Accounting Doctor

  Risks of Having Your Own Internal Accounting Department The adaptation and over dependence on software equipment in offices are seen throughout these years. The ever changing business atmosphere has made it difficult to avoid mistakes and threats to these systems have become a regular occurrence. Software update failures, bad data entry, infrequency in back ups and financial risks in firms can cause a lot of problems.   Cost of installation For any equipment, the organization is going to invest a significant cost of installation. Companies need both hardware and software equipment regularly. More employees only mean the requirement level is going to increase. So instead of incurring this heavy cost of installation regularly, it is better to outsource the accounting services. When you outsource the service, the agency you are outsourcing to already has the necessary equipment required.   Training cost On a weekly or monthly basis, new software is getting created. Each so...

  How Can One Accounting Mistake Lead to Bankruptcy? In all new business ventures, errors based on accounting may lead to a drastic setback. Without any further financial loss, if the main intention is to keep the business intact one needs to follow certain principles. However, it is possible to rectify those errors for business loss if proper execution is done right from the inception stage. The following points assist us in solving our mistakes thereby avoiding the phase of bankruptcy. Lack of expert with adequate knowledge Many business enterprises fail to hire a professional thinking of the cost incurred for the same. An expert in accounting can solve all the tax issues caused while running a business efficiently and accurately. It is imperative to hire a professional accountant adept in handling financial statements for the smooth flow of transactions. Grasping accounting basics Most business enterprises hire an accountant without paying heed to the fundamental...

  Top Seven Ways Small Businesses Can Maximize Profits Small business often faces a series of hurdles before they manage to establish themselves in the competitive market. It could take years before you learn the secrets of the trades. Arguably, one cannot learn to manage a successful business in the confines of a classroom. To make a difference, you have to put yourself out in the world. While small business owners go through several highs and lows in their journey, one of the most common issues they all face is the mismanagement of money and poor profits. Their struggle with profitability could be due to numerous reasons such as inaccurate pricing of goods and services, unorganized logistical expenses and tracking, etc. The author of "Six steps to create a profit" – Patricia Sigmon- says that most small business owners fail to increase their profits from the preceding year. We have compiled a list of ways to turn over your company, learn where you are going wrong and maximi...

  WHY HIRING AN AGENCY IS BETTER THAN A PERSONAL ACCOUNTANT? -           You as an individual or as an organization head will be able to focus your complete attention on your companies’ future strategies. You can expand your scope and think of new innovative possibilities. -           You as an organization head won’t have to pay the entire fleet of accounting staff; it usually is cheaper than having in-house accountants. You won’t be required to pay for their bonuses, vacations and other employee benefits. -           You as an individual or as an organization head also save money and time which would’ve gone to find the right accountant(s) -           A single accountant can not cover all responsibilities as fast as an agency can. The agency can also give you any variation of the accounts at any specifi...

  DIFFERENCE BETWEEN ACCOUNTANTS AND ACCOUNTING ADVISORS How do you define the role of an Accountant? As an accountant , you will perform important functions like auditing (or objective evaluation and examination of an organization’s financial records), analyzing financial transactions or statements of accounts, bookkeeping (maintaining financial records) or tax preparation. How do you define the role of a financial advisor? As a financial advisor you will be responsible to help and guide your clients to choose what to do with your client’s capital. S.NO Accountants Accounting Advisors or Financial Advisors 1) As an accountant you are responsible for better insights on the current business finances As an advisor you are responsible to give future insights on what is in the business’ best interest 2) As an accountant you have a better understanding of different laws and techniques to maintain reco...

  Top 5 Scandalous Cases of Fraud in Accounting Malfeasance and corporate greed have seemingly increased in the last few decades. Billions of dollars lost, careers and companies destroyed; all because of the excessive greed exhibited by individuals. During our school days, we learned that every action has a consequence. However, as adults, we seem to forget that our actions could potentially ruin someone's life. In this article, we take a look at the top scandalous cases of fraud in accounting. 1. Satyam Computer Scam: This fraudulent activity took place in the years 2006 to 2008. B Rama Raju, Vadlamani Srinivas, Subramani Gopalkrishnan, and T Srinivas were involved in this illegal activity. They all held high positions in the organization; B Rama Raju was the chairman while Vadlamani Srinivas was the Chief Financial officer. The scam broke out in the year 2009 and the chairman of the company confessed that the accounts had been tampered with. He also confessed to cash inflation, w...

  PROBLEMS IN IMPLEMENTING THEORETICAL CONCEPTS IN PRACTICAL ACCOUNTING Following are the problems in implementation of theoretical concepts in practical accounting which may be faced by you as an Accountant- ⮚       Theory is an ideal which you as an accountant may not be able to make reality due to the everchanging accounting practices of the world. You have to stay on your toes. There is always some or the other new technique or technology that is being introduced for more accurate accounting. ⮚       Some theories are outdated and thus may require adaptation with respect to the modern methods. But that will require time and effort. It is easier for you as an accountant to develop a new practice on the scenario around you rather than develop on a theory that may not be useful. ⮚       Some theories lack the understanding of the social aspect of the business and our environment that has changed overtime. Y...