Barter is one of the oldest forms of trade in which one company offers its services or goods to another company for services or goods in return. These exchanges do not involve cash, are typically conducted as a private transaction between the two parties and are limited by the goods or services the trade partners offer. Barter exchanges are third parties, often organizations, whose members contract with the barter exchange to trade their goods or services with other members. While barter exchanges exist in the brick and mortar world, many exchanges (such as Bartercard) have moved their business model online to provide a faster electronic exchange for their members. Barter exchanges act as a third party facilitator and bookkeeper which manages the transactions for all of the members and keeps track of the trades. Barter exchanges often use a trade currency referred to as “barter dollars” or “trade dollars” to… Read more!
e-vos bookkeeping services can help businesses streamline their bookkeeping processes, improve reporting and reduce overhead. Bookkeeping services are cloud based and can be provided to businesses outside of Charleston, South Carolina. ________________________________________ This is a piece reprinted from Gurufocus.com about spotting theft with bookkeeping and accounting Edmond Locard, a pioneer in forensic science, formulated the very basic principle of forensic science: Every contact leaves a trace. Companies which cook their books will leave investors with clues of their actions in the accounting trail. While it is impossible to catch all the thieves, investors should equip themselves with basic forensic skills to avoid the most common accounting shenanigans. I introduce five items to take note of, in the process of checking for possible accounting shenanigans. A large amount of cash with extremely low deposit rates is a major warning sign. If the company’s cash yield is significantly lower than bank deposit… Read more!
Below is a reprint of an article by Joyce Rosenberg of the Associated Press. The article talks about employee theft and preventing employee theft when bookkeeping is involved. Bookkeeping services are a great way to prevent employees from becoming entrenched and controlling the flow of information. The e-vos bookkeeping service takes the idea a step further by allowing business owners to outsource their bookkeeping services completely in order to shift the risk of theft from the business owner to e-vos. NEW YORK — It often starts with a trusted employee. Invoices might be forged, or checks might be stolen. By the time the boss catches on, thousands of dollars have been stolen. Employee theft or fraud is a big and expensive problem at many small companies. But the pain is often more than monetary. A boss feels a sense of betrayal, anger and shame. A look at the problem, and… Read more!
Sales commissions are often a difficult thing to balance and manage for any startup company. The sales people want their commissions yesterday and the business is afraid if they do not pay the sales commissions immediately the sales people will stop working. However, a business needs to understand the process of generating revenue, entering deposits, reconciling books, calculating commissions, transferring funds if necessary, and finally paying the sales people their commission. A business generates revenue from clients and looks to pay sales people a commission for bringing that business to the company. In a perfect world money would be paid by the customer and the sales commission would be immediately deposited into the sales person’s bank account. However, the reality of the situation is that money does not typically enter a company on a single day. Revenues typically trickle in over a 30 day… Read more!
Last week I wrote about the bookkeeping process for businesses and the importance of managing that process. This week we have been working with a client on a project which has a bookkeeping process that requires a large amount of data entry, and more difficult has been the processes which manage the paper inside the business prior to it reaching the bookkeeper for entry. While many businesses are working toward becoming paperless other businesses are required to manage paper invoices through a managerial approval process before the bookkeepers can ever enter them. Invoices which arrive on paper must be kept in order, signed by appropriate managers, and organized for handoff to the bookkeeping department. Making sure the invoices are received, approved, and organized often requires multiple parties all doing one or more tasks in a timely manner. The process seems simple, but for business… Read more!
Bookkeeping is the least sexy of all the business processes, and is often viewed as a chore more than anything else. Most business owners do not pay attention to their bookkeeping process except once a year when taxes are due. Unfortunately, the people who decide it is important are often the ones who are finding out there is an issue with their bookkeeping process. Problems with bookkeeping often lead to increased accounting costs, fees for unpaid taxes, higher tax burdens, or penalties for payroll taxes. With the tax deadline recently behind us this is a great time to look at your company’s bookkeeping process and see if there are ways to improve the process or reduce costs. The costs associated with bookkeeping are primarily staff, software, payroll processing, and accounting fees at the end of the reporting period. For the average small business the… Read more!
The concept of a paperless office is more of a dream than a reality for most businesses. Because the technology has not existed to allow for a paperless environment businesses have file cabinets, attics or closets, and offsite storage units all overflowing with paper. Professional practices with regulatory guidelines for document storage often require the retention of client documents for years after the work is completed. For these businesses the files begin to pile up, become unorganized, and in most cases the files are not disposed of after the retention period because they are not organized for disposal. The lack of organization means the document retention process has a direct adverse effect on a company’s bottom line. Any service business typically has a minimum operating expense of 50%. With margins already thin the need to eliminate costs is crucial. Paper documents not only cause immediate expenses but… Read more!