Category: Accounting

Something that almost everyone that is reading this right now has to deal with on an almost daily basis is money management. Everyone has had some point at which their finances have either completely spiraled out of control or threatened to do so – but today the chances of that happening are far less than they used to be, and indeed far easier to avoid than they ever have been through use of software.

In the past every sort of financial transaction would need to be tracked on paper in order to keep a written record of finances and manage personal funds to make sure that their family could actually stay in the black. Today, however, people can simply use Mac Accounting Software along with the records that most banks now offer online in order to track finances, making it far easier for many people to manage their money.

Of course, not every problem has gone away. For example, as more and more people have begun to use Macs instead of more traditional PCs, they’ve found that finding really well made Mac accounting software is somewhat of a chore, if not near impossible. There are a few serious problems with most Accounting Software for Mac, and learning them helps avoid them. The first and probably biggest problem are terrible ports of Windows account software that are simply rapidly moved over to the Mac platform with no real care given to the core differences between the two platforms. These ports have serious bugs that emerge at the worse possible times, and often have compatibility issues with the Windows versions as well, making it impossible to move the files around between the different versions of the same software.

Another huge problem that seems to plague Mac Accounting Software is pricey professional software. Professionals have been using Macs for far longer than most consumers have, and to be completely honest, the software that professionals are more apt to use (and be able to pay for) has come to dominate the market when it comes to so many kinds of software on the Mac. Thankfully, with constant iterations to the Mac OS, software on the Mac has finally reached a point where there are several good ports of Windows software that offer cross-compatibility and little to no bugs. Better yet, the constant encouragement for smaller software developers to create things for the Mac has led to an explosion of cheaper software, which is fantastic if you need some sort of accounting software that doesn’t necessarily need to break the bank or perform tasks that are far beyond what the vast majority of its users from individuals to small businesses would ever even think about using.

The bar exam and your professional responsibility class are ancient history. You’re not an ethics lawyer, and you don’t file legal malpractice suits. All the more reason we want to spring this pop quiz on you!

Which of these funds do not belong in your clients’ trust accounts?

Earned fees

Personal funds

Real estate escrow funds, such as a down payment on a house

Your firm’s operating funds

Personal injury settlements

Collections

Retainers and advances

Other settlements and judgments

How do you make sure this actually happens, so that you keep your nose clean at all times?

Get an all-in solution like Easy Soft’s Easy TimeBill and Easy Trust. Our trust accounting software gets you in compliance and prepared for a knock on the door from random bar auditorsat all times.

Basically, here’s how it works.

You’re retained by a new client.

The client pays your retainer, which you deposit into your trust account. Our escrow accounting software takes note of this.

You track your hours and bill your clientboth through our legal billing software.

You debit your trust account for the earned portion of the retainer. Then, you move this portion into your law firm’s operating account.

Here’s another question.

What are the five steps to keeping your trust accounting clean?

Step one: keep all of your client’s funds in separate accounts. Step two: make sure your client ledger has a positive balance. Step three: make sure all money is in the proper (trust v. operating) account at all times. Step four: reconcile everything. Step five: keep paper records of your check stubs and expense receipts.

Don’t lose sleep over trust fund accounting . Follow the above rules, and you’ll always be prepared for an audit. Easy Soft products are easy to install and doesnt require technical background or expertise.

There are certain accounting errors that do not affect an accounting trial balance, including:

Error of total omission
This occurs when an accounting entry is completely omitted from the book of accounts. In such a case, the trial balance totals will still balance as no entry was ever made.

Original entry error
This occurs when the original entry was either overstated or understated by a certain amount. For instance, original purchases might be $200, but the accountant mistakes it for $100. The accountant then debits the purchases ledger account with $100 and credits the cash account or the creditors account with $100. This error will not affect the trial balance.

Compensating errors
These are multiple accounting errors that may individually affect the trial balance, but since they are multiple accounts, they end up canceling each other out and thus do not affect the totals of the trial balance.

Reversal error
This is an accounting error that occurs when the correct amounts are entered in the debit side instead of the credit side. This does not affect the trial balance.

Transposition errors
This error is caused when two adjacent digits are switched. The trail balance will still balance but the balancing amount would be wrong.

Error of principle
This accounting error occurs when the amount is entered correctly but is entered in the wrong account. This error will not affect the accounting trial balance.

These are some of the accounting errors that do not affect the accounting trial balance. Sometimes these errors may never be discovered.

There is a plethora of information on the web regarding Accounting errors that do not affect the trial balance. They have a good resources section and are helpful for both small businesses looking for a qualified certified public accountant AND CPAs looking for help with marketing. Their research service is free for small businesses looking for help with their accounting. The IRS website is also helpful but a little more technical.

Unlike Generally Accepted Accounting Principles(GAAP), tax accounting is an extensive set of laws and regulations required of businesses to submit income tax information. Just like federal income tax, this set of comprehensive accounting principles is regulated at the national level.

As of the 2008 fiscal year, there are only a few different ways to compile tax accounting information, but 2 main methods. The acceptable ways of submitting information are the cash method, accrual method, or a combination of both.

Depending on qualification, these different methods can be chosen by a company according to timing of transactions such as credits and debits. If qualified for either method, the company will look at the advantages and disadvantages of each method and choose the most beneficial method. The American Institute of Certified Public Accountants(AICPA) submitted a request to change the accounting method, but nothing has been overturned as of yet.

There are two parameters that a business must not qualify for to have the ability to choose their tax accounting method . A business must use the accrual method if the sales are over $5 million or there is inventory stockpiled that will either be sold to the public or used to make products sold to the public.

The accrual method, or accrual basis, of tax accounting records sales and purchases as the order is processed. In this method, physically receiving or paying money is not the time of recording. When a sale is made or a job is completed the credits or debits are recorded, regardless of the money actually changing hands or not. This method is simpler when large contracts are signed, but the payment plan may last several years. One disadvantage would be that even though the books show a large capital, the actual funds are not in the account.

The cash method, or cash basis, of tax accounting is simply recording transactions as the money is exchanged. This method is more accurate and gives a better feel for how much spendable capital a business has to use. Depending on the set-up of the business procedure, the cash method takes a little more discipline in book keeping. Unlike the accrual method that records the transaction as the order is processed in the office, in cash accounting the payment must be recorded directly after payment is taken. The cash method can also leave a window for fraud or theft, whereas accrual accounting has checks and balances to make sure the correct amount of payment is applied for each order.

So, after determining if your business is required to use the accrual method or not, it has a choice. The choice depends on the structure of the business and the preferences of advantages and disadvantages of each method.

It is important to note that a business is not allowed to change tax accounting methods back and forth. If a change is desired, the current method must have been used for the last two consecutive years. At that time, a formal request must be submitted to the Secretary of the Treasury. To make sure this process is done correctly and all the bases are covered, the owner/officer of the business should consult with a certified public accountant. The Secretary of the Treasury also has the right to require a business to re-compute the taxable income to more accurately show a business’s tax accounting.

In summary, tax accounting requires careful analysis and application of the tax code, regulation provisions, administrative pronouncements, and case law. It is possible and sometimes more advantageous to complete this process in-house or with the aid of online accounting , but it is recommended for some businesses to seek professional guidance.

Are you a person used to an environment where excellence is expected? Then your search ends right here at Southwest Schools Computerized Accounting Specialist Program.

Southwest Schools comprehensive computerized accounting specialist Program is designed to offer students the proficiency required to perform and execute an array of financial tasks, payroll accounting and business law, with an emphasis on software and modern computer technology.

Question arises why Computerized Accounting?

With the advent of the internet, almost all organizations are using accounting software and enabling easy calculation of profits and losses with the help of computers. Manual accounting has been largely replaced by computerized accounting.

Additionally, Computerized Accounting allows an integration of basic accounting tools and techniques to help in recording, classifying and summarizing the financial transactions of a business and calculating profits, losses and financial positions of a business in an easy and automated manner.

Job duties of a Computerized Accounting Specialist

1. A computerized accounting specialist performs accounting duties for a company or corporation utilizing basic and advanced accounting software and computer technology.
2. With the help of accounting tools and techniques, the Computerized Accounting Specialist records financial transactions of a business (book keeping and journal), classifies business transactions (ledgers) and calculates profit and loss over a period of time utilizing the computerized accounting system of an organization.
3. A Computerized Accounting Specialist posts transactions to accounts, uses record-keeping systems and operates accounting software.
4. A Computerized Accounting Specialist helps analyze the financial stability of a company and plan for the company’s future endeavors.
5. A Computerized Accounting Specialist performs general accounting duties such as arranging and recording business transactions, integrating accounts, tracking expenses, printing checks, creating and maintaining accounts, keeping payroll, creating plans for mergers and acquisitions, undertaking tax strategies, benefits management and depositing sales receipts. In addition, Computer Accounting Specialists use accounting systems to generate and send out bills for customers and projects.

Salary Outlook

The U.S. BLS projects that opportunities for Computer Accounting Specialists will continue increasing for the next several years, and it is expected to be one of the fastest growing professions even in a recessionary economy. Salaries for computerized accounting specialists can vary widely according to the employer, the type of company, location and work experience. Computerized accounting specialists earned an average of $37,000 as of October 2010, according to Simply Hired, Inc. (www.simplyhired.com).

Find a great job in the burgeoning field of computer accounting. Visit for more information.