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Archive for March, 2011

First, let’s make sure we are talking about the same kind of accounting sales. There are gross sales and net sales. Gross sales are calculated by adding the total amount received by the purchaser. Net sales subtract the cost to make the product from the gross sales figure. Other subtractions are made as well, like product returns and discounts not settled at the time of sale. There is, obviously, a big difference between the two.

Now that we understand two broad types of sales, the sale of a product or service may be recorded at different times. In cash accounting, sales are recorded when the transfer of money and product are complete. In accrual accounting, sales are recorded when the agreement has been made or the order has been placed.

When using cash accounting, a record of a sale is not kept on the ledger until cash is physically obtained. An alternative method of recording the transaction must be used. It still should be written down at the time of the sale agreement. There may be a separate book or just a compilation of receipts, but sales must be recorded somewhere even if full payment is not received at the time of transaction. Accountants and controllers consider this a contract that is only an agreement for a purchase. Once all the cash is received, however, the records are easily transferred to the income statement, cash flow statement, and/or balance sheet.

In accrual accounting, sales orders are directly reported to the income statement. Since the sales are counted as revenue at the time of the purchase agreement, sales that have been placed, but not filled are usually referred to as outstanding orders. As stated earlier, these sales are already marked as income, so this tag is very important to make sure that money is actually collected. If this note is not properly written, there isn’t any notification that payment was not received. If this occurs, not only will the company lose money, but the books will show the debts collected and will not be able to track where the loss is coming from.

Regardless of cash or accrual accounting, whenever dealing with an income statement, sales are recorded as net sales, not gross sales. This is a general rule and should be clarified if there is doubt as to net or gross.

Using double-entry bookkeeping makes recording sales and payments much easier, mainly because it is a more in-depth method of accounting. This process records debits on one line and puts credits on the next line. This is beneficial because a purchase agreement or contract can be listed on one line and the line directly below it can be left blank until payment is physically received.

When the accounting sales are recorded depends on the preferences of the controller regarding the business type, procedures, inventory, etc. There are many t’s to cross and i’s to dot with each method. Keeping a sloppy ledger increases the chance of losing money and not even knowing it.

Accounting is the business of computing, interpreting, and reporting financial activities and endeavors. The practice of accounting is often referred to as “the language of business” because it provides critical information about the activities of a business. It then relays this information to those that have a need for this information in order to make decisions. International accounting takes the profession of accountancy to an expanded level.

International accounting companies have clients across the globe and are usually highly respected in their field. International accountants have a high level of expertise in the discipline of communicating financial activities. A firm that practices accounting globally focuses on planning global tax structures to downgrade U.S. & foreign taxes, aid corporations in taking full advantage of tax benefits connected to export operations, tax planning, and of course the general practice of calculating, deciphering, and communicating financial activities.

The practice of international accounting may differ slightly from the general practice of accounting because it includes more services. Transnational “language of business” services may include advanced pricing agreements, foreign earnings and profits analysis, foreign holding company strategies, transfer pricing studies, international tax compliance, corporate organization and restructuring for U.S. operations, and domestic international sales corporation analysis, just to name a few.

To be able to conduct business on an intercontinental level it is important for professionals to be able to appropriately communicate with clients. Many firms take pride in the fact that they employ qualified individuals that are fluent in a variety of languages. Global accounting corporations are confident in languages such as Japanese, German, French, Russian, Spanish, and a variety of other languages. Having their company staffed with these skilled members of their staff gives them a great advantage in the business world. That advantage can mean a world of difference for success in international business. Being able to properly communicate with a potential client or a current client can mean the difference between getting and keeping their business or them moving on to the next firm.

International bookkeeping firms are highly specialized, thus putting an emphasis on a strong team environment that works towards the goal of benefiting each and every client. Professionals that work with “the language of business” on a transnational level often have their CPA or even their Masters of Taxation degree.

Firms that possess all of these highly sought after characteristics are able to maintain good working relationships with their very appreciative clients and continue to ensure that their companies are thriving in the field of international accounting.

Congratulations, ladies! If you are reading this, you are either already enrolled and attending classes at college, or you’re taking special steps to make sure you’re completely prepared when the day does come for you to say goodbye to Mom and Dad and head off to become a student of higher learning!

Congratulate yourself beyond your college enrollment – congratulate yourself for realizing now that you’re a lady student, it’s time to ease up on the parents a bit and start taking responsibility for yourself. An important responsibility is making sure you have adequate car insurance. Of course, aside from having the best car insurance coverage, you also want the best car insurance price, right?

Right!

So, let’s take the following tips into consideration to help lady students get, and keep, cheap car insurance:

Install a safety alarm before you take off. Maybe your dad can do this for you, your uncle who owns an auto repair shop, or maybe you’d rather do it yourself.

Park your car in a well-lit area. If you’re living in a dormitory, well-lit parking isn’t always available, depending on the size of the parking lot and the lights provided. In any event, try to park where there is the most light. Your new car alarm system should pick up the slack.

Always remember to lock your doors before leaving your car. College keeps you busy, there’s no doubt about it. It also aids you in becoming forgetful. Don’t get so busy and stressed that you forget to protect your belongings – especially belongings as expensive and important as your car!

Never leave valuable items in your car. Cell phones, iPods, mp3 players, the covers of your CD player – never leave them in your car, even if you do keep it locked. This also includes any loose money and jewelry, your school books (those things are expensive, you know), and luggage from your trip home last weekend.