Posting in accounting: What is it?

Posting in bookkeeping is the point at which the parities in subledger and the general diary are moved into the general record. Posting just exchanges the aggregate parity in a subledger into the general record, not the individual exchanges in the subledger. A bookkeeping supervisor may choose to take part in posting generally rarely, for example, once per month, or maybe as habitually as once every day.

Subledgers are just utilized when there is an expansive volume of exchange action in a specific bookkeeping territory, for example, stock, creditor liabilities, or deals. In this way, presenting just applies on these bigger volume circumstances. For low-volume exchange circumstances, passages are made straightforwardly into the general record, so there are no subledgers and consequently no requirement for posting.

For instance, ABC International issues 20 solicitations to its clients over a one-week time frame, for which the sums in the business subledger are for offers of $300,000. ABC’s controller makes a presenting section on move the aggregate of these deals into the general record with a $300,000 charge to the records receivable record and a $300,000 credit to the income account.

Posting is likewise utilized when a guardian organization keeps up discrete arrangements of books for each of its auxiliary organizations. For this situation, the bookkeeping records for every backup are basically the same as subledgers, so the record aggregates from the auxiliaries are posted into those of the guardian organization. This may likewise be taken care of on a different spreadsheet through a manual solidification process.

Posting has been wiped out in some bookkeeping frameworks, where subledgers are not utilized. Rather, all data is straightforwardly put away in the records recorded in the general record.

At the point when posting is utilized, somebody investigating data in the general record must “bore down” from the record aggregates posted into the significant general record records, and pursuit in the definite records recorded in the important subledgers. This can involve a lot of extra research work.

From the point of view of shutting the books, posting is one of the key procedural strides required before monetary articulations can be made. In this procedure, all conforming passages to the different subledgers and general diary must be made, after which their substance are presented on the general record. It is standard now to set a lock-out banner in the bookkeeping programming, so that no extra changes to the subledgers and diaries can be made for the bookkeeping time frame being shut. Access to the subledgers and diaries is then opened for the following bookkeeping time frame.

On the off chance that posting coincidentally does not happen as a major aspect of the end procedure, the aggregates in the general record won’t be precise, nor will the budgetary articulations that are arranged from the general record.

 

Diary is only an ordered record of all business exchanges. Yet, in the event that we need to know the net impact of different exchanges influencing a thing, we have to experience the entire diary. It requires investment. You realize that time is cash in business.

Accordingly, to conquer this trouble, we keep up another book called “Record.”

Record is a book which contains, in an outlined and characterized structure, a complete record of all exchanges. Since it contains complete data about different exchanges, it is known as the ‘Important Book’. Last records of a business are set up on the premise of record.

Rules for Posting into Ledger:

Posting into record is produced using diary sections went in the diary. Mention that each diary passage will must be posted into all records which have been charged and credited in the diary section. Backtracking to Illustration I, for products obtained for money. Buys Account is charged and Cash Account is credited. While posting this section into record, it will be posted both in Purchase Account and also in Cash Account.

Posting will be made on charge side of the record which has been charged in the diary section and, likewise, using a credit card side of the record which has been credited in the diary, passage. Keep in mind, the postings into record will be made in sequential way (date-wise).

In the specific section, the name of the record (went before by ‘To’) credited in the diary passage will be composed. Thus, while posting on the credit side of the record, we should compose the name of the record (went before ‘By’) charged in the diary passage.

The measure of diary passage will be appeared in the sum sections of both records lastly records will be adjusted.

Top tax saving tips for small businesses

There are following tips from Practice Eye for small business that they follow to save tax :

1. When setting up as a sole trader, you can claim against your profits for items used in your business even if they were purchased prior to commencement of trade.
2. A director of a limited company can withdraw a total of £38,474 during 2014/2015 without having to pay any additional income tax or national insurance.
3. The Annual Investment allowance at 100% is increased from 250,000 to 500,000 for 2 years from 5 April 2014 It is essential to plan purchases carefully to maximize the relief available, particularly where the accounting year end spans the date of the change.
4. Consider your method of drawings from the business. If a limited company, paying a small salary up to the personal allowance and the balance as dividends is normally the most efficient method, however this is not always the case.
5. Put any mobile phone you have in the business name and all costs of the phone are deductible (you do not have to split business vs non-business calls).
6. In most cases it is best to run your own vehicle personally and claim mileage using HMRC authorized mileage rates, where you trade via a limited company this will avoid large taxation charges on the use of company cars in most cases.
7. If you work from home you will be able to claim a deduction to cover part of your home running costs. HMRC allow (a modest) £4/week flat rate without requiring any evidence. If you spend a significant amount of time working from home then it is likely you will be able to claim more using the “appointment method”. Please contact us for further information if you would like help with this.
8. Married couples/civil partners should ensure that their finances are arranged to utilize each personal allowance £10,000 basic for 2014/15 (£10,660 for those born before 05/04/1938 and £10,500 for those born between 06/04/1938 and 05/04/1948) and lower rate tax bands (£31,865 for 2014/2015). It might be sensible to transfer income producing assets to a spouse to take advantage of their lower taxable income.
9. Make contributions into a pension scheme. Pension contributions tend to be deductible expenses for the company, and suffer no immediate tax charge on the individual. Where an individual’s adjusted net income for 2014/2015 is more than £100,000, their personal allowance will be reduced by £1 for each £2 of excess. Consider making individual pension contributions to preserve personal allowances. Individuals could save £4,000 in 2014/2015 at 40 per cent, or more if relief is available at 45 per cent. This is because adjusted net income is reduced by individual pension contributions. However, the impact of pension anti-forestalling rules and the reduced annual allowance needs to be borne in mind. It may therefore be advantageous to transfer income-producing investments to a spouse.
10. Use a salary sacrifice scheme to pay for employees childcare costs of up to £243 per month tax free. Childcare voucher schemes are tax free for the employee and the business operating the schemes incur no Employer’s National Insurance. For higher rate taxpayers joining schemes after 6 April 2011 the level of the tax exemptions may be limited but this will be determined by a “basic earnings assessment” carried out by the employer.
11. Capital Gains Tax – you each have an exemption for Capital Gains (£11,000 for 2014/15). It makes sense to use this if you can. If you intend selling assets, it may be worth transferring them into joint names or spreading the disposal over 2 years. The rate at which Capital Gains Tax is payable will depend on a number of factors but broadly basic rate tax payers will pay 18% and higher rate taxpayers will pay 28%. In some circumstances the capital gains tax rate can be reduced to as little as 10%. With the capital gains tax rates significantly lower than the 45% top band of income tax there are a number of planning opportunities.
12. Where you work for only one client or a number of clients on short term engagements you may have to consider the impact IR35. IR35 was legislation introduced to ensure that there was no avoidance of tax by the use of limited companies. Broadly where the relationship between the worker and client would have been one of employment had the limited company not have been imposed between the worker and the client then IR35 could apply. This would mean that there would be significant extra national insurance charges etc. imposed on the worker. Factors suss as the use of a substitute, holiday pay and mutuality of obligation would be some of the relevant factors used to ascertain whether the worker comes within IR35. Please contact us to discuss if you think that this may be relevant to you.
13. Automatic penalties are now imposed if you do not file your Self Assessment Tax Return on time. Do not forget there is an automatic £100 fine if you do not file your return by 31 January following the end of the tax year (by 31 October if you are filing paper returns). Further daily penalties mean that a tax return that is over 6 months late costs cover £1,300.

Bookkeeping Accounting Outsourcing India

Practiceeye has been as long as bookkeeping outsourcing services to Accounting Firms, SMEs and Large Corporates, with our 10 years of proven expertise to all significant business transactions, nature of it and along with knowledge of majority of bookkeeping software like Sage, QuickBooks, MYOB, KashFlow, TAS, XERO, VT Transaction, etc, we can provide quality bookkeeping services.

Bookkeeping Outsourcing Services

There is no require mentioning that our Bookkeeping Accounting Outsourcing services could save you a lot, but at the same time we assure that bookkeeping is treated particularly here giving you error free book and also customizing it to suit your needs, it only comes with experience in doing it. We have been doing bookkeeping Outsourcing India extensively for UK, US and Australia and we could say that we are Industry expert in providing bookkeeping outsourcing services, we aim to produce output in a manner that helps our customers with further accounts or tax production work thereby minimizing the further cost

Our Bookkeeping services include

        Assets / equipment ledger maintenance

        General ledger maintenance

        Expenses ledger maintenance

        Accounts receivable services

        Accounts payable services

        Preparing ageing reports & summaries

        Bank account reconciliation services

        Credit card reconciliation services

        Inventory reconciliation

        Payroll reconciliations

        Cash flow management, etc

There was a time when only large corporates could get benefits from outsourcing their back office operations. According to a research around 65% of fortune 500 companies are outsourcing their back office operations, here is a chance for you to come in the same league, remember “outsourcing” is an accepted norm now and very important business approach to stay competitive in the market. It is additional important now that you have an outsourcing strategy aligned with your firm wide business approach. Don’t wait, sign up for Bookkeeping outsourcing services today to start availing the colossal benefits of it through Practiceeye.

Advantages of Outsourcing Finance and Accounting Services

Do you want to reduce your company’s transparency costs, increase profits, and meet regulatory requirements at the same time? If yes, why not take advantage of our expertise in Finance & Accounting Services and benefit from an increase in your return on investment? By using our expert accountants and book-keepers to handle your company’s financial documentation, you can focus on core competencies, target specific markets and increase profitability.

When your organization outsources accounting, tax preparation, bookkeeping or other finance and accounting services to Practice, you can expect various benefits, such as the following:

1. Significant cost savings

By outsourcing, you can get right of entry to proficient accountants, CPAs and CAs at a much lower cost, without compromise on quality. This is because of the dissimilarity in the cost of living between India and the US or UK. You can also save on communications costs, employment taxes and other overhead costs. In its place of spending huge sums of money on finding and retaining a team of skilled accountants, all you have to do is outsource to Practiceeye.

2. Enjoy secure book-keeping and accounting

You can outsource any non-core accounting purpose to us, without the fear of security, privacy or privacy issues. We can work on your server with remote access, so that your original files do not leave your office. We back up data on various secure servers and have foolproof disaster revival systems across all our premises. You can rest assured about the confidentiality of your data, as we will sign Non-Disclosure agreements with you and our employees at the onset of the project.

3. Benefit from fast and scalable services

At Practiceeye, we make the most of the 12 hour time zone variation between India and the US, to get your office work completed while you sleep. While your enterprise concentrate on core business activities or value added services, we will get all your accounting work completed ahead of schedule and with zero errors. Our quick services help put you ahead of your competitors. In case of emergencies, we can even process your financial data overnight. While our finance and accounting services are scalable, you can easily scale your requirements up or down as necessary.

4. Meet all your requirements at one destination

Whether your business enterprise requires financial analysis, accounts payable, payroll processing, tax preparation or book-keeping, you can get access to any type of accounting service at Practiceye. As your partner, we can help you with critical financial work as well as seasonal workloads.

5. Take advantage of our domain expertise

The financial and accounting team at Practiceeye include skilled financial analysts, chartered accountants, statisticians and MBAs who are aware of the latest trends in the financial world. Our team has gained extensive experience by meeting the unique requirements of diverse customers. With such domain expertise, you can be sure of cutting-edge accounting services.

6. Get access to Sarbanes-Oxley compliant services

At Practiceeye, we are acquiescent with Sarbanes-Oxley and offer our customers total financial transparency. Your corporation, enterprise or CFA firm can achieve regulatory compliance and better financial reporting, as we adhere to the Sarbanes-Oxley Act. Our trained accountants understand the importance of the Sarbanes-Oxley regulatory framework and strive to supply quality services.

7. Benefit from our collaborative approach in finance and accounting services

We understand that each organization works differently and has unique needs, so at Practiceeye, we follow a exceptional collaborative advance to provide our customers with tailor-made finance and accounting solutions. With all your requirements met in a personalized way, you can save on cost and also give your business a head start against competitors.

8. Get our technology to work for you

We use the latest scanners, 128-bit secured servers, web-enabled software, real-time customer track and a secure network to ensure fast and accurate transfer of data. Our accounting services can give your business the competitive edge you are looking for. Our high-end workflow technology along with proven methodologies and time-tested process enable us to provide quality accounting services that are accurate. As our partner, we can bring about a marked increase in your level of output and efficiency

Accountancy outsourcing services India

Practice eye is one of the best growing Outsourcing Company in India in the field of Outsourcing  for as long as Accounting & Financial services since 2012. We are specialized in Accounts outsourcing services

, Finance & Accounting Outsourcing in India,Bookkeping Service, Accounting Service, Payroll Service,  Financial accounting services

Xero Accounting, Kashflow Accounting, IRIS, Caseware, Tax Returns, UK Tax Returns, T1 & T2 tax returns and Australian Tax.
Practiceeye (L) are also Payroll Processing, Accounts receivable  back office Outsourcing Services to CPA’s & ACCA’s in US ; UK & Canada & Australia for accounting, bookkeeping, Payroll and tax returns. Practiceeye provides outsourcing services to other company that could also be or usually have been provided in-house. furthermore Outsourcing of back-office finance and accounting enable the client to focus on their core business while cutting on the costs for outsourced departments.

Practiceeye is completely owned by Chartered Accountants having experience of more than 10 years in Taxation, Accounting and Payroll outsourcing. The company is having group of hardcore professionals for outsourcing who are handling internationally with offices in India and US. We also provides excellent communications for outsourcing centers for data processing, taking up the projects of BPO, KPO and LPO.

What is Accounting Principle ?

Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.

Accounting Principle

One part of accounting focuses on presenting the information in the form of general-purpose financial statements (balance sheet, income statement, etc.) to people outside of the company. These external reports must be prepared in accordance with generally accepted accounting principles often referred to as GAAP or US GAAP. This part of accounting is referred to as financial accounting.

Accounting also entails providing a company’s management with the information it needs to keep the business financially healthy. These analyses and reports are not distributed outside of the company. Some of the information will originate from the recorded transactions but some of the information will be estimates and projections based on various assumptions. Three examples of internal analyses and reports are budgets, standards for controlling operations, and estimating selling prices for quoting new jobs. This area of accounting is known as management accounting.

Another part of accounting involves compliance with government regulations pertaining to income tax reporting.

Account Outsourcing Service In India

One in four businesses don’t make it through the first year and more than half don’t survive past the fifth. Unsurprisingly, Practice eye has discovered, one of the main reasons for this is down to cash-flow – without it, a business simply cannot stay afloat. Practice eye described below some of the most common cash flow problems and how you can prevent them from occurring in the first place.
Disorganized books
Lots of new business owners put their Accounts outsourcing services to the side because they’re so busy with the huge workload involved with setting up a new company. Although this is completely understandable, the longer this is neglected, the worse your problems will get. After all, if you’re not on top of the money coming into and leaving the business, how will you know what to prepare for?
It’s also important to ensure that you keep a proper record of which customers have and haven’t paid you otherwise significant sums of money that is owed to you may be getting overlooked. An effective accounting system is absolutely vital to manage your cash-flow. If you don’t have the time to do it yourself then an accountancy practice will be able to do this for you.
Bad debts
Bad debt is money that is owed to you but cannot be recovered – usually because a company has gone out of business. This can be crippling for any new company but is usually preventable if a proper credit control system is put into place early on. If you discover that a customer has a poor credit record but you still want to take them on as a client, ask them for an upfront deposit or issue partial invoices so they can pay as portions of the work are completed. This prevents you from being out of pocket by a huge sum of money.
Out of sync credit terms
If the credit terms you have set your customers are out of sync with the credit terms set by your suppliers, you are going to run into negative cashflow very quickly. For example, if you allow your customers 30 days to pay but your suppliers require payment within 14 days, you are going to struggle to meet your financial commitments.
If you are currently in this situation then re-negotiate terms with your customers and/or suppliers. If this isn’t possible straight away then you could try to come to some sort of agreement with those you owe money to and you could encourage customers to pay up promptly by offering an early settlement discount.
No cash-flow forecast
A cash-flow forecast is essential for any new business and is something that a qualified accountant can put together for you. This will allow you to forecast the months you can expect to see a cash deficit and when you may experience a surplus. This will allow you to plan ahead as well as give you a pretty good idea of how much cash your business is going to need over the next 12 months in order to survive.

Practiceeye Service

SERVICES

Practice Eye bouquets of services for accounting practice are unique and we assure noiceless and easy transition. Starting from basic bookkeeping to statutory compliances , every job is managed by experienced accountants . Our USP is fixed fees solution so our customers are assured of viability from day one. 

OUR OFFERING

• Bookkeeping /VAT management

We provide services to our clients based in the UK, Ireland, Canada, USA , Australia , New Zealand , Singapore and Hong Kong and manage compliance requirement of over 2800 small & medium sized businesses. 

As per nature of our services we manage jobs in client specific software’s and as our clients are based in different countries , our team uses more then 28 different accounting and tax software’s . Some of the most common used by our team are Sage suit , Digita , CCH, IRIS, Quick books , VT , TaxCalc , Xero, Economics , MS money , Pro system FX, Lacerate , Ultra tax , ATX , Turbo tax, Pro series , Dr. Tax, etc.

• Management accounts
• Payroll processing
• Cash flow analysis
• Internal audit
• Reconciliation services
• Year end accounts
• Personal tax returns
• Corporate tax returns
• Trust Tax returns
• Non resident /Expat tax returns
• Bankruptcy estate management (Canada)
• Practice management
• Ixbrl conversions
• Accounts payable
• Accounts receivable
• General ledger maintains

Welcome to Practice eye – a business for Accounts…

“Practice Eye provides efficiency enhancement solutions using blend of outsourcing (Offshore and Onshore) and consulting solutions to accountancy practices in USA, UK , Canada, Australasia & Ireland “

Features and Content

About Practice eye

“Practice Eye provides efficiency enhancement solutions using blend of outsourcing (Offshore and Onshore) and consulting solutions to accountancy practices in USA, UK , Canada, Australasia & Ireland “

Nine in every 10 small accountancy practices have seen their profits turn into loss over the last couple of years. The pace of recovery is slow and shows no sign of accelerating. Many accountants have had no choice but to diversify, widening the types of accountancy services they offer. Often this has led to increased stress and longer hours, but with little financial return.

Why not use Practice eye proven and viable back office services. With vast experience of providing back office accounting services to accounting practices , we assures seamless and viable process from first day.

Outsourcing accounts functions of Practice eye has proved successful time after time with our formerly loss-making customers. Many small accountancy practices have already befitted from our services and have not only been able to stay in business they have started to turn a healthy profit once more.

Our bouquet of services includes bookkeeping, Management accounts , VAT/GST tax returns , Cash flow analysis , Year end accounts, personal and corporate tax returns, practice management, bankruptcy and insolvency process and non resident tax returns.

We firmly believe in being friendly and honest, and we always take a ‘business benefit’ approach to our customers and friends. This means that everything we do is intended to help you grow, by using outsourcing services to make your business more profitable and easier to manage. That requires honesty, integrity, help and enthusiasm – values which we take the most pride in. We have been able to add value to our clients business due to our out of box approach and strong domain experience. Our fixed fees approach is success among accounting practices and they have been able to retain their loss/low profit making customers.

Ready to make a change? Contact us for a free, no obligation consultation to learn more about Practice eye solutions