general accounting

Outsourcing Your Accounting Services to Maximize Business Growth

Starting a Business

Accounting might not be the most thrilling aspect of a business. You would perhaps prefer to babble about the products you manufacture and how you will market them rather than tackle your accounting responsibilities.  Managing cash flow is one of the core principles of any business. The accounting department takes the center stage when finance is concerned. For one, it helps in evaluating the business status with the financial reports they present. It says a lot on the resource utilization, budgeting, and projections. A company also needs to worry about legal business compliances as well as filing for financial statements. All these functions handled by the accounting department are paramount to the survival of any business.

That is why, it would be best if you acknowledge that accounting is crucial to managing your finances efficiently. It is one of the central forces in your business. It is not just one of the business aspects. It is valuable to make the business unsinkable. So, the next thing you do is to work on the bookkeeping tasks.  

Outperforming Bookkeeping

Bookkeepers are insightful in managing A/R, collections, A/P, deposits, bank account reconciliation, payroll, basic financial statements, and sales taxes. As they make sure that your financial books are updated and managed properly as they do you will still find yourself engaged in the accounting department. Also, in an unforeseen business challenges such as health crisis (i.e. COVID-19 pandemic) and natural calamities, having a solid bookkeeping team will secure your assets and inventory while overcoming any economic wounds. 

Why? Because there is a need for management accounting. Management accounting requires a higher level of responsibility as it prepares management and fiscal reports for business conformities. Management reporting is utilized to make business decisions clearly supported by real-time data and other indispensable indicators of performance.

But time will come that you are no longer capable of being too engaged in every facet of the business. Or when your business expands, you will realize that your time and effort will be more substantial if you concentrate on the core business management than dealing with the accounting responsibilities.

This is where you will find outsourcing to be the best thing to do next. Here are some reasons that outsourcing your accounting would aid you to reduce the hassle and allow you to maximize resources to more critical business aspects.

Cost Savings

Hiring a regular employee is a high investment in your operational cost. While these employees are vital in making the business thrive, your investment to make the business ball rolling must substantiate their efforts. Plus, the fact the regular employees are the cream of the crop, this means you also give them the cream of the crop benefits like bonuses, medical insurance, and even their retirement package which your company should contribute to.  All these equate to an expensive investment. 

Whereas, if you outsource, you will deal with your partner company. Your partner will take charge of all employee relations, compensations, and benefits. Another strength that you can bank on with a quality outsourcing partner is that they already have established domain expertise, so you can trust that they know what they’re doing.

Reduce Potential Business Vulnerability

In essence, it is critical to delegate tasks to your employees; even so, the back-and-forth needed to manage bookkeeping and accounting could result in some security concerns. A professional accounting company would seriously take your fiscal safety, and there is no need to turn over the invaluable tasks to an unqualified apprentice. 

Outsourcing accounting firms could cover payroll, bookkeeping, and invoicing requirements, along with comprehensive accounting services. They generally guarantee commitment to flexibility, visibility, and transparency to skip out on extended contracts in the event the services do not work well for you. They can also be your saving grace as a business continuity team during an emergency or disaster by overcoming financial threats.

Another two key factors that will fuel you in avoiding the risks are the ISO certification and SOX compliance. Being certified will help you align your business goals to the demands of your business partners and consumers. An ISO certified company has high regard to excellent customer experience by reducing errors and leveraging efficiency. A SOX compliant company meanwhile ensures that there is a strong financial reporting landscape by maintaining data integrity and credibility of financial disclosures.

financial plan

Be at Peace as you Avoid Accuracy Issues


Although you may be adept at tracking the finances of the firm, it is reasonable to feel distressed when it is not your field of expertise. So, do not allow constant hesitation or jitters for a huge accounting mistake to dwell inside your head.  Get rid of that fear by merely paying a professional and well-experienced firm that could successfully handle your fiscal record keeping. With the right team, you are allowing your business to breathe seamlessly by not worrying about your financial concerns.

Incorporate Global Best Practices

When you have to point out how to arrange and track the business finances more efficiently, you may opt for counting on established processes and practices. And an outsourced accounting company would already have those processes figured out. So, you could imagine how much more composed your workers would be realizing that they would be compensated in time, all because you employed an outsourced firm to cater to everything, including the payroll.  

And when it comes to the financial aspect of the business, the next thing you’ll consider is perfection. It is not impossible to attain this if you have the right policies and processes that will be the organization’s lamp as you journey to success. However, establishing that is taxing that it may drain your analytical juices. So instead, let the right outsource company handle that for you.

So now, why would you consider outsourcing your Accounting Department? 

Not to mention, one of the most excellent perks of outsourced support is personalizing a superiorly functioning staff with additional resources and know-how. Outsourced specialists who have a deeper grasp of industry-specific outstanding practices could generally improve processes and productivity and, most importantly, integrate the current staff. 

Substantially, their fiscal reporting capabilities are commonly updated with industry standards and utilize the most advanced technology. Many a time, this concentration could assist in underscoring the needs of the business and its opportunities for growth.

The bottom line is that through outsourcing your business’ accounting requirements, you are able to concentrate on what you do best – operating a business that you genuinely love, and at the same time, saving yourself a considerable amount of money, time, frustration and potential distress.

Now is the Best Time

The best time to look for a partner company is before it becomes urgent. If you only sought financial assistance during the occurrence of a crisis, say a pandemic, the tendency of work is recovery from a financial loss rather than preventing it. Having a team of finance professionals will help your company identify these unforeseen events and create financial mitigation measures that suit best for your business.

Of course, you wouldn’t want to end with a company that is just good at babbling their accomplishments. Instead, you want a track record that stands out. While many outsourcing companies are excellent in the field of Finance and Accounting (as they claim), very few are bona fide.

Infinit-O is a trusted F&A outsourcing partner and we can help you save upto 70% on operational cost. We have collaboratively built high performance teams performing to excellent results over the past 15 years. Our teams comprise competent F&A professionals such as certified public accountants in the field of internal auditing, bookkeeping, and other critical accounting functions. We endeavor to enable our clients to meet their goals in terms of business growth, better productivity, and most importantly, cost efficiency.

At Infinit-O, we build great teams. Our goal is to create long lasting partnerships with our clients; rendering a strong combination of business consultancy, process optimization, and outsourced services; all utilizing the latest technology to provide excellent value for our clients. We are ISO-certified,  GDPR and Sarbanes-Oxley compliant, so your company and data are safe with us because information security is also our priority. All these applied, your financial growth and continued profitability are sealed.

Let’s Build a Great Team for you – starting with Finance & Accounting.

Start small. Exceed expectations. Think infinitely. Think Infinit-O.

Thinking it’s time to partner up? Go and make the call.

3 months ago No Comments Views

Operational Challenges Faced by Accounting Businesses

In this article, we will learn the following;

  • The roles of professional accountants 
  • Some challenges that accountants face
  • The importance of keeping financial records 

Accounting has played an indispensable role in the business world through the centuries. It has helped to keep things orderly and bring about regulations with money affairs. Accounting as a concept started about a thousand years ago, as a solution to issues arising from the trade of goods and services. The earliest evidence of accounting dates back to the Mesopotamian civilizations by keeping records of merchandise traded and received. Ancient Egyptians and Babylonians also track their livestock and crops. 

Over the years, development in Information Technology has modified this concept. When IBM released their first computer in 1952, the first users were accountants. Although it is now very convenient for anyone to keep the financial records of their business, we cannot overstate the importance of professional accountants because accounting is more than listing debits and credits. It is a language of business and the language of all financial things. Their significant roles include:

Record Keeping and Investment Analysis

Accountants keep financial records in a bid to understand how the company is doing. This provides insight and helps the business owners to stay proactive.

Any company that intends to make and maximize profit must have a top-notch record-keeping system. Well-kept financial records help organizations and investors recognize profitable ideas and methods. The data obtained from records is crucial to the decision-making process of organizations because it helps them make sound and logical resolutions that may be beneficial for their business. Companies have been forced to shut down or scale down as a result of bad investment decisions. Other times, bad accounting sequels debt instead of profit. When companies keep documents properly, then it is easy to understand how each part of the business is doing and make decisions accordingly, all the while keeping your business financial position in check.

The story of Forever 21 is a great example of how companies need to measure customer behavior from accounting data. The clothing brand failed to recognize the shift from retail to online shopping. Instead of transitioning to digital marketing, the company focused on opening more stores. This eventually cost them a fortune as competitors leveraged delivery services and online stores. This way, their competitors made more money while spending significantly less. If financial advisers such as accountants were able to keep tabs of their capital investment on opening more stores versus the profit they were generating, their business hurdle may be reversed. 

Curbs Fraudulent Practices 

When financial records are kept properly, it makes it easy to refer to them. This is how accounting helps in reducing (and in some cases eliminating) fraudulent practices in organizations. This is achieved through the accurate tracking of all financial procedures within the company. Although fiscal laws and regulation varies from state to state, proper accounting helps you with statutory compliance in your business. Hiring the right team ensures proper bookkeeping of sales tax, VAT, income tax and regulating funds which all helps in combating possible fraud activities.

Integrity and Reputation

Transparency is crucial to business dealings, and it is the reason why the proper documentation of financial records is vital. General and precise facts of accounting preserve the reputation of business. An honest representation of all financial proceedings in an organization depicts a trustworthy company. Investment capital from outside sources are not as beneficial as in house funds. Accurate and transparent financial reviews of the company’s financial operation makes their stakeholders trust them more. In business, the right name is better than silver and gold. 

OPERATIONAL CHALLENGES 

All the aforementioned are parts of the benefits of accounting. However, every profession has its challenges, and accounting is not spared from this axe swing.

Below are some operational challenges faced by the accounting business:

Skills Update and Training 

The world has reached an age where every profession is evolving due to development in information/communication technology. This causes modifications to the training process and core skills and tools that you require. These skills and tools make business processes more manageable because they simplify and speed up accounting processes

The challenge with the accounting profession is keeping up with ever-evolving trends. For example, accounting procedures such as auditing have improved to achieve better results.

Technological advancements have made it possible to automate accounting processes and maximize data for insights. Accounting professionals need to focus on keeping up with these tools. Partnering with accountants who are constantly progressing with the current training and tools in accounting such as Quickbooks, Xero, Tallie, Kashoo, QuickFile and others furnishes their intuitive making them do their jobs quicker, more accurately and in ease. This is the only way to keep the company running. 

Experienced Personnel

Accounting remains one of the most sought after professions in the world. Although there are a lot of new blooming accounts out there, in a rapidly growing business, the need for experts in this profession is vital, and passable skills cannot be tolerated. Unfortunately, accountants with the needed expertise are scarce, and this has proven to be one operational challenge of the accounting business. Professionals need to ensure that they stay updated with the latest skills and tools. This is a great way to ensure the proficiency of your accounting processes. There is a need to have professionals managing every aspect of the business. The accounting sector is one that requires a highly experienced and proficient workforce. The constant use of technology in the accounting profession is a critical factor for companies to consider. This factor has significantly influenced the competition among accounting firms.

Fraud

In the last point, we talked about the importance of experienced personnel. However, even with qualified staff, you may still be faced with fraud. One of the challenges facing the accounting profession is the accuracy of accounting and complying with financial laws and regulations and internal procedures of your company. This issue stems from either inadequate accounting systems or poor organizational skills needed for the job. Subsequently, this leads to the inability to detect or prevent fraudulent activities because of inefficient bookkeeping. 

In many cases, this happens because professionals with the technical know-how on detecting issues regarding treachery are few. Eventually, this leads to successful manipulation of data. As we mentioned earlier, the primary role of accountants is to ensure transparency. 

Economic Laws and Regulations

You can control the challenges mentioned above internally. Although, constant look out for other uncontrollable challenges is as crucial.

The economic laws and regulations cannot be excluded as one the challenges in the accounting profession. The decisions the government make plays a significant role in the accounting business in specific ways. For example, government policies such as tax rates and interest rates may affect the economy and subsequently, the accounting profession. These factors influence the accounting industry and transform the way it compares to global accounting standards. New government policies come out as often as how the economy moves. Albeit how updated rules help stabilize what’s happening in the market, this requires accountants to adjust and shift their bookkeeping according to the new law. The need to update their clients on what has changed may cause lag time on keeping records resulting in a halt on incoming profits.

Changes in Practice Globally

Apart from the activities in the market that affects economic laws and regulations, global trends in accounting also affect the way accounting is done. With the popularity of the internet, accounting firms can compete on a worldwide scale. This particular challenge affects firms that only utilize local accounting processes. The constant change in accounting standards globally can, at times, stunt the growth of the local accounting process. For example, advancements in record keeping and data optimization are improving globally at a fast pace. This often leads to a backdrop in the economic progress of companies that operate with local standards (when compared to their competitors that use international standards). This where partnering with a company that operates their quality  in a global standpoint comes in handy.

ROUNDING UP…

“The introduction of data analytics and innovative technologies, such as artificial intelligence, bots, and drones, provides the opportunity for the greatest change in the accounting profession since the passage of the Securities Act of 1933 and the Securities Exchange Act of 1934,”- George Scott, chair of the Federal Accounting Standards Advisory Board.”

Several challenges permeate the accounting business. Although these factors can be controlled, conscious and consistent effort to keep up with these changes are required. Every company needs a dedicated accounting team that will provide monthly, quarterly, and annual reports.  It is best if you also streamlined financial accounting functions while focusing on other crucial aspects of business operation.

Here at Infinit-O, we understand the value of keeping your financial records secured. We  build great teams best fit for your business that includes finance professionals performing internal auditing and bookkeeping services among others. Through this, we can ensure your company’s financial growth and continued profitability.

At Infinit-O, our goal is to create long lasting partnerships with our clients; rendering a strong combination of business consultancy, process optimization, and outsourced services; all utilizing the latest technology to provide excellent value for our clients. We are ISO-certified,  GDPR and Sarbanes-Oxley compliant, so your company and data are safe with us.

Let’s Build a Great Team for you – starting with F&A. 

Start small. Exceed expectations. Think infinitely. Think Infinit-O.

We hope you enjoyed reading this!

4 months ago No Comments Views

Difference Between Accounts Payable and Accounts Receivable – Infinit Accounting

When one thinks of how successful or unsuccessful a business is doing, it’s natural to lean towards the strategic elements of an organization that ensure profits come in: investments, funding decisions, and risk management. While these elements are important, the success of a business, especially how it runs its day to day operations, is highly dependent on the effective management of operational cash (or commonly called cash flow or cash on hand). This comes in the form of accounts payable (A/P) and accounts receivable (A/R).

Accounts Payable VS Accounts Receivable

Accounts Payable

Accounts Payable (A/P) refers to the money that the company owes to others, usually because of purchased goods or services on credit from a vendor or supplier.

Accounts Receivable

Accounts Receivable (A/R) refers to the money that others owe to the company and are amounts the company has a right to collect because it sold goods or services on credit to a customer.

What’s the Difference Between Accounts Payable & Accounts Receivable?

In accounting, the nature of transaction dictates how it is recorded in a company’s general ledger (or financial books).

  • Accounts Payable (A/P) is recorded as a liability, while Accounts Receivable (A/R) is considered an asset.
  • Accounts Payable (A/P) will decrease the company’s cash while the opposite will happen with Accounts Receivable (A/R).
  • For money to go under Accounts Receivable (A/R), an invoice should be generated and delivered to a purchaser of goods or service, with payment usually expected within agreed payment terms. Accounts Payable (A/P) appears on business ledgers when an invoice is approved for payments.

Accounts Payable (A/P) = CASH OUT
Accounts Receivable (A/R) = CASH IN

The Importance of Having a Balanced A/P and A/R

The keen management of account payables and receivables has a major impact on how liquid a business is. Liquidity in a business refers to a positive net working capital, which simply means that there is enough cash on hand to keep the business operational.

The working capital (WC) of a business is the difference between the current assets and current liabilities. The collection of assets in a timely manner and a balanced settlement of liabilities ensure a healthy and positive net working capital.

Management of Working Capital (WC)

To effectively manage one’s working capital, the Days Sales Outstanding (DSO) of accounts receivables should be less than 45 days. DSO refers to the average number of days accounts receivable payments are collected. Accounts payable are analyzed by the average number of days it takes to pay an invoice (Days Payable Outstanding or DPO).

How do You Increase Working Capital?

Reducing DSO and increasing DPO can increase working capital. Simply put, businesses collect payments from customers faster and delay vendor payments. However, increasing working capital isn’t as easy as it looks as delaying vendor payments can tarnish a business’ reputation and faster payments collection can turn off customers, as they usually prefer businesses that aren’t too strict about getting paid on time.

Ideally, you should always have more accounts receivables (income) than payables (operational business expenses). This is where having a positive net working capital means business profit.

For effective management of operational cash, some businesses hire companies that offer accounting outsourcing services. This way you can focus on the core business decisions while your outsourcing partner takes care of accounting operations so you won’t need to worry about anything.

Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth. Learn more!

6 months ago No Comments Views

5 Biggest Accounting Scandals in 2014 to Learn From

This year, we have seen some accounting scandals involving hugely popular companies. These biggest accounting scandals of 2014 rocked the world of finance and accounting and at the same time reminded us about the importance of maintaining good accounting practices. It’s important to be informed about these so that we can be warned about what not to do.

Tesco’s Accounting Scandal

Tesco, Britain’s most popular grocery and retail megastore, is known as the second-largest multinational retailer in the world. However, due to strong competition in the European market, the company’s profits have been progressively declining in the past few years. As if that is not enough to affect Tesco’s standing, their recent accounting scandal contributed to further damaging their reputation. It was revealed that Tesco has allegedly been overstating their incomes and understating costs. They had initially overstated their annual profit by £250 million, which is an overstatement of nearly 25%.

Olympus Corporation’s 13-year Fraud

Last April, Olympus Corporation, the Japanese camera and endoscope manufacturer, was sued by six banks for damages resulting from false financial statements filed from the fiscal year 2000 to the first quarter of the fiscal year 2011. The banks suing Olympus for a total of $273 million or 27.9 billion Yen in damages include Mitsubishi UFJ Trust & Banking Corp., Master Trust Bank of Japan Ltd., Japan Trustee Services Bank Ltd., Trust & Custody Services Bank Ltd., Nomura Trust & Banking Co., and State Street Trust & Banking Co. It is said to be the largest amount sought in civil lawsuits against the company.

Accounting Irregularities at Penn West

One of the biggest accounting frauds of 2014 is the accounting irregularities at Penn West. Penn West Petroleum Ltd. was just beginning to show results from a restructuring program, led by the new president and CEO, David Roberts, when he received reports in July stating the existence of irregularities in accounting practices that have been going on for several years. A large number of retail investors have been claiming operating expenses as capital expenses, which boosted cash flow and influenced the company’s stock price. They made the news public on July 29 stating that the individuals responsible for the said irregularities have been fired. On September 18, the company restated its results upon discovering the misclassification of $300 million worth of expenses.

Mobily CEO Suspended for Accounting Errors

Saudi Arabia’s telecommunications company, Mobily, suspended its CEO, Khalid al-Kaf, effective November 21, after the company was forced to restate 18 months of earnings due to accounting errors. An article on Bloomberg stated that Mobily’s 2013 financial statements were affected by an error in the timing of revenue recognition from a promotional program. As a result, the company’s shares plummeted 30 percent since Oct. 30 while third-quarter profits dropped more than 70%.

Vatican Bank Scandal

Among the biggest audit scandals of 2014 is the Vatican Bank Scandal. The Vatican Bank has been faced with scandal in the last few years. Most recently, an exclusive report by Reuters, stated that a Vatican prosecutor has frozen 16 million euros in the bank accounts of two former Vatican bank managers, and their attorney, for stealing money in 2000 from the sale of 29 Vatican-owned real estates. Between 2001 and 2008, a total of €57 million were pocketed by ex-bank President, Angelo Caloia and ex-Director General, Lelio Scaletti, together with their legal consultant, Gabriele Liuzzo.

These recent accounting scandals give us insight on the vastly negative impact of fraud, and accounting errors on a company, no matter its size and popularity. They not only lead to a decrease of the organization’s stock value but also to the decrease in profits as well as in creating damage to its reputation.

Further, we’ve learned lessons on the importance of hiring upstanding employees, who will contribute to the improvement of the company instead of lead it to its demise. It also goes to show how imperative it is to maintain good accounting practices and establish efficient accounting systems in our organization.

Infinit Accounting offers ISO 27001 & 9001 Six Sigma certified CPA’s at your service 24/7. We can help your company or firm with accounting outsourcing, insurance claims processing, accounts receivable & accounts payable outsourcing.

Inquire now to learn more!

Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth.

6 months ago No Comments Views

Accounting Personality Traits & Qualities of a Good Accountant

An accountant’s work requires a high degree of precision and a certain degree of level-headedness.  Their’s is a detail-oriented environment where minor oversights can have huge consequences on a client’s business. A single digit carelessly added or absentmindedly removed will have a domino effect on how the accounting books will look like, how decisions will be made, and what those books say about the financial health of a company.

With so much riding on these professional’s shoulders, clients must be careful in selecting an accountant who will do the bookkeeping for them. Accountants should possess certain characteristics that will allow them to do their jobs well. We’ve compiled ten traits of an accountant that we believe are very important. Take a look at this list and see if you agree.

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1. Updated with the Latest Accounting Trends

It’s not enough to have a solid grasp of the basics. Accountants must constantly stay abreast with the industry’s generally accepted accounting principles or GAAP, as well as any changes in tax laws. Attending refreshers, going to conferences and seminars will help keep her up to speed on the latest in accounting trends. Technological advancements are also evolving at lightning speed, and turning away from these changes will be a huge disservice to clients and the business.

2. Organized and Structured

Staying on top of all the figures, paperwork, and data that accountants deal with daily requires good organization skills. It saves time because they have a system that allows them to find the information they need efficiently. Having a manageable structure to follow during their day to day work week frees up their energy and resources to analyze, research, and do their number-crunching duties without unneeded distraction.

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3. Accurate and Detail-Oriented

These traits are crucial in the work accountants do. At the very least, the numbers they are working with have to be accurate and correct. Doing due diligence should be second nature to them, and not something that they need to be reminded with constantly.

4. Accountable

No surprise here: accountants must be accountable. No finger-pointing allowed; they know that whatever the outcome of their work turns out to be, the buck stops there, exactly where they are. Let’s face it: even the most detail oriented accountants who always do their due diligence are also human, and are, therefore, also fallible. There’s no shame in making an honest mistake that’s attributable to human error, just as long as these are not deliberate mistakes that happen too often. Keeping detailed accounts and accurate reports will come a long way in spotting where and how such inaccuracies came about (see trait no. 3).

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5. Client-Centric

It’s not enough to have a knack for numbers. Accountants must also understand their clients and the type of business their clients have. Having a solid grasp of your client’s business requirements and goals will enable you to decipher what types of economic methods or accounting rules will meet your client’s business needs. An accountant’s views and advice will make them even more valuable to their clients, and give them a good reputation that will earn positive recommendations and more clients down the road.

6. Team Player

The stereotypical image of a lone accountant doing their number crunching in their own cubicles is an inaccurate picture of what accountants actually do. They typically work in teams and have face to face meetings with clients and other decision makers on a regular basis. They are therefore required to be generous with what they know; sensitive to other’s needs, and be supportive of their team’s goals. They have the ability to work with different types of personalities.

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7. Creative

They’re not solely left brain thinkers. The ideal accountants use their creative sides, too. They make use of right brain thinking to come up with fresh ideas and creative strategies to solve client dilemmas that don’t always show up in textbook cases. Paradoxically, being organized and structured in how they approach their day to day responsibilities frees up their minds for out of the box thinking, which are solutions that benefit clients.

8. Trustworthy

The information accountants work with are confidential in nature. This is why professionalism is an important trait that they must always abide. Not only is this the right and ethical way to go about their business, but having a reputation for trustworthiness will win them more clients in the long run. Trust is something that is not easy to build, and it’s a trait that must be taken seriously in order to earn good feedback from clients.

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9. Top-Notch Communication Skills

Having the ability to interpret jargon and complicated accounting concepts into ideas that can easily be grasped by clients is an invaluable trait that an ideal accountant should possess. An accountant that is able to interact easily and get their ideas across clearly to anyone is a major asset that clients and employers always look for.

10. Ethical

A strong sense of integrity and an inclination toward honesty are traits that inspire confidence in an accountant’s work and professional practice. This is a trait that should extend into their personal lives as well, because an accountant who has the ability to be morally upright and live as an upstanding citizen is someone who will most likely obey the rules of law. Being a law abiding citizen means that this trait will show up in how they do the accounting books as well: one that is within generally acceptable accounting laws and one that is obedient of all relevant laws.

Make sure the person who handles your finance and accounting has these accountant personality traits!

Infinit-O is a trusted F&A solutions partner that can help you build and operate a dedicated team of accounting professionals of every level including certified public accountants designed specifically for your unique needs, with cost savings of up to 70%. We can help you meet your goals, whether they be growth, better productivity or simply bottom-line cost savings. With access to excellent talent who use cutting-edge technology, we provide some of the best strategic solutions for your business. We are ISO-certified and GDPR-compliant, so your company and client data are safe with us.

6 months ago No Comments Views

9 Blogs Every Accountant Should be Reading – Infinit Accounting

As professional accountants, it’s important to be kept up breast on the latest news and information about what’s new in the industry. Getting a different view and reading about thought-provoking insights on topics ranging from auditing, fraud, tax accounting and regulations will keep you on your toes and help you make informed decisions in the workplace.

Here’s a list of 10 must-read blogs by experts, associations, former college professors, and members of professional networks that are geared specifically to provide accountants and auditors fresh insights and updated news and regulations on all matters accounting-related.

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1. Accounting Coach

If you need straightforward, no-nonsense guide on all your accounting questions, the Accounting Coach is an excellent resource. It houses info that dates back to 2003, and has a wide readership of over 80,000 newsletter subscribers and 14,000 Facebook fans.

2. Accountant By Day

Kellen, the woman behind this popular blog, writes musings about accounting, personal finance, and everyday life of an auditor and tax accountant. Her blog used to be called AccountingElf.com, where she wrote about her experiences as an accounting student.

3. Accounting Principals

An overview of all accounting career-related topics, including helpful tips on how accountants can leverage social media to boost their careers, job reports, updated news, among others.

4. The Accounting Onion

The tagline succinctly sums what the blog is all about: “peeling away financial reporting issues one layer at a time”. Tom Selling holds a PhD and CPA license and is a former Accounting professor with a solid academic background and author of numerous books. He finds blogging the perfect platform to educate and inform.

5. Bloomberg BNA Accounting Blog

Comprehensive coverage of topics ranging from accounting, taxes, business and auditing.

6. AccountingWEB blogs

If you don’t have time to sift through the internet for accounting blogs, this is a great selection of useful blogs and websites that focus on accounting-related topics, all compiled in one page.

7. Accounting Tomorrow

This blog covers news and articles about the accounting profession and is a useful resource for current and aspiring CPAs of all levels. There’s something to be offered for various accountants here, regardless of experience or lack thereof.

8. AICPA Insights

This is a straightforward accounting blog with with news about the industry, plus various way to maintain productivity and creativity in the workplace. If you’re an accounting professional who’d like to share your thoughts about the topic, you can apply as a guest writer for the site.

9. Accountex Report

Teach yourself about cloud management and other new accounting trends with the Accountex Report, and transform your processes quickly and efficiently.

10. CPA Practice Advisor

This is one of the most most popular technology and practice management resource for accounting professionals. Get the latest news about payroll, tax, and accounting from several experts in the field.

Want more blogs to follow? Check out our other post, 10 Must-Read Blogs on Financial Management.

Do you have any accounting blogs in mind that we missed in this list? Share them with us in the comments below!

Small businesses are making their ways into the commerce through some trials and errors along the journey. While budget is somehow limited among them, know that our services are reasonably priced, ensuring that you can reach your goals. Outsource your needed facilities and we’ll gladly assist you with all your concerns. Learn more!

6 months ago No Comments Views

Profit and Loss Management: 3 Ways to Do it Right

For a business to maintain operations, provide better services, and come up with new products, it needs to make a profit. In any business, profit is always accompanied by certain losses. The key is to ensure that profit and loss management is done correctly to help businesses stay afloat and better yet, thrive.

What are Profits? What are Losses?

A profit is an amount of money that is more than its original price. On the other hand, a loss is an amount of money that is less than its original price.

In business, we say one makes a profit when the business makes money or experiences a return of investment (ROI). A business experiences a loss when it doesn’t make money on a product or service but loses part of more than what the owner initially invested.

Profit is making money.
Loss is losing money.

What is Profit and Loss Management?

Profit and loss management is managing income (incoming cash flow) and expenses (outgoing cash flow) to ensure that a business earns a net operating profit.

Usually, profit and loss management deals with profit and loss reports (commonly called P&L reports). You can compare it to a report on how the financial aspect of the business is doing or performing. It helps determine how profitable a business venture is or in the case of P&L projections, how profitable it will be.

Profit and loss management is crucial to help a business stay afloat, project and strategize for its future and improve its performance.  By comparing profit and loss forecasts with the actual performance of other companies—preferably competitors or role models, a business can identify areas they need to focus on or improve on.  For example, is the business spending enough on research and development to ensure that they can stay one step ahead from their competitors? Are they spending too much on expenditures?

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All of these considered, we have come up with three ways for you to do profit and loss management right:

1. Monitor Profit and Loss Reports Constantly

P&L reports are generated on a weekly, monthly, quarterly or annual basis based on a company’s standard operating procedure. However, accountants can generate reports as needed and requested by the management. Take advantage of this and constantly look at the numbers. Look for trends and use them to forecast and project profits and minimize losses.

According to an article on business.org, a P&L chronicles a company’s fight for financial survival, as well as the results of that competitive struggle, during a specific period (quarter, month, or fiscal year). A company’s P&L data shows indicators like revenue, expenses, and net income, or net loss if expenses exceed revenue. Revenues range from operating earnings and interest income to cash generated on investments or in joint ventures with other establishments.

The reports alone can help you make informed business decisions to help your business maximize profits.

2. Combine Monitoring of P&L Reports and Cash Expenditure

Cash is still king, no matter the business type or size. Effective money management shows how a company saves money, grows its existing cash, and averts financial meltdown. This should be managed or controlled efficiently. Expenditures (outgoing money or expenses) should be monitored.

Combined with P&L reports, this helps a business save money during lean months, and have spending power on strong months to invest in new business products, infrastructure, technology, manpower or any aspect that is needed for business growth.

Developing a business strategy that combines these two will result in effectively managing business income and helps the company “feel” profits when they come in.

3. Outsource Team for P&L Management

It can be hard to generate P&L reports especially when there is too much red tape in the organization. It can also be challenging to do projections on it if you are too involved or immersed in the company. You tend to prefer to stick to gut instinct when making analysis.

Partner with a finance and accounting solutions partner to build a team of bookkeepers and certified public accountants to generate reports strictly from an accounting point of view could give a manager a different perspective. The team can also help develop a business strategy formula to help a business owner understand how to increase or make more money.

There are a lot of factors affecting the profitability of a business and profit and loss management is just one aspect. Effective business strategies, cash managements, maximizing profit and loss based on the company’s strengths are examples of how a business can save money, make money and lessen losses. No matter how much cash a company has or how many assets it owns, losses extending over long periods of time will weaken the value of its assets, decrease its cash holdings and drive it to bankruptcy. Profit and loss management will help a business prevent substantial business losses from happening if done right.

Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth. Learn more!

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