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Prepare for tax season… its never too late… or too early :-)

December 15, 2015

Annual December Posting…

Utilize simple recordkeeping software – quicken or MS money come preloaded on new computers

Categorize major expenses –

Home: mortgage, utilities, auto, contributions, taxes

Small business: office supplies, phone, advertising/marketing, dues…

Utilize the “Reconcile” feature and actually balance your checkbook on a monthly basis – catch errors when they happen rather than 6 months later…

Run “canned” reports on spending & actually look at them to see WHERE your money is going, looking for anything out of place, odd or unusual

Use a filing system – expandable folders, hanging folders, manila folders: Use Labels…

Personal

– Tax related documents – 1099s, W-2, real estate taxes, auto taxes, sales tax on major purchases, contribution receipts, purchase agreements

– Capital expenses – home improvements, major appliance purchases

– Other personal receipts that you need to keep – in order to return items or get service done

– Shred – To be shredded – wait at least 90 days before you shred just in case you need it later

Small Business

– AR Invoices sent –

Numerical copy kept in monthly folder or 3 ring binder
Copy kept with job/project information
– AR Checks received – copies attached to deposit slips

– AP Invoices received – folder by due date

– AP Invoices paid – alphabetically by vendor

– Capital equipment purchases – copies of AP invoices for depreciation purposes

– Bank reconciliations – folder for each account

– Credit card statement reconciliations – folder for each CC

– Advanced Accounting Issues:

Payroll records – whole system of PR / HR issues
AR aging reports – past due reports
AP aging reports – unpaid liability reports
Inventory – monthly counts / reconciliations
Depreciation spreadsheets
Prepaid expenses
Accrued expenses

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Prepare for tax season… its never too late… or too early :-)

December 6, 2013

Annual December Posting…

Utilize simple recordkeeping software – quicken or MS money come preloaded on new computers

Categorize major expenses –

Home: mortgage, utilities, auto, contributions, taxes

Small business: office supplies, phone, advertising/marketing, dues…

Utilize the “Reconcile” feature and actually balance your checkbook on a monthly basis – catch errors when they happen rather than 6 months later…

Run “canned” reports on spending & actually look at them to see WHERE your money is going, looking for anything out of place, odd or unusual

Use a filing system – expandable folders, hanging folders, manila folders: Use Labels…

Personal

– Tax related documents – 1099s, W-2, real estate taxes, auto taxes, sales tax on major purchases, contribution receipts, purchase agreements

– Capital expenses – home improvements, major appliance purchases

– Other personal receipts that you need to keep – in order to return items or get service done

– Shred – To be shredded – wait at least 90 days before you shred just in case you need it later

Small Business

– AR Invoices sent –

Numerical copy kept in monthly folder or 3 ring binder
Copy kept with job/project information
– AR Checks received – copies attached to deposit slips

– AP Invoices received – folder by due date

– AP Invoices paid – alphabetically by vendor

– Capital equipment purchases – copies of AP invoices for depreciation purposes

– Bank reconciliations – folder for each account

– Credit card statement reconciliations – folder for each CC

– Advanced Accounting Issues:

Payroll records – whole system of PR / HR issues
AR aging reports – past due reports
AP aging reports – unpaid liability reports
Inventory – monthly counts / reconciliations
Depreciation spreadsheets
Prepaid expenses
Accrued expenses

What’s in a Name…

November 5, 2013

KMAS Consulting LLC…

‘K’nowledge
‘M’anagement
‘A’ccounting
‘S’ervices

I am sharing my “knowledge” of accounting so you can understand what the numbers are telling you.

I am explaining the how-to of cash “management” so you can better plan your finances.

I train you in “accounting” so you’ll understand it enough to trust someone else to do the mundane tasks, freeing you to focus on the business – which is what you really want to do – YOUR passion, the reason YOU started a business!

The initials also happen to be mine, it was meant to be! 

Family Operations – Letting go to Nonfamily Management Team

January 7, 2013

Family run operation had never shared information with employees other than the individual projects to be worked on. The owners had a hard time sharing what they considered personal financial information with managers & employees. The result – department managers did not have a clue of what it took to run the organization outside their small world and everyone was making their own purchases; there was no one looking at overall purchases and cost savings so expenses just kept going up and up. The owners realized that they could not grow any larger until they let go and allowed others to be involved in the management of the company.

I was hired mid-year to set up financial information on a departmental basis in order for managers to be held accountable. I analyzed all the information for the current year and reclassified expenses to their respective department. Next I prepared a current year budget for each department based on the current activity and the expected activity for the remainder of the current year. The owners and managers assisted int he finalizing of these budgets.

The next step was educating all the managers in how to utilize the reports and I sat down each month with each manager to go over their monthly P&L to show what actually happened versus what we thought would happen. Starting in October, together, we began the process of preparing each department’s budget for the next year. Each manager had a hand in creating the budget that they would ultimately be held accountable to. The first year they would still be learning so they would not be held accountable financially; but ultimately, they would get bonuses based on their performance.

The managers now get together monthly to review financial information, they know where the organization is going and they are helping to get there. They now feel as if they have some input into how the organization is run, the owners value their input and the company is on even more solid ground than it was before.

The company is now expanding internationally with the same management team in place all because they shared vital financial & operating information.

Moral: You can only do so much all by yourself. You need to trust others and educate them on the management of your company and then let them manage with you. When you get the right people in the right seat on the right bus… let them do what you hired them for!

Prepare for tax season… its never too late… or too early :-)

December 31, 2012

This bears repeating annually…

Utilize simple recordkeeping software – quicken or MS money come preloaded on new computers

Categorize major expenses –

Home: mortgage, utilities, auto, contributions, taxes

Small business: office supplies, phone, advertising/marketing, dues…

Utilize the “Reconcile” feature and actually balance your checkbook on a monthly basis – catch errors when they happen rather than 6 months later…

Run “canned” reports on spending & actually look at them to see WHERE your money is going, looking for anything out of place, odd or unusual

Use a filing system – expandable folders, hanging folders, manila folders: Use Labels…

Personal

– Tax related documents – 1099s, W-2, real estate taxes, auto taxes, sales tax on major purchases, contribution receipts, purchase agreements

– Capital expenses – home improvements, major appliance purchases

– Other personal receipts that you need to keep – in order to return items or get service done

– Shred – To be shredded – wait at least 90 days before you shred just in case you need it later

Small Business

– AR Invoices sent –

Numerical copy kept in monthly folder or 3 ring binder
Copy kept with job/project information
– AR Checks received – copies attached to deposit slips

– AP Invoices received – folder by due date

– AP Invoices paid – alphabetically by vendor

– Capital equipment purchases – copies of AP invoices for depreciation purposes

– Bank reconciliations – folder for each account

– Credit card statement reconciliations – folder for each CC

– Advanced Accounting Issues:

Payroll records – whole system of PR / HR issues
AR aging reports – past due reports
AP aging reports – unpaid liability reports
Inventory – monthly counts / reconciliations
Depreciation spreadsheets
Prepaid expenses
Accrued expenses

Hello world!

June 2, 2009

This is my first post.I am going to give it a try! Please don’t be too cruel – I am an Accountant not a Writer!

🙂 Kathleen