Benefits of Outsourcing

As a business owner, you know all too well that one of the most important parts of running an efficient and viable business is keeping your books in order. While many business owners do their own books or have an accountant on their staff, there are numerous benefits to outsourcing your accounting needs.

In this article, we will discuss the various ways that outsourcing your bookkeeping services can help you and your company perform better, cut costs, and improve your bottom line.The way that outsourcing your bookkeeping is able to help you improve your business are the expertise, knowledge, and experience that using an outside consultant brings to the client.

Accounting can be complicated at times, and it is important that whoever is doing your books has an extensive background in accounting, as well as more than just a general understanding of the latest accounting systems. When you work with a professional accountant, you are ensuring that you have a knowledgeable specialist on your side that will use all of their expertise to your businesses' advantage. This guarantees that your bookkeeping is done quickly and most importantly, accurately.

You should always make certain that whatever bookkeeper that you choose, they should always be very experienced. Preferably, they should be members of the American Institute of Professional Bookkeepers and or National Bookkeepers Association, and be experts at the minimum in Quickbooks or Quicken accounting systems. The consultant that you choose should be constantly updating their skills and knowledge, and they should also understand the value of personalized service. Ideally, they will also provide highly skilled, efficient bookkeeping services that are designed to meet your specific needs as a company. Taking pride in working closely with their clients and making sure that their every need and concern is taken care of is the true sign of a top-notch bookkeeping and business services company.

There are many ways that using our an outside bookkeeping consultant can benefit you and your company. Just a few of these benefits are:

1) Keeping you updated on all of the financial aspects of your business. No longer will you have to keep track of numerous dates and deadlines or worry about spotting an error in your book. They will keep you up to date with everything and stay conscious about your business' books so that you don't have to.

2) No staff to supervise. Outside bookkeeping consultants save you time by eliminating the need to have a bookkeeper on your staff to manage.

3) No employee benefits to pay. By outsourcing your bookkeeping, you improve your bottom line by eliminating the need to pay a consistent salary and benefits to a staff bookkeeper.

4) Flexible scheduling available. They should work with you to create a bookkeeping schedule that is right for your company.

5) A good bookkeeping consultant work closely with your CPA for all year-end reporting.As you can see, there are many good reasons to consider outsourcing your bookkeeping and business services needs with a well-qualified bookkeeping company.

In fact, many clients say that outsourcing is one of the best business decisions that they have made and has helped them immensely. If you want to eliminate the hassles of doing your own bookkeeping, consider outsourcing with a reputable bookkeeping consultant today.

Tax Preparation Service or Disservice?

A friend who lives in another state, we'll call him Larry, recently had questions raised about his 2007 income taxes. Like most of us, he had used a tax preparation service to prepare his return and was very prompt in filing his return in early April of 2008. One difference, perhaps, is that Larry tends to be thrifty and will often resort to nephews of friends, cousins of friends, and even "friends of friends' in getting things done. We still kid him about the "free mulch" he had spread on his lawn that was apparently collected from a weed field.

Anyway, Larry pulled together his tax return and paperwork, and drove over to see his tax preparer "friend of a friend". To his surprise, the office had been closed and any telephones disconnected. So, Larry quickly contacted the friend who had referred him - only to hear "I wondered what happened to her... haven't heard from her in quite a while." In a bit of a panic now, Larry tried everything he could think of to find the person. But, as might be expected, the "friend of a friend" had apparently pulled up stakes and moved on to places unknown. Even a search on the web did not provide a useful lead.

Larry (not his real name) is still in the process of trying to get things resolved, so I won't violate his privacy any further, but his situation interested me enough to look into just how often things like this happens. Sadly, thes search showed a lot.From what I've been able to determine, there doesn't seem to be a valid headcount anywhere of just how many tax preparers are out there. In addition, I was a bit surprised to find out that there doesn't seem to be a universal requirement for licensing or registration that must be revealed to customers - at least none that Larry might have been knowledgeable enough to ask about.So, as we might expect, in many cities, "friends of friends" set up, prepare people's returns, and promptly go out of business - and probably out of town - when tax season is over.

Now, just for clarification purposes, let me emphatically state that there are many preparers who are licensed by state and federal authorities - these include many lawyers, accountants or CPAs. So, please don't panic! There are many reliable and trustworthy preparers out there. The key is to ask if there is any doubt about their credentials, especially if they are a "friend of a friend".Unfortunately, many consumers never think to ask this type of question - and sadly, often become members of Team Larry. In today's economy, I suspect that a lot of us are being thrifty, just like Larry was. But as the old saying goes, "You get what you pay for... or you might wind up paying for what you got!

"Interesting, huh? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com

What Can Denzel Washington Teach You?

My wife and I love going to the movies. So this weekend, we decided to check out Denzel Washington's new flick "The Taking of Pelham 1-2-3". And wow... what an explosive film!

In a nutshell, Denzel plays a New York subway director who is thrust into the role of negotiating with train hijacker... and nut job... John Travolta. Denzel is clueless about negotiating and since Travolta won't talk with anyone else... Denzel must roll up his sleeves and do the negotiating.

I won't spoil the ending but all of this got me thinking about your business. Please let me explain...

As a business owner, you're forced to learn new skills on the fly. One day you wear the marketing hat... then you put on the accounting hat... and next it's the manager's hat. Truth is it sucks having to wear all these hats. But don't worry. I'm gonna give you some help! You see, I teach business owners like you how to process credit cards so you keep as much money in your pocket as possible. Reality is --- processing credit cards blindly will suck money out of your business faster than Count Dracula can attack a virgin neck!What you ask? That's right. The fatal error most business owners make is NOT having a clue about how to process credit cards. But here's some good news...I teach 7 crucial steps... that happen at your point-of-sale... that can slash your fees by as much $300 bucks per month. For example...

1. Are you processing debit cards? Debit cards are more secure which means you pay less per transaction.

2. Can you tell me what your REAL rate is? There is an easy formula for calculating your real rate so you can tell instantly if you're getting ripped off by your current processor.

3. Dial up or high speed - what's better? Believe it or not, the faster the connection you have, the less you pay.If you would like know all of my 7 crucial steps, I'll gladly mail you my FREE report titled "7 Quick, Easy and 100% FREE Ways To Slash Your Credit Card Processing Fees in Your Business By As Much As $300.00 Per Month."

To get your hands on a copy call 1-888-269-4080 for a 24-hour, toll free recorded message. No one will be on the phone to hassle you. When you call, simply follow the directions and your free copy will be mailed out right away. For more information contact Darien Hill at 1-888-720-1936 or email him at darien@merchantservicetips.com

The Effective Way to Improve Business Efficiency!

Businesses are having to make sacrifices at the moment as almost every single business sector has been hit by the credit crunch and the economic downturn and one way in which smaller businesses are cutting corners is by ditching their accountants and using business accounting software to keep track of their finances.

There are many types of business accounting software geared to sort small independent companies to corporate giants, but they all offer simple to follow bookkeeping programmes, payroll, quoting, invoicing, electronic payment processing, and stock control programmes which get the job done efficiently and with the minimum of fuss.

Business accounting software is commonly made up using a series of modules that are all relevant to the running of a successful business. Keeping on top of finances has never been more important during these difficult financial times. Companies are becoming insolvent in their droves, and although the bulk are mainly liquidating due to a lack of consumer confidence, high unemployment rates and the inability to borrow funds as readily as prior to the credit crunch, a lot of companies have been able to stay afloat by effectively cutting cost, but also by improving business efficiency.

In order to improve the efficiency of your business you need to have access to your expenditure and it needs to be accurately broken down into clear and concise forms in order to make life that little bit more simple, and thus allow you to be more efficient with your time. Once you can pin point the inefficient areas of business which need addressing, actions can be implemented to cut costs accordingly.

Many companies opt to buy off the shelf business accounting software, which can prove to be a cheaper alternative to software that is tailored specifically to your company, but bear in mind that there may be functions on generic software that you never use, therefore you're paying for something that will never benefit your company.

So if you are seriously considering ways to improve your business, analyse ask your accountant what program would be best for you. Many times just an on-line program like Quickbooks Online will give you everything you need and not have to worry about back-up, disaster recovery, access, software updates, etc.

Business Idea - Success or Not? How to Tell!

Hint: it's not to spend thousands of dollars producing a new widget or rolling out a new service, then hoping and praying that you'll somehow find enough customers to turn a profit.

And while market analysis is definitely an important step in making any business decision, investing weeks or months in writing a lengthy detailed number-laden business plan with pages and pages of charts, graphs, and estimated profit and loss statements is often only an exercise in frustration.

After all, in many cases, the figures are simply wild guesses. So, what should you do?

The best way I know to find out if people are interested in a particular product or service and what they might be willing to pay for it, is to ask them. Sounds simple when you think about it, right? I'm amazed at the number of entrepreneurs I've seen in my practice of public accounting who never even considered this approach.

Here are a few ways you can connect with your current customers and prospective clients to get their input:

• On the phone
• By email
• Through snail mail
• In a form posted on your web site or blog
• On Internet forums
• At on-line social media sites
• When they visit your office or store
• At local networking events
• Via webinar or teleseminar

With the exception of regular postal mail, all of these methods can be tested for free. Gone are the days when you had to spend big bucks and take giant risks when starting or growing a business.

I don't have space here to go into great detail about how to use these various options to actually collect the data and opinions you'll need, but I'll give you some advice. Instead of asking direct questions about the widget or service you're thinking of, try a one-question survey instead.

Ask the people in your target market about the problems they currently face. If you listen carefully, you'll probably hear them define the solution that they're looking for. Then you'll know what to provide.

I'll practice what I preach by showing you how I use a free online survey tool. Click here to take a one minute survey about your small business. Your answer will help form the content for my next article. For more information: Sheryl@BusinessStartupSuccessClub.com.

Accounting Philosophically: "Due Diligence or Diligence Due?"

As you've probably noticed by now, my friend and I tend to get into some fairly philosophical discussions (bourbon has this affect on us) - and recently, we were talking about the mergers and acquisitions that seem to be going on, almost on a daily basis, in the business world.

In particular, we focused on the GM-Fiat merger and wondered about its impact, especially since Italy is part of the European Union, on the Euro and the Dollar - and globalization. But, that's a topic for another article that I'll have to think about some more.

Anyway, moving on, we considered the due diligence that should be a key part of any merger or acquisition and, as we do in most discussions, we tried to apply it to the current "real world" economic situation we are all in.

For those that may not be that familiar with the term, due diligence is basically the investigation, analysis, and evaluation of all pertinent financial and business data and information of all companies or organizations involved in the merger or acquisition. This naturally led us to wonder about how a government in deficit could be a viable partner in a merger or acquisition. But again, that's a topic for another article that I'll have to think about some more.

So, we moved on to the mortgage crisis - now, foreclosure crisis - and we wondered about what due diligence must have been done by buyers, sellers, and the organizations that financed the transactions. For most of us "average Joe" folks, the purchase of a home is the biggest transaction we will ever attempt. So, what happened?

Like always, my friend offered this philosophical observation, "My guess is that due diligence was interpreted to mean "I will be diligent when things come due - until then, hey, I've got a beautiful place to live in." If this observation is even a little bit accurate, and assuming it also applies to the sellers and finance organizations, then we really have to wonder exactly what kind of accounting and bookkeeping was going on. Surely, they did not all graduate from the Avaricious University School for the Financially Unaware!... whoa... let me get off my soapbox here...

My main point here is due diligence - and although it is generally thought of in a more strategic sense, it really needs to be applied our everyday accounting and bookkeeping practices. If this is done, then perhaps we will never need to worry about merger, acquisition - or foreclosure.

Interesting, huh? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com

Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position

Having Account Receivables Issues? - Improve Now!

Almost any small business can use advice on how to improve its collection cycle. The first line of defense against late payments is a complete invoice. Your bills should be accurate, detailed and easy to understand. If difficult to understand, then your client will need to call for additional information. That translates into "you have been added to their to-do list," which increases the time of your collection cycle. Include on each invoice:

• Your company's contact information: name, address, tax id number, phone and contact person
• The date the invoice was prepared
• The customer's name and address
• A description of the goods or services sold to the customer - itemize, if possible (An itemized bill is harder to contest.)
• The amount due, with sales tax amount broken out
• When the invoice is due

Once prepared, send invoices promptly. Another piece of small business advice is the longer you take to bill a customer the less likely you are to receive payment for the goods and services provided. Following is a simple calculation for a powerful tracking tool that can help you adjust your cash in-flow on an as-needed basis:

Step 1: Calculate your average collection period by dividing your total sales for the previous year by 365. This gives you your average daily sales volume. (Total Sales / 365 Days = Average Daily Sales Volume)

Step 2: Then divide your average daily sales volume into your current accounts receivable balance to get the number of days it takes to collect a bill. (Average Accounts Receivable Collection Period = Average Daily Sales Volume / Current Accounts Receivable Balance)
Now that you know your average accounts receivable collection period, you then need to interpret that number as it relates to your business by asking four important bookkeeping service questions.

1. Is your average accounts receivable collection period in line with the company's credit policy?
2. Are you billing your customers consistently?
3. Are you billing your customers effectively?
4. Are you tracking overdue accounts and taking consistent action to collect past due accounts?

By answering these four basic questions, implementing a few bookkeeping service procedures and heeding this small business advice, you'll soon be running a fine-tuned collection machine.

Maiking The Tax Bill More Bearable - Options for Selling a Business

Hopefully, before selling a business, you meet with a CPA or tax accountant and get an estimate on how much of your proceeds will be going directly to Uncle Sam if you pay them in a lump sum at time of sale. You don't want to save this surprise for after all is said and done, because not only will it most likely be a shock, but you will have given up your chance to do anything about it.

Planning is everything. For this article it is assumed you are not doing a 1031 business exchange, that is selling your business and buying another similar business taking into consideration all the IRS guidelines and timelines. It's pretty rare to see, but it can defer all of your capital gains tax if done correctly.

Depending on how the business is sold, the gains may be taxed as long term capital gain, short term capital gain, ordinary income, etc. and if you are selling an asset in a C-Corp you may face double taxation. So, the idea is to minimize your tax bill and maximize your proceeds no matter what situation you are in.

One option is with a Self Directed Installment Sale. The structure must be in place before the buy/sell agreement is signed. The gist is to receive the sale proceeds in installments and only pay capital gains tax as you receive the income. This has the effect of allowing the majority of money you would have paid immediately in taxes to continue earning compounded interest for you for many years, thus increasing your bottom line by a significant amount.

The details are a bit too complex to fully outline in a short article, but both an LLC and a Trust are created for you and set up meet IRS criteria for favorable taxation of installment sales. Your asset gets transferred to the LLC prior to sale, and your buyer purchases from your LLC. The trust buys the shares of your LLC from you via an installment agreement and you pay taxes on your gain only as you receive the payments.

You, the seller, are able to control when the payments begin and how long they will be spread out. This allows for maximum flexibility to control your income, and plan for future tax savings as well. Since your buyer paid cash in exchange for your property, you are not dependent on them to make the installment payments and you have transferred the risk of refinance or default.

To learn more about this and other tax strategies contact Paula Straub at 760-917-0858

Accounting Philosophically: "I'm Really Sorry"

In a recent conversation with a friend, we were discussing and lamenting the "state of the world". With news about Madoff, Blagojavich, joblessness, and multiple reports of shootings in various parts of the country, it was pretty easy to feel depressed and worried. But, my friend tends to be a philosopher, so he brought this part of our conversation to an end with the expression, "Well, I guess that if we tried to separate the saints from the sinners, we'd probably do well to come up with Mother Theresa."

Now, what does this have to do with accounting? Frankly, I have no idea.

BUT, the next part of our conversation focused on April 15 and, of course, income taxes - and continuing our lamentations, we couldn't help but wonder just how many "saints" out there would better fit into the "sinner" category when it comes to submitting their 1040s.

Recent studies seem to indicate that if there is a single motivation for taxpayers to at least try to remain in the "saint" category, it is the fear of an audit. This, in turn, led us to talk about any "good news/bad news" associated with an audit.

First, the "good news". This is the fact that, on an annual basis, only about 1% of the tax-paying population is audited. Of course, if we assume approximately 200 million taxpayers, this means about two million people will be notified. On the other hand, statistically speaking, the chance of an audit is pretty small.

Now, the "bad news". This is fundamentally that if you receive an audit notice, you are basically "guilty until proven innocent". This is generally the approach typically taken by the IRS, but this is mainly because the audit was provoked by the submission of an "iffy" 1040 in the first place - and if we really think about it, the auditors are really just asking for more information. So, the "bad news" may not be so bad if you have the information. On the other hand, a lack of supporting information could definitely be "bad news". This led my friend to make another of his observations. This was, "If you are audited, and don't have the supporting information you need, then IRS will probably stand for, "I'm Really Sorry.".

Interesting, huh? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com

Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position

Can Leases Be Depreciated - Special Report?

Most of the time the answer is depends. That is why having expert counsel to interpret the laws is to your advantage. Following are the several simple factors to determine if a lease can be depreciated:

1. Lease terms. The lessor owns the property; the lessee uses the property. 2. The kind of lease. An operating lease provides that the property be returned to the lessor. A capital lease is actually a purchase in which the lease is a means of financing (rather than a bank loan). Therefore, a capital lease has payments that include principal and interest.
3. Lease conditions. A lease that meets one or more of the following criteria is a capital lease, and the lessee should depreciate the leased asset:
Ownership is transferred when the lease terminates.
There is a bargain purchase option (B.P.O.), allowing the asset to be purchased at a price far below its fair market value.
4. The lease is for 75% or more of the asset's expected life--e.g., if the asset's life is 10 years.
Therefore, working with the right accountant, bookkeeper and CPA can help put money back in your pocket!

In Troubele with the IRS? Secrets to Finding the Right Tax Relief Professional

There may be no hope for major companies like Lehman Brothers, Circuit City, Bed Bath and Beyond, but many struggling small to medium sized businesses could still survive the recession - all they need is some good business sense and top quality bookkeeping.

Althought that might be the case, sometimes small to medium sized businesses still get in trouble with the IRS which can be a terrible experience for everyone. The IRS imposes harsh penalties on people that are not in compliance with tax code. Using an experienced tax professional can eliminate tricky IRS tactics and will likely save you money and stress. Using a tax professional will eliminate the intimidation factor the IRS relies on when going after individuals. Many people believe that if they work with a tax professional, this will make it look like they are trying to hide something from the IRS. Believe it or not, the IRS would much rather work with a tax professional that is aware of tax laws than dealing with individual tax payers because it makes their job much easier. With that being said, what should you look for in a tax professional if you are having tax problems?

1) Locate a few tax relief companies that say they can help with your tax problem. It is important to talk with a couple companies because each one will likely have a different approach. Most of these companies will offer you a free consultation where you will get your likely outcome and a quote for the service. Talking with a few companies will also help ensure yourself that you are getting a decent deal for the price and you don't get taken advantage of by a tax company that is trying to charge much more than their service is worth.

2) Check out the company rating with the BBB. This will give you a general sense of its past business relationships. If their rating is satisfactory then you know they can likely be trusted. Be very careful with the service if it is listed as unsatisfactory.

3) Watch out for companies that are promising an outcome that is highly unlikely. Some companies will promote pennies on the dollar settlement on tax debt. This is actually extremely rare to receive and if they tell you that it is likely you will settle for pennies on the dollar before completely analyzing your financial situation, this is a big red flag.

4) Be careful of companies that charge a retainer fee. A company that has retainer fees is normally not a service based company and is more interested in collecting money from individuals than actually helping them. It is best to hire a company that plans on getting paid based on results and the service they provide and they realize that they shouldn't be paid until that service has been completed. A company that charges a retainer will likely charge you much more overall than a company that doesn't.

Once you talk to several tax professionals you will be able to make an educated decision about which one to hire based on quote, tax resolution, and your overall financial benefit you would receive. It is very important to be extremely honest about your financial situation with the tax professionals so they can give you an honest and likely outcome. The IRS has many different methods for individuals to resolve their tax problems and it is completely dependent upon an individual's financial situation.

BackTaxesHelp.com provides trusted tax solutions to people with a large variety of financial problems. We pride ourselves on having a diverse tax team that can help with a variety of IRS and state tax problems. If you need IRS back taxes relief, consider us and let us tell you your options.

Accounting Philosophically: "Food for Thought"

A friend of mine, who is a lifelong Professor of Accounting and Finance, and lives a comfortable, but hardly extravagant lifestyle, recently, shared a joking observation on our current economic situation with me. It was, "I didn't realize how bad things had gotten until Fortune magazine called me to let me know that I was #27 on the Fortune 500 list." Obviously, this was not so, but his point was made - and if you haven't heard it enough already, TIMES ARE TOUGH!

Hopefully, the old economic concept of demand and supply will soon come into play. Simply put, if we can't demand - and the suppliers want to supply - something will have to give. Ideally, it will be prices - and they will come down. But, I'm willing to bet that you, like me, are wondering exactly what the stimulus will stimulate. After all, if money is provided to buy things, then prices will not need to come down - and we may wind up buying at the same price, but with our own tax dollars.

So, let's see here. It looks like we're paying taxes so we can get a stimulus check from those taxes - to pay the same price we were paying before - that helped create the need for the stimulus in the first place.... Confusing, isn't it? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com

Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position.

Bookkeeping Software or Services?

Every business is required to keep bookkeeping records to produce at the end of the year (Calendar or Financial) a set of accounts to show the business expenses, sales income and the net profit for tax purposes. New businesses in particular, self employed businesses have a choice in how the financial accounts are prepared and produced. Many of these businesses for financial reasons tend to either keep a manual record of financial transactions or purchase an off the shelf software program from their local retailer and then on their own develop a charter of accounts and complete the data entry.

There are several advantages and disadvantages to whichever course of action a small business may take to produce the financial. But, at the end of the day, the condition of financial accounts and the financial control that are put in place will dictate how well or badly the business is performing compared to the success in the business environment. The underlying necessity is that if the business does not take a decision on its financial accounting then at the very least it must accumulate documents of prime significance such as sales invoices, purchase invoices and possibly bank records during the financial year and assemble these into some sort of order after the end of the financial year for tax purposes. Failing to keep financial records often results in a succession of administrative burdens and often also leads to financial penalties if taxation deadlines are not met.

If the small business owner chooses not to go down the route of using bookkeeping software or outsourcing the financial function to a bookkeeper or accountant then manual financial records must be kept. Producing an income and expenditure account for the business using the prime financial documents of business is not rocket science and most businessmen capable of running and managing a business have the skills required to producing the bookkeeping records. The major disadvantage of a small business keeping manual records is that documents get lost which may result in profits and taxes being over declared, fines and penalties through inaccuracies and often when accounting is produced in this way it is done at the end of the financial year purely for tax purposes rather than as an essential tool of the business and that reduces financial control within the business during the financial year to a minimum and often zero.
If a manual bookkeeping system is adopted then disciplined recording of the financial information on a regular basis should be enforced and regarded as an essential function and not an administrative burden. The main purpose of regular accounts being to both see and understand the financial position of the business and take positive action as required at the earliest opportunity to achieve a satisfactory financial result.

Other alternatives include utilizing bookkeeping software which is effectively often a manual system in itself but within definite parameters to produce the essential information. Using bookkeeping software has many advantages. First of all any small business that has purchased bookkeeping software is more likely to keep regular up to date accounts than one that has not. And secondly the bookkeeping software is likely to provide a fixed set of disciplines and produce the type of records a small business requires for both the preparation of regular financial statements and the end of year tax returns. Another major advantage of bookkeeping software is that records tend to be less likely to be lost or mislaid; the packages can be backed up as required but essential financial performance can be improved by greater financial control. All businesses work towards producing a satisfactory bottom line and only by producing regular financial statements can the business obtain the earliest information to achieve that satisfactory performance.

Bookkeeping software comes in many different formats from simple spreadsheets to more complex data based accounting software. For a small business the bookkeeping software of choice is often a simple system requiring limited accounting knowledge but must also be a package that produces the desired end result. The worst bookkeeping software is a complex program requiring prior accounting knowledge that the small business either does not fully understand, cannot be bothered or does not have the time to learn and having tried the system then abandons it. Such a process just causes frustration and time to start again with a different solution. Bookkeeping software in effect automates the manual keeping of financial records. To get the most benefit from a bookkeeping software package each small business should prepare regular financial records to enhance and improve financial control, take financial decisions and achieve the desired bottom line result.

Bookkeeping can be outsourced to an accountant or bookkeeper and there advantages in doing so. The financial records are generally maintained in good order and regular financial reports produced. If the small business has a volume of paperwork that becomes a burden to process and keep on top of then a bookkeeper is the best solution. Employing a bookkeeper becomes essential when the paperwork burden reaches a stage when it distracts the small business owners from getting on with the main task of operating the business. A bookkeeper has to be paid and that cost should be viewed as the cost not of producing the financial records but as the amount to be paid to release the time of the small business owner and also to produce the financial statements on which action can be taken to improve profitability.

In conclusion each small business should evaluate their options and time commitment. A manual bookkeeping system may suffice but the business may be better served using bookkeeping software & services to increase financial control and performance.

Saving 30-50% on Accounting & Bookkeeping Services

In today's environment companies not matter what size need to watch there bottom lines and take aggressive measures to save money where they can. One of the best ways to do this is take any variable expenses and make them fixed. This takes both the guess work and surprises out of monthly bills.

One area that many companies don't explore is there bookkeeping and accounting functions. Usually these are done by either the principal, owner, or in-house staff. If by the principal or owner it is taking away from important marketing activities. If it's in-house staff it is costing more than it should because of salary, vacation, benefits and many other various additional fee's.

One solution to reduce these costs is to find a firm that specializes in bookkeeping and accounting services. The reason is that most firms only need between 2-15 hours worth of services a week and either doing it yourself or using in-house staff is an ineffective use of time, resources and money, let alone the fact that your probably not getting the guality or expertise.

So, during these recessionairy times look at your options and begin to reduce your expenses. TaxTalkOnline is an expert in bookkeeping and accounting and can save you 30-50% of what you are paying today.

Recession Proof Your Accounting Practice

TaxTalkOnline was the guest speaker to a group of accounting professionals at Saint Thomas University in Miami Gardens Florida on February 23rd. The Topic was Recession Proof Your Accounting Practice.

The key to the discussion was that today accounting firms need to act like companies not sole proprietorships. The way that they do that is to compete in the market the same way that fortune 1000 companies do. Such a way changes the typical entrepreneur business model from doing 60% of the admininstrative work to 60% of time on strategic activities like growing your business.

During the lecture the company outlined several key factor that every company should do to be competitive and successful:

1) Develop an agile Enterprise (Concise business & Technology Strategy)
2) Have Industry specific solutions (Deep knowledge of business and solutions)
3) Empower Your Organization (In both services delivered and porfolio offered)
4) Create a flexible work force (Align skills, type of employees, provide training)
5) Know your Delivery Capacity (Local, regional, nationwide)
6) Develop Strong Ethics & Corporate Responsiblity (Support causes and organizations like TaxTalkOnline supports: http://www.success101forteens.com/

Why Not to Off-Shore Outsource

Although there are several reasons in favor of outsourcing, a company must also consider the disadvantages. There are risks that need to be analyzed whenever a company embarks on a new business venture like outsourcing. While it is a hot trend nowadays and seems an attractive option for many, by using low cost off-shore resources, a firm must consider and measure risks of using an off-shore versus on-shore partner. Data from off-shoring is finally being compiled and shared. The studies show that off-shore outsourcing while at first glance offers flexibility and low cost really provides headaches and higher costs. This can be seen from the various disadvantages that have been found:

· Off-shoring and utilizing different time zones while appearing to provide flexible and more working hours really creates a wider loss of managerial control, because it is more difficult to manage, contact and turnover work products.

· Off-shoring firms often have hidden costs are difficult to calculate or prepare for. These include legal costs related to putting together a contract between two companies, the time spent to coordinating the contract and then after contract terms to find that there are various other costs to consider.

· Off-shoring firms can be a threat to security and confidentiality. If your company is outsourcing processes like payroll, accounts receivable, accounts payable or other confidential information, a company must be very careful in “disclosing to it’s clients that it is using an off-shore firm.” If not the liability factor opens and could put your firm out of business.

· Off-shoring often leads to possible loss of flexibility in reacting to changing business conditions, lack of internal and external customer focus and is more concerned with cost than quality.

· Off-shoring often includes unfavorable contract lengths, loss of competitive edge, problems in contract renewal, and contractual misunderstandings.

Therefore, the concept of Off-shoring instead of just outsourcing has been criticized. The negative attitudes toward offshore outsourcing have been discussed amongst not only accounting and bookkeeping industry experts but also entrepreneurs, and small to medium sized businesses and the bottom line comes down to one simple statement: “Don’t cut-off your nose to spite your face.”

Developing Leadership Confidence

Executive Team of TaxTalkOnline will be attending the 'Extreme Business Makeovers Conference in Orlando, Florida from April 24-26. Key speakers at this event include: Dr. Tom Barrett , Bob Burg, Thom Scott and Libby Gill. Some of the topics of this event include:

- Leadership in Real Time
- G0-Give your way past today's challenges
- 5 Strategies for creating a winning brand
- Creating an entrepreneurial energy bus
- Overcoming the challenges of change
- Tapping into your unique motivational DNA

To find out more about the conference go to: http://www.extremebusinessmakeovers.com/

Corporate Responsiblity is Essential For Every Business

Businesses are essential to community economic development because they are such a powerful means for increasing the local pool of skills, experience, wealth, and influence. By interconnecting the expertise, interests, perspective, and resources of the entrepreneur with those of the community, people get a grip on the future of their town, neighborhood, and communities.

TaxTalkOnline a for-profit organization is building and maintaining strategic linkages between business and community for teenagers just like other major firms (All-State, Telstra, etc.) TaxTalkonlines cause is to support www.Success101forTeens.com which in our belief is helping grow the leaders of tomorrow.

The firms mantra is to talk to teens about financial responsibility and create environments where teachers and parents can discuss the financial crisis with their children.

The company believes that what younger children need the most is reassurance. Older kids can process more information both in school and at home—though getting the details straight sometimes presents challenges of its own.

TaxTalkOnlines feelings are that taking advantage of teachable moment don’t have to be limited to AP economics. In history class, students could discuss how the current situation differs from the 1930s and how the Fed has been greasing the skids with credit in order to avoid the mistakes of the Great Depression, when government sucked money out of the system. How President Bush gave our country the largest debt in history and how our 44th president Barak Obama of the United States is moving for change!

The companies philosophy is that Middle-school teachers could inject financial literacy into social studies by explaining how borrowers overextended themselves on mortgages and credit-card debt. And in math, students could use a compounding calculator to learn how it pays for young people to buy stocks at today’s fire-sale prices.

At home, too, parents can use the following strategies to reassure teenagers while giving them a lesson in managing money:

TaxTalkOnline feels we can all bee proactive. Have a plan that teens can participate in. Perhaps they can cover more of their own expenses by taking on more babysitting gigs or mowing more lawns. Our thoughts are to be positive and add perspective. Teens and young adults have never experienced a serious economic downturn. They need to know that our resilient economy has always recovered from other crises, and this too shall pass. So let’s all believe we can!

Interview with TaxTalkOnline

Question #1: Why should I use an outsourcing firm like TaxTalkOnline Instead of hiring my own employees:

Answer: Outsourcing means less headaches for the business owner and saving money. For example, you only pay for the work that gets done, don't have to worry about scheduling, personalities, providing work environments etc. But, beyond that at TaxTalkOnline you get the best of technology with the best of bookkeeping and accouting expertise, and the firms puts it's money where it's mouth is with a 100% satisfaction guarantted.

Question #2: Does TaxTalkOnline only provide virtual employees? What if I want someone to come to my office for example.

Answer: TaxTalkOnline is a nationwide company. It's business is built to support virtual and physical work for it's clients: CPA's and small to medium sized firms. Therefore understanding the requirements from it's clients and knowing there needs, the company does also have resources in most major markets - and is more than willing to have TaxTalkOnline employees go on-site when needed.

Question #3: TaxTalkOnline is competing with CPA & Other Accounting/Bookkeeping firms. Why?

Answer: Actually no they are not. TaxTalkOline wants and is the back-office operations for many CPA, bookkeeping and accounting firms nationwide. They allow the business owners to do what they do best higher end services and rainmaking. TaxTalkOnline only does the burn and churn work.