Cloud Computing: It is Right for Small Business?

Cloud computing has become a trend for many large scale businesses. It is a business accounting software that allows predefined users to access their data anytime, anywhere. The best part about it is that since it is online, there is no need for the business owner to be physically where the data source is. However, it has been advised that small and medium scale business should also engage in cloud computing.

"If you look at the market research that's being published now, I think in particular, the ready-made cloud applications that we call SaaS (software as a service) are certainly becoming a big element of choice for small businesses to quickly and cost effectively fulfill computing needs that they find emerging," said Phil Wainwright, Vice Chairman of Eurocloud.

“Some of the larger companies have been using infrastructure and platform for some of their development efforts but companies across the board - especially the smaller companies - have been using software as a service. It's very accessible, it's very affordable and it's simpler to begin a transition with something like that," according to an author of CompTIA Cloud Computing report, Seth Robinson.

Benefits of cloud computing

1. Even small businesses have capacity issues. Cloud computer addresses these.

2. It eliminates the need to acquire the company’s own servers and the IT specialist to take care of it.

3. Fees to be paid are not uniform for all businesses. This depends on the amount of space or capacity need of the company.

4. Cloud computing saves the business and its company owner time and effort by letting them focus on their core business while it takes care of the business processes.

Cloud computing providers

Google, as an internet giant, also provides cloud computing. Among the Google apps are Gmail for email, Docs for file sharing, Calendar and sites.

For other companies, they have software-as-a-service which is a subset of cloud computing. An example for this is the web-based leave management form that gives the employees the convenience to file for leaves anytime and anywhere.

According to the Software and Information Industry Association (SIIA), a certain degree of “flexibility and scalability” among small and medium-sized enterprises is being expected by customers.

Source: Codestone.net, Ihotdesk.com, Learning.allcovered.com

Accounting Software Allow Businesses to Save Money

Accounting is very important to every business. And in today’s economic instability that is brought about by the global economic crisis, adopting the use of accounting software for businesses is deemed very advantageous.

According to Terry Forsey, a software sales and marketing coach, the software for accounting will make other services redundant. For one, the services of an external accountant will no longer be needed as often as before. Besides that, a professional bookkeeper will also be less needed when the accounting software is used.

"If you're dealing with a company who pays your invoices on 30 days from date of receipt, you can email them, which means you can get your invoices out an awful lot quicker,” added Forsey. However, it is advised that the employees to operate the software should have to undergo rigid training.

Here are other advantages of using Accounting Software that can make businesses save money:

1. Payroll processing

Hiring a payroll master can be tough especially for a small business. But by using the accounting software for businesses, time sheet information is entered together with the rate of pay. It is the software that does all the computations. Deductions are automatically applied.

2. Easy transaction entry

The slightest mistake in entering data can be disastrous. And yes, this can happen even to employees who are being extremely careful at data entry. But with the newest accounting software, incorrect data entry can be avoided as these already have safeguards that ensure that only the correct data are entered. Debit and credit transactions are checked and made sure to be accurate.

3. Accounts payable

Paying suppliers has never been this easy. With the software for accounting, all payables and collectibles are easier to track because the software has the ability to organize data and information. Therefore, a company is able to save because all charges and fees brought about by overdue payments are avoided.

4. Tax and financial reports

Tax statements are very complicated. With the software for accounting, this can be done fast, accurately, and timely.

5. Ease of access

Accounting software are online applications. This means that anyone can work on accounting even at home, in the mall, or wherever the need arises. With just a laptop computer, internet connection, and account password, work can be completed in no time.

Source: Codestone.net

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Six Reasons Why Businesses Should Have an Accounting Software

Businesses should have accounting software. There are so many reasons out there for businesses to have accounting software in order to improve their performance. Terry Forsey, Software Sales and Marketing Coach and owner of Forsey Consulting, elaborates about the benefits of such solution.

There has been a mention of 6 top reasons. The first of which is that it gives the ability to complete bookkeeping tasks much quicker and more accurately.

This will help improve customer service as questions from clients are being responded to much more quickly, according to Forsey.

Forsey also noted that businesses will have accuracy, and then the ability to automate or semi-automate a number of things, "including invoice dispatch bank returns, reconciliations and so on."

Forsey also went on to say that using accounting software puts the companies to a position to make superior financial decisions as compared to those who do not.

After the Executive Vice President at Technology Education firm K2e.com, Randolph Johnston, said the software is perfect for small and large businesses, it is Forsey who is the latest industry chief to praise the solution.

Terry Forsey

Terry Forsey has a Masters Degree in Computer Science, yet has spent over 30 years working as a Sales & Marketing focused Director within the Software Industry. His experience has been with Small and Medium sized software companies where he has repeatedly wrestled with the challenges of growth and survived three previous recessions!

News Source: Codestone.net »

Did You Know - Accounting Errors Could Make Property Taxes Increase

Due to an accounting error that has misrepresented the value of the village’s business district, village property taxes could increase in 2012 by 5.8 per cent.

According to Shorewood Village (Wisconsin, United States) officials, the Tax Incremental Financing District No. 1 that blankets much of the business district was recorded and published as $76.7 million too high by the Department of Revenue. This was where the error occurred.

Since the value of the village was erroneous, and that its value must be based on the total equalized value of property in Sherwood published by the Department of Revenue, its property taxes could be artificially high too next year.

Property owners will have to contribute an extra of 5.8 percent in property taxes should this error not be corrected.

This error could mean a total of $2 million extra in property taxes or $442 more for a house assessed at $300,000. This computation was based on the 2011 tax rates.

When the tax district’s value reached the department in an electronic file, it was already wrong. It came from the contracted assessor for the village, the Associated Appraisal Consultants, Inc. This was according to Scott Shields, Section Chief of the Department of Revenue Equalization.

Furthermore, Shields said that a department employee was sent to contact the assessor to confirm the value and the assessor confirmed it.

Image: Shorewood Village trustees and officials discuss their long range financial plan at a meeting Tuesday, when Village Manager Chris Swartz announced the error in recorded TIF value. Credit Rory Linnane

On the same date the data was released, village officials immediately caught the error. However, state officials say they could not change it since it has been published and many other entities are already using the data for planning and taxing purposes.

“As soon as we publish them people are running with them, using them, estimating impacts,” said Shields.

According to Shields, the department has to wait until the following year to correct the error as it is bound by state statute.

“We’re asking the state Department of Revenue to consider that this is just an entry mistake and it doesn’t affect anyone else,” said Chris Swartz.

Source: Shorewood Patch »

Carbon Tax Impacts Make Accountants Worry

According to the results of a survey of accountants, the Australian small business owners’ financial performance will be negatively impacted by the introduction of a carbon tax.

Data from a survey conducted by the Institute of Public Accountants (IPA) shows that 70 percent of the respondents are worried about the financial performance of their small business clients as they believe that their small business would be negatively affected while 66 percent believe that enough consideration about how the tax will impact SMBs have been provided.

IPA chief executive, Andrew Conway, commented on the survey that IPA members were trusted advisers to the Australian small business community. Furthermore, he believed that the perceived bleak outlook for the small and medium business sector over the next 12 months is very alarming for them.

Moreover, Conway said that regardless of the Government statement, that only top polluters will be impacted with the introduction of the carbon tax, it seems that the government has not considered the interests of small businesses.

According to the IPA survey, data shows that 66 per cent of respondents believed that not enough consideration have been given to how the carbon tax would impact small business, while 67 per cent believed that insufficient information have been provided to small business over how the carbon tax might affect them.

The IPA survey comes just days after the Australian Retailers Association released its carbon tax survey. The ARA survey shows that 83 percent of retailers believe that the carbon tax will impact the consumers in a way that they will spend less while 85 percent believed that profitability will be negatively impacted.

High Public Opposition

The carbon tax issue shows a high public opposition and is growing with 60 percent of voters – up 3 percent since last month – against the tax. The figure is slightly under Americans’ disapproval of a carbon tax that was at 70 percent last year.

Likewise, Australia’s mining, energy, agriculture and food industry groups are worried about an expected increase in their expenditures.

Source: Carbon tax to hurt small business: IPA | Dynamic Business »

Accounting Software Can Save Businesses From the Threats of Insolvency

It is clear that investing in high quality accounting software packages is an efficient way to keep a business on the right track and to keep off threats brought about by insolvency.

This came after AAP’s report that there was a 21.1 per cent increase in terms of the number of Australian firms that hit financial meltdown in June.

It is expected that the number will rise further in the coming months according to Taylor Woodings, the accounting firm that did the research.

“Most of them are where there's been a problem for a number of years. It's not indicative of the current economic climate,” said Michael Ryan, managing partner of the firm. It is seen that such problems can build up over time.

By utilizing an accounting software such as SAP Business One, financial issues may be tackled at its earliest stage and may be prevented from becoming a major problem.

This thought has been strengthened by Kevin Wright who is a partner at chartered accountant, Leftley Rowe, saying that small businesses can benefit from using accounting software.

Source: Can accounting software help to stave off the threat of insolvency? | Codestone »

Budgeting Basics for SME Businesses

Budgeting lies at the foundation of every SME business’ financial plan. It is the key to a successful and efficient financial management (if done properly). However, it is often overlooked.

On the surface it seems that budgeting is a tedious financial exercise for your small business, especially if you feel your finances are already in good order. However, good budget can really help your small business keep its spending on track and even unearth some hidden cash flow problems that might free up even more money to put toward your other financial goals.

So if you do not want to learn the value of budgeting the hard way, try to learn some tips on budgeting basics for SME business.

Amanda Falconer, the successful proprietor of the Sydney Small Business Centre, offers courses to help enterprises run more efficiently. She advises small business owners to make a five year-plan and a detailed operating plan and budget for the next 12 months. In her experiences, she also advises small business owners to pick a point five years in the future and determined the value they wanted the business to have at that end point and worked back from there.

Furthermore, Falconer also used another important resource in building her budget and five-year plan. Falconer used the Australian Taxation Office statistics on net and gross profit ratios by industry sector which shows broken down average figures that were achieved by start-ups, established businesses and best practice for each sector as well as data such as typical wages to revenue that ratios businesses can use to help them determine an appropriate budget plan.

Falconer also revealed that she also asked a financial management accountant to develop a detailed budget model into which figures such as staff numbers, sales targets and net profit to see how the business would grow could be inputted. Then they put the budget into their accounting software so that at least monthly they can compare actual performance with projected performance.

Source: Budgeting basics for SMEs - The Sydney Morning Herald »