Illinois Accountants - Chicago Accountants

Why Law Firm Billing And Trust Account System Must Work In Tandem
posted on January 11, 2010 06:33:17 pm
Technology can be friend or foe. For small to medium size law firms, billing system choices exhibit the greatest contrast in the use of technology, for better or worse. Law firms recognize the need for automated time tracking and billing systems. No arguments about that...

Tax Lot Accounting Basics
posted on December 11, 2009 07:41:22 pm
Tax lot accounting can help brokerage firms release capital gains down the road, freeing them from current tax burdens. This gives firms flexibility when trying to balance their books on a short-term basis. When it comes to securities holdings, often times showing a loss isn't a bad thing. This happens when there are benefits to recognizing losses on securities, such as deferring capital gains (and their associated taxes) to a later time...

Basic Accounting Principles
posted on October 23, 2009 09:49:27 pm
Businesses or individuals adapting to financial record keeping need to follow some of the basic rules or principles of accounting as in any other activity. It better not to go ahead with accounting without following the basics or the Generally Accepted Accounting Principles(GAAP), that may rather end in messing up with finances. Apart from this by adhering to proper accounting guide lines makes both the internal and external customers confident about an organization. Most accounts of businesses are based on two methods of accounting the cash basis and accrual basis...

What Are The Methods For Distributing Client Money In The Event Of Insolvency
posted on October 07, 2009 10:57:32 pm
The way clients recover money in the event of business failure somewhere in the supply chain varies according to circumstances and according to whether the funds were held in general or designated accounts. Primary pooling The main trigger for a primary pooling event is intermediary insolvency. A primary pooling event will not occur where a third party or a bank becomes insolvent. A primary pooling event will result in all client money in each of the intermediary’s client accounts (general and designated) forming a common pool: each client will have a claim on the aggregate, but not to a specific sum...

Financial Accounting For Constraction Contracts
posted on March 12, 2009 11:23:37 pm
A contract is a big job requiring considerable length of time to complete and comprising activities to be done outside the factory promises, viz. construction of a dam or school building, laying down railway lines, etc. Since each contract involves considerable resources both in terms of men and materials, it is necessary to devise an appropriate accounting system to ascertain the cost and profit made on each contract separately. Profit on incomplete contracts: At the end of an accounting period it may be found that certain contract have been completed while others are still in process and will be completed in the coming years...

Financial Statement Analysis
posted on February 09, 2009 11:31:42 pm
Financial statement analysis involves careful selection of data from financial statements for the primary purpose of forecasting the financial health of the company. This is accomplished by examining trends in key financial data, comparing financial data across companies, and analyzing key financial ratios. All financial statements are essentially historically historical documents. They tell what has happened during a particular period of time...

Financial And Cost Statements
posted on February 10, 2009 12:39:47 am
An indispensable part of any system of accounting is programmed of periodical statements and reports to inform management of the current financial position of the business and of the progress made by, and the costs incurred for, each process, department and division. The number of statements and reports and their characters differ according to the requirements of management of each business enterprise. The following statements and supporting cost reports are commonly prepared for the management; (1) balance sheet, (2) profit and loss statement or income statement supported by statement of cost of goods manufactured and sold. Balance sheet is a statement of assets and liabilities which reveals the financial position of the business...

Importance Of Bookkeeping And Accounting Services
posted on February 04, 2009 01:47:52 am
Bookkeeping and accounting services is very important function for success of any ongoing online business and this department requires more accurateness in work because any single mistake can affect the success of all business. Bookkeeping and accounting is an important task for small to large size financial business. Now a day's most of businesses are being web based and online and that's why the need of online accounting and book keeping increased speedily. If you want online book keeping and accounting services provider for your business then you can find lots of services provider with various offers and competitive rates...

Outsourcing Your Medical Billing
posted on February 20, 2008 02:55:57 am
Is outsourcing your medical billing the right choice for your practice? Standard Medical Billing Services Standard services offered by medical billing companies are generally similar. However, there will be differences in the level, consistency and quality at which these services are provided, all depending on the size and experience of the company. The following list identifies the most fundamental services provided by any professional medical billing company. Claim Generation and Submission Claim generation includes the entry of patient demographic, insurance information and the transfer of data into the medical billing software...

Accounting Outsourcing Services Can Boost Your Roi
posted on February 06, 2008 03:23:15 am
Accounting outsourcing services performs a significant function in finance and accounting. Business managers are under incredible pressure to trim costs of finance and accounting departments to boost productivity, increase profitability and assign strategic value to it. Now there is enough demand in the market for accounting outsourcing services. The enormous volume of workload on businesses has created a unique position for outsourcing...

Effects And Action In Accounting
posted on January 30, 2008 04:31:20 am
Globalization of business has been with us for many years and, in the main, has been managed successfully by organizations. This is because many of the problems have been concerned with practices, not policies, and working within regulations in other countries. It has not involved changes to the financial regulations affecting domestic operations. When the issue becomes one of international regulations and policies affecting domestic arrangements, the impact is much greater and pervasive...

Accounting Coursework
posted on January 15, 2008 05:39:25 am
Accounting coursework can help a student realize his goals in performing well in the field of accountancy. Because of the relationship of this project to the actual modules of learning, you will be able to master some of the necessary skills in performing the accounting process. Your instructor are very much aware that with such requirement, student will be able to grasp a form of research talent while at the same time provide projects with high quality. Apparently, the essay quality already projects the type of a person and how he will be doing or performing in the whole of the academic cycle...

Composing A Strategy Document
posted on October 09, 2007 07:47:30 am
Determining a Format The format for the document itself can be altered to fit the writing style and sophistication of the management team charged with implementing the strategy. The one must to writing the document will be focusing on its usability. The fact that the document will be circulated throughout the organization and relied on in the future is reason enough to develop an informative record of objectives and tasks. The finance strategist must recognize that this document will not only inform but also serve as a platform and motivation for action...

Issues In Creating Financial Statements
posted on November 04, 2007 07:55:35 am
Measuring the Level of Urgency and Motivation Financial reporting, whether it is for internal or external purposes, must be prioritized. Finance resources must be dedicated to urgent reporting matters before less important reporting issues are addressed. The challenge for the finance strategist is to determine which matters of reporting deserve attention over others. Financial reporting matters will be segregated into two broad categories: (1) have-to reporting and (2) like-to reporting...

Creating Models For Internal Analysis And Measurement
posted on November 04, 2007 08:23:40 am
Value of Internal Analysis Models Preparing financial statements and creating models and analysis tools are both subsets of financial reporting. Models and analysis tools are internally focused although they may be based on external needs and reporting requirements. The most critical time to establish analysis models and measurement tools is during the early stages of business. Even though a company may not be sophisticated enough to create and manage a collection of such tools, having a small number of simple measures will offer a framework/measuring stick for growth...

Employing Accounting Methodologies To Serve Needs
posted on November 04, 2007 09:31:45 am
Role of Accounting Methodologies Financial reporting is a critical aspect of the finance function as it is the way in which the company is communicated to stakeholders, whether internal (management and owners) or external (creditors, governmental agencies, and absentee shareholders). Ultimately it is the owner of the business who is responsible for the accuracy of data disseminated in financial statements, a point worth noting especially when external data customers are significant. How the finance function deals with the challenge of data issues and financial statement preparation, particularly misinterpretations, bias, and ambiguities related to data, is ultimately the owner’s responsibility. Avoiding these potential shortfalls in the reporting process will depend, to a large extent, on the implementation of uniform, relevant, and practical accounting methodologies that fit the business...

Traditional Perception Of The Finance Function
posted on October 25, 2007 11:39:50 am
For the small and emerging business owner, the greatest barrier to developing a sound finance function may be the traditional perception of finance and accounting. The erroneous perception of the finance function as the meticulously slow and detailed process that yields soberingly bad news of past performance must be addressed. The reality is that the finance function must be up to the task of steward of the most valuable data the enterprise will encounter. The responsibility of this stewardship requires that the finance function excel in its role as communicator, educator, and visionary...

Finance Function Defined
posted on October 29, 2007 12:47:55 pm
The finance function consists of the people, technology, processes, and policies that dictate tasks and decisions related to financial resources of a company. Depending on the organization and the industry in which it operates, this function may be simple or complex. Some finance functions are overstaffed that is, they rely on individuals to perform both advanced and simple tasks while others are highly automated relying on people for decision making and policy setting exclusively. Regardless of the ratio of people to technology, the goal of the finance function is to serve the organization's financial/accounting needs while laying a platform for the future...

The Finance Function
posted on October 30, 2007 01:55:15 pm
Conceptualizing, implementing, and maintaining a finance strategy requires an understanding of the finance function itself. This function has many components, some more easily defined than others. The finance function serves as the foundation for virtually all aspects of the business from gathering data and converting it to knowledge, to performing due diligence on expansions, to disseminating financial data to the general public. So what does the finance function do? Many aspects of the business are prompted, driven, or dependent on the finance function...

What Is The Perception Of Finance And Accounting
posted on October 30, 2007 02:23:20 pm
Small business owners and executives are compelled to wear many hats in carrying out their duties as leaders of a business organization. Often the accounting/ finance hat is the one most avoided. The small and emerging company’s survival depends largely on the health of the finance function. Knowing this, any trepidation about handling issues that affect the finance/accounting function must be overcome before a tendency to avoid finance issues becomes a culture of neglect...

Section 529 Plans
posted on November 24, 2006 02:31:25 pm
Qualified tuition programs, or Section 529 plans, have been in existence in many states and in various forms since 1986. The programs were named after Section 529 of the Internal Revenue Code, which was enacted in 1996. Essentially, these are programs that are operated at the state level and gave the participant a number of benefits that include tax-deferred earnings. In this way, they were akin to a traditional IRA or a 401(k) retirement plan...

Accounting Principles Earning Reports And Conference Calls
posted on April 02, 2007 04:39:30 pm
Most companies issue a press release reporting their last quarter’s earnings within a few weeks of the quarter’s end. The SEC allows firms 45 days after the quarter’s end, and 90 days after the end of their fiscal year, to file their SEC reports, so the press release data could be all that you have to go on for some time. Companies usually conduct an analysts’ conference call within hours of the earnings release. Anyone can listen in on the conference call live, or listen to a recording (via your browser), for at least a month after the call...

Accounts Receivables And Inventories
posted on February 22, 2007 04:47:35 pm
Analyzing accounts receivable and inventory levels is arguably the most widely used method for spotting red flags. Accounts Receivables Unlike when they sell to us, a company doesn't usually require payment in advance when it sells to another firm. Instead, it bills the customer and specifies a payment due date. Accounts receivables are the monies owed by customers for goods already shipped and billed...

The Difference Between Accounting Revenue And Actual Cash Flows
posted on January 13, 2007 05:55:40 pm
There are significant differences between accounting revenues and profits and the company's cash flow. These differences may derive from several sources, such as the following: Timing differences between sales and receipt of payments— The main differences are the result of timing differences between when sales are made and when payment for them is received. Cash will flow to the company only when payment is received for a transaction it made, unless the company has made an agreement whereby it sold the debt related to the sale to a finance provider, who gave it cash in consideration for the debt. Barters— Besides the provision of credit to customers, another difference results from transactions in which the consideration is not given in cash...

Activity Based Management In Accounting
posted on September 24, 2006 08:23:45 pm
Activity-based management (ABM) is an approach to management in which process managers are given the responsibility and authority to continuously improve the planning and control of operations by focusing on key operational activities. ABM strategically incorporates activity analysis, activity-based costing (ABC), activitybased budgeting, life-cycle and target costing, process value analysis, and value-chain analysis. Enhanced effectiveness and efficiencies are expected for both revenue generation and cost incurrences. Since the focus is on activities, improved cost management is achieved through better managing those activities that consume resources and drive costs...

Accounting Information Systems
posted on September 15, 2006 09:31:50 pm
Accounting Information Systems (Accounting information systems s) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations. Accounting information systems TECHNOLOGY Input The input devices commonly associated with Accounting information systems include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come ‘‘Web-enabled’’ to allow devices to connect to the World Wide Web...

The Steps Of The Accounting Cycle And Computerized Accounting Systems
posted on August 30, 2006 10:39:55 pm
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period. Companies must systematically process financial information and must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle...

What Is Accounting And General Accounting Principles And Functions
posted on October 29, 2006 10:47:15 pm
Accounting is a body of principles and conventions as well as an established general process for capturing financial information related to an entity’s resources and their use in meeting the entity’s goals. Accounting is a service function that provides information of value to all operating units and to other service functions, such as the headquarters offices of a large corporation. Origin of Accounting Modern accounting is traced to the work of an Italian monk, Luca Pacioli, whose publication in A.D...

Negotiable Order Of Withdrawal Accounts
posted on August 11, 2006 12:55:20 am
Negotiable order of withdrawal accounts, usually called NOW accounts, are interest-bearing checking accounts offered by banks, and particularly thrift institutions, in the United States. The so-called M1, the narrowest definition of the money supply in the United States, includes NOW accounts. NOW accounts came about from a process of regulatory evolution rather than consciously thought-out planning for the monetary system. The Glass-Steagall Act of 1933 banned payment of interest on checking accounts, reflecting the depression-era thinking that interest-paying checking accounts had contributed to the high incidence of bank failures...

Equation Of Exchange
posted on September 10, 2006 01:23:25 am
The equation of exchange identifies the exact mathematical relationship that exists between the money supply, the price level, and the volume of economic activity. The economist Irving Fisher (1867–1947) first formulated the equation of exchange, and his version took the following form: MV + M′V′ = PT. Here M stands for the stock of currency in a given year, V stands for the velocity or number of times a dollar bill changes hands during a year, M′ measures the quantity of checkable deposits, and V′ the velocity of checkable deposits. P stands for the price involved in a typical transaction, and T represents the number of transactions...

Problems That Arise From Allocation Process
posted on September 20, 2006 02:31:30 am
The process of allocating overhead charges toindividual businesses can lead to several problems within a company. It Fosters Politics The process of allocating overhead charges toindividual businesses fosters political infighting. When an executive shinesas a result of her contribution to the profitability of thebusiness, this is a positive result. However, when costs areallocated, a manager who knows how to manipulate the allocation methodologycan make his department’s performance look better bygetting charges assigned to other operating units...

Generally Accepted Accounting Principles
posted on September 20, 2006 03:39:35 am
The Financial Accounting Standards Board (FASB) is a research organization, made up primarily of accountants. The FASB, along with the entire accounting profession, has, over time, developed a series of rules called generally accepted accounting principles (GAAP). In addition, the FASB publishes what are called FASB Bulletins. These are a series of more than one hundred publications that describe what corporate reporting methodologies should be...

Financial Statements ~ Who Uses Them And Why
posted on August 15, 2006 04:47:40 am
Here is a brief list of who uses financial statements and why. This list gives only a few examples and is by no means complete. 1. Existing equity investors and lenders, to monitor their investments and to evaluate the performance of management...