Accounting Information

Accounting

Things are happening much too fast to be dependent on reports that are a month, or even two weeks old. You need to know what’s happening daily. Our most important indicator of business health in our critical startup days was what we called the “Cliff Report.” Basically it was our cash flow projection that told us how far we were from that financial cliff that represented bankruptcy.

Understanding your true cost of sales is critical and requires a savvy in-house cost accountant. Most businesses fail in the expansion or buildout phase because they neglected to appreciate how much it would cost them in time, money, and personnel to manage their increasing sales and provide the customer service necessary to protect their reputation and ensure their future reorders.

Pay-for-performance is at the heart of every successful enterprise. Chose incentives that are based on sales, growth, and profitability. In order to stay relevant, these bonus programs must be paid in the shortest period of time following the close of the previous month. It’s hard enough to get your in-house accountant to crunch these numbers before the 10th day of the new month. It’s almost impossible to get these critical numbers in a timely manner from an outsourced accountant.

Investing in in-house production is probably the greatest financial drag on a startup. It assumes that the company will be able to achieve sufficient sales to justify the investment in production facilities. But for most startups, the initial monthly payments are made out of the proceeds from loans or stock sales. But these payments are due regardless of sales.

This dilemma forces many startups to outsource production, as it did for us. But by keeping quality control in-house, we were able to deliver a high quality, consistent, and on time products without the financial burden of in-house production facilities.

We also discovered another advantage. When production is in-house, there’s tremendous financial pressure to put products on the market that might not live up to your quality standards because you have so much invested in them. But with proper outsourcing, oversight, and performance contracts you can refuse payment for lots that don’t meet your standards.

Accounting and Bookkeeping

Accountants and bookkeepers are primarily responsible for keeping track of where money goes within an organization. Bookkeepers keep detailed records of things like income and payments, taxes, expenses and other financial data. Accountants may handle more advanced tasks like budget analysis, tax preparation and investment development. Both bookkeepers and accountants frequently use advanced financial software to record and track their data. They can expect to work a normal 40-hour week, for the most part, with occasional overtime being necessary during peak seasons like tax season or the end of the fiscal year.

Accounting and bookkeeping training offers you the ability to work in almost any kind of organization in almost any place in the country. Study.com offers a wide variety of articles on different career and training opportunities for these fields.

Education and Certification Information

Companies who hire bookkeepers generally require that applicants have at least a high school diploma and some work experience, according to the U.S. Bureau of Labor Statistics (BLS), although post-high school education, like an associate's degree in bookkeeping, is required by some companies (www.bls.gov). Bookkeepers may also wish to become certified by the American Institute of Professional Bookkeepers, to demonstrate their knowledge and potentially improve their job prospects.

Accountants generally need a bachelor's degree. Those who want to become Certified Public Accountants (CPAs) are required to complete 150 hours of college course work and pass a 4-part examination. Some colleges offer a combined bachelor's and master's degree program in accounting that satisfies the 150-hour requirement. A CPA must also complete continuing education in order to maintain his or her certification.Accounting and bookkeeping are necessary to companies and organizations across the business spectrum. Employment of accountants is expected to increase by 13% between 2012 and 2022, the BLS reports. Bookkeepers can expect employment growth of 11% for the same period. According to May 2013 BLS data, accountants and auditors earned a median annual salary of $65,080 and bookkeepers earned a median salary of $120000.