Bookkeeping Services

10 Small Business Accounting Trends to Kick-start 2018

Posted on 16/01/2018

10 Small Business Accounting Trends to Kick-start 2018

2018 is here and just like every other year, we’re mopping our brows thinking the previous year went down way too fast. But the New Year is not about moping on bygones but learning from the past and looking forward to the future! So here are 10 Small Business Accounting Trends for the year 2018.

Small Business Accounting

For all small businesses who’re looking to make bookkeeping and accounting a lot easier this year, your first thought should be to approach a reliable outsourcing partner. Not only SMEs but CPAs and accounting firms should ideally look to increase workforce as well. We all know – “that” time of the year is pretty near! After the lull of the holidays, it is time to spring back to action with a lot of holiday workload piled over – the best way to keep up is to avail outsourced bookkeeping and accounting.

What went by in 2017

Automation process gradually replaced manual work in accounting during 2017. We hope in 2018 accounting will continue traversing the path of further innovations and keep up the trend of automation. CPAs, accounting firms, & business owners have started concentrating on the key areas of analysis and forecast. It was evident in 2017 that CPAs, accounting firms and business owners were able to achieve more returns on their time and investment, all thanks to nifty insights, analysis and forecasts.

2018 Small Business Accounting Trends

Without further ado, we’re going to delve into the predicted trends for 2018.

  1. As we have seen in 2017, we believe 2018 will also see automation gradually work towards reducing the paperwork. A paperless environment will prove highly conducive to outsourced bookkeeping and accounting.
  2. 2018 will take business owners to the point where there will not be any requirement to manually categorize the transactions.
  3. Accountability has drawn a lot of focus from business owners and rightly so. 2018 will see business owners, CPAs, and accounting firms focus on the positive impacts that an accountability-driven work culture can have, on retention, service, profitability and growth.
  4. AI in 2018 is going to play a fairly big role in driving accountability.
  5. 2018 will see an upraise in the demand for reporting nonfinancial information as well – something the CPAs and accounting firms need to pay close attention to.

Know More..

  1. Intangible assets of the S&P 500 were 17 percent in 1975 and 84 percent in 2015. It’s a trend that the accounting profession simply can’t ignore and 2018 will also demonstrate the same.
  2. The trend of hiring outsourced bookkeepers and paraprofessionals will be on the rise.
  3. You didn’t have to hear us say it but here goes – blockchain technology will continue trending. How it affects us – we will save that for another post.
  4. The timing of tax reform is an area that could impact tax season for accountants.
  5. The need for informed business decisions using business insights will be on the rise with the increased availability of expertise. Business owners, CPAs and accounting firms will look forward to having extra time to focus on accounts analysis, thereby improving quality.

If you’re looking to increase time on hands using reliable outsourcing services, give us a call at +1-860-215-4997 or email us at info@velaninfo.com and our executives will be happy to assist you.

Topics: Accounting , Bookkeeping Services


10 Tips to Finding a Good Bookkeeper

Posted on 11/10/2017

We’ve seen a plethora of tips posted online about how to find a good bookkeeper. Being trusted and experienced bookkeepers ourselves, we decided to release the real set of tips on how to find a good bookkeeper. Coming up is the mother of all tip-lists you’ve seen on finding a good bookkeeper.

Offering offshore accounting services for more than a decade now, Velan bookkeepers have been serving some of the biggest accounting firms and CAs at a global level. We know our clients love our offshore accounting services, considering each one of us has stayed with us ever since. So this list is going to be much closer home for us and we’re going to tell you what we do right, to always stay in the good books of our clients – get the wordplay?

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Here’s how you find a good bookkeeper:

  1. Make sure you’re dealing with a reputable organization: More often than not, individual bookkeepers lack the reliability and sense of accountability that you’d expect.
  2. Sense of ownership: A good bookkeeper is proactive in assisting you with foresight and helping you make the right decisions at the right time.
  3. Deep domain expertise: A bookkeeper who has handled multiple clients across varied industries is most often the best bet.
  4. Cloud-ready accountants:Accountants with dexterous experience or certification in Cloud-based accounting software’s will make a great future-proof investment.
  5. Flexible payment methods: Now this is more in terms of outsourcing and offshore accounting services, but nevertheless a useful tip.
  6. Training & accreditation: A good bookkeeper must have some accreditation to present. Velan is ISO 9001 and ISO 27001 certified to indicate highly robust business process and highly secure offshore accounting services.
  7. Experience in years: For bookkeepers who work better and significantly faster, a minimum of 2 years of multi-industry bookkeeping experience is preferred – such is the experience offered by Velan.
  8. A business process: Not only when you avail offshore accounting services from organizations such as Velan but even when considering an individual bookkeeper, you need to identify what the business process is. Every good bookkeeper has a standard set of procedures and a rigorous process workflow or at least a checklist in place, when they do the books every month.
  9. Cost: A bookkeeper should charge by the industry standards. However critical they may be to your firm, an exorbitant fee is not justified. Offshore accounting services can help you zero-in on a bookkeeper with a price tag, just about right for your organization.
  10. Location: A major thing to remember is that for a bookkeeper to work efficiently, unlike other professions, location isn’t an important factor. Bookkeepers can be in-house, within the state or anywhere on the Earth for that matter. Does your bookkeeper require constant supervision? If yes, then you should see the warning sign right away. Remote is best since it would cost you a lot lesser and a remote organization would be an added advantage since the sense of ownership will be heightened.

If you’re still looking for the right bookkeeper then allow us to put an end to your search. Hire Velan Bookkeepers for exemplary offshore accounting services. Hire one or hire a team; hire hourly or hire monthly – to inquire about the flexible packages and engagement models of our offshore accounting services,  call us at  +1-516-717-2049

Hope you enjoyed reading this post. Let us know in the comments if you need more advice on finding a good bookkeeper! Or signup for a free 30-minute consultation session with our expert.

Topics: Bookkeeping Services


What Happens When You Track Cash Flow From Business Operations

Posted on 23/03/2017

Adequate cash-flow is significant to running a healthy business and anybody running their own business will know it. It is a taboo that healthy cash flows in any business come from equity funding or income from other investment and not their original business operations. The OCF or Operating Cash Flow unfolds what revenue is generated by ongoing business operations like sale of goods or services.

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Importance Of Tracking Cash Flow

There are quite a lot of advantages tracking your cash flow. Tracking cash flow helps in:

  • Improving your current performance
  • Enabling your investors to know of your status and in positive case bring in more investment
  • Foreseeing your long-term business value based on the current cash flow metrics
  • Enabling potential buyers to judge your business, if you are looking to sell your business
  • Enabling you to know the cash at hand to make any short-term finances, if need be
  • Enabling you to manage your cash flow better

How Can You Track The Cash Flow Metrics

Tracking your cash flow metrics is fairly simple. There are two ways to do it:

  1. Direct method

Direct method to finding OCF basically involves finding the Earnings Before Interest and Taxes or EBIT. Next, you need to find the depreciation or the declining value of the company’s assets due to wear and tear.

Now, OCF= EBIT + Depreciation – Taxes.

  1. Indirect method

If you use the indirect method to calculate your cash flow, you must ensure that you abide by the GAAP or Generally Accepted Accounting Principles, established US Accounting standards. That said indirect method is the most preferred method by most business men. This is because of the fact that it provides reconciliations from net income to the cash rendered by operations.

Steps to finding OCF:

  1. Find your net income
  2. Add the non-cash expenses back in – like amortization & depreciation
  3. Adjust the profits and losses on the sales of assets
    • Subtract the profits
    • Add the losses back in
  4. Account the variations in current assets and liabilities
  5. Account the variations in non-cash current assets

Generally, business with positive OCF means that the business has net incomes that are reliable and can stand the test of time like any economic downturns or undesired situations. Negative OCF means the business has to work strategically to cover the shortfalls and get back on track to withstand any seasonal business shortages and also thrive in the long run.

Call Joyce at +1-516-717-2049 for outsourcing or any queries on cash flow management.

Topics: Bookkeeping Services , Cash Flow Management , Financial Reporting , Outsourcing Accounting


In-house Payroll Processing or Outsourced?

Posted on 14/03/2017

Is outsourcing the right solution to get your payroll sorted?

Payroll is one of the major costs for most of the businesses plus there is no assurance of ROI. Outsourcing is increasingly available for all parts of the business.

There are umpteen off-the-shelf payroll software packages available. Many businesses take the bait and often find that one-size-doesn’t-fit all.  Therefore, it is imperative to look at what values do the outsourcing company deliver.

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Typically, all in-house software is written and maintained by the in-house IT team.  Statutory calls for annual updates and this can be expensive for the company. This is because the systems employed would be often older ones and upgrading they cannot stay within the budget.

Outsourcing is the best choice for a business, if the business has to propel towards achieving the vision and mission rather fritter away time with payroll activities.

Some other reasons why outsourcing has become the go-to place for many businesses are:

  • Increased complexity
  • Ever-changing compliance requirements
  • Accuracy in payroll
  • Reduced risks
  • Latest technology employment

Nowadays, payroll providers also streamline a business’ processes and constantly deliver industry best practices.

As tempting as outsourcing may sound, there are due pros and cons associated with it. Taking this into consideration, we bring to you some important points to ponder on to conclude what’s the best fit for your business

  1. Flexibility- Change is a constant in payroll processing. Do you have enough resources available in your organization to make the eleventh hour amendments?
  1. Confidentiality– payroll is one of the most sensitive areas of the business. So discretion at all times is advised. Indiscretion can cost a fortune for the company.
  1. Time- does your business possess the time and knowledge to shift their focus anything but away from the business? Payroll requires constant updates. Do you have the time and resources to handle payroll in-house?
  1. Cost- cost is one of the major considerations any business may have when they consider payroll outsourcing. On one hand it is thoroughly beneficial to have staff in-house to handle your payroll. On the other hand, the cost involved in employing staff may not be as great. Besides costs will also include the cost of the software, maintenance, and the yearly mandatory updates.
  1. Reliability- needless to say, your employees would like to get paid on time every time. Your payroll has to be accurate and processed on the due date irrespective of the holiday or any other contingent situation.

 

What now?

If you have seen anything that might be advantageous for your business, contact Joyce at

+1-516-717-2049 for more details. We’ll be glad to help you out.

Topics: Bookkeeping Services , Outsourcing Accounting


Why outsourcing is a must-do for CPA firms?

Posted on 20/02/2017

In today’s competitive world, outsourcing your CPA firms bookkeeping is one of the wisest choices to stay ahead of the competition by focusing on your core business. If you would like to stay ahead of your competitors consistently then you need to offer more values more than anybody does. With bookkeeping in hands you will have time to focus only on mundane CPA activities.  This is because bookkeeping demands greater attention and can be a lengthy process.

CPA firm

Essentially CPA firms should concentrate on bringing new clients and profits to their business. This requires more energy, efforts, and time to be invested in the complex and core areas of the clients. Certain things like planning client’s taxes, investment planning, wealth planning, and working on strategies to increasing the profitability of the client can go a long way to give you a competitive advantage. On outsourcing your bookkeeping activities, you can focus more on providing your clients with these added values for a low or almost no price.

Below are some of the benefits of outsourcing your CPA firms:

  1. Leveraging skilled and efficient accountants at a much reduced cost. These resources can be billed at a much higher rates
  2. No time wasted on hiring and training accountants, according to your needs
  3. Leveraging state-of-the art technology and infrastructure without having to invest in them
  4. Decreased visits to the clients and travel time, thus increasing the realization rates
  5. No independence is impaired. You can still check the progress of your records online. Online access can be set up using third party service providers, if your outsourcing partner is not able to provide you with online access
  6. No need to suffer downtime as your outsourcing partner will take care of it
  7. Enjoy faster turnaround time and check your files at any point in time
  8. Stay ahead of the competition, plus benefit from colossal savings up to 50%
  9. Get benefited from the stringent QC policies from your outsourced partner to provide seamless services to your clients.

Bear these “things to look for in an outsourced partner” in mind while choosing your partner:

  1. Knowledge and skills of the top management team
  2. Quality procedures and policies followed
  3. Strength of the service provider financially
  4. Length of time of their presence in the business
  5. Years of experience and level of skill of the staff
  6. Check if you will be working with the same person/ team throughout
  7. Reliability and Scalability
  8. Check if they provide online support

If you are in agreement with the above stated facts and in need of a reliable partner, here we are to help. Call Joyce at +1-516-717-2049 or visit our website www.velan-bookkeeping.com for more details.

Topics: Accounting , Bookkeeping Services , Outsourcing Accounting