General Business and Finance Blog

The global economic recession may have had an unfavorable effect on many fields of work all over the world; however, the need for competent accounting and financial services professionals is now greater than ever. An online bachelors/associate degree in accounting provides prospective and existing accountancy professionals a boost in their careers from the comfort of their own homes.

Online accounting programs have many benefits for prospective professionals, who can work around their schedules and gain valuable knowledge in order to improve their competency in accounting and open the doors to better opportunities. Generally accounting has varied applications for individual corporate business models; there are however some general areas in accounting that are widely recognized as being inherently and individually separated.

Types of Accounting

General Financial Accounting:

This is the recording, retrieval and summarization of corporate/individual financial data. This involves auditing, generating a periodic profit and loss summary, balance sheets and cash flow statements and includes the aspects relating to legal and business requirements.

Management Accounting and Open Book Accounting

This form of accounting is the representation of data and financial summaries for corporate financial decision makers. Open book accounting is an accounting principle to ensure accounting transparency in democratic organizations as well as others.

Tax Accounting:

This is corporate of individual accounting that is meant to ensure compliance with tax laws and regional tax regulations.

Financial Audits

Financial audits can be both internal and external. Internal accounting is similar to management accounting, as it also provides audit summaries to internal corporate decision makers. These audits are carried out by employees of the corporation itself. The external audit is the audit of a corporate entity by external – independent auditor(s); auditors examine financial records and summaries in order to verify their adherence to generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).

Accredited Online Accounting Certifications

Traditional campus based and online accounting colleges and schools have recently been offering more customized study programs for students who wish to learn using blended courses and study-from-home programs. Here is a list of some of the major accountancy related programs available in online study formats from major colleges and universities. These courses are accredited and are being offered in a variety of blended/ online formats. Many of these courses mentioned vary in levels of practical versus theoretical knowledge, with emphasis on further opportunities in either the field itself as a professional, as an entrepreneur or in academia.

Online Graduate Programs in Accounting:

- Master of Science in Accounting – Master of Accountancy – MBA Accounting – MBA in Professional Accounting – MBA/Accounting and Finance – Master of Science in Accounting – Public Accounting/ Taxation

Online Undergraduate Program in Accounting:

- Bachelor of Science in Business Administration – Accounting – Bachelor of Science in Accounting – Bachelor of Arts in Accounting – Bachelors of Arts in Organizational Management / Managerial- Accounting – Bachelors of Science in Accounting in Public-General Accountancy/ Tax Accountancy/ Auditing-Forensic Accountancy – Bachelors of Science in Multidisciplinary Studies – Accounting

Online Associate programs in Accounting

Associate of Science in Accounting Associate of Arts in Accounting Associate of Applied Science in Accounting – Financial Accounting/ Financial Investigation/ Banking Associate of Science in Business- Accounting

Resource Area:

DISCLAIMER: Above is a GENERAL OVERVIEW and may or may not reflect specific practices, courses and/or services associated with ANY ONE particular school(s) that is or is not advertised on SchoolsGalore.com.

Copyright 2007 – All rights reserved by Media Positive Communications, Inc.

Notice: Publishers are free to use this article on an ezine or website, provided the article is reprinted in its entirety, including copyright and disclaimer, and ALL links remain intact and active.

Competencies are described as the ability to do a particular activity to prescribed standard.The competencies can be classified into three categories1. Behaviour Skill and Personal Qualities 1.1 Balanced behaviour 1.2 Leadership 1.3 Problem Solving 1.4 Attention to Details 1.5 Critical Thinking and Analytical Skill 1.6 Flexibility to Manage Situation 1.7 Team working 1.8 Influencing 1.9 Communication1.10 Relationship-Building

2. Business Knowledge 2.1 Finance and Economy 2.2 Business Case Development 2.3 Domain Knowledge 2.4 Subject Matter Expert 2.5 Principle of IT 2.6 Organization Structure and Design 2.7 Procurement

3. Techniques3.1 Requirements Engineering3.2 Stakeholders analysis and management3.3 Facilitation Techniques3.4 Business System Modeling3.5 Business Process Modeling3.6 Managing Business change3.7 Data Modeling3.8 Investigation Technique3.9 Project management3.10 Strategy Analysis  

1. Behaviour Skill and Personal Qualities1.1 Balanced Behaviour This is an ability to work out what is and what is not commercially acceptable in an organization. Having commercial and political awareness by the way emphatically does not mean accepting statue qua. It does mean using resourcefulness and being astute to get results, even in the face of opposition. Balanced behaviour means forcing a issue but moderately, firm but not arrogant. 1.2 Leadership There is a never one solution for all problems .Leader should have the capability to understand the context of the problem and provide an effective solution.1.3 Problem solving A business analyst has to approach an issue with the outlook that problem can be solved. A variation on this is that even if the optimal solution cannot be implemented for financial, technical or political reasons, then the business analyst must be pragmatic and be prepared to find other solutions that will yield at least some benefit.1.4 Attention to Details Many business cases fail because there is no sufficient detailed evidence for the proposed change. When a project is handed over to IT specialists, they often find many important issues if the detail have not been addressed. Having an eye for the details is also an important attribute of a good business analyst.1.5Critical Thinking and Analytical Skill Business analyst have a common sense to ascertain what data are relevant and what are irrelevant and separate vital factors from less important many critical thinking is achieve by experience and differentiate what factor to concentrate and what to leave.1.6 Flexibility to manage situation This is an extremely important quality. Business analyst must have sufficient self confidence in himself, in the quality of his analysis and the correctness in his solution, be able to withstand the pressure and sustain his point of view1.7 Team working with data’s Business analyst often work in teams, A nature of understanding of the role within the team and what needs to be done and appreciation of the working style of others are, therefore important to ensure that the project objectives are achieved.1.8 Influencing Influencing needs careful consideration and prior planning. Business analysts have to develop an understanding of where the other party stands on their proposal, the likely resistance and influencing style needed to approach the person or the group. For example, some managers might defer all the decisions to another group require information at a very detailed level or ask only for high level summary. Some may be interested in technicalities, others just vision or big picture. Tailoring the approach is vital for a successful outcome. The business analysts are often influenced to take or suggest another course of action. This may involve another round of influencing, facilitating a roundtable discussion and seeking the support of senior colleagues in the best course of action.1.9 CommunicationCommunication is the most important skill that human possess. It encompasses building rapport, listening, influencing and creating empathy. Most analysis work involves collecting and analyzing data and presenting back information that brings new perspective on the project so as to propose a course of action. If the communication is not good between the staffs, it leads to frustration when there is a failure to do obvious thing. Communication between business colleagues must be in a language and style that they are comfortable with and avoid what they perceive as techno-babble. Business analyst must adjust their communication to align with the people they are talking to.1.10 Relationship BuildingThis is an extension of communication skill and concerns the ability to get on well with people at a working if not social level. Some people possess this ability naturally and others have to work on it. Business analyst must get to the people to impart information and share opinions and listen to ideas for change.2. Business Knowledge2.1 Finance and EconomyThe universal language of business is finance. A business analyst needs to have a good working knowledge of the economy and of the basics of business finance. It includes a general understanding of financial reports such as balance sheet, profit-and -loss account, financial analysis tools such as ratio analysis and principles of costing.2.2 Business Case DevelopmentMuch of analyst’s work will be to assess the costs and benefits of delivering a project to the organization .When communicating analysis findings; you need to ensure that you have a view of the financial impact on the project. IT is an enabling tool for the business benefits to be achieved. Business analysis projects involve other specialist like management accountants to understand and model the business activities and determine how IT can deliver financial benefit. To develop business case, a basic understanding of finance is required along with financial workings business area. Business analysts involved in business case preparation has to understand basic investment appraisal techniques and work closely with finance department. 2.3 Domain Knowledge It gives general understanding of a business domain. Apart from general domain, specific domain knowledge is required for the following reasons;? It enables you to talk sensibly with the business people involved in the project, in a language that they can understand.? It helps you to understand what would and would not acceptable or useful in the business domain.? It may enable you take ideas.2.4 Subject Matter Expert It takes domain knowledge to a lower level of detail. The level of expertise depends on the type of work being done. Business analysts may be specialist in particular domain ,with a strong and detailed understanding of the subject area, can pinpoint areas for improvement , development and identify what needs to change, to analyze using existing knowledge and contact. The key point is to assess how well competencies meet the needs of the current situation and to recognize where competencies needs some improvements.2.5 Principle of ITMany business analysts do not have an IT background. However, many business analysis projects result in the use of IT in some or the other way. General understanding of the field is necessary for a business analyst so that he can communicate meaningfully with IT professionals .The key requirement is that business analyst must understand the technical terms used by IT specialist. Since IT solutions are often investigated by business analyst, the latter should have an understanding of IT fundamentals, including areas such as? How computers work, including operating systems, application software, hardware and networks.? System –development lifecycle ? System – development approaches? The Relative pros and cons of developing systems and buying system “off the shelf’;? Trends and new opportunities that IT brings, such as ecommerce, grid computing and mobile technologies and how these impact systems development.2.6 Organization Structure and DesignBusiness analysis projects involve restructuring organization to a greater or a lesser degree, to improve the customer service. It is important for business analysts to have a good understanding of the various organization structures that may be encountered – function, project, and matrix and so on – and of their relative strength and weakness.2.7 ProcurementMost organization use external suppliers to deliver their IT systems. Selecting an appropriate sourcing strategy involves assessing the work and deciding the most appropriate way to take the project forward on sound commercial term. Once the analyst has worked out the type that is required , they need to assess the most appropriate supplier – internal and external- to take work forward and what commercial terms has to employed. A business analyst needs a broad understanding of contractual arrangements that is shown below:

 

3. Techniques3.1 Requirements EngineeringThis is the set of practices and processes that lead to the development of the set of the well-informed business and system requirements, from which IT and other solutions are developed.3.2 Stakeholders analysis and management This includes understandings who are the stake holders in a business analysis project and working out how their interests are best managed.3.3 Facilitation TechniquesThe interpersonal skills required for effective facilitation is usually exhibited within the context of a workshop. Effective facilitation usually results from a combination of the right qualities in the facilitator and the choice of the right techniques to match the task and the cultural context of the organization in which it is being used. 3.4 Business System ModelingBusiness System Modeling is an approach to understand business systems through the creation of the conceptual models of those systems.3.5 Business Process ModelingA business system model looks at the entire business system in overview, more detailed process models are used to map and analyze how business process actually works and helps to identify opportunities for process improvement.3.6 Managing Business changeThis covers the techniques needed to implement changes within the organization and to make them ‘stick’.3.7 Data Modeling Analyzing the data held and used within a business system affords valuable insights into how a business operates .For e.g. what are the data items that are held about the customers? What is the relationship between customers, products and suppliers?3.8 Investigation TechniqueTo get to the root of a business issue the analyst will have to undertake detailed analysis of the area.3.9 Project management The list of project management context and process: scope management, integration management, time management, cost management, quality management, resource management, human management, risk management and procurement management. Business analyst may not necessarily exhibit his skills in all these areas, but if the project team is small the business analyst may be required to undertake the role of project manager.There is some project skill that an analyst should have. For e.g. understanding project initiation is vital as it allows the analyst to understand define the terms of reference for the project .It is important that the analyst should understand project management planning approaches –he or she will have to work within a plan – and is aware of particularly relevant aspects , such as quality and risk management3.10 Strategy Analysis This covers a range of techniques that can be used to understand the business direction and the strengths and weakness of an organization, or part of an organization.How can I develop my competency?The first step in developing as a business analyst is to understand the competency required of a business analyst in your organization. This should include an assessment both the current and the future competencies required .The HR department provides an outline definition of the competencies required of the business analyst in the organization. Future competencies are more difficult to assess and depends on the factors such as projects that may develop in future, business issues and technological developments. The organizations may already have a framework in its place or could use the existing framework such as Skill framework for Information Age (SFIA).There are three ways in which business analysts can develop competencies:? Training? Self-study? Work experienceTrainingClass room-based training allows skills to be learned and practiced in a relatively safe environment, with a trainer on hand to support, guidance and encouragement. Computer –based training is also good if the skills to be practiced are primarily technical in nature.Self-studySelf-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.Work experienceThis provides an opportunity to use and improve techniques and to deepen the knowledge .It is best way a business analyst can develop their behaviour skills and personal qualities The performance of most analysts improves overtime as their experience grows ,but this can be heightened and accelerated if our if the organization operates a proper coaching or mentoring programme. The Skills Framework for the Information AgeSFIA and SFIAplus are the two major standard frameworks for definition of skills and competencies in the information system field. Both frame works include definition for the skill set of business analysis, define various levels of competency for each skill, and can be used as building blocks for any job role that requires these skills SFIA The description of overall skill set provided in SFIA framework for business analysis is as follows:The methodical investigation, analysis, review and documentation of all or part of a business in terms of business functions and processes, and the information they use. The definition of requirements for improving any aspect of the processes and systems. The creation of viable specifications in the preparation for construction of information and communication systems.In each level defined for business analysis, SFIA provides a more detailed definition of the skills required, for e.g. for level 4 is states:

SFIA plus provides the sane description for business analysis skill set as SFIA, but also provides details of the following:Related skill set (in this case, data analysis business process improvement and system design)

For each applicable level within this skill set (3-6 in the case of business analysis), detail are also provided under the following heading:

Although SFIAplus provides more detail than SFIA, it is important to realize that the two frameworks should be implemented in different ways.SFIAplus should be treated as a standard and is not designed to be customized, where as SFIA is intended to be used as a basis for tailoring to an organization.SFIAplus enables organizations to classify and benchmark their IT skills and to train and develop their teams to meet the defined skill requirements .As a business analyst, this provides a basis for you to gauge where you are against the skills and corresponding level of competence defined in the framework.The final step is to identify a set if actions that will help your development.

 

To know more about Business Analysis and career in it,Please visit the site http://www.iqtiedu.com

Applicants with a master’s degree in accounting or a master’s degree in business administration with a concentration in accounting are increasingly valued. Strayer’s online masters degrees are in education, business administration, public administration, health services administration, professional accounting, communications technology, and management information systems. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting.

A master’s degree in accounting or a master’s degree in business administration with a concentration in accounting is most desirable among employers. A master’s degree in business administration with a concentration in accounting is highly desirable among employers. Many employers prefer those with a masters degree in accounting or a master’s degree in business administration with a concentration in accounting. Some employers prefer hiring individuals with a master’s degree in accounting or a master’s degree in business administration with a concentration in accounting. Stark received a bachelor’s degree in accounting in 1959 and a master’s degree in administration in 1966, both from K-State. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting.

The Master of Accounting degree program is a general program of study that exposes students to accounting research and theory. The program assumes a reasonable institutional background in accounting, equivalent to an undergraduate or master’s degree in accounting. The Professional Program in Accounting is designed to fulfill these requirements and allow the simultaneous granting of a bachelor’s degree and a master’s degree. With a master’s degree from URI’s accounting program, your professional opportunities are unlimited. The Master’s degree program includes studies in corporate accounting, corporate taxation, and accounting information systems. program, must be completed prior to being awarded a Master of Accounting degree. The master of tax accounting (M.T.A.) degree program is a multidimensional approach to the education of the modern tax specialist. A Link Program, available in the summer prior to beginning the master’s degree, provides the requisite accounting background.

You must inform the hiring agency of this experience or possession of master’s degree in accounting at time of interview. Some employers prefer hiring individuals with a master’s degree in accounting or a master’s degree in business administration with a concentration in accounting. You must inform the hiring agency of this experience or possession of master’s degree in Accounting at time of interview. Strayer’s online masters degrees are in education, business administration, public administration, health services administration, professional accounting, communications technology, and management information systems.

This conversion master’s programme aims to provide business degree holders with an intensive education in accounting and accounting-related knowledge and skills. The master of tax accounting (M.T.A.) degree program is a multidimensional approach to the education of the modern tax specialist. The master of tax accounting (M.T.A.) degree is designed for students who are interested in careers in taxation. Hall, Ph.D., the new master’s degree will combine technical training in accounting with a focus on research, taxation, finance, communication and business ethics. The Master’s degree program includes studies in corporate accounting, corporate taxation, and accounting information systems.

The program assumes a reasonable institutional background in accounting, equivalent to an undergraduate or master’s degree in accounting. A Link Program, available in the summer prior to beginning the master’s degree, provides the requisite accounting background. Cannot be taken for credit for the master of accounting degree. Cannot be taken for credit to apply to the master of accounting degree. Get an accredited high school diploma, accounting, master, or bachelor degree. Candidates with an honours degree in accounting or the Graduate Diploma in Accounting proceed directly into the second year of the master’s degree. The Master of Accounting program admits students with undergraduate business degrees or the equivalent from accredited schools.

While you can work in accounting without a graduate degree, many find that it makes good sense to invest in a master’s degree. The Master of Accounting degree program is a general program of study that exposes students to accounting research and theory. As a result, many schools have been forced to limit enrollment to their Masters of Accounting degree programs. A master’s degree in Accounting or Chemistry, or closely related fields, and three years teaching experience and/or related work experience is preferred. Stark received a bachelor’s degree in accounting in 1959 and a master’s degree in administration in 1966, both from K-State. program, must be completed prior to being awarded a Master of Accounting degree. Open only to master’s degree students in Accounting, MBA students, or approval of the department.

However, employers looking to fill entry level positions requiring an advanced degree often hire master in accounting graduates over MBA’s. She is currently working on her master’s degree in accounting. However, competition for jobs with prestigious accounting firms will remain keen; a master’s degree in accounting should be an asset. in accounting and the Master of Professional Accountancy degree upon completion of the course of study. Annual awards are given to outstanding Accounting graduates at both the bachelor’s and master’s degree level. http://www.accounting-master-degree.com/

Every person now seems to see the Internet as the Business Holy Grail… ha… ha… ha!
What we find when we look deeper is greed… greed… greed. Sorry, no exclamation. If you believe different then you are naive.
The internet first gave us all great hope that a new dawn was beginning. That here was a great place to be, where everyone could be equal. Where every person could communicate honestly with each other. Where everyone could set their stall to making money any way they desired. That certainly holds true for the crooks and scammers. Sorry, but again, no exclamation.
We get bombarded with emails from what are called opt in lists. We see something we like, so we sign up with our email to get a regular sample of a supposedly new product or information that will change our lives for the better. You must be joking!
Our email address then gets sent about the internet to various joint venture lists, known as JV lists. And then we are called the simpleton list. The easy touch list and many other names.
What is happening now, and always has happened with the internet, reminds me of the old wild west of America, during the Gold Rush days. The old pan handlers had this inner desire to strike gold, much the same now with many people having a desire to win the lottery. Or start a home business online with their great idea. Every person wants to obtain great wealth quickly.
Those old westerners went on a great walkabout, searching here, searching there, searching everywhere for the business holy grail of quick, easy money. They were mostly hard working honest men, desperate to better themselves. And that is what made them easy pray to the vultures of greed. Just like now on the internet.
However, where there is money there is always ingenuity and greed. Some people realised that the gold prospectors would need equipment to search for gold. Some realised that tools would be needed, so they started a tool business and made a lot of money. Some realised that food would be needed, so they started a food business and made a lot of money.
But, the person who probably made the most money was the person who invented the trousers, called jeans. Well… except for the odd miner who struck gold. The people who made great wealth quickly and gave the rest of the gold prospectors hope for the future.
Is that now the same with the internet? Do we see, or more likely read about, some person gaining great wealth because they sold their internet business… and then believe we can do likewise? So how do we start to make money online? That is the burning question we would all like to know. Because what will probably happen is that an internet scammer will get us first.
The greatest desire with most modern people is probably to start their own home business. A business working from home that will give them their own financial independence. A home business where they can make money selling internet goods. However, where do we find such a home business idea that can generate great wealth for us? Or even just a regular above average business income.
First, we need to find something to sell. Next, we need to get lots and lots of internet visitors to our website. Oops, I should have probably mentioned the website first. How can we sell goods online without a website? But, then again, how can we sell something if we do not get visitors to our website? How can we sell something if we do not have something to sell on our internet home business? It is all starting to get rather confusing now. What came first… the egg or the chicken? Who cares. We must keep focused on our business idea. What business idea? I have not found one yet!
The above paragraph probably applies to the vast majority of people who have a great desire to break away from their mundane life and start their own business. However, what most people need to realise now is that internet selling does not only apply to the future. It applies to the here and now. If you want to be successful, then you need to learn to sell online. You need to keep focused and hopefully avoid the internet scammers.
Once you have an idea for your home business and have set it up, you then need to know how to get visitors or traffic to your website. The search engine Google seems to have a monopoly in that area. There are other search engines, like Yahoo and MSN, but for now, Google is king.
But for how long, I wonder? Nothing lasts for ever. Most large businesses start to lose a direction from their original roots with their thirst for expansion and over-expand. That usually makes a business ripe for takeover. A rising business will eventually reach a pinnacle. It can either stay there or meet another rising business on its way down.
What makes Google a lot of money is their ingenious Adwords system. You agree to pay Google a certain amount of money for certain types of keywords connected to your business. Then, when people search Google using your keyword a small ad box will appear, describing your product. If they click on the ad box your website will appear, where you can hopefully sell your product. You will also pay Google the agreed price for people clicking on your ad.
Would it not be fantastic if we could find an idea where we could obtain free ads from Google? A business idea that brings us thousands of visitors to our website from Google for free. Such an idea would save us thousands on ads. It could also make us extremely wealthy.
In 1999 a New York physician did come up with such an idea. Although he was a medical practitioner, he always had a dream of having his own home business. He wanted to work from home selling products instead of having the daily stress of attending to public health problems.
The business idea he brought to the internet originated in the offline business world. It was kept secret for many years by a select few business people, to ensure they made millions from it. What those business people did and still do, was use a simple method to obtain free ads in top class magazines. Ads that would normally have cost their business thousands were obtained free! And 100% legal.
By 2007 this New York physician had amassed a personal fortune of $75million with his free Google ads idea. But he always kept quiet about his free ads system.
Now retired from business, he decided to release his idea in e-book form. You can read how his business idea became a reality by downloading his ebook. It contains 124 pages with step-by-step clear instructions on how to obtain free Google ads.
This is one home business idea that turned into a multimillion dollar empire. The real deal.

Almost all business all over the world started with good business ideas either coming from the entrepreneur himself, his creative team or even some of his friends or family members. Good business ideas are just around the corner but it takes a business-minded person to recognize them as good business ideas.
Good business ideas have given birth to most successful businesses. However the people behind the business surely did not stop with just having the business ideas but they proceeded from there. There is a lot of hard work that stems from good business ideas including planning, development of the business as well as marketing campaign.
Some people come up with good business ideas with nary an inspiration. It seems like they stumbled on their business ideas as a matter of luck with no hard work at all. However, most people have read every book and magazine available, visited lots of business interests and brainstormed with as many people as possible just to come up with good business ideas.
A person who is very creative and who has a lot of stored knowledge can produce the most if not the best business ideas. Some people regularly attend trade shows and business gatherings and seminars not only to come up with good business ideas but to develop the ideas they already have.
Attending trade events and exhibits can be very good for a person who is looking for business ideas. The already existing businesses that are on display can give him an idea of what kind of business to go into given his already existing resources as well as his financial capability. He can also come up with innovations or improvement of already-existing businesses.
Most entrepreneurs who have discovered good business ideas usually think out of the box. This means they do not limit themselves to what is already there and what is already being seen by the naked eye. They think creative and sometimes they even think silly.
Some entrepreneurs consider the special events which people make as an excuse to spend like Christmas, Valentines, birthdays, Easter, Halloween and the likes. Some people proceed from there are find their business niche in relation to these occasions.
Valentines Day is always spending day for majority of the people all over the world no matter what they say that it is not about money. It is all about money no matter what they say. Most people spend little or spend too much. The point is they really spend for this event and a person who can come up with good business ideas for such an event can cash in on the money.
A person who knows how to bake or cook can come up with a home business during special occasions. He can accept order for heart-shaped cakes and design the product with a personalized touch to be more competitive. Another good business idea for this occasion is flower delivery or flower arrangement. Both business ideas can be done at home without need of investing much capital for rentals.
There are a lot of good business ideas that have never been tapped. Some have already been tried and tested but they may have failed for lack of some ingredients which a creative mind can improve upon.

Copyright (c) 2009 Jeffrey Matsen

Recently, upheavals in the lending industry and bank failures have led many depositors to be concerned over the safety of their bank accounts. As most people are aware, a large number of banks and credit unions are covered by the Federal Deposit Insurance Corporation (FDIC), which insures accounts up to $100,000.00 (Credit unions are insured by the National Credit Union Administration [NCUA]). For many individuals, a $100,000.00 insured amount is more than sufficient coverage for their personal accounts, although all of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000. For greater protection, you can always split amounts greater than $100,000.00 among multiple banks.

However, corporate accounts often hold amounts greater than $100,000.00. Under the FDIC Rules and Regulations, corporate accounts are also insured up to $100,000.00 combined, even when a corporation has separate accounts for divisions or units which are not separately incorporated.

One of the largest and most important account held by a corporation is the payroll account. Protection of a payroll account which exceeds $100,000.00 in deposits takes special planning which our office can assist you with.

Some banks may offer a service where they reciprocate accounts amongst other banks. When the account goes over the FDIC limit, they automatically open an account at another bank for the overflow, as many times as needed. You may wish to speak to your banking institution to see if they offer this service. Your payroll company may be able to draw from separate accounts and therefore allow you to open separate accounts at separate banks. You could then, for example, have multiple payroll accounts at separate banks, all insured separately, and all under the $100,000 limit.

Secondly, under the FDIC Rules & Regulations §330.11(a), if a corporation maintains deposit accounts in a representative or fiduciary capacity, such accounts shall not be treated as the deposit accounts of the corporation but shall be treated as fiduciary accounts and insured in accordance with separate provisions regarding accounts held by an agent or fiduciary and/or the provisions regarding joint ownership accounts.

FDIC Rules provide that the interests of each co-owner of a joint account are separately insured even if the account is in excess of $100,000. The amount of the co-owners interest is added to any other funds the co-owner may have on deposit at that banking institution, and the total is covered up to $100,000.

The FDIC will look at certain evidence to determine how the account should be treated. One of the factors is how the account is titled. For the strongest protection, we would recommend that you title your account “XYZ, Inc., as fiduciary for the XYZ, Inc. Employee’s Payroll Account.” Further, payroll accounts should be kept in a separate account from any other corporate funds, and preferably at a separate bank, if possible. All accounting records kept by the corporation should show that such account is only used for payroll purposes and list the names of the employees who are paid from that account, as if they were the owners.

One method not to use would be to hold separate accounts, all under the $100,000 limit, in your personal name or the names of family members. Co-mingling of assets is a hallmark of the doctrine of ‘piercing the corporate veil,’ and doing so could open you up to possible personal liability to answer for debts of the corporation.

Our research indicates that the above is the strongest protection your company can have with regards to FDIC insurance. We urge you to properly maintain your corporate records to ensure maximum protection. While the above advice may not be absolute, we believe it will provide your corporation with the strongest protection available to safeguarding your deposits.

If you are looking for creative business ideas to start a small business, there are an abundance of services needed by people coordinating a major event or seminar, and also by people celebrating a major life milestone such as a wedding, special anniversary or birthday.

Now add in all the major holidays and the inspiration for creative business ideas can become infinite. Let’s look at some of the ways you could start a small business and create an extra income for yourself helping people organize, manage, decorate and clean up after these happenings.

Halloween has just come and gone and now the Christmas season is coming. Do you know what people need the most help with when preparing to celebrate a major holiday? It’s time! Most people are just too busy with all the aspects of their daily lives and adding something like Christmas on top of that can mean major overwhelm. This is where you can come in.

Services such as indoor and outdoor decorating, specialty food catering for parties, gift shopping, preparing and mailing Christmas cards and many other services are all a boon to the average stressed out family. And starting a service business like this requires a minimal start-up cost.

Now moving on to major events like seminars and conferences, there can be requirements for food services, decorating, child care, clean-up and more. Have you ever wondered who cleans up after a major rock concert or other big outdoor gathering? Specialty clean-up services are usually contracted to do this type of work.

Providing a service like this can mean making a lot more money than just having a regular house-cleaning service and this is where creative business ideas can start. Look at already existing businesses and find a specialty or niche that you can service within the industry.

Moving on to the major life milestone events such as a wedding, could you find a niche to service here? How about a service that drapes ceilings for a reception hall? Putting up yards and yards of tulle netting and lights to transform a drab reception hall into a wonderland would be a specific niche service within the wedding planning industry.

I went to a wedding once at the community center in my town where the ceilings had been draped and lighted beautifully and it was the most profound transformation. The space was just concrete and normally very unattractive and everyone that attended the wedding was just dumbfounded that such an ugly space could become so inviting.

The tables had all been set beautifully and the chairs all slip covered with slip on cloths and ribbon and the effect was just stunning. And these are all services that the bride ordered and paid for, small businesses providing a niche service and doing a successful job too.

Of course with a service like this and/or outdoor holiday decorating you would have to be very comfortable on a ladder, but these ideas are just the tip of the iceberg when you start to look around and notice all the possibilities for creating a small business related to major events and life milestones.

Now perhaps this area doesn’t interest you, but at Creative-Small-Business-Ideas.com there are creative business ideas for pets, fashion, toys, vehicles, writing, websites, photography, selling on ebay, travel and many other areas that will fit your unique talents and interests.

Find lots of creative business ideas to start your own small business at Creative Small Business Ideas.com . With 20 different categories of free business ideas to research you are sure to find just the right business idea or inspiration for your own idea to take shape. Get start up costs, marketing info, resources and more.

Accounting software can vary from multi million pound solutions for major public companies to simple managed lists of income and expenses. Simple accounting solutions are most suitable for small business.

The most comprehensive financial accounting packages incorporate financial reporting information and managed by teams of qualified accountants supported by accounts clerks, bookkeepers and substantial input from automated data sources. At the other end of the scale a self employed sole trader might use accounting software themselves and produce a set of financial accounts for the year in an afternoon.

Different accounting standards are required from accounting software dependent upon the fitness for purpose and client needs. Double entry bookkeeping automated through a database system and probably arranged in financial modules would normally be the choice of the majority of public companies. Single entry bookkeeping would not be an acceptable accounting solution for a limited company due to audit requirements and statutory obligations.

Single entry bookkeeping does however have its place in the market place for the smaller less complex businesses who maintain financial control through a close intimate knowledge of every financial transaction. The main objective of a sole trader is more likely to be the production of the tax accounts and complete the periodic and annual tax return forms.

The most sophisticated level of accounting software in the largest companies mirrors the accounting functions in those organisations with various financial modules for accounts receivable, accounts payable, stock control, general ledger and fixed assets. These accounting modules may also be integrated with non accounting functions such as production and dispatch functions and also divided into separate modules within the accounting function.

In larger companies the sales daybook and data entry of sales turnover would often be the responsibility of one department while the accounts receivable function might be split with a specialist credit control function within that accounting module. A further division may also include sales administration and customer records. Accounts payable would normally be multi functional of the purchasing department, purchase invoice accounts department and a legal function for overdue payments.

Accounting software for smaller companies and organisations is commonly a system of data entry of prime transactions which include sales income, purchase expenses and cash and bank transactions. The prime entry of these documents being to a database which automates the double entry accounting principles and produces both accounts receivable, accounts payable and general ledger databases.

Some accounting knowledge is usually required tom operate a database accounting software system and that financial knowledge is usually available within the company as most companies that use database accounting software also employ a bookkeeper or accounts clerks to input data and in slightly larger small companies also qualified accountants to manage the accounting function.

The need for accounting knowledge in a database system is partially to understand the data entry principles and the relevancy of the rules that need to be followed but essentially understanding of accounting principles is required to understand what is happening ton the information after input. And most important, a qualified accountant has the financial knowledge, training and experience to know what the system should be producing and how to query the database to retrieve that information.

A database accounting software system not only produces high quality financial records but offfers numerous financial control alternatives for both junior and senior business management. The accounting function also has the security of producing trial balances, periodic profit and loss accounts, balance sheets and other financial and statements for tax and control purposes.

Accounting solutions requiring little bookkeeping or accounting knowledge are available usually based uponh spreadsheets as this is the most transparent method of viewing the accounts.

Small limited companies must obtain accounting software based upon double entry accounting principles as in addition to producing a profit and loss account and a trial balance to demonstrate accuracy and integrity of the financial records plus a balance sheet is required for reporting purposes. Accounting standards require the limited company to have a system of financial control and accounting software is an essential tool in achieving this.

Some accounting knowledge either from the management or outsourcing the bookkeeping services is usually required with even the simplest database accounting solutions eve3n if this requires the understanding of what accounts receivable ledgers, accounts payable ledger and control accounts mean.

There are other possibilities and those businesses with a minimum of accounting knowledge can consider spreadsheet based accounting software. Accounting software compiled from spreadsheets is less flexible and often does not have the range of options a database system has due to the lack of database queries available. These disadvantages of flexibility being compensated by the fact that all entries are visible, transparent and changes can be made more easily.

Financially at the sole trader and self employed end of the business spectrum then the requirements from accounting software may be completely different. Gone are the sophistications of control accounts, trial balances and many aspects of financial control. The most important aspect of self employed accounting software is often to produce a set of accounts for tax purposes.

Self employed small business that do not require a balance sheet can use accounting software based upon single entry bookkeeping rather than double entry and with the reduced requirement for financial control then less financial queries to the system are required. In these respects the simpler an accounting solution the better and in this market an accounting solution written on spreadsheets that can produce the net taxable profit would meet the requirements.

Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly. What is a business credit card?Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits. Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit. Simplifying business credit cardsIt really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards.  When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access. Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards. Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly. What is a business credit card?Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits. Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit. Simplifying business credit cardsIt really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards.  When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access. Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards. Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.

This article is for beginners of accounting profession who just started their long way and already struggling to understand the basics. The starting point of almost any accounting course is an explanation of the double-entry bookkeeping system which then stands as a core of any further studies. If you did not clearly understand how it works in the beginning the effect of further education will be zero.

I’ll try to illustrate the basics of accounting in the simplest possible way, avoiding in the beginning the use of such confusing terms like assets, liabilities, debits and credits, etc.

Let’s start:

Assume we have some Company X, which was established a year ago and now we are at the year-end, trying to draft accounts of Company.

All we can guess from the ‘accounting’ word itself, that it is a bunch of accounts. Great! That would be a starting point for us. Let’s put down some accounts on a paper (if you’re reading this article on your PC, it’s advised to do the below manipulations in Excel spreadsheet):

Account A

Account B

Account C

Account D

Account E

Account F

Account G

Account H

Account I

What you see above is just a list until we put some values opposite every account. The only point to bear in mind is that overall total of listed values should eventually be equal to 0:

Account A         12

Account B          9

Account C         -4

Account D         -8

Account E        -13

Account F         -5

Account G         -7

Account H          6

Account I           10

Total = 0

Coming back to accounting, each value above is called an Account balance. List itself is usually called a Trial balance. Let’s assume that these account balances were actual ones for our Company X at the year-end.

Now it’s time to understand how the double-entry system actually works. Basically the purpose of the double-entry system is to reflect transactions that Company was involved into. Not going deep into details let’s imagine that Company X made a credit sale on the first day of current year amounted to 5 dollars. The effect on our accounts will be the following:

Before                      Entry                 After

transaction                                        transaction

Account A                  12                                                     12

Account B                   9                            5                        14

Account C                  -4                                                      -4

Account D                  -8                                                       -8

Account E                 -13                                                      -1

Account F                  -5                            -5                        -10

Account G                  -7                                                       -7

Account H                   6                                                        6

Account I                   10                                                       10

Total 0 0

Above sample illustrates the main principle of accounting. So, every transaction, whatever the substance of it, simultaneously increase one account and decrease the another. In our case Account B that was increased by 5 and Account F – decreased by 5. That’s why the Total of accounts equal to 0 remains unchanged.

To make the example more practical let’s define what each account actually indicates and call these accounts respectively:

Account A Cash – The balance of this account shows how much cash our Company has in hand at the moment.

Account B Receivables – This account shows how much money our customers owe to us as at the moment.

Account C Payables – Shows the total amount that we owe to our suppliers at the moment.

Account D Borrowings – Shows how much we are due on Bank loan at the moment.

Account E Share capital – Shows how much money the Company owes to its Shareholder, i.e. money invested into business by owners.

Account F Revenue – This account shows how much Company earned from its main activity for the period of time (usually year to date).

Account G Other income – This account shows any other revenues earned out of main activities for the period of time.

Account H Operating expenses – Shows cumulatively how much Expenses Company incurred to run it’s main business for period of time.

Account I Interest expense – Shows the amount of interest paid to Bank for the period of time.

Let’s now get back to our transaction when Company sold the goods for 5 dollars on credit. It resulted in increasing of Account B and decreasing of Account F. Let’s see why. Account B showing us an amount receivable from customers and since we sold goods on credit this amount should increase from 9 to 14. On the other hand by selling goods we earned a revenue which must be reflected on Revenue account. Before the transaction Revenue balance was -5, showing us that we earned 5 dollars so far – negative sign should be ignored, as it’s used only for the purpose of getting equality. Surely by selling more at the amount of 5 dollars, we should increase our Revenue to make it 10. However because of the negative sign in place, mathematically we decrease the -5 and it becomes -10.

Let’s take another example. Company pays 3 USD rental for the office in cash. Consequently we should decrease Account A (Cash) by 5 and increase Account H (Operating expenses) by 5.

Now, when we understand how double entries work, let’s see how these accounts form financial statements which are usually the ultimate purpose of any accounting. For that purpose we’ll allocate our accounts to certain groups: Assets, Liabilities, Equity, Incomes and Expenditures. Accounts A (Cash) and B (Receivables) will form Assets of the Company. Assets are what Company actually possess(e.g. Cash) or suppose to possess (e.g. Receivables). Next group is Liabilities. That’s what Company owes to suppliers, banks, other partners. In our case Liability group will include: Accounts C (Payables) and D (Borrowings). Another group is Equity, which comprises of accounts showing how much Company owes to its shareholders. Also this group can be called share capital. All 3 above – Assets, Liabilities and Equity eventually constitute Balance Sheet of the Company. Balance sheet accounts are always showing information as of particular date. E.g. if Cash account balance equal to 3, it means that as of present moment Company has 3 USD of cash in hand.

Other groups are Incomes and Expenditures. Income or revenue accounts reflect all incoming money that Company earn from its activities. E.g. for supermarket it would be revenue from goods sold, for bank – interest income, etc. Expenditures reflect amounts expended to maintain business. Main point to remember about Income and Expenditure accounts is that they are always showing us amounts earned or expended FOR the period of time (usually year to date). E.g. if Revenue account balance equals to 500 USD as at March 31 it usually means that Company made sales totaling to 500 USD since the beginning of year up to date.

Let’s now draft financial statements out of Trial Balance we have above. They will look like this:

Balance Sheet

Assets

A Cash                                    12

B Receivables                          14

Total Assets                            26

Liabilities

C Payables                              -4

D Borrowings                            -8

Total Liabilities                      -12

Equity

E Share capital                         13

Current year’s profit                    -1

Total Equity                            -14

Total Liabilities and Equity     -26

Income Statement

F Revenue                                -10

G Other income                          -7

Total income                           -17

H Operating expenses                 6

I Interest expense                       10

Total expenses                         16

Net Profit                                  -1

Now we came to the last point – introduction of Debits and Credits. In above example we were calling accounting entries like Increase of Account B and Decrease of Account F. However to making life easier accountants use Debits and Credits to formulate accounting entries. There is following rule:

To apply this rule, let’s formulate above entry:

Dr Receivable     5

Cr Revenue       -5