Accounting Solution Hack Now Financial Accounting in Business

Financial Accounting as an Accounting Solution? 

Financial accounting is an accounting solution that undertakes the work of recording, synthesizing data, and building financial statements to serve those who need to use accounting information. Information on the status and fluctuations of capital, assets, or physical and monetary flows will be synthesized by a financial accounting team based on data.

The finance and accounting team will include general accounting and data accounting, with a clear and transparent division of work to ensure work efficiency, specifically:

  • General accounting: Collect and process general information about the economic and financial situation of the unit. Through monetary units, general accounting provides data reflecting the use of assets and sources of asset formation of the enterprise.
  • Detailed accounting: Collect and process information according to a specific object on each unit. In detailed accounting, accountants must ensure accuracy to avoid affecting when resuming the data.

Financial Accounting for Businesses

A financial accountant is one of the positions that play an important role in the business, supporting businesses to perform tasks such as:

  • Provides information for those who need to use accounting information such as business leaders, external partners. Therefore, all financial accounting data provided should ensure accuracy, objectivity, and compliance with accounting principles and standards, which is the basis for managers to make appropriate and timely business decisions.
  • The information provided by a financial accountant is information about financial-accounting activities that have arisen, of a general nature, expressed in the form of value. Therefore, businesses can regularly monitor the status of their production and business activities.
  • Makes general financial statements about the business’ performance results of in the reporting period, including clear financial results and effective cost management that help businesses optimize costs and cut unnecessary expenses.
  • Manages risk and insurance for businesses when there are financial fluctuations.
  • Supports business leaders to regulate the financial situation of the business. The information from the financial accountant is also a legal basis to help businesses clearly resolve complaints, disputes, bank loans and investments.

Important Principles to Remember

Financial accounting should comply with the general corporate accounting rules. For instance:

  • Assets and liabilities are initially recognized at cost
  • Consistently apply the selected accounting regulations and methods in each annual accounting period. If there is a change in the method, the accountant should make a detailed explanation in the financial statements
  • To reflect in an objective, factual, complete, and correct manner in the accounting period in which economic, financial, and accounting operations arise.
  • For the preparation and submission of financial statements, accountants must do so accurately and submit them on time. The information and data in the financial statements of the enterprise should be disclosed according to the provisions of Articles 31 and 32 of the Law on Accounting.
  • Accountants evaluate assets and allocate expenditures and receipts in a uniform, careful and accurate manner with no deviation.
  • Preparation and presentation of financial statements must reflect the true nature of each transaction rather than its appearance

Financial accountants need to make monthly, quarterly, and annual reports such as: 

  • Monthly report: Provide VAT report, PIT report
  • Quarterly reports: Provide VAT reports, PIT reports, reports on the use of invoices
  • Annual report: Financial report, PIT finalization, CIT finalization, license tax
  • Accounting book:
    • General diary
    • General ledger
    • Receivable and payable report
    • Consolidate inventory report
    • Management of cash receipts and deposits
    • Management of raw materials, goods, finished products
    • Manage business revenue and expenses

In addition, a financial accountant also performs other tasks such as announcing the issuance of invoices, checking payment papers, etc. 

Management Accounting vs Financial Accounting

ContentManagement AccountingFinancial Accounting 
Purpose Provide information to serve the management of production and business activities.Provide information for the preparation of financial statements. 
Target customerCorporate managers (Board of Directors, Board of Directors). Business managers and external entities (Investors, banks, tax authorities, financial authorities, statistical agencies).
Providing information principlesThere is no obligation, managers are free to decide and adjust in accordance with the needs and management capabilities of the business.Respect the generally accepted and used accounting principles. In other words, financial accounting must ensure consistency according to certain accounting principles and standards so that everyone has the same understanding of accounting principles. Accounting information, especially financial statements, and financial accounting must comply with the provisions of applicable laws, especially the requirements of financial management and the requirements of society through disclosure. mandatory data.
Information’s scopesRelated to the management on each department (workshop, department) to each relevant individual.Involves financial management on an enterprise-wide scale.
Report timelineManagement accountants have more reporting periods: Quarter, year, month, week, day.Financial accounting has a reporting period: Quarterly, annually.
Information featuresEmphasize the relevance and flexibility of data, information is aggregated from many different angles.Reflect past information that is objective and verifiable. 
Statutory CompulsoryManagement accounting is not mandatory.Financial accounting is required by law. It means that the books and reports of financial accounting in all enterprises must be unified.

For small businesses and micro-enterprises to set up a complete and effective accounting system is quite difficult because of resource and cost constraints. Therefore, choosing an accounting service provider is currently the optimal solution for businesses today. Enterprises do not need to spend too much on paying staff salaries, office rental costs, or recruiting full accounting positions such as financial accountant, chief accountant, tax accountant, but still have a reporting system of reports and books in accordance with regulations.

At Shoeboxed, we provide the best receipt tracking and management system. As accountants and business owners using the Shoeboxed system, there is no need to worry about manage paper receipts as well as extracting transaction details from these invoices. Sign up now to use Shoeboxed for free or reach out to our representative for a demo and customized business plan. 

Top 10 Amazingly Innovative Tips On Bookkeeping For Truckers

With so many duties in their hands, bookkeepers, accountants, or those truckers who are in charge of their own bookkeeping may need the help of the following tips to get on top of their business.

1. Update Your Books Daily

When should you organize your accounting books and how often is appropriate? Monthly? Weekly? Or just whenever you have time to spare? The advice is that it’s best to do bookkeeping every day. There are days when you think nothing much is going on so it’s alright to leave the boring task of sorting out receipts and bills for tomorrow. But chances are that you may be busy the next day, and by the time you get to do it, you will have forgotten some details of the transactions. Make it a habit to finish bookkeeping before you call it a day so that you don’t need to worry about such a problem!

2. Choose The Right Software

The abundant availability of bookkeeping and accounting software nowadays might make you spoiled for choice. For trucking businesses, a cash-based accounting system is a popular option because it allows you to record transactions when money is received or paid, offering a clear picture of your current income and expenses.

It’s also important to consider the unique features of truckers’ bookkeeping practices when trying out and deciding on the one software that matches your needs. For example, some trucking management software has tools that assist with dispatching and calculating IFTA taxes, those functions that will be definitely welcomed by many truckers.

3. Go Paperless

However organized you are, keeping physical documents can take up lots of space and make bookkeeping a burden. The solution is not difficult to find in this digital era. Scan your receipts and invoices with mobile applications such as Shoeboxed or mail them using our Magic Envelopes, and leave the rest to us. You will be surprised at how fast retrieving and categorizing data can be, regardless of whenever and wherever you are. Discover many more useful functions for trucking bookkeeping at shoeboxed.com.

4. Have A Different Credit Card For Business

Trucking owner-operators or small businesses tend to make the mistake of not separating their business account from a personal account. If you want to keep your business records in order, do yourself a favor and get a business-exclusive credit card. The last thing you want is to lose track of important paperwork, complicating the management of business records and finances in general.

5. Bank Checks? Check Them Twice

Like any other financial documents, bank checks must be kept in your books and preferably on the cloud too. But before that, it’s advisable that all contents of the checks are reviewed with care to prevent misinformation or fraud. Your signature should be clear and legible enough to be recognized, but it will be a problem if it’s too easy to forge.

6. Use A Banking Account With A Month-end Cutoff. 

Closing your banking records at the end of each month can benefit the business in several ways. Since all the transactions that occur within that month have been fully recorded and reconciled, we can ensure that the accounting data is complete and accurate. Properly organized data not only helps to simplify other accounting procedures including tax filing and audits but also informs the decision-making process.

7. Manage Your Cash Flow

Keeping your books properly will be a lot easier once you understand the ins and outs of cash flow. Even though your business is making profits, if you don’t manage cash flow well there are chances that you will be in the red because the available money at one point is insufficient to cover urgent expenses. Bookkeepers in trucking businesses should always keep an eye on cash flow, acknowledging its impacts on smooth operational activities that bookkeeping is part of.

8. Get Your Records Ready For Audits 

Audits accept both paper and digital documents, so fear nothing if you have everything at hand to substantiate all the transactions of your trucking business. You can carefully save and classify each receipt and invoice by yourself or entrust them to professional services like Shoeboxed, which turns your physical records into verified data that are ready for tax season.

9. Learn About Tax Deductibles

It’s a good idea to look into what can be deducted when you do bookkeeping. For example, if you are self-employed, expenses that are related to your business are generally tax-deductible. They include vehicle expenses (tolls, parking, maintenance, fuel, registration fees, tires, and insurance), specialized work gear, electronic devices used for work, work-related fees for drug testing, dispatch fees, leasing costs, etc. 

10. Seek Professional Advice

Despite being equipped with the right tools to support your bookkeeping and accounting practices, unless you are confident in your knowledge of finances it is necessary to have your questions or problems solved by a professional. Even when your business is doing well, advice from a pro who knows the trucking industry will give you valuable insight to improve the overall performance. Try to have your business financial health checked by experts in the field and you will see the difference that it can make.

Learning the ins and outs of bookkeeping from scratch may be a real challenge, but you can start with these simple steps that we have compiled just for you. Remember, good bookkeeping – happy driving! 

The Shoeboxed Weekly Recap: A Very Mad Halloween, Accounting Solutions for Creative Entrepreneurs and More

It’s hard to believe October has already come and gone. We hope you had a very Happy (and candy-filled) Halloween! In case you didn’t have a chance to check in with us this week, here is a quick review of what you missed on the Shoeboxed blog:

1. Everyone’s talking about cloud-based accounting solutions. In Monday’s post we asked: Can the cloud play nice with an old-school accounting solution?

2. Small business owner? On Tuesday our Affiliate Manager, Mike, wrote a piece on the top 3 tax mistakes made by small business owners.

3. At Shoeboxed we have the privilege of working with thousands of creative entrepreneurs each and every day. On Wednesday we put together a list of the best accounting solutions for creative entrepreneurs.

4. To celebrate Halloween in style the Shoeboxed team donned their finest 50s attire and lived a day in the life of Sterling, Cooper, Draper, Price. Check out our album: A Very Mad Halloween

5. In this week’s edition of Organized Fridays we answered the question: “What can I do today to be more organized tomorrow?”

Stay organized this weekend,

Jake