However these days accounting is the life and soul of a profitable business and is offered as a major in almost every teaching institution.

Cost accounting came into existence in the early 18th century and you would be surprised to hear that it was invented by a very famous potter! A person called Josiah Wedgewood was a very talented potter and after noticing that his workers were stealing a lot of money and also did not carry out the paperwork which was required, he decided to come up with a method to stop all of this, this later was known as cost accounting.

Early Technology
The role played by accounting technology is vital. This includes the idea of employing machines to answer mathematical problems which dates back to a few centuries. Leonardo da Vinci invented the “Codex Madrid” which held thirteen wheels that recorded digits. Several attempts to build calculators followed, but a Frenchman, Blaise Pascal, was the first one to be successful.

It was 1885 when William Burroughs came up with the first functional adding machine. The product was unsuccessful at first, mainly due to the fact that no one but Burroughs knew how to use it. But after it was reengineered and the automatic inventing machine was created, the sales multiplied.

Calculators came into existence much later after the advent of adding machines. They had countless advantages such as fewer mistakes, enhanced accountability and amplified speed and efficiency.

The Twentieth Century Information Revolution
The invention of computer aided accounting software altered the field of accounting drastically as it had hardly faced any changes from the time of its introduction to the 1970s. All accounting comprised of till the twentieth century was records in columns of numbers on paper.

Vannevar Bush, an MIT professor, manufactured the first electronic differential analyzer in 1930. Howard Aiken and Konrad Zuse invented hybrid binary arithmetic machines which calculated sums by using electric relays. Professor Aiken, with IBM, built the first computer in 1942. Within fifty years, mammoth computers which were merely capable of solving simple calculations revolutionized into small desktop computers most of us use today.

Accounting software in computers enables accountants to work with electronic spreadsheets, eradicating the need for calculators, adding machines and ledgers as well as minimizing mistakes and allows accountants to follow up on information with ease.

New Technology Leads to New Risks
All technological advancements in accounting software certainly have problems. Fraud still poses as a menace but this has led to more areas of research. Forensic accounting, for example, helps track attempts at fraud.

Accounting Technology at Home
Business accounting is not the only thing transformed by the invention of computers. Online banking, tax calculating software and automated bill payment systems have revolutionized how individuals manage their money.

The continuous evolution in accounting technology will assure students career stability in the years to come. If you feel that you are good with numbers, consider taking accounting as a profession.

Cost accounting is defined as “The discipline of estimating, tracking and controlling product and service costs”. It came into existence in the eighteenth century and it was by a very famous potter! - a very unlikely source! A person called Josiah Wedgwood was incredibly talented with a flourishing business till a depression hit them, after which he noticed that his workers were stealing a lot of money and also did not carry out the paperwork which was required, he decided to come up with a method to stop all of this, this later was known as cost accounting.

Wedgwood took histime to examine his books meticulously, discovered inefficient operations and the importance of working out overheads into the expenses of his work. He discovered a history of embezzlement by his head clerk when he realized that his accounts did not agree. After this, he appointed a different clerk and began carrying out weekly inspection of his accounts. Historians say that this is how “sunk costs” and “economies of scale” were discovered. By changing the prices for his products to echo the effect of demand, and by creating both high-end as well as a lower quality line for the mass market, Wedgwood’s business was one of the small numbers of companies that continued to exist after that depression. His cost system also influenced wages paid and types of employees.

It took accounting another fifty years to gain recognition as a profession. The mid-nineteenth century London witnessed a company of clerks who advertised their line of work as “accomptants”. The increase in business regulations increased hand in hand with taxes, and the need for professionals who would keep financial records and audit and inspect them skyrocketed. The first accounting firm to open was in London in 1845. However, technological advancements in accounting, for example, software did not come about till much later.

The history of financial accounting was altered greatly by computers and accounting software which has been developed. Accountants are central to the information revolution that is transforming the global economy. There is a continuous evolution taking place in accounting technology which assures them career stability in the years to come.

This software is a new way of recording full range of business records on a computer. This software can be used for a major business as well as a small business to keep records for small income and expenses. The supplies from accounting software can be different and complete from the most complex and complete. Majority of companies choose a double entry software for their database system.

Single entry software are used for smaller less bookkeeping does however have its place in the market place for the smaller less difficult business. The main idea of a business is to keep records of the production of its tax accounts.

Some companies use diaries to keep the data of their income and sales. Sales administration and customer records can also be recorded in a diary. The data diaries can be divided in separate sections such as invoice department and functions for overdue payments.

In small companies transaction entries such as sales income, expenses, and bank transaction records are kept in accounting software. The most important entry that can be made for these documents is the database which can be done by double entry accounting.

You might require a little information on accounting or book keeping even if you are willing to outsource the function,  even if it is some knowledge on the most simplest of the functions of a database, that would be appropriate. You would need to know at-least the purpose of different type of ledgers such as purchase, sales, or even control accounts.

To work on a database accounting one need some knowledge about accounting and financing, this is often available in the company as bookkeepers or account clerks are hired by some companies that use these database programs, in a larger companies accounting tasks are managed by experienced accountants.

The knowledge of database system is very important so that one could understand the data entry principles, and also to understand how to enter the data and what could happen to the data after it has been entered. An experienced accountant have all the knowledge about the companies finance and the turnout of the data system.

It is important that small companies should get a double entry based software to keep records on the on the profit and loss and should also have a balance sheet for reporting. Business with less accounting knowledge can use software which is based on spread sheets. The accounting software is more important for the data for tax purposes.

Single entry bookkeeping can be used by self employed companies, these companies does not require balance sheets, because they do not need a large requirement for financial control so less financial inquiry is needed. So it is better to have simple hand written accounting solution to meet the requirements of the net taxable profit.

1- Lets you focus on the things you do best.
If you have software which can take care of your book keeping needs then you can focus on making money and doing what you are best at doing.

2- Saves a lot of money.
Book keeping software is easily available in the market and are often very cheap. Instead of having to get two or three people to keep you books, you can just hire a computer operator who can feed in the records at the end of the day, think about it. All you’ll need to do is buy a computer and some software and pay one person instead of two or three.

3- Everything is present in software.
Bookkeeping software now a day’s comes with a range of different functions; they include data entry, normal journal entries, and different ledgers and also produce financial statements themselves. Think about it. Work can be done a lot faster and if it is automated there will be very less chance of errors.

4- Works According to your needs
You can get the software designed to fit your precise needs, if the ones already present in the market don’t suit your needs. Get a programmer to design something that suits your business environment and they’ll provide you with a full training for your staff and free support for years to come.

5- Allows your staff to work from any location

Your staff doesn’t have to be tied up in the office to enter the records, they can simply take the work home and update it from their own PC or Laptops, which can increase the efficiency and keep records more up-to, date.

6- More trained workers
Your staff is likely to be better trained if they are working on the computer, this allows them to be more professional towards work and be more multi skilled.

7- No Paper Work
If you are getting all the work done on your computer for book keeping purposes, you won’t have to store all the paper work and you’ll be able to get rid of the problem of storing a lot of files for both legal and business purposes. All can be stored on a 12 inch hard drive!

8- Much quicker
Working on the computer allows bookkeeping to be done much more quickly. Imagine if you want to search records of a client who you had worked with a year ago, think about how much you would have to search in your store room for that file, with book keeping on your pc it can be done with just a click on button and typing in the records of whom you want to search.

Not only is bookkeeping important for the effective management of the organisation, but this is also required by state and federal law.

You might decide on outsourcing your Bookkeeping department or decide to do it inhouse, but there are various reasons why you need to carry out Bookkeeping properly. Mentioned below are some of the primary benefits that are associated with keeping proper books.

-    Lenders and financial institutions require proper books before they decide on giving a business a loan or increasing the amount of capital for it.

If your business relies heavily on outside financing, then keeping proper books is really important to the business, the financing institutions would be able to judge the performance of the company by looking at the books and then deciding on the policies and terms and conditions of the loan, and what interest rate to charge you. If you don’t have proper books, you might seem risky to the banks and they might charge higher interest rate or not provide you a loan at all.

-    Bookkeeping generates the information that you would need  in order to manage your company properly
Having proper books allows you to manage your company much more effectively, for instance, if your books clearly show the people who you have to receive money on, you can ask your credit department to go and recover the money, however if you had no idea on the people who owed you money, these receivables would soon be converted into bad debts and make you lose a lot of money. Proper books would also help you analyze the financial statements that you would prepare and judge whether your organization is suffering from a loss or sustaning a profit and thus so you can take proper action. These would also allow you to stick to your budgets and targets for the month.

-    So that you are able to pay taxes on time and you know exactly how much you will be required to pay to the IRS
If you keep proper records, it will allow you to receive whatever deductions and tax credits that your organization should receive, if you have not kept appropriate records, there is no telling how much fine or penalty could be imposed upon you by the IRS.

The points mentioned above clearly give a true picture about why an organization needs to keep proper records, but however it doesn’t end here!

Many stakeholders such as employees or investors require proper books in order to judge whether participating in the organizations activities would be beneficial for them. So remember to always maintain proper books!

Reasons to start your own Bookkeeping service

It’s very profitable

Starting a Bookkeeping company can turn out to be really profitable for you, its possible to earn upto $300/per client, just imagine how much you would be earning every month if you carried out an appropriate marketing plan.

Every business needs accountants

Businesses not only need accountants for their own personal use to analyze the business but the law requires it aswell. Business make big money decisions which depend on the financial statements and other accounting records, this business will never go out dated! It will only grow in value with the increase in number of clients.

You can now be your own boss!

No need to work for some company and be cussed at after you’ve made a mistake which wont even take a minute to fix. Be your own boss, work the way you like and the best keep all the profits!

Getting Started!

Finding your Bookkeeping clients

Well finding the clients can be a tough job, but it really doesn’t have to be if you use proper marketing skills. Ever heard of the 4Ps? Well they stand for product, price, place and promotion.
You will need to describe the product to the people who are interested in availing your services.
Describe what you are charging and why, and never forget to tell them where they can find you! An advertisement without contact details would seem awkward now wont it?
Lastly carry out the best possible promotion you can, use the internet! It’s the best place that you can promote yourself and your company, there are various websites who will get you loads of clients but charge a commission for it, start working with them and after some time if you start to build a reputation for yourself, go out and look for clients yourself.

The amount you need to charge

Knowing the amount that you will need to charge your client is one of the most important business decisions that you’ll have to make. At times you might charge less than what actually your service is worth for.

If you are just starting your Bookkeeping services, you are likely to have a high proportion of fixed costs that must be bugging you, something like rent, electricity bills, insurance for your staff and salaries of your staff. Also there are various overheads on your mind such as cost of wear and tear, depreciation and replacement of assets.

The best way to get information and knowledge as to what you need to charge your client is by through means of benchmarking, try getting a firm to cooperate with you and tell you what their practices are and how much they charge for what and why? If you are wondering about why they would share such information then the simple answer to that is so that you can earn the right amount. Confused? Don’t be, they would tell you so that you don’t end up charging too less and ruin the market. They want to earn as much as possible now too don’t they?

If you’re still unsure on how to start your own Bookkeeping business, get a consultant. They always help people out! Might cost more, but is always good in the long term.

The easiest department that a company can outsource is the accounting department. It has been seen that many business usually outsource their CPA work and now with the improved efficiency because of the internet you wouldn’t be surprised to see a vast number of companies outsourcing their departments. You would be able to find that various different outsourcing companies are able to cater all of your needs, for instance they would help you to provide a good accounting software, carry out your basic accounting or CPA. These companies often use the same accounting processes as your business environment, and only make adjustments in your accounting system if it is for the best and improves your business cycle more.

You would be able to find that various different outsourcing agencies would provide you with a software that would be easy to use and is a step ahead of the normal online banking system, as it would allow you to work on your own accounting file. These softwares have a high security system which would allow you to login without any problems or without being scared of your system being hacked or personal information leaked, what most systems do is provide you a portal through which you can access your private page directly.

Some advantages of outsourcing your Bookkeeping

Well the first benefit that you might get from outsourcing your Bookkeeping is that you are able to lay much focus on your competences, many business mangers find bookkeeping as a repetitive task and like to be much more involved in the business, outsourcing your bookkeeping department can allow you to give more attention to the units that require it.

The companies you outsource to are likely to entertain a number of customers and thus the more the work load they have the more economies of scale they are likely to have, this allows them to charge you less and lets you enjoy a much better fee.

The companies who are providing you with a Bookkeeping service are generally masters of this art, they have the competences required to satisfy your needs and also are able to provide you with a much more efficient and smooth accounting system.

As these companies might be providing the same service to a number of customers and companies, they would be able to employ the best practices from every company and make your company much more efficient.

Some limitations regarding outsourcing your Bookkeeping department

If you are asking some company you don’t know keep your books, you are at risk. The information that you let them have might be worth a lot and if it gets into the wrong hands it can cause a lot of problems for you.

Remember, that these people are providing services to a number of customers and employ the best practice for everyone. This would mean that your practices might be employed by your competitors and might let them have an advantage over you.

Introduction

Book keeping is an art of maintaining cash books, receipts and up do date accountability of a firm or corporation. A disorganized desk of a accountant without proper maintenance may lead to chaos and confusion in marinating accounts, books and ledgers of a firm. It also helps to diagnose healthy cash flow and increases your business scopes in various fields. In subsequent paragraphs we shall discuss some tips of healthy books keeping.

Keep proper financial records

A good and efficient accountant should brief his CEO about the following for running smooth business.

a. There should be proper cash book which will help to know payments in and out of your bank account. Keep it up to date it will help to know the detail records.

b. Sale invoice file should be in chronological order to know issue and sale invoices to know credit control.

c. Purchase invoice file should be maintained to know about the payments made and the mode ie through cheques, BACS etc.

PIF should be in chronological order, to save time.

Get an invoice or receipt for everything you buy

Be in business there are always chances that firm can be investigated for Taxes, need not to worry keep a proper record of every transaction u make in your business that will help you to know the record of all buyers ,purchases and easy to handle for future references. Also if you ever have a disagreement with one of your stakeholders, having an invoice can resolve the matter in no time!

Keep your accounts clean - separate business and personal expenses

Do not mix your personal expanses with company assets that will create problems. You may have separate accounts to have easy understanding of expenditures from company accounts and your personal assets.

Check bank statements

From day one keep checking your bank accounts, make it habit. It will help you to know that your bank is playing fair with you or other wise and help u know where you are spending money. Also it removes the risk of any frauds that you might be exposed to and allows you to keep in touch with the blood of your business, which is money!

Put time aside to do your book-keeping regularly

Do check your books ledgers regularly to avoid pile up work .An easy approach in book keeping may increase your work load. Be regular to check your accounts and make it a habit

Get help with your finances - hire a book-keeper or accountant

Do hire a professional if firm or company cans manage. An expert advice will give boost to your business. They charge a really small amount but the results that you will get are far better in the long term. If however you cant find the appropriate accountant its better that you switch through some personal refrences. The professional code of conduct of accountants makes it really easy.

Bookkeeping courses keep you abreast from very beginning to most advanced techniques involved in the business, help you achieve proficiency in book keeping including trick and trade of business. Following are few courses for Book keeping which can provide help to acquire easy assimilation on the subject.

1. Beginners Bookkeeping
2. Intermediate Bookkeeping
3. Advanced Bookkeeping
   

How does home study work?

1. The courses consist of nine lessons from beginning principals to advance preparations.
2. Each lesson has questionnaire at the end which should be completed and handed over to tutor.
3. Questions are marked with analysis and proper feed back with comments is given
4. Communication level among student and tutor is established thereby all doubts and quarries are solved in time with out any delay.
5. Once marking is complete answer sheet is sent back along with model answers and by adopting such technique the progress of student is automatically monitored.

Study from home has proved its merits; it is cost effective by increasing your work proficiency at ease and enhances your future chances to grab a good opportunity to find a enlightened career. Home study has been very effective there by increasing your work proficiency at ease and enhances your future chances to grab a good opportunity to find a enlightened career. It is very effective techniques and thousands of students are benefited from this method.

Is it possible to take up a book keeping job while working on a full time job?

Usually if you are taking classes from universities who are very well known, they offer a better flexibility for people who have a busy schedule; a lot of people are completing these courses while working on a full time job or even raising a family.

Is it possible to get into a sponsorship program with your employer?

A lot of companies these days provide their employees with a full sponsorship or a reimbursement of the tuitions that they have to take in order to complete the course. If you are getting reimbursed that is usually going to happen after you have managed to complete the course. However, it has been seen that many organizations require their employees to maintain a good set of grades if they want to be reimbursed at a future date.

Why Take Book Keeping Courses?

Well the primary reason to take book keeping courses is obviously the fact that they allow you to have an edge on your resume and also increase your competences, if you are applying for a job, knowing how to keep books might increase your overall work scope and thus allow you to get paid much more.

Some courses offered by various institutes are world recognized and can help you get a job anywhere in the world.

These courses don’t charge as much as you might think, but the benefits offered are far more than what you can imagine.

Also as mentioned above these courses offer a really nice way to improve your competences and diversify, if you are working low in the organization this could help you to get a promotion and start playing with the accounts!

Book keeping involves keeping a record of the amount that has been paid to the people and also what has been received. It carries itself the money that a business owes to its supplier, tax authorities and other companies and individuals. Similarly, the amounts the other people and company owes them are also recorded in the company’s books.

Even though for business users this process is necessary as well as helpful, this task consume a lot of time. Without exceptions every single amount that is paid of received is been recorded. Keeping accuracy is also one of the most important point, Keeping books hastily is not a good idea. Business men are usually lacking in time so they hire book keepers to keep their business records well maintained.

In the United States, the main the most important records that are being maintained are business records and income tax record, for example, the Internal Revenue Service, state and city tax agencies require their clients to keep their financial records well maintained.  Maintaining proper records and books is also a requirement of the state and federal laws. If a business owner fails to keep his records updated, he will be responsible for the penalties or monetary fines.

A company’s books keep records of the amount of taxes a company has to pay. They can be used for making tax returns. Sometimes, tax agencies send their officers to investigate the information reported on the tax returns; here business owners are required to show their records for the inspection. If someone fails to do so, then it leads to heavy fines penalties or jail.

It may seem that getting professionals to do your book keeping job might be a good idea but however not a lot of business owners can afford this. This is particularly the case in smaller organizations which have either just started off or don’t earn a high revenue. But to take care of this problem, there are various different computer related book keeping software’s that you can use which allow the work to be less time consuming and easier to manage and these also cost less. These book keeping software’s have a lot of functions that a normal user can use for instance they can carry out all the calculations for the user and only show accurate figures. Even if your organization is working on a tight budget, using computerized book keeping systems makes it easy to use and very affordable.