

How Can I Get My Foot on the Ladder?

The best place to ask for advice to take your career in this sector forward is a dedicated recruitment agency.

Because they work to place candidates like you in these roles on a daily basis, recruiters have a deeper insight into what’s required to be successful than any article or blog post can convey. They’ll arm you with the information, tactics and knowledge that you need to make a real impression on the companies that you want to work for.

So if you want to work for some of the most successful people in the country, in a career that’s equally demanding and rewarding, make sure you get in touch with the experts in the field. They’ll help you get your foot on the ladder and ensure that you get your chance to make waves in the field of finance.

[ad_2] Source by Andrew Nattan

Organizational Management – Management Structure

[ad_1]

In this installment of our guide to organizational management we look at management structure…

The process of planning, organizing, and controlling human and other resources in order to meet an organizations goals, is known as management.

Typically, a company will be set up to include different types of managers, which can include managers with responsibility for a specific department or division of the entity, as well as regional managers who supervise activities in a particular geographic region. The types of management positions will vary in accordance with the size of the business.

Management structure (also known as organizational structure) is the method by which staff, departments, divisions and regions work and interact with one another. There are two main types of such structures, known as flat and hierarchal.

Whats known as a flat management structure promotes a decentralized decision-making process, which increases staff involvement and is achieved by very few or no management layers between front-line workers and the company’s leadership.

By elevating the level of responsibility of baseline employees, and by eliminating layers of middle management, comments and feedback reach all personnel involved in decisions more quickly. Since the interaction between workers is more frequent, this management structure generally depends upon a much more personal relationship between workers and managers.

The hierarchal management structure has a set chain-of-command – that is each unit in the organization (except that at the very top) is subordinate to another unit or division. That means that each individual communicates directly with an immediate supervisor or subordinate and does not jump over layers of management to get to the top leader.

The benefit of a hierarchal structure is also its primary limitation in that it will reduce the level of communication that goes directly to the top. The hierarchal configuration, however, is the most prevalent for large corporations, governments, and even organized religions.

Flat management structures will typically only work well in smaller companies, or within smaller defined units of a large organization. Once an entity reaches a certain size, this type of structure will not work as well and could end up having a negative impact on productivity. An organizations complexity can be related to its size and how widely distributed it is geographically, and it is this complexity that governs which management structure is most beneficial to the company.

[ad_2] Source by Mark Thomas Walters

Human Resources – Strategic Business Partner

[ad_1]

Human Resources, with its diverse internal and external customer base, the ability to touch all levels of the organization and the legendary understanding of the organization’s environment could not be more suited for the critical role of a strategic business partner.

In General Electric’s recently published 2008 annual letter to shareholders, the CEO Jeff Immelt stated the following: “…..The secret to all of these dimensions of developing leaders is to have a great team of human resource professionals. Enduring companies must have a passion for people. GE has a great HR team that protects our valuable human assets. I want to give them special recognition this year….” For years, GE has acknowledged the success of Bill Conaty, their Senior Vice President of Corporate Human Resources. Bill Conaty is highly valued for his continued contribution to the organization. His insight and input have been invaluable. In a 2004 article written by Anne Freedman, Conaty himself stated: “I consider my real core competency and my value to the organization as being a human resource leader, but without having the business grounding, I don’t think I would be an effective HR partner.”

Organizations that consider their employees to be the most valuable asset cannot afford to not have human resources functioning in a true strategic business partner role. Human Resource professionals are equipped with the knowledge, skills, and abilities, the talent to partner with senior leadership to not only be involved in the strategic management of the organization but drive the implementation of it. As stated in “The 8 Practices of Exceptional Companies, How Great Organizations Make the Most of Their Human Assets” by Jac Fitz-Enz, “Strategic plans must be laid on a core strategy, a solid wall of values. Core strategies lead to strategic plans, organizational charts, operating plans, quantitative objectives, and ultimately, to specific human behavior and task performance.” Business oriented HR professionals can help design a strategic plan that balances the needs of the organization, its employees, and other stakeholders. It can help align the efforts of the various functions in the organization with the plan’s strategic goals, and it can support those functions by ensuring that they can recruit, develop, and retain the necessary company team members. HR, as strategic business partners should be the drivers of the organizations values thus the drivers of the strategic plan.

HR should be made responsible for owning the leadership and employee development, as well as direct all communication efforts, especially as it relates to the pulse of the employee population. Succession planning is an area that a strategic HR business partner should be involved in. As discussed in “Good to Great” by Jim Collins, having the right people on the bus, the wrong people off the bus, and the right people in the right seats is the key element to the success of any organization – who better than to manage the people process than a strategic HR business partner.

To fulfill a strategic business partner role, HR leaders must understand the organization’s business. In addition to fully understanding the business, HR must understand the environment in which it operates, the competition, and the circumstances that could influence the progress of the organization. HR can no longer focus on its own internal tasks. It must be responsible for ensuring that HR’s strategy, goals and priorities are driven by and aligned with the overall business needs. It must establish key business partnerships with senior management, as well as key figures in other functions within the organization. Although the operational role of HR, the day-to-day tasks required to run an organization are not strategic in nature, the responsibilities must mirror the goals of the organization. There needs to be a more integrated global company-wide process that considers how each of the HR programs can help move the entire organization in the right direction.

In addition to HR increasing its own knowledge of the organization and creating solid partnerships through collaborative communication efforts, increasing its knowledge in other areas is extremely important to being a successful strategic business partner. HR must increase its knowledge of Finance and Accounting, Marketing and Sales, Operations, and Information Technology and hone in on key business skills. Almost every activity in an organization can be referred to as a project. That is why it is important for professionals in HR to improve their project management skills. In addition to project management skills, strategic HR business partners must fully understand the strategic planning process. HR must be able to manage change, perform environmental scanning, and understand the importance of outsourcing and the process associated with outsourcing. Being able to manage technology and measure the effectiveness of all company-wide programs and efforts are equally important. HR should also be playing a vital role in leadership coaching, should be responsible for implementing strategies to become an employer of choice, and should be responsible for leading programs to safe guard your company performance from external elements.

To summarize, Human Resource professionals touch every level and every department in the organization. Due to the involvement across the company, employees at all levels get to know and trust the members of the HR team. Because of HR’s familiarity with the change management process and human capital development, successful companies benefit from having HR fully functioning in a strategic business partner role. If your company is not already doing so, allow Human Resources to be represented in meetings along side other senior leaders. There is not a more suitable functional group within the company to be responsible for leading the development of strategic plans, implementing key tactics, and measuring the organizations success in executing its plan than Human Resources.

[ad_2] Source by Jeannie Moravits Smith

What is the Difference Between Bookkeeping and Accounting?

[ad_1]

What is the difference between bookkeeping, accounting, and accountancy? When someone says they are an accountant, are they really a bookkeeper? Does it really matter?

Bookkeeping

Bookkeeping is the process of systematically recording the financial transactions of a business, so as to show how the transactions relate to each other. Bookkeeping is largely a mechanical process and does not involve any analysis of the financial transactions, but rather the recording of them.

Traditionally, the records were kept in a book, hence the name bookkeeping. These days, bookkeeping is normally performed using a bookkeeping software package, but the names of the books (daybook, cashbook, journal, and ledger) are still used.

A bookkeeper’s function is primarily one of recording transactions in the journal and posting to the ledger, and is sometimes referred to as an accounts clerk.

There are two types of bookkeeping: single entry and double-entry. In single entry bookkeeping, the record of each transaction is carried to either the debit or credit column of a single account. In double-entry bookkeeping, two entries of each transaction are carried to the ledger: one to the debit side, and one to the credit side, of the corresponding account. This is so the two entries can be used to check each other.

Accounting

Accounting is the systematic recording, reporting, and analysis of financial transactions of a business. As bookkeeping involves making a financial record of business transactions, it is true to say that the role of bookkeeping is encompassed within the scope of accounting, and the bookkeeping system used by a business would form part of the accounting system.

Accounting also includes the preparation of statements concerning assets, liabilities and the operating results of a business.

Accountancy is the occupation related to accounting, and an accountant is the person who does, or at least is responsible for, the work. Accountants often specialize in a particular area of accounting such as taxes, auditing, or management.

In a small company, all of the bookkeeping and accounting tasks may well be performed by a single person. In this situation, that person would normally be referred to as an accountant.

[ad_2] Source by John Dixon