There are work requirements needed in each and every business that have no direct relation to its revenue contribution. Among these requirements are the accounting tasks, which many businesses may regard as administrative work, but are not part of the core aspects of the business. Because of this, there are now a great number of business owners who have turned to getting outsource accounting services, most of which are from firms or freelancers.
However, since outsource accounting has also increased in popularity, there has been an evolution seen on the procurement of such types of outsource services. Now, business owners are seeking of more efficient and cost-effective ways for their accounting tasks to be done. As such, there are many of them now that have become conscious of the benefits and other values that come with getting an online accountant. There is no need to worry on hidden costs which are being given to traditional accountant and all the rests of the costs associated with accounting, including software installation, constant upgrading of programs and backups.
What Is an Online Accountant?
So what is really special about getting an online accountant? For one, he is responsible for delivering organized reports and records of a companies finances through a technology based on the Internet. Through using this service, which is actually also a form of outsource service, business owners and their staff can already make use of their time, spent on doing accounting tasks before, on other more important functions. They would already be able to concentrate more on providing better services or products to their clients as well as see to the other demands that these clients might ask of them. In getting an online accountant, there would be more efficiency in the business flow, thus resulting in staying ahead of the competition.
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Benefits
There are other benefits to getting an online accountant as well. Aside from providing more time and an increased efficiency to the work staff and the business owners, an outsourced accountant can also be a means towards the reduction or the saving of business expenses. This is because getting an online accountant could spare a business owner from the cost of having to employ an in-house and full-time employee to do his job. More savings can also be gained through this online accountant because all of the transactions between him and the company that has hired his services will be done through the Internet. There will also be less paperwork to contend with because all of the records of the companies finances can be accessed only through a secure server.
Getting an online accountant also guarantees that all the crucial financial tasks needed to be done in your business are done by an expert that is using first-rate accounting technology. As this technology allows access to the server where the financial records are kept to anyone that has been given the permission, business owners and all the other employees entrusted to view these records could do so at the same time, whenever and wherever they want to.
So if you want your business to project an image of organization and efficiency, then getting an online accountant is the best hiring move for you. This way, you will not only get more customers to be attracted in availing of your products or services, but also get potential investors to come streaming through your doors as well.
Monday, June 14, 2010
Wednesday, June 9, 2010
Understanding Company Annual Reports
An annual report is primarily undertaken for the protection of shareholders and includes financial highlights, chairman's statement and director reports.
There are several aims associated with a company's annual report which include the following: to provide protection to shareholders, information to mangers, customers and suppliers as well as help for prospective shareholders thinking of investing in the company. The company report is used to satisfy legal reporting requirements and is also used by the chairman and directors as a means of advertising.
According to Langdon & Bonham (2006) annual reports typically consist of the following areas:
* Mission statement
* Financial highlights
* Chairman's statement
* Chief executive and directors' reports
* Operations review
* Auditors report
Company Annual Reports - Mission Statement
A mission statement (for anyone who has not seen 'Jerry Maguire!') is basically a strategy statement which explains the intent or vision of the company and is usually shown on either the front cover or clearly laid out on the first page of the report. Ideally, mission statements should be short and simple to comprehend. This statement must then be identified as being relevant to the content of the report in order for it to be valid.
Company Annual Reports - Financial Highlights
Following the mission statement, the next part of the annual report is used to show a financial comparison between the company's performance during previous year and the year before. It is important to always bear in mind when reading the financial highlights that as interesting as it may be it is highly likely that any figures will have been very carefully chosen in order to make the company look as profitable as investment as possible.
Company Annual Reports - Chairman's Statement
The chairman's statement is essentially associated with laying out the company's main intentions and will usually include information on critical aspects relating to issues from the past and those in the future. Key sections identified in this statement will include areas such as dividends, structural information, personnel information as well as focusing on main trading aspect from the previous year.
In terms of dividends, the chairman described a strategy on dividend in the future which will have been put together by the board.
Company Annual Reports - Chief Executive/Directors' Reports
This area is legally required to provide certain information such as issues relating to profit, dividend figures, research and development. Key aspects associated with this section of the report include details on remuneration, shares, interest, donations (charitable/political), auditors and creditor payment policies. Most director reports will also offer additional information, for example regarding employment of disabled personnel, environmental and corporate issues.
Company Annual Reports - Operations Review
The operations review is key to understanding the company's strategy and will involve employees at all different levels from those on the shop floor right up to directors. This is a means of attempting to ensure that what is happening in all areas of the company is tying in with intentions of the directors. Obviously, this is no easy task as it effectively requires open communication throughout the entire company .
Company Annual Reports - Auditors' Report
Finally, the annual report will also contain the auditors' report which basically is used to identify that the auditors have undertaken necessary work and how this was completed. A key aspect of this report is what the auditors' opinion are regarding the prepared accounts and whether there are any doubts expressed in relation to specific accounting methods.
As highlighted above, the annual report is useful for shareholders, customers, managers and suppliers as well as being a legal requirement. Key aspects of the annual report include financial highlights, operations review and both the chairman and directors' reports.
Source:
There are several aims associated with a company's annual report which include the following: to provide protection to shareholders, information to mangers, customers and suppliers as well as help for prospective shareholders thinking of investing in the company. The company report is used to satisfy legal reporting requirements and is also used by the chairman and directors as a means of advertising.
According to Langdon & Bonham (2006) annual reports typically consist of the following areas:
* Mission statement
* Financial highlights
* Chairman's statement
* Chief executive and directors' reports
* Operations review
* Auditors report
Company Annual Reports - Mission Statement
A mission statement (for anyone who has not seen 'Jerry Maguire!') is basically a strategy statement which explains the intent or vision of the company and is usually shown on either the front cover or clearly laid out on the first page of the report. Ideally, mission statements should be short and simple to comprehend. This statement must then be identified as being relevant to the content of the report in order for it to be valid.
Company Annual Reports - Financial Highlights
Following the mission statement, the next part of the annual report is used to show a financial comparison between the company's performance during previous year and the year before. It is important to always bear in mind when reading the financial highlights that as interesting as it may be it is highly likely that any figures will have been very carefully chosen in order to make the company look as profitable as investment as possible.
Company Annual Reports - Chairman's Statement
The chairman's statement is essentially associated with laying out the company's main intentions and will usually include information on critical aspects relating to issues from the past and those in the future. Key sections identified in this statement will include areas such as dividends, structural information, personnel information as well as focusing on main trading aspect from the previous year.
In terms of dividends, the chairman described a strategy on dividend in the future which will have been put together by the board.
Company Annual Reports - Chief Executive/Directors' Reports
This area is legally required to provide certain information such as issues relating to profit, dividend figures, research and development. Key aspects associated with this section of the report include details on remuneration, shares, interest, donations (charitable/political), auditors and creditor payment policies. Most director reports will also offer additional information, for example regarding employment of disabled personnel, environmental and corporate issues.
Company Annual Reports - Operations Review
The operations review is key to understanding the company's strategy and will involve employees at all different levels from those on the shop floor right up to directors. This is a means of attempting to ensure that what is happening in all areas of the company is tying in with intentions of the directors. Obviously, this is no easy task as it effectively requires open communication throughout the entire company .
Company Annual Reports - Auditors' Report
Finally, the annual report will also contain the auditors' report which basically is used to identify that the auditors have undertaken necessary work and how this was completed. A key aspect of this report is what the auditors' opinion are regarding the prepared accounts and whether there are any doubts expressed in relation to specific accounting methods.
As highlighted above, the annual report is useful for shareholders, customers, managers and suppliers as well as being a legal requirement. Key aspects of the annual report include financial highlights, operations review and both the chairman and directors' reports.
Source:
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