Pages

Friday, August 30, 2019

10 Facts about Accountants We bet you didn’t know..!

Do you believe that the account is boring? Here are the big famous names and stories which you certainly do not know about accounting.
Accounting is essential for any small OR big business. Through accounting, anyone can know about the position of business, financial condition of business and profit OR loss of business.
If you are having a small business and not willing to hire in-house accounting then it is advisable to take advantage of accounting outsourcing services.
An accountant is an important part of the organization.
Here you can come to know the less known things about accounting and accountant.

Wednesday, August 28, 2019

How Technology Has Modernised Accounting Structure?



The finance and accounting services are rapidly changing with the availability of productivity based on newer technologies. Today, accounting isn’t burdened with task-oriented projects because, in the shift of technology trends, various accounting software are available which are automating the accounting work.

According to a the survey conducted by Robert Half Management Resources, around 41% of CFOs stated that technology is becoming a major part of the accounting industry. The technology has modernized accounting services in multiple ways that it becomes difficult for accounting companies to keep up with all the latest trends. The shift in accounting requires new skills to be developed in the accountants. For CPA firms, it is very important to keep up with modern accounting technologies so that they can train their employees to perform a better job.

Blooming Accounting Technologies

CapActix – a leading accounting outsourcing company in the USA has been constantly working with the latest accounting technologies. We follow the latest accounting technologies very keenly and according to our experts, these technologies are reshaping the accounting industry in the future.

1.    Blockchain

When we are speaking about the emerging accounting technologies, then we have to start a discussion with the blockchain. Recently, numerous researches are conducted where blockchain is presented as an emerging paradigm for trade. Blockchain is currently used as the public ledger for bitcoin transactions, but it is a very powerful technology that can be used to keep track of transactions and helps in distributing value to all the participants in the public networks. The impact of blockchain technology is still much underwhelmed, but in the future, it is going to be a big part of the accounting industry.

2.    Cloud Computing

Cloud computing is a very popular business technology of 2019 and has been proving its worth in the accounting businesses as well. Cloud applications can manage everything from payroll to tax preparation. For outsourced accounting services, it is a very useful technology that enables accounting companies to update financial information as soon as any change occurs and the outsourced company will get an automatic notification. Moreover, by using cloud technology, the burden from the IT department can be reduced as they don’t need to handle software management and updates anymore.

3.    Artificial Intelligence & Robotics

Artificial intelligence and robotics technology has automated complex and repetitive accounting tasks. The high level of accuracy and low cost of operation has been gifted by this technology to accountants. AI is a prominent accounting technology of the future because currently, we don’t have any substitute for human brains. So, these technologies can increase the efficiency of accountants by performing repetitive tasks, but they can’t yet fully automate the accounting work.

4.    Custom Integration

The integration of different software is a new modern business technology. And, the custom integration has been proving a dynamic trend for the accounting executives. The accuracy has been always a big concern for accounting firms, especially when they have to transfer information from one department to another. One small error in the transferred data can waste so much time and resources of the company.

But, today accounting outsourcing companies in the USA have found a solution by linking their ERP, CRM and CMS software together to create a unified environment where authorized users can easily access information anytime and anywhere.  This technology has made accounting outsourcing services very efficient.

5.    Optical Character Recognition

The integration the solution has already reduced repetitive entry task of the accounting companies, but with the presence of optical character recognition software, the process of adding manually entries have been limited.  This technology allows companies to scan or even use the mobile camera to capture the data from printed files and convert them into the digital files. It has improved the level of accuracy and the process of adding accounting entries have been fastened up.

6.    Tax Solution

When all the taxable information like payroll, receivables, payables and other related information is available through integrated cloud-based technologies, then the tax preparation gets very easy. But, with the integrated cloud-based solution, tax time becomes much less stressful. Modern innovations in accounting and tax software allow CFOs to take advantage of the correlated data collected throughout the year to ensure accuracy for all tax forms and payments. Tax preparation is a process where one mistake can cause big trouble, but thanks to tax software the small details like deduction and rates can be easily checked.

7.    Mobile Apps

One of the major The benefits of modern accounting technology are remote access to information. Accounting professionals don’t need to be present in their office to update or access accounting data. With mobile accounting software, they can handle finance and accounting services from anywhere. The changes made by accountants through mobile apps will automatically be updated to the office server via the cloud. This technology has brought flexibility in accounting work.

8.    Social Media

Accounting organizations understand the value of social media platforms that’s why they are using social media networks to connect with their potential clients.
Social media marketing has made it easier for accounting companies to reach clients from around the globe and expand their business. Social media marketing strategies like blogging, posting regularly, etc., helps businesses to grow digitally.

Accounting professionals need to embrace these technologies to survive the whirlwind of the future. This means accountants need to regularly update their skills as per the new modern accounting developments.

If you are a busy accounting firm in the USA and looking for the outsourced accounting services to share your burden with the help of modern accounting techniques, then you have CapActix at your service. We are a team of modern accountants who know the value of technology-based accounting tools. To connect with our professionals, you can contact us at email - biz@capactix.com or can call on +201-778-0509.

Tuesday, August 27, 2019

How to maintain common set of books to satisfy requirements of Cost Accounting with Financial Accounting

The integrated accounting system is the system wherein books for the Financial Accounting and Cost Accounting requirements are maintained in a common set. This is why, it is called, that Cost Accounting and Financial Accounting are integrated into one System.
CIMA defines that an “integrated accounting system refers to the interlocking of the financial and cost accounting systems to ensure all relevant expenditure is absorbed into the cost accounts. Under this accounting system transactions are classified both according to their function and nature.”
Integrated accounting should be configured in a way that while it can provide information for the cost of each unit, batch or job or any other measurable unit it should not distort financial statements viz., Profit and Loss Account and Balance Sheet.
For example,
  • The purchase of raw material can be directly posted into Stores Ledger Control Account, Work-in-progress Ledger Control Account or Overhead Account in-stead of Purchase account.
  • The Direct wages can be posted into Wages Control Account or Overheads Control Account instead of Direct Wages account
Benefits of Integrated Accounting System:
  1. Since figures for financial accounts and cost accounts are from a common source, there are no requirements for reconciliation between two.
  2. Saving of significant time and cost which otherwise gets wasted in maintaining both accounts separately.
  3. Because of the auto reconciliation of cost accounting with financial accounting, management reporting will be quick and accurate and it will help in timely decision making.
  4. It simplifies and improves the internal control mechanism
  5. All cost related figures are basically derived from financial records so when it is directly linked to financial accounting, it is more reliable and accurate.
  6. This system helps in eliminating clerical errors happens in fetching data from financial account books in preparation of cost accounts books data

Process for configuring Integrated accounting system:

  • First of all, the degree of integration needs to be considered.
    > Full Integration: Under full integration, all the cost accounting elements in deriving the cost of sales are integrated with financial accounting.
    > Partial integration: Sometimes when full integration is temporarily not possible, difficult or management wants to test an integrated system; integration can be configured up to a particular stage of cost sheet such as prime cost, factory cost, cost of production, etc.
  • Then the most appropriate and adaptable coding system should be developed to codifying charts of financial accounts and cost accounts including but not limited to SKU, Locations, etc.
  • Standard process data documents should be developed containing all the details related to Cost Accounts and Financial Accounts.
  • Establish coordination between departments handling financial information and costing information.
  • Account department should be trained so that they can become familiar with, record transactions in, and prepare reports from Integrated accounting System.
  • An appropriate accounting package needs to be selected which can best suit the requirements of integration, report generation and automation of the processes.
Examples of posting under an integrated accounting system
Keynotes:
Success always depends on your ability to timely and proper decision making. To have that ability you need accurate, reconciled and advantageous information in your hand. This information can be generated with an Integrated Accounting System which gives all the information which you need for decision making. Using appropriate accounting package and integrating the advance application with the software, a superior integrated accounting system can be developed for any business which can help to keep that business on top of the peers.
We at, CapActix have an expert team available to understand your reporting requirements and helps you set up an appropriate system integrating your financial accounting with cost accounting. We are a prominent accounting outsourcing company based in India. We can help you with establishing an integrated accounting system to make your reporting requirements accurate and reliable. For more details, you can reach us on biz@capactix.comor call us on +1 201-778-0509

Disruptive Developments in Accounting Industry to look for in 2019 and beyond


Current era of technological revolutions have changed the way we perceive our day to day life. Accounting is also not left untouched by technological advancements and disruptive thinking to make life easier and automated. Accounting firms that don’t evolve with the changing dynamics always found themselves lagging behind in the competition. This article is to introduce you to the current trending topics in accounting which you should look for in 2019.
1. Artificial Intelligence (AI)
In simple terms, Artificial Intelligence is a computer system that can learn from experience. Although AI techniques like machine learning are not new to the market, now its pace of adoption in various businesses and industries is increasing. Accounting & Auditing is also one of them. For the proper usage of the technology and turn vision into value, we need to have a deep knowledge of the artificial intelligence and its use in solving business problems.
Among other, Machine Learning is one of the techniques which can play a vital role in the accounting profession. Extensive use of ML in decision-making process enabled accountants to make financial and non-financial analysis faultlessly. AI will eventually take over laborious work from accountant such as data management, data entry, report generation, etc. Therefore, accountants can devote time in value-added services such as problem-solving, advising, strategy developing, and leading.
2. Collaborating platform
Nowadays, accounting is not just taken as posting daily transactions and generating reports. It is perceived as a total solution for Payable management, Receivable management, Payroll Management and Regulatory Compliance management. These expectations from the accounting department can only be met if accounting software uses some collaborating platforms. This allows communication of accounting data with various stakeholders precisely. Some examples of collaboration are as follows;
1.    Sending customer’s the statement directly via accounting software on one click
2.    Generating & submitting a tax return directly from accounting software
3.    Processing payslip & sending to employees directly from accounting software
4.    Preparing payroll compliances directly from accounting software
Such many more tasks which can be done by creating a collaborating platform with accounting software which minimize efforts by accountants.
3. Blockchain
Blockchain technology is basically an accounting technology. With the use of Blockchain technology, accounting efficiency can be increased via a system of universal bookkeeping. Moreover, the scope of accountancy can also be expanded which will make accounts more closure to economic reality.
Unlike database owned other ledgers which are run by a single party, under Blockchain, ledgers will not be controlled by one party. Experts have defined 3P’s what differentiate Blockchain from other ledgers technologies of today as follows
i. Propagation:
Blockchain ledger doesn’t have many identical copies without any affiliated principal copy. All authority has a full copy of the ledgers. Thus, no single authority can exclusively control ledger. All the new transactions posted by any participant will reflect in all the copies with authorized participants.
ii. Permanence:
Because each user has its own copy of the ledger, any dispute can be resolved with consensus. Moreover, any posted transaction can only be edited with the approval of the majority of participants. Thus, it can be concluded that once transactions are recorded on blockchain ledgers, they are permanent and free from any illegitimate altering.
iiiProgrammability:
Some blockchain ledgers could allow programming which can automate ledger posting and journal posting on meeting the criteria of the trigger point. Experts have termed it as ‘Smart Contracts” under blockchain technologies.
4. Automation
Automation of accounting processes, specifically for routine and voluminous transactions improves the speed, accuracy, and reliability of the accounts. It helps greatly in reconciliation and balancing tasks. Automation can be achieved through;
  •       Certifying and matching business processes based on pre-defined rules
  •        Role-based controlled access and permission matrix
  •        Automated validation of vouchers based on pre-defined validation points,
  •        Creating peer to peer linking and collaborate processes or source documents

As a result of automation, accountants can get rid of process-oriented tasks and can utilize their valuable time and skills on critical issues that fuel business growth.
5. Remote Staffing
Currently, where the real word platforms are transforming into virtual platforms, accounting is also not lagged behind. All the accounting related tasks are being managed on the cloud or online platforms. This has broken the concept of an in-house accountant and staff in front of the eyes. Even online time tracking, as well as staff reporting and
managing tools are more effective.
This makes possible the concept of remote staffing where your place of business and place of work for your staff doesn’t need to be the same. Remote staffing is beneficial in many ways; some of which are as follows.
i. Cost reduction:
The cost can be reduced by exploiting Trade-off opportunities between different markets. For example, because of the wide differences in per-hour rates of different countries, accounting tasks can be outsourced from the USA market to the Indian market by hiring the remote employees in India.
ii. Better utilization of resources and Increase productivity:
In the case of remote staffing, you can hire staff for the required time and with required skills. Moreover, you can hire diverse staff for different activities for a limited amount of time. This gives you immense flexibility and ultimately “You pay for what you need.” This results in increased productivity of the business.
iii. Increase in satisfaction:
As remote staff are working from their place without another interruptive environment of the office culture, they can better concentrate on their tasks and produce better results. Moreover, they can work on task-driven approach rather than time-driven approach which increases satisfaction among both the parties.
We at, CapActix have an expert team available to understand your accounting, reporting and compliance requirements. Our remote staffing solution will take all your accounting burden and add value to your business. We are prominent accounting outsourcing company based in India. We can help you to make your accounts accurate and reliable. For more details you can reach us on biz@capactix.com or call us on +1 201-778-0509.


Tuesday, August 20, 2019

8 Tax Preparation Related Challenges Faced by CPA Firms


The work of CPA business organizations is very complicated and needs to be accomplished with utmost seniority and professionalism. The work of accounting companies varies from simple bookkeeping to challenging tax preparation services. Additionally, with the advancement of technology, the work environment of CPA organizations have been dramatically changed.
The complication of the taxation process has generated numerous challenges for accounting firms which they have to overcome regularly to satisfy their customers. Some of the CPA firms have been already using the outsourced tax preparation services to overcome the challenges of the taxation system. Below are some of the challenges faced by CPA tax preparation services;
Taxation Challenges faced by Accounting Firms
The accounting companies have to prepare taxation reports of their clients very carefully after following all the local rules and regulations. Apart from this, there are a series of challenges that CPA firms have to face, such as –
#1. Challenge of Handling Rush Season
In the USA tax return for the period ending in December, it needs to be filed by 15th March (for corporates) and 15th April (for Individuals) of next the calendar year. It means CPA firms have to prepare tax reports of their corporate client and submit it within only two and a half months. Moreover, all individual tax returns need to be filed within 1 month of the deadline for corporate returns. This becomes very hectic for accounting firms to manage tax preparation with their regular workload while making sure that their CPAs won’t feel overwhelmed with the workload. This challenge of CPA firms can be pretty easily resolved by using the outsourced tax preparation services for your business. Accounting firms can delegate their tax burden to outsourcing accounting companies and deliver the best services to their clients.
 #2. Challenge of VAT Collection
The cross-board sales made by the client makes it difficult to evaluate the VAT. This gets even more difficult when the exchange of goods and services involves vendors or customers from abroad. Moreover, the concept of online shopping has made VAT calculations even more dramatic. It is a challenge for CPA firms to evaluate the VAT amount of their clients after applying all the international and national norms and file the tax before the due date.
#3. Challenge of Different State Tax Rulers
The USA is a very vast country with 52 states and each state has slightly different tax preparation rules both for Income Tax and Sales & Use Tax. Plus, these days most of the business organizations are involved in multi-states transactions so it is the responsibility of accounting firms to follow local rules before preparing the tax reports and that can be a tricky job. To manage the problem where the customer and supplier belong to different jurisdictions, it becomes highly challenging for accounting firms to handle tax preparation services.
#4. Challenge of Keeping up with Changing Tax Policies
This is a very common challenge that CPA firms have to face as the government keeps on improving the tax policies for the betterment of people and tax preparation ratios also keep on changing. In this, it becomes highly critical for accountants to keep up with the changing taxation policies to deliver accurate tax reports to their clients. However, it is difficult for accounting firms to keep a tab on the latest taxation trends while handling their truckloads of other work.
Again here outsourcing taxation services is going to be a great solution for CPA organizations as they have designated a team of accountants who always monitor the changing tax policies both nationally and internationally.
#5. Challenge of Managing New Business Models
With the introduction of digital technology, the traditional business models have been replaced with new digital business models like eCommerce business, online submission of returns, etc., The new business models have made it difficult for accounting organizations to train to old staff for new systems. Plus, the tax complications increases in the new business models with the availability of new technologies like 3D printing and much more. So, accounting firms need to have staff that can manage all the complexities generated by the new business models which are quite difficult for small CPA companies to acquire such a versatile employee’s strength.
In this case, tax preparation outsourcing services work for Small CPA firms who can’t afford to hire new people or train existing people with changing business models.
#6. Challenge of Satisfying Clients
Every client has different requirements and business structure which makes it very difficult for accounting companies to satisfy their clients. It takes lots of effort and research to satisfy a client. If one client isn’t satisfied with your taxation services, then he will leave a bad review of your company and this will takes numerous clients with it. CPAs have to work very hard and evolve different methods to satisfy their clients and one of the easiest methods for CPA would be outsourcing professional services like tax preparation.
#7. Challenge of Coping up with Technology effort
In a recently conducted survey, it is concluded that two-third of CPA tax preparation services suffer because of the technology challenges. It is very difficult for CPA’s to find a correct balance between the changing technology and client expectations. CPA firms have to keep up with the changing tax preparation technology and provide training to their staff to use the new technology. Moreover, technology keeps on obsolete very quickly so it is very challenging for CPAs to find a solution to this problem.
#8. Challenge of Retaining Employees effort
Just like every other business organization, talent acquisition is a very crucial problem for accounting firms. The task of tax preparation requires an optimum level of expertise. But, due to the cut-throat competition in the accounting firms, it gets very complicated for organizations to retain good tax preparing staff who is fully competent to handle the tax preparation services. For this accounting firms have to create a strong brand image and have to offer lucrative benefits to their staff. However, if you are not in a position to offer extra benefits and a large salary to your tax staff, then outsourcing tax preparation services is one ideal option for you.
After carefully reading the challenges faced by CPA firms, one thing has been concluded that the solution for many challenges is hiring the outsourcing tax preparation companies and benefiting your accounting business. There are numerous tax preparation companies available, but you should choose which offers highly trained tax experts, the latest technology tools and advanced services. CapActix is one of them. Our taxation services are highly modern and technical to handle the workload of any business model. We follow the latest taxation policies and always keep a tab on the changing tax trends.
To acquire our tax services, you can contact our team on email – biz@capactix.com or can calling on +201-778-0509.

Friday, August 16, 2019

Outsourcing for CPA Firms & Accounting Firms is Vital; The Services Mostly Outsourced & Reason behind It

It is a very complicated task to establish a successful operating accounting firm in today’s competitive world. Numerous elements need to work in the proper order to run a smooth CPA firm. However, one of the essential elements of a successful accounting and finance company would the strength and capabilities of their accountants.
Every accounting firm needs to cater to the needs of its CPAs because if they aren’t fully satisfied or under lots of pressure, they won’t be able to perform well and this will eventually negatively influence the image of your business. That’s why to focus the attention of your accountants on important tasks, the accounting firms have opted for the outsourcing accounting services to assist theirs in house staff. Additionally, accounting outsourcing for CPA firms is a financially beneficial solution as well.
Today, there is a plethora of outsourcing accounting services are provided by outsourcing companies like CapActix. The CPA companies can outsource any of their business operations today, however, the most popular accounting services outsourced by companies are –
#1. Bookkeeping Services
One of the popularly outsourced services by CPA firms & accounting companies – bookkeeping services. Bookkeeping is the basic foundation of all other accounting activities that’s why it should be done properly without any error. On the other hand, this task can be very time consuming so most of the companies outsource their bookkeeping work and let they are in house staff handle the other important business. Moreover, bookkeeping services outsourcing for accounting firms can be very beneficial – income issues can be resolved quickly with deep analysis, expenses tracking problems, inventory management and much more.
#2. Payroll Services
Payroll management services are also rapidly outsourced by accounting firms. The reason behind outsourcing payroll services is very simple – if the company puts the burden of preparing payroll on their in house accountants, then they won’t be able to complete it on time while managing other client’s work. And, delay in the payroll process means your staff will get a late salary and it isn’t good for the reputation of the company. Moreover, appointing one accountant to handle payroll work isn’t going to financially feasible for your business. That’s outsourcing payroll services is one of the ideal solutions for accounting firms.
#3. Tax Preparation
Handling busy tax season is one of the biggest problems for CPA firms & accounting firms where they have to access books of every client and file the tax return under strict deadlines. This pressure can sometimes overwhelm their accountants and if they hire a new person for taxation purposes only, then this will overburden their expenditure during the offseason. So, in this, outsourcing for CPA firms & accounting firms is the best solution. This way they can delegate their extra workload during the tax season to offer the full dedication to their clients.
#4. Reconciliation of Accounts
For small accounting firms, it is very important to micromanage their financial reports so that they won’t foresee any loss. Thus, the reconciliation of account creation is yet another service that is outsourced by accounting as well as CPA firms. By outsourcing reconciliation services, companies can use another professionals outlook on the financial reports created by their in house staff and this will improve the efficiency of their workflow. The most outsourced reconciliation services are – Bank Reconciliation, Card Reconciliation, Vendor Reconciliation, Payroll Reconciliation and much more.
#5. Cost Analysis Services
The cost analysis services stand for the calculation of incoming and outgoing resources of the business for a particular time. This procedure involves some effective steps that help in determining the profitability of the organization such as a collection of data, allocation of different resources and drawing the constructive analysis. This work of accounting firms required lots of technical skills and attention, that’s why to use the expertise of different accounting professionals to produce an effective outcome, they outsource the cost analysis services.
#6. CFO Services
Virtual CFO services are something that can financially benefit accounting companies a lot as they can outsource CFO services as per their client’s requirements. Sometimes clients don’t require full-time CFO services and in this, if accounting firms appoint full-time CFO, then this will increase the business cost. That’s why financial organizations prefer to outsource CFO services as per their client’s requirements. The mainly outsourced CFO services include – capital budgeting and planning, budgeting and forecasting, working capital management, accounting policy preparation, internal control consulting and much more.
#7. Accounting Software Consultation
This is a rarely outsourced service by accounting firms as very few outsourcing accounting companies provide the service of accounting software consulting. By taking the consultation from the expert accounting software users, business organizations can improve their internal control and reduce accounting integration related to risk. They can even ensure that their accounting staff is using the correct software and application to utilize their efficiencies accurately. In today’s automated accounting environment, there’s nothing worst, then using obsolete technology. It is a one-time job to upgrade your accounting software that’s why getting a consultation from outsourcing services is a feasible option.
Accounting outsourcing for CPA firms or accounting firms is very helpful as they can save cost, get experts output, reduce the workload of their accountants, provide effective work to their clients and so on. So, if accounting firms want to release some of their stress, then outsourcing is the right way to do that. However, to get an accounting outsourcing partner, accounting firms need to fully research and select the company like CapActix which can assist them in any sort of services. To view the outsourcing services offered by us to accounting firms, you can visit our website or can quickly contact our team by email biz@capactix.com or can calling on +201-778-0509.

Tuesday, August 13, 2019

Step by Step Guide to Become an Enterprise CPA

If you are truly passionate about accounting and finance, then there’s nothing better way to live your passion by making your livelihood out of it. Once you are familiar with the working of a CPA business and have several satisfied clients under your belt, then you should take one step ahead and start your CPA firm. You should become your boss and grow your passion for a fully structured business venture.
Starting an accounting firm can be a daunting process, but eventually, it is rewarding as you can grow and learn new things daily as per your own will. However, you need to be persistent, determined and focused to make your dream come true. To start your journey of a successful CPA enterprise, you need to follow some steps carefully so that you can have a smooth and productive journey.
Steps to Become an Enterprise CPA
To start an accounting firm, there are a million things which you need to consider and plan. But, the few basic steps that you must follow are –
#1. Map out your business plan
Well, the first step that every aspiring business enterprise should follow is to map out the business plan. The business plan is the foundation of your accounting firm so you need to plan it after considering every option. In this part, you have to figure out things like how you are going to earn income? How much initial investment you are willing to invest? How many employees you are going to the employee? Are you going to think about accounting outsourcing for CPA firms? And, other similar questions should be answered in the accounting business planning process.
#2. Find yourself a mentor
Okay, so if you are new into the CPA business, then you should look for a good adviser who can guide you through the entire process. As your advisor, you should appoint experienced CPAs, auditors, business analysts or accountants who are familiar with the work of the accounting CPA firms. You should discuss your business plan with experienced mentors and work on the input given by them to become a successful enterprise CPA.
#3. Mark your territory
The next step is to identify a client niche or services which you are going to provide to your clients. Business owners come to CPA firms for numerous reasons like preparing tax reports, bookkeeping, accounting control management, business analysis and much more. Here, you have to determine which market you are going to target. Whether you are going to target clients who are looking for clean bookkeeping services or who are looking for the legalized tax preparation, or both, you have to be fully clear about your targeted market before promoting your business. Like, at CapActix, we are serving the other accounting and CPA firms remotely to manage their work, we offer to outsource for accounting firms so we follow the B2B model of business.
#4. Market your business
This is one of the important steps, you have to work on promoting your business in multiple ways so that you can inform potential clients about your services. You can use the traditional method of networking by visiting different accounting conferences or personally contacting clients using phone calls or cold emails. However, you can be a bit modern and try digital marketing strategies to promote your business like you can start your business website, create significant social media presence, etc., To be honest, you should go for a mixed approach and use every method to promote your business.
#5.  Set up your office
Once you have significant connections, then you should set a nice office space where you can work and conduct meetings with your clients. You should opt for the office location which is central and easily reachable plus it shouldn’t be over your budget. Your place should have a decent space so that if you want to expand your business, then you can do that without any hassle.
#6. Hiring the employees
This is the major step as your accounting firm’s 90% of success is going to depend upon the skill and talent of your employees. So, you should hire employees for your CPA  firm very carefully. If you go for highly experienced CPAs and accountants, then it will become very expensive for your new business to bear their high salary. On the contrary, if you hire inexperienced staff, then it will affect the quality of your work.
In this case, small accounting companies have one solution, they should use outsourcing for accounting firms and the same lots of money and resources. By using outsourcing accounting firm’s assistance from time to time, small CPA firms can set the foundation of their successful enterprise.
#7. Maintain your work quality
Once you have acquired good clients, have established your office and hired or outsourced talented employees, then the next thing is to stay in the market and grow. And, you can only grow if you deliver high-quality work to your clients on time. You can’t mess up with your work ethics if you want to stay in the business. If you fail to set high work standards, then you won’t be able to survive for long. So, it doesn’t matter how many extra working hours you have to put, just never comprise with the standards.
Well, becoming a successful CPA enterprise is a difficult process, but it isn’t impossible if you follow the right method. So, if you are ready to take the big leap in your career and just waiting for the right opportunity, then don’t wait up as the right opportunity is right now. Plus, the team of CapActix is ready with its vast range of bookkeeping and accounting outsourcing for CPA firms. You just have to contact us on email at biz@capactix.com or can call on +201-778-0509 and start commencing your CPA business.

Wednesday, August 7, 2019

Positive Effect of Accounting Outsourcing on the Current Market Trends

If we compile up the benefits of outsourcing accounting services, then there are plenty of benefits such as a reduction in costs, increased flexibility, more time to handle important business operations and so on can be observed. With the evolution of technology, the accounting outsourcing services have even developed more and their impact can be seen everywhere.
That’s why the accounting firms need to recognize the effect of the outsourced accounting services on their organization’s goals and also on their client’s business by keeping technology in the epicenter of it. Here, are few market trends that are getting influenced by the accounting outsourcing services in the USA.
1. Robotic Process Automation
This is a new market trend of 2019, under which technology that works with artificial intelligence and machine learning has been developed. This automatic robotic technology has been affecting by outsourcing finance and accounting services very much. The repetitive accounting tasks have been easily taken care of advanced RPO technology these days.
With RPO, the response time of the outsourcing companies has improved drastically. Today, CPA firms can quickly interact with the accounting outsourcing companies in the USA or outside the States and can easily clear their queries and provide their feedback immediately through various channels. The initial contact might be with the robots, but it means that your outsourced company has received your message and will shortly work on your request. This is very helpful when outsourcing company and hiring company both are working on two different geographical locations and time zones like USA and India – there are around twelve hours of time difference.
Accounting outsourced services are influencing the automation technology market trend pretty deeply as outsourced bookkeeping work mostly depends on the automated accounting tools and software. That’s why the demand for outsourced bookkeeping services in nations like the USA has moved the automation industry and introduced a brand like CapActix.
2. Tax Compliance
The accounting firms have to stay updated with the different tax regulations prevailing in the country to create the correct reports for their clients. However, it is sometimes difficult for CPA firms to hire taxation experts who are familiar with all the changes happening in the accounting legislation. So, outsourced accounting services can be very influential as they have connections with different tax experts who know all the prevailing trends in the taxation system of the area where your client’s company is located.
Outsourcing accounting services have a positive impact on the taxation trends as they are always following the news and social media networks to stay updated. A full-time accountant can’t handle their client’s complicated work while keeping an eye on the taxation system.
3. Management Accounts
It is the responsibility of the accounting companies to create the management accounts and ad hoc reports so that they can assist their clients in making important business decisions. With the outsourcing accounting services, CPAs and EAs can provide assistance to their clients in making important business decisions by creating reports of different kinds like capital structure, investment management and much more. Outsourcing has affected the management accounting system positively as different management reports can be created by outsourcing service providers very carefully after considering the different aspects of the business.
4. Bookkeeping Work
Bookkeeping is generally considered as the basic process of finance and accounting services where financial transactions are recorded in the system only. It will be very time consuming for the accounting firms to manage bookkeeping work of their every client daily. So, when accounting companies delegate their basic bookkeeping work to the outsourcing companies, then this will give them lots of free time which they can use on other important activities like acquiring new clients, managing their staff and much more.
5. Safety and Cybersecurity
Cybersecurity has been a very important topic for business organizations globally nowadays. For the accounting firms, it is an even more important topic as they have to maintain confidential data of their clients. By outsourcing some of the important tasks, they can focus more on their internal security. Moreover, if by any chance, they lost or their data get stolen by hackers, then they don’t have to worry as their client’s data will be safely available on their outsourcing company’s server.
The effect of the outsourcing accounting services on the different market trends has clearly explained that outsourcing has way more influential on the market forces as compared to the credit we gave it. Outsourcing services are today almost benefiting and impacting all the different forces which are in any way connected with the financial industry.
Here, CapActix is one of the best accounting outsourcing companies in the USA market that has been influencing different market forces. We are working very hard to provide a helping hand to the busy accounting firms, CPAs and EAs so that they can focus on their important business operations by delegating some of their responsibilities to us. If you want to enjoy the positive effect of outsourcing accounting services, then contact us via an email at biz@capactix.com or can call on +201-778-0509.

Monday, August 5, 2019

Common Accounting Mistakes to avoid to grow your business substantially

Mistakes are inevitable. It is a part of human nature. However, we can always be cautious about them as some mistakes cause you troubles which you cannot easily get rid of.
When it comes to accounting mistakes, you lose money. As a business owner, you never would want it. Poor accounting will impede business growth. A sound accounting process is pivotal for the financial health of your company.
Seasoned businessmen always put the best accounting practices in place to ensure fiscal growth. We have shortlisted some major accounting mistakes that you must avoid.

Mixing up profits and cash flow

It is easy to know but sometimes hard to understand. Cash flow is the money coming in and going out of your routine business operations. Profit is all you have left with you after subtracting expenses from revenue.
Be practical while measuring profitability. For example, you sell an item for $100 which you have bought for $50. Apparently, you make a profit of $50. But for some reason, the payment is delayed and the amount is not deposited in a bank account. It should not be considered as a cash inflow.
If you count it, you have to cover it up out of your budget. Such mistakes can lead you down to a significant loss. These sorts of companies that are only profitable on paper are likely to go bankrupt.

Missing RASCI matrix

RASCI matrix is a method to define and assess the responsibilities of individuals for a specific set of tasks within organizations.
Let us break down the acronym for the comprehensive understanding
R stands for Responsible – A person who is solely responsible for an allotted task.
A stands for Accountable – A person who is held accountable for the task. It is his/her responsibility to look after it.
S stands for Support – A person assisting or supporting the execution of the task.
C stands for Consulted – A person who is supposed to be consulted before commencing the task or during any stage of implementation.
I stand for Informed – A person who needs to be informed as the task progresses or every development of the assignment.

RASCI matrix brings transparency in the process. It clarifies the roles of employees and creates a roadmap to achieve a goal collectively. You must adopt the RASCI model to your accounting procedure to eliminate errors.

Lack of standard policies

You have to implement standard policies to monitor the operational process at every level of an organization. Establish an accounting system that supervises and checks profits and losses immaculately.
Employees need to take up ownership of what they do. You need a sound internal control system that evaluates the operations as well as detects errors out of it.

Not differentiating between personal and business transactions

The easiest way to muddle your finances. Creating a dedicated bank account for your business is the first step, to begin with. It separates your personal and professional accounts.
Manage all your transactions through business accounts. It will help track all your incomes and expenditures. Don’t mix up these two accounts for flawless bookkeeping records.
It will also save you from paying extra taxes. You cannot deduct the amount without fair records as you pay it off out of your pockets.

Not catching up with the latest technology

Technology has impacted almost every aspect of our lives. It has made complex tasks easier and faster for us. It automates processes and the turnaround time is way higher.
If you are not using cloud technology, we strongly recommend you to take its advantage. Without the latest technology, you are allowing your business to take a hit on it.
It is essential today not just to adopt technology but to upgrade at regular intervals as well. It improves efficiency and accuracy. It saves time that allows you to focus on the core business task which you are primarily supposed to do.
Most of the accountants are familiar more or less with accounting software and tools. If you are not tech-savvy, we suggest you approach accounting software consultants who help you choose the best cloud-based software and tools.

Failing to reconcile books

Bank accounts reconciliation an absolute necessity. This practice should be done frequently as much as you can. It ensures accuracy in bank records. It scrutinizes your transactions monitoring expenses and incomes.
Small businesses must always reconcile their bank accounts from time to time. It prevents them from accounting frauds and eliminates errors.

Not taking accounting seriously

If you think accounting is not a priority and other business tasks are more important, you are guaranteed not to make profits.
Accounting is one of the most crucial aspects of any business. Consider it as a priority and give due attention to it. It doesn’t matter how small or big business is; a sound accounting helps you determine the financial health of your company.

Not outsourcing to save money

Sometimes, trying to save money makes you lose it even more. Let the best people do the job. They know how to do it.
As a small business owner, it is obvious that you try to do everything in-house to save money. But you simply cannot compromise with accounting.
Your time is precious; invest it on things you are good at. Hiring accounting experts or outsourcing to accounting firms is a wise thing to do.
As a non-accounting person, many times, you end up paying extra taxes. Accounting experts will save you a lot of money by keeping your finances updated.

Conclusion

Ultimately, it all comes down to money. Accounting is an integral part of your business. Managing accounts is of utmost importance to make sure the financial health of your company is not in jeopardy.
If you are struggling to keep up with your company’s accounting, get in touch with CapActix on +1 201-778-0509 or email us at biz@capactix.com