Inventory can be either an asset or a liability ?

Inventory can be either an asset or a liability, depending on how much you own, how you use it, and whether or not you have a particular item in stock. How quickly you can sell your assets or how quickly they can be sold is not a primary factor in classifying assets as inventory. Inventory in an accounting system goes from asset to asset, but can also be both asset and liability, depending on the type of property and how we manage it. Asset liabilities are the fact that the value of a commodity or material increases faster than the cost of storage, so inventory is either an asset or a liability.

 

Inventory as an Asset:

Inventory assets occupy a similar place on a company's books, because they contribute to income generation. They are key resources for businesses and a key resource for businesses, whether in the form of capital, labour, capital goods, equipment or other assets.

Inventory is an important asset in manufacturing and trading companies, so it is important for business owners to understand what inventory really means. Knowing the different types of inventory, including those that are not specifically used for accounting, can help an entrepreneur understand how his inventory works for him.

One of the most important financial indicators in relation to inventory is the ratio of goods turnover, which measures the effectiveness of a company's inventory management. This provides a measure of how often a company sells its inventory and is a useful tool for calculating the turnover / inventory ratio and other financial indicators.

A high inventory value thus increases the current total, but the inventory needs to be reallocated quickly to maximize its earning potential. While it is true that you have more inventory than stock, you should sell your inventory as soon as possible to generate cash flow.

Inventory as a Liability:

One of the data points you need to track in your asset management system is the costs associated with your assets and IT inventory. Each time you make an inventory sale, you must categorize the revenue, credit the inventory and assets, and keep a diary of all transactions before you debit your inventory costs and goods sold into your account.

Inventory can also be a liability, because client & business tastes change time to time and it's impossible to predict what your client will be buy far into the future. If you buy too much of what your clientele want right now, and then the demand shifts, you may find yourself stuck with inventory that you're unable to sell. If You are not predict the market taste or client requirement than going into bing loss and that inventory become liability.

If You are not predict the market taste or client requirement than going into bing loss and that inventory become liability.

At MAC, we recognize the value of your inventory as a current asset. Let us assist your business in keeping firm control over your inventory assets and you can manage it wth proper financial planning. MAC provide online accounting services to both small and large businesses across the Globe.

Benefits of Hiring a Bookkeeping Service for Real Estate Agents

Somewhat surprisingly, Caldwell Banker has established itself as one of the leading accounting services for real estate agents in the United States. Outsourcing bookkeeping works with major real estate companies to develop and design new growth strategies. However, if you decide to become a franchise agent, you should take into account the benefits associated with this. Do you want to choose a business structure that reflects the growth and expansion of your real estate business, or work with a boutique broker instead?

Hiring a Real Estate accounting service makes the management and development of employees unnecessary and saves you up to 25% compared to an internal hiring. Ultimately, hiring an accountant at a financial management company will be different for each company. The cost of accountants varies, but hiring them typically costs between $10,000 and $20,500 a year.

How Real Estate Agents Works ?

Many agents like to work in this way, but ambitious brokers may decide to take advantage of the higher opportunities that come with working as real estate agents. The more opportunities you have with a financial management company or accounting service, the more opportunities you will find.

Be prepared for the fact that some states may require applicants for real estate licenses to provide their fingerprints for criminal background checks. Ask the supervisory authority or the body that issues the real estate licenses for fees, qualifications and restrictions related to the licensing requirements of Real Estate Agents LLC (RELA) review. You must study the topics covered in the exam, which may include topics such as financial management, accounting, financial planning, insurance, real estate management and more.

In addition, some states require real estate agents to pass criminal background checks and financial management exams to obtain a real estate agent's license. With the growing number of real estate in the US, many accounting firms are beginning to recognize that outsourcing accounting services is a smart solution to a long-term problem. For example, the commercial real estate industry would need a complete accounting system to properly manage its operations.

By streamlining your new accounting process, you can forget to do what you do best: sell real estate. Working with an estate agent will give you an insight into the real estate industry and help you build a network for future business. Your broker can learn the lessons from dealing with all types of real estate transactions to ensure you get the best deal possible. The broker will treat your information confidentially and be accountable to you as the buying and selling process progresses.

When it comes to collecting rent, a property manager can make sure your tenant pays on time. If a tenant decides not to make a payment, your rental management company will know what to do to encourage the tenant to make the payment.

No matter how big your real estate empire is, you should always invest in real estate management, No matter how big your company is.

Read More : Advantages of Hiring a Bookkeeping Service for Real Estate Agents

Accounts Receivable vs Accounts Payable in QuickBooks?

In accounting, confusion sometimes arises when working between accounts payable vs accounts receivable. The two types of accounts are very similar in the way they are recorded, but it is important to differentiate between accounts payable vs accounts receivable because one of them is an asset account and the other is a liability account. Mixing the two up can result in a lack of balance in your accounting equation, which carries over into your basic financial statements.

 

 

It is important to note the significance of balancing your assets and liabilities and stockholders’ equity in accounting. The significance of the balance can be explained by the basic accounting equation: Assets = Liabilities + Stockholders’ Equity. One can also rearrange the equation to better suit their preferences.

What is the accounts payable and receivable process ?

Accounts Payable: (also referred to as AP) is an account on your company’s general ledger that represents an obligation to pay off a debt to creditors or suppliers. In short, it’s the money owed by your business to third parties.

Accounts Receivable: (also known as AR) refers to outstanding invoices that are owed to your company by customers. It represents a line of credit that has been extended from the client to the customer.

Functions of creating invoices or bills either in Quickbooks:

At the moment we created the invoices and bills, Account Receivable and Account Payable are created simultaneously.

We use Accounts Receivable (A/R) to keeps track of money that customers owe to us. A/R aging is a great report that lists unpaid customer invoices and unused credit memos by specific date ranges. As a result, we can utilize A/R to show us the cash expected to be received in the future. As business owners selling a good or service to our customers, oftentimes, we need to send the Estimates or Quotes. As customers agreed with the Estimates or Quotes, we will create the Invoices and send them to customers.

for keeping track of the asset, record the amount as a receivable in your accounting books. Accounts Receivable will increase that will help us to record the payment in the future like current Assets. When the Invoices will be paid, so you will use receive payment function from QuickBooks to decrease accounts receivable. The amount will move to “Undeposited Fund”. Finally, we will move the amount from “Undeposited Fund” to the Bank as we physically deposited the fund to our business bank and the transaction recorded on our bank.

Accounts Payable (A/P) is an account that helps us to record the amount need to be paid via bill and Bill Payments. A/P helps us keeps track of money that we owe to any vendors. For example, we purchase a good or service, we receive an invoice from our vendor. The invoice tells us how much money we owe, or our accounts payable. And then, we will enter it into QuickBooks via the Bills to keep track of the liability, record the amount as a payable in our accounting books. Accounts Payable are increased. When you pay off Bills, the amount will be decreased on accounts payable.

In Summary, running a business and setting up stronger accounting books is essential. A/R and A/P are two important key accounts to assist business owners in analysing and determining our business cash flow. Knowing how much payment we are going to receive and how much money we need to outflow today will give a business owner a sense of control.

Read More : Accounts Receivable vs Accounts Payable in QuickBooks

If you need advice or services on any aspect of bookkeeping, accounting and tax, our specialists are ready to help. Get in touch with us for free quote.

The Importance of Tax Preparation Services

There is an easy way to have your tax online returns accomplished, with one of the existing governmental services for tax online returns. Since we all need to complete a tax return services for the authorities, the easiest way we can find will save us both time and money. This is the main reason to use one of the offered tax online return services for your best.

 

The Importance of Tax online returns ?

If you believe you don’t need a tax return & preparation, there are some things you need to check. Any income and payment you get need to be taxed by the IRS, and since there are always things you need to update your tax office with.  The first thing is make sure there is no change in your income level and there are no additional payments you get. The second thing is to make sure that you do not reach over your personal allowance you are entitled to.

For self employed and non self employed, there are different tax files to fill and the system is looking at you in a different way, the calculation is different and the support you can get is different. As any financial system, the taxes authorities are looking to get their payments on time and must know they are taking the maximum they can by the law. On the other side, it’s you, filing up the right taxes forms and submitting them online with one of the tax online returns systems can make the payment more secure for you.

 

Read More : Importance of tax Preparation Services

 

Contact us here for Individual and business tax return services.

Getting The Biggest Benefit From Tax Help

Taxes are a way of American life. They are own duty to pay and file. Many people go in search of someone to help them when tax time rolls around. Tax help seems to be in abundance from January 1st to April 15th. Unfortunately, some tax help is best avoided. Other times the tax help is something that many people have no idea how to find. Getting the biggest benefit from tax help depends why you need help in the first place and where you get that help.

Most people seek tax help because they simply can not figure out he complicated tax codes. Every year it seems something has changed and people fear doing something wrong on their taxes and ending up in trouble with the IRS. Many people look at tax help as a way to guarantee an accurate and correct tax return. They also believe they will be able to get more deductions and credits this way, which equals a larger tax return. Unfortunately most of this depends on where you chose to get your tax help.

Trained tax professionals seem like the most logical and quickest way to get tax help. Most people do not know that the IRS offers a lot of useful information for free. They can also help you prepare your return and answer any questions you may have. The new tax preparation software also does a wonderful job of helping into tax preparation services. You enter information in a step-by-step process that is easy to follow. The software handles all the complicated stuff and you only need to enter figures and answer simple questions. 

While sometimes consulting a tax professional is a great idea, often times people get lured in by offers of larger, faster returns. These offers only result in high fees and less of a return. Sometimes there are even untrained tax help that claim they are qualified. This can lead to many problems with incorrect returns that lie solely on you, the filer.

Read More : Getting The Biggest Benefit From Tax Help

Once you understand why you need tax help then you can begin to look for someone to help you. If you are just looking for a quick return then try the accounting software that electronically files your return. You should see it within two weeks, possibly faster if you use direct deposit. If you are concerned about understanding the complicated tax codes then you should first seek help from the IRS or another service and then try a QuickBooks software. If all else fails look for a professional service. Make sure you completely understand their terms and fees and do not buy into any catchy advertising.

MAC is one of the most popular and certified tax return and preparation service provider firm. Contact us here tax return and tax preparation services.

Top 5 Accounting Software for Small Business

 Every business has its own business requirement and when they want to complete their requirements, then they need to select best accounting software for their business who help in running the business smoothly.

 

 1) Intuit QuickBooks Accounting Software:

Quickbooks may be a popular full featured accounting and payroll program designed for small businesses – or, I should say, a small business accounting software series. QuickBooks is out there in Basic, Online, Pro, and Premier editions; the professional Edition of this accounting program. Quickbooks Bookkeeping services help you for small business bookkeeping and accounting services.

 2) Simply Accounting Accounting Software:

Full featured accounting and payroll package with all the features and reports any small business needs, including Internet and e-commerce features. This small business accounting software’s data entry screens resemble their paper counterparts, and therefore the screen tips and drag and drop functionality make the accounting program easy to find out.

3) MYOB Plus Accounting Software:

A double-entry bookkeeping small business accounting software with a user-friendly interface and over 100+ financial and management reports. Includes knowledgeable Time Billing Module that's ideal for service businesses and therefore the Office link feature allows direct one click access to MS Word and Excel. Comes multi-user ready.

4) Peachtree Complete Accounting Software:

The Complete version of this small business accounting software program includes over 125+ reports and features like in-depth inventory, time and billing and job costing. The accounting program comes multi-user ready and “value packs” for 3 or more users are available. Peachtree accounting software is additionally available in Premium and First Accounting versions

5) Microsoft Office Small Business Accounting:

The big selling feature of this small business accounting software is integration and thats a reasonably big selling feature if you are already using Microsoft Office. having the ability to reuse data already entered into Excel or Outlook may be a really useful feature and therefore the integration with the Business Contact Manager makes it easy to remain on top of accounts. A slate of add-on services ranges from online payroll through PayPal invoicing.

If you are looking for best accounting and bookkeeping software for your business then you can carefully choose best accounting software with the help of MAC.

Compare QuickBooks Products - Intuit

QuickBooks is a popular accounting software program, but it can be a sizable investment for your company, depending on what version you select.

QuickBooks Online:

If you do not operate your business from a traditional office, you may appreciate the benefits of this version. Although the product is based entirely online, it is safe and secure to use and allows you to work on your company file from any location with Internet access.

QuickBooks Pro:

For startup businesses that are just getting the ball rolling, this is the version QuickBooks suggests. When you set up the software, it provides tips to help you get started and will walk you through importing contacts from an email account or Excel file.

QuickBooks Premier:

This version is well-suited for the business that is not only established but is growing as well. It enables you to modify reports to your specific industry and type of business, such as contractor, retail or nonprofit.

QuickBooks Enterprise Solutions

As the most complete version, QuickBooks Enterprise Solutions is geared toward the well-developed business that needs advanced inventory management, the ability to create complex reports and increased options for employees' permissions within the software.

QuickBooks for Mac

If you prefer to operate your business using Mac computers, there is a QuickBooks version for you as well. QuickBooks for Mac offers all of the features of QuickBooks Pro for Windows except for the ability to create an accountant copy. It also provides many features specific to Macs, such as syncing with Mac OS address books and iCall.