It's December already and it's that time of the year,when we close our Books and get ready for the Tax Period. Are you ready for Year End Closings? Do you know what you will need to carry out special Bookkeeping tasks,to see you through this period? Do not worry,We are here to help you,get over the Year End hassles,so that you can be ready for Tax filing on time. We have listed out, Special Bookkeeping tasks,that you need to put in place as you approach year end; once you do this,you are assured of a smooth transition into the new Accounting Year : CHECKING YOUR CUSTOMER ACCOUNTS:As you prepare your Books for the end of the 2012 Accounting Cycle,you will need to review your Customer Accounts.This is done by going through your Accounts Receivables,when you do this,you are monitoring customers that are owing you,so that they can pay you your outstanding balances before the end of he year.This is also a good time to review customer Accounts for possible Bad Debt Expense.In addition,this is the time to be more critical of past due Accounts.Remember,that you can use any Bad Debt to reduce your taxes,so if you believe that a customer is not likely to keep up his promise on a Past due Account,it is advisable to write off the loss. ASSESSING VENDOR ACCOUNTS:The end of 2012 Accounting Period is the perfect time to review your Vendor Accounts,to be sure that they are all paid in full and ready for the new cycle.You also have to ensure that you have entered ino your Vendor Accounts,any bills that reflect your Business Activity  in the period being closed,otherwise expenses from the period may not show up in the appropriate year end financial statements. For instance,Make Sure that you review outstanding Purchase Orders,to be sure that your vendor accounts are not missing orders,that have been completed,but have not been billed in your Books.You have to record the bill in December to reflect the receipt of the inventory during the Tax Year,even if the vendor will not bill you,for that inventory until January. REMOVING INACTIVE ACCOUNTS: The Closing process is a good time to assess all open Accounts and verify that you still need them.If an Account has no transactions in it,you are free to remove it at this time.However,it is advisable to make a list of the Accounts,that you need removed during the year,so that at year end,you will delete all inactive accounts.You have to ensure that there are no transactions entered into any of these Account. PROCESSING 1099S & W-2S FOR VENDORS/STAFFS:At the end of each year end,you must prepare,print and send IRS Form 1099 to your vendors,as well as W-2s to your staffs,not later than January 31st.Use 1099-Misc to report payments made to vendors,who performed business related services for your company.Remember that if total annual payments to the vendor do not equal or exceed $600,you are not required to prepare a form 1099-Misc to that vendor. If your Business takes out a loan,you should have set up long-term liability account to track it,during the year end,you will have to ensure that the payments,that you have been making towards the loan were correctly split between Principal and Interest,so that you are sure of proper and accurate recording. When you purchase Office Equipments,Buildings,Computers,Vehicles or other Assets that have useful lives of more than 1 Year,you will need to add them to your Balance Sheet and record a depreciation of the Assets periodically. RECONCILIATIONS: It is important to ensure that you reconcile all Cash,Loans,Credit Lines and Credit Card Accounts with the Statements and also file and keep Reconciliation Reports. RUN REPORTS: Lastly,you have to ensure that you have an ending inventory Balance for your year end period,obtain your principal balance of loans and interest payments for the year end from your Bank; Get your Bank reconciliation reports and verify their accuracy to the books.Enter adjusting entries as necessary and ensure that the balances on your books corresponds to what you have in your source documents. We know that these tips have helped you and as you are ready to proceed with your year end steps,We are happy to inform you that we are available to help you prepare adequately for Year End and ultimately get you ready for taxes. EMAIL US AT ROSYANBOOKKEEPINGSERVICES@GMAIL.COM OR CALL 202.422.4586 FOR MORE DETAILS. We would love to hear from you.

Reasons why you need bookkeeping services It is significant for a business to have transparent record keeping systems which would make the transaction clear and comprehensible. This article highlights seven factors why we need to keep an effective accounting book. Also you can understand the importance of bookkeeping services by going through this article. It also gives you quick tips about why you needbookkeeping services for your business. 1. Recording the business transaction would help you to monitor the financial success or failure of your business. You probably don’t know where you are going if you didn’t realize where you have been. Hence,understanding the existing scenario of your financial status is much important to achieve the heights and avoid the unexpected loses. An effective financial method provides you the answers to your entire questions about the growth scale. 2. Keeping a record would help you to make future business decisions. Every business decisions have to be finalized by considering the financial consequences happened earlier and the same can be done only if we retain the accounting books properly. Without the precise data and financial information,it is extremely difficult to predict the impact of any given action. 3. Maintaining account books would help you to file the income tax records accurately. Every business entity has to file income tax returns and pay incometaxes. With proper records, it is very easy to prepare the tax returns and filing also can be done on time without any hassles. You will be under/overpaying your taxes,if you fail to maintain proper records of your transactions. 4. Keeping the older transaction would help you to plan the budget for the forthcoming year. Preparing budget would keep you on the safer side and help you to avoid the unwanted expenditure. 5. Keeping good records would help you to prepare payroll tax returns and Sales tax without any hassles. If you are doing a partnership business, you can avoid unwanted issues in profit distribution by retaining your business transactions accurately. 6. You need Bookkeeping services, so that you do not have to burden yourself running your business and taking care of your Accounting Records, a bookkeeper will readily take your data in whatever form, it is (Receipts,Bank Statements, Files, Folders, Debit Notes, Credit Memos)and turn them intofinancial reports and present the information to you in the form, that will help you make great Business Decisions. 7. Finally, retaining bookkeeping services would help you to understand the transactions which are all profitable and the unwanted operating expenses. You can avoid those expenditures and prepare an effective budget to optimize your business financially. Hence, bookkeeping plays an essential role in every business. Outsourcing bookkeeping would really be worthwhile. Why don’t you contact us today to help you with your Bookkeeping Needs? We will take your data and organize, analyze, reconcile and send it backto you in a clean, organized, structured and Accurate Report. You will be glad you did.

It is important to note that, to assess your company's financial health, you will need more information than your Gross Income, to see how well your business/organization is doing. There are three important financial information, that you will need and these will also help you in making your Business decisions. They are: Balance Sheet-A Balance Sheet provides an instant picture of an organization's financial situation at a particular point in time. It shows an organization's assets(what it owns),liabilities(what it owes) and net worth(the difference between the two).It also provides a breakdown of current assets and fixed assets, as well as current liabilities and fixed liabilities. The Balance sheet also shows how much equity(ownership interest),that you have in the Business. Profit & Loss Statement - A Profit & Loss Statement shows all actual income and expenses incurred for a particular period of time, such as a month, quarter or year. This statement reports the most important numbers of the organization, like the Company's Gross Profit, total expenses and Net Income, through which Business owners can determine, if their business is making a profit or loss. Cash Flow Statement - This Statement shows how much actual cash enters and leaves your company's accounts for a time period,including all operating activities, investing activities and financing activities. Incoming Cash appears in different categories, such as Sales, Cash from Vendors, interest received, Owner contributions, any borrowed money or miscellaneous sources. The categories for outgoing cash are Payroll, inventory, operating expenses, equipments, capital expenditures, debts and distributions to owners. It is important to note that by combining these three statements, you will be able to assess the financial health of your company at any given time. Please note that you NEED to have a GOOD BOOKKEEPING SYSTEM in place, because this is the only way that your statements can be accurate, and with this, you will be able to make accurate business decisions. If you need help with assessing the financial health of your business/organization's and also  preparing any of the statements listed above, We are available to help you out. GIVE US A CALL TODAY ON 202-422-4586,and see how we can assist you. We will also give you suggestions, that will enhance your business and help your company grow. Please also feel free to fill out our contact form, so that we can get in touch with you and respond to your questions. We will love to help you.

Recently, I was discussing with a friend, who was competing with her sister in selling their hand made beads. The conversation was about raising her prices from ten cents to twenty five cents per bead. I asked her what she needed to achieve from the increase and what areas of her life, that she feels the increase will make an impact, hence asking her the five most important things that matters to her in life. She thought about it, looked at me and said in this order: “First, My Family, then My House, Television, Candy and then Money”. Impressed that she had come up with exactly five items, I probed a little deeper. “Mary, what do you need to get the candy that you love?’ “Money”, she said. “And how about the TV, what do you need to get that?” “Money” “And how about your house?” “Money”, she replied once again. And then I asked, “How about your family, what do you need to get them?” Just as quickly, she replied, “Love” “That’s right, “I said, but don’t you think that maybe you have to reorder your list? You see, if you need money to buy the candy, the house and the TV, then don’t you think money should be more important than what it can buy? In that instance, she thought about it and said, I was right, and within that short period, I introduced her to the law of money, a law that serves as the foundation for wise spending. THE LAW OF MONEY: PEOPLE FIRST.THEN MONEY.THEN THINGS You see, most of us are just like Mary, we value things more than we value money. We care more about having what money can buy than we care about having money itself. When we follow the law of money, we will find out that, we are respectful of money, and if we follow it and keep what we have and spend, it will make us truly rich. We will analyze each category: PEOPLE FIRST: We should always prioritize everything that is created by love, which include our Family, Friends, Partners, Children and Ourselves. The saying that goes that Money can’t buy love is true, and a life without love –regardless of how much money one has-is a poor life indeed. THEN MONEY: Can you imagine going to someone’s  house and having them proudly show you a room filled with thousands of dollar bills and telling you the history of how all that money came to be? You will be amazed at all that vulgarity, but at the same time, you will think nothing of it, when you compare it to another person's home that is filled with beautiful decorations, What did it take to decorate the home? Money. Money exchanged for furniture, paintings, carpeting, lamps and so on. The difference in your perception is the VALUE SYSTEM that you applied- A Room filled with things is okay, whereas a room full of money is not. THEN THINGS: When your financial priorities are in order; things come last. In conclusion, when we work hard for our money, maybe forty hours or more a week and then go shopping, buy food, clothes and stuff, we usually say that we don’t know where the money went. This is also applicable, when we pay for services, that we really need; but why don't you consider this- CHANGE your perspective now, if we valued money over things and over items it can buy, then we would know exactly where our finance is going. We should change our money/thing ratio, so that we will have more money than things, this will also encourage us to take great pleasure in seeing our money and watching it grow. With this approach, we would always know when we can afford something that we need and will be more likely to be able to buy the things we TRULY WANT to make us happy. So next time, you go out to spend money, always remember that you are not throwing the money away, but you are exchanging it for something that has a value to you. Please feel free to give us a call today to get your finances organized, so that you can capture where your expenses are going and invariably increase the value you need for the important areas in your life.

Wow, Where did the month go? First it was HAPPY NEW YEAR, and now it's almost the end of January 2014.Now,that the Holiday Season is far behind us, the month of January provides a welcome breather for busy schedules, but hold on, before you spend all your free time sprawling on your sofa, it's time to take a jump start on filing your taxes. This is the time to gather your W2s, 1099s, Other Earned Income Statements, Contribution Statements, Receipts, Bank Statements and other important documentation, so even though the IRS states that Tax Filing will begin on January 31st 2014, because it needs extra time to ensure that the systems are in place and working properly, We still need to get ready and prepare ourselves. We want to give you some tips on what to look out for as you get ready to file your taxes. We all know, that there are some New Tax Filing changes: Look for Every Possible Deduction: Some of the most commonly overlooked ones are charitable contributions, Student Loan Interest, Job Hunting Costs and State Taxes Paid last year. -  It is worthy to note that many credits and deductions for Education were extended for 2013 returns, among which is the American Opportunity Credit, which is up to $2,500. -  The Personal Exemption is $3,900; Standard Deduction is $12,200 for Married Tax Payers filing jointly, $6,100 for Singles and $8,950 for Heads of Households. -  Tax Payers will still be able to deduct their medical expenses, but it will be more difficult for many to qualify. The threshold for deducting Medical Expenses now stands at 10% of adjusted Gross Income, which is up from 7.5 percent. - Among the other changes, Tax Payers who work at home will now have a simplified option for taking a Home Office Deduction. Starting with 2013 returns, if you are eligible for this deduction, you can take a Standard Deduction of $5 per Square foot, up to 300 Square Feet. The Maximum Deduction using this method is $1,500. - The Deduction for Business Use of a Car has also been simplified; you can use your actual costs or the IRS mileage rates. The standard mileage rate for Business Use of a Car in 2013 is 56.5 cents a mile, up from 55.5 cents. - If you made Energy Efficiency improvements to your Home, such as Installing New Windows or a Qualifying Furnace or Heat Pump, you might be able to take an energy credit of 10% of the cost up to a lifetime maximum of $500,hence of the total, the IRS states "Only $200 can be for Windows,$50 for any Advanced Air Circulating Fan,$150 for any Qualified Natural Gas, Propane or Oil Furnace or $300 for any Item of Energy Efficient Building Property. Rapid Refunds: If you expect a Refund, the earlier you file, the earlier you will typically receive it. Using the refund to pay off interest-bearing debt is even more of a Plus. Planning Ahead: For those who owe taxes, earlier filing means more time to budget and set aside what will be due. Even if you file early, you still have until April 15th to submit your Payment. Double Check: If you prepare your own return, Completing it before the Deadline provides ample time to check and double-check your work to ensure that everything is correct before you file. Ensure that your Social Security/ Numbers/Individual Taxpayer Identification Numbers (ITIN) are entered correctly and the returns are signed. Those who feel that they need more time can apply for extension, until October 15th, but if you do file for an extension, remember to estimate and Pay any Taxes Due or you will face possible Penalty. We hope that these tips will guide and help you in your Tax preparations, Do you Need Help in checking your Reports and ensuring that everything is entered correctly and adequately reconciled? Do you Need Help in getting your Charitable Contributions ready? Do you Need Help in ensuring that all your Receipts and Invoices are correctly accounted for into your system, Remember that the more accurate your transactions are, the more deductions you can claim and invariably, the more accurate your Tax Returns will be. Why Don't you give us a call on 202.422.4586 or Email Us, to see how we can further assist you. We would love to hear from you.

It's already the eighth month of the Year, We are gradually getting to the end of the year, and soon it will be time for Year End Reports. In our last Newsletter, We discussed the concept of Cash Flow and how it affects our Business Operations; this month, we will be looking at tips to manage our Business Cash Flow.   Being in Business for yourself is like being an Air traffic controller, especially in the area of cash flow management ; You can imagine trying to control 100 Airplanes landing simultaneously on two runways; this can be an upheaval task, but we regularly see clients line up their monthly bills, their projected income, business projects and business expenses and try to combine all these activities, at the same time, trying to ensure a steady cash flow into the business; you can imagine, the projected outcome, if all these activities are not properly coordinated.   Cash Flow is the heartbeat of every Business, and if a Business does not have the cash on hand to pay their vendors, they will definitely run into problems. The main Cash Flow Problem, that Business Owners face is as a result of Lack of Creative Cash Management. Below are some Tips to overcome the Ups and Downs of Cash Flow Problems in your Businesses: 1) Always Schedule All Payments: Most Business Owners line up their monthly bills, compile them, sit down and issue all the checks and set up Bill Payments at once; but the trick is to have a " Holding Pattern". It is advisable to schedule each payment, in order to get to your vendors in a timely landing, without affecting other Cash Flow activities.    Every Business has Three (3) tiers of Checks Disbursements Groupings:         a) Must Pay Group- These are payments that can hurt you, either in cost or ability to operate your business, if they are not paid. These include items like Taxes, Rents, Payroll and Service Charges. b) Important to Pay Group - These are payments, that have a reasonable grace period, and if not paid, a financial penalty can be incurred, as a result of Nonpayment. These include Utility Bills , Credit Card Payments and Insurance Payments . c) Flexible Payment Plan Group - Suppliers, Vendors and Wholesalers, that supply most Small Businesses are the best sources of flexible credit financing. Most of them will continue to work with you, if you arrange a regular payment plan with them. Tip #1: Try to schedule Payment Dates, into the Three (3) tiers of Checks Disbursements groupings and issue check/Bill payments accordingly. 2)  Make Payments on your Revenue, not on uncollected Sales : I am sure, that none of us will want to land a plane, hoping that the runway is beneath us in the fog bank, as also Business owners, it is not advisable to make projected payments on uncollected revenue. You may wander, what happens to Credit Facilities, Guess What, Most Credit Facilities still have a timeline for payment. Tip #2: Always prepare your Cash Flow Statement and financial reports, and review them periodically, to have a full knowledge of your Cash Flow. 3)  Do not use Payroll Taxes to float your Business Operations: Studies have shown that most Business Owners use the Tax liabilities, collected during payroll, to float their businesses, rather than remitting the payments to the appropriate Tax Authorities. They don't realize that they spend more in potential penalties, fees , interests, time and aggravation, if they engage in this act. Tax Liabilities grow, if they are not remitted at the appropriate timing.  Tip #3: Try to discipline yourself to deposit the payroll tax money collected, into a Separate Bank Account, until you are ready to remit the payments. 4)  Establish Relationships with your Credit Provider: It is very important for every business owner to plan for a rainy day. Having a great relationship with a vendor, that gives you a credit facility, avoids cash flow storms, which might bring in a sense of desperation or lack of control.  Tip #4: If you work with a quality company, that provides working capital or credit facility, stick with them and build a relationship, once they know your credit worthiness, they will be there to help you quickly, in times of need.  5)  Invest in a Good Bookkeeping/ Accounting Service: It is important for Business Owners to have a grasp of their cash flow and understand the effect on their business growth. A Good Bookkeeping service is invaluable to your business, particularly in preparing your monthly financial reports and cash flow statements, which will help you, see how your Business is doing as well as maintaining your Business Cash flow.   Tip #5: Rather than worry about how to prepare your company financials and your cash Flow Statements, as well as trying to figure out, the amount of Payroll taxes to pay; let the professionals handle it.   Understanding and Managing Cash flow has been a challenge for many Business owners, but with the application of these tips, it is possible to grow your Business to a greater level , and also have enough funds for other activities, that will bring more revenue into your Business.      Please feel free to contact us on 202-422-4586, if you will need further help on how to manage your Business Cash flow and financial Reports. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW.

Welcome to the month of July. We are done with the first half of the year and started the countdown to the remaining half of the year. Our Newsletter for this month is on an integral part of every business; an area that is generally misunderstood by most business owners, but interestingly plays an important role in every organization. Have you taken time to look at your Cash flow Statement? Can you tell where Funds are disbursed in your Business? Do you understand the effect of your Spendings? The art of struggling to understand and manage your cash flow can be a huge distraction to your business; in this series, we will be providing you with quick tips on the basic method of understanding your cash flow. Our Areas of Concentration will be on: - Definition of Cash Flow - Drivers of Cash Flow in a Business - Facts about Cash Flow - Quick Tips on Understanding your Cash flow and applying it to your Business. - Managing your Cash Flow effectively. What is Cash Flow? Cash Flowis the movement of money into or out of a business, project or financial product, and can be measured at any specified period of time. The Following are the drivers of Cash flow in a Business: Accounts Receivables (These are money owed to a Business by its customer, as a result of services provided or goods sold). Inventory. Accounts Payables (These are Vendor Payments, owed to vendors, for goods bought/services received on credit). Capital Expenditures(Purchase of Equipments) Borrowings/Debt Servicing. It is worthy to note that your Cash Flow originates from 3 Basic Operations: a) Cash Flow from Operations b) Cash Flow from Investing c) Cash flow from Financing Most Business Owners have problems with Understanding their Cash Flow because of the following facts: a) A Profit or Loss in a Business does not equal Cash Flow. b) An Increase in Cash in your Business is not always good. c) A Decrease in Cash is not always bad. Many Business Owners have problems understanding and interpreting their Cash flow, because of the technicalities involved; but I want to challenge you today, to take the simple test below, write down your answers and put it into practice, and watch your business grow; I bet you will be so thankful for this enlightenment: Focus on the TOP 3 changes in your Cash for the Month. Decide whether each change is good or bad. Write one line description of each change and look at the effect, it has on your Business. Once you are able to prove the effect of the change in your Business, hold on to the result and use it as a base, in your Decision making. By doing this exercise periodically, you will have a better grasp of your cash flow, and see its effect on your Business growth.  I will like you to try this exercise and forward your feedbacks. In my next article, I will be giving you tips on how to effectively manage your Cash flow in your Business. Please feel free to contact us, if you will need further help in understanding your Cash flow and producing your Cash Flow Report. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW.