SOFTWARE REVIEW: PRODUCTS TO STREAMLINE YOUR EXPENSE REPORTING
This month’s focus has been on time management techniques. We are always looking for ways to work smarter instead of harder. So, the best approach is to have the proper tools on hand to assist you in your journey. I’ve found a few products that you can easily integrate with QuickBooks that can help you to save time in your daily bookkeeping process. These products all have one thing in common; their objective; to help you create a structured environment. So let’s take a look at three of them now.
Virtual Time+Expense
Virtual Time+ Expense is a web-based tool that simplifies that creates a paperless environment for monitoring time and expense. The name states it’s best feature; virtual. No need to have to wait for employees to bring you their time cards. With this software, they are able to enter all their data over the internet. The same goes for expense reporting. This products easily integrates with QuickBooks and also includes compliance controls.
EZtime
EZtime, another web based application tool gives employees the flexibility of entering their time sheets over the web. In addition to time and expense reports, employees can also receive company news information. Administrators have the ability to control the approval of employee workflow and tasks.
Exgis® Expense
Exgis® Expense is an easy-to-use software application that gives you the capability to track your expenses either through the Internet or on your smartphone as soon as they are incurred. Expense transactions recorded on your smartphone are made available in real-time so they are ready for review when you go online. It also has globalization features for International travelers (ie exchange rates). With a claim reporting system, you can easily transfer business or travel expenses into a claim statement for submission to your finance department - we can even incorporate your company’s existing claim statement right into our software. One of the key features of Exgis Expense is that it reflects immediate changes to business rules to all users in the system, even mobile users.
Partnering for your success
Jacqueline Williams
Financial Strategist
DESIGN A BOOKKEEPING SYSTEM THAT WORKS FOR YOU
Your company’s financial records are the window into the soul of your company. Developing a system should be one the first tasks on your agenda when establishing your company. Of course, most of us wait until we’ve begun operations, and then we accumulate a mound of paperwork. At this point, either one of two things happen; you ignore that mound until you can’t ignore it anymore, or you’ll pass it off to someone else to handle for you. That’s why it’s advantageous to create your system in the beginning of your operations. You’ll save time and money.
Your bookkeeping system should be designed specifically for your type of industry and it should be modified to represent the uniqueness of your particular company. If designed correctly, your bookkeeping system will not be too complex and it will provide you with pertinent financial data at the click of a mouse. To set up the proper system for your company a Bookkeeper will ask a series of questions to gain insight into the type of business you have, and from that information he/she will be able to advise as to the type of transactions and the establishment of the chart of accounts. In the beginning, your chart of accounts will provided very basic data due to the fact that not a lot of activity is occurring at that point. However, it should contain the necessary information for financial reporting and tax reporting. As your company grows, so will your chart of accounts. Your bookkeeping system should be flexible in that it needs to accommodate the addition of various financial statements that management would use such as a balance sheet, an income statement, budgeting, cash flows, etc.
Creating accounts and posting transactions are not the only components of a good bookkeeping system. A good system will include controls to make sure that the data captured and presented is done accurately. For instance processing cash receipts, paying bills, and entering invoices; all these tasks should be clearly documented as to the responsible party, the actual procedures involved, and the responsibility for the review of or oversight of these functions. And most importantly, automation is key. Although you may feel that in the beginning it’s not necessary, do yourself a favor today and make sure that your bookkeeping system is automated. Manual bookkeeping systems are outdated and inefficient. Automated systems provide a higher degree of accuracy, and prevent you from having to set up ledgers, journals and accounts that you aren’t familiar with.
It’s not too late to give your current system an overhaul. Have your Bookkeeper review it today!
Partnering for your success
Jacqueline E. Williams
Financial Strategist
Monthly Bookkeeping For Success Tele seminar
Each month Bookkeeping For Success hosts a tele-seminar with successful, innovative, motivated small businesses who are focused on creating an effective system for their bookkeeping.
March’s topic is
“Time Management Techniques using Quick Books”
This tele-seminar will introduce the concepts of time management and its techniques to help you manage your bookkeeping process better while using Quick Books.
You are welcome to email questions in advance to: eworkshop at jefinancialservices.com. In addition, we will provide an opportunity for you to ask questions during the tele-seminar.
Here are the details….
Date: Wednesday, March 25, 2009
Time: 4:00pm EST, 3:00pm CST, 2:00pm MST, 1:00pm PST
Reserve your seat at: Bookkeeping Success Tele Seminar Line
All you have to do to attend the tele-seminar series is find a comfortable spot for about an hour, sit back and connect with the Bookkeeping Success Tele Seminar Line. You’ll get to ask as many questions as you want during the seminar and even after. Plus, if you miss a session or the available times are not good for you there’s no need to fret because the entire event is recorded and you’ll have the ability to listen to it at your convenience.
I hope you’ll take advantage of this invitation and I’m looking forward to “seeing” you on the call.
Knowing your customer: Get a handle on collecting receivables
From time to time in the course of conducting business, I have come across clients who refuse to pay on time, even if they have the funds available. Let’s face it, especially now, with the so called cash crunch going on, people are holding onto their funds more tightly. They find unique ways to pay on their time line instead of yours. Not only does this disrupt your cash flow, but it also strains the relationship between you and your customer. There are ways in which you can get a handle on your cash flow while still maintaining a good relationship with the customer. For instance, stress to the client to keep the lines of communication open. We know that things can be forgotten, especially in the course of business, however, it shows integrity when a client calls because they anticipate not being able to make their scheduled payment. I have the practice of reinforcing to the client how much I value their business and that I’m willing to negotiate terms during extreme circumstances. This shows dedication and that I’m not only chasing the money. Even in the beginning, when I first sign on a client, I’ll ask them certain questions to get a feel for what ideas they have about handling money. Or, if the company is established I’ll check their credit rating at Dunn & Bradstreet. Just like when you open a credit account, the creditor has checks and balances in place to make sure that you are credit worthy, the same should exist when soliciting clients for your business. If at all possible, find a way to become familiar with their payment history. Ask to contact their former provider. Find out why they changed providers, and make sure that they don’t have any outstanding invoices with that former provider. It pays to do your homework and learn the payment behavior pattern, if at all possible, of your clients.
Partnering for your success
Jacqueline E. Williams
Financial Strategist
BEST PRACTICES FOR MANAGING YOUR CUSTOMER RECEIVABLES
The best part of being in business is when your customers pay you and on time. The important thing to remember is to make sure that you are managing the receipt of these payments promptly or they will get away from you. Cash management is one of the most important functions of the financial process. The flow of money in and out of your company must be properly documented in order to have a clear precise profile of the company’s revenue stream. Managing receivables, or simply put, billing your customers and collecting the payments, should be handled daily. Although its time consuming, processing your receivables daily is necessary in order to accurately reflect your company’s financial standing.
What are receivables? Basically put, receivables represent the amounts owed to your company for goods sold or services rendered. Time and time again, I have come across businesses that don’t have a system for tracking their receivables. They know that they exist but have no idea of how much or when they are due. What typically happens is that the owner will suddenly become a bill collector when funds become scarce. To prevent this scenario from happening, it’s important to set up and maintain a proper Cash management system. How does one do this? It’s preferred to use an automated or software package to track all your financial data. Generally, when using software, the program will have well defined modules that step you through the entire process. With that said, I firmly believe that it’s just as important to know the basic theory behind what you’re doing. To educate you further, let’s take a look at some of the key components of an effective cash management system.
PROCESSING RECEIPTS
In this phase of the system, customer receipts are delivered in several manners; by check, by credit card, or direct funds transfer into the company’s bank account. Regardless of the method, to maintain internal controls, or to make sure that no one person has complete control over the entire process, this ametask can be designated to a person other than the accountant or bookkeeper. As the items are received, they should be recorded in some sort of log or journal.
DEPOSITING FUNDS
Preparing checks for deposit into the company’s bank account will involve endorsing the back of the check. The company should have a rubber stamp with the words “for deposit only” along with the bank account number, name and location. Once the back of the check is endorsed, a deposit slip should be prepared with the following information: customer name, invoice #, and amount received in payment. This should correspond with the same information that was logged in when received. If payments are received directly into the company bank account, such as credit card purchases or direct funds transfer, still the amount should be compared to what’s expected in the customer file. Once all payments have been deposited into the company bank account, a copy of the deposit slip should be maintained as evidence of receipt and attached to the customers invoice. This process is best handled by someone other than who processed the receipts. Once completed, at this point the information is forwarded to the bookkeeper for posting.
POSTING TRANSACTIONS
The bookkeeper, at this point will apply the information from the deposit directly into the appropriate journals and ledgers for the customer account. It’s important that these entries are recorded accurately, otherwise the integrity of the accounts receivable will be jeopardized.
Although the entire cash management process can be more complex, this is just a brief overview. The point is to get started and get organized.
Partnering for your success!
Jacqueline E. Williams
Financial Strategist