Accounting

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=200 BGCOLOR="#FFFFFF" TEXT="#080000"> <bR> <bR> <div> <IMG SRC="061937f0.gif" border=0 width="147" height="127" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <div> FOUNDATION MEMBER OF THE</div> <div> <IMG SRC="0579a870.jpg" border=0 width="154" height="135" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> MEMBER OF THE</div> <div> <IMG SRC="05998250.jpg" border=0 width="152" height="37" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <bR> </td> <td valign="top" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <B>RMM</B><FONT SIZE="1" COLOR="#000000" FACE="Arial" > </FONT></div> <div> <FONT SIZE="5" COLOR="#000000" FACE="Arial" ><A HREF="index.htm" TARGET="_top" TITLE="RMM"><U><B><IMG SRC="03f06440.jpg" border=0 width="262" height="68" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></FONT>  |     <A HREF="index.htm" TARGET="_top" TITLE="RMM"><U>home</U></A></div> <div> <B>Accounting</B><B>   |   </B><A HREF="id18.htm" TARGET="_top" TITLE="Trading"><U>Trading</U></A><B>   |   </B><A HREF="id19.htm" TARGET="_top" TITLE="Hydrographic Consulting "><U>Hydrographic Consulting </U></A><B>   |   </B><A HREF="id21.htm" TARGET="_top" TITLE="Contact Us"><U>Contact Us</U></A></div> <div> Accounting</div> <bR> <div> <B><IMG SRC="07c8a5c0.jpg" border=0 width="138" height="92" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"><IMG SRC="07d8a5b0.jpg" border=0 width="138" height="91" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"><IMG SRC="07e8a5c0.jpg" border=0 width="138" height="92" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"><IMG SRC="0807e5c0.jpg" border=0 width="126" height="92" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></div> <bR> <div> <B>Accountants and Bookepers</B></div> <bR> <div> You don't need advanced knowledge of accounting to run a small-to-medium-sized business. You do, however, need some wisdom.</div> <bR> <div> First, you should be able to distinguish between a bookkeeper and an accountant. </div> <bR> <div> A bookkeeper's job is exactly what the term implies: someone who keeps the books. For a small startup, entering a day's financial transactions may take as little as an hour per weekday.</div> <bR> <div> An accountant's work is more complicated. The accountant is the person who gives you an accounting of the state of your finances. This is the person who can analyze the figures, draw conclusions, give advice and warn you of risks and their impact on your business.</div> <bR> <div> <B>Who should do your accounting?</B></div> <bR> <div> New business owners are often tempted to do their own bookkeeping. The advantage of the "do-it-yourself" approach is that you're in full control of your finances and have no problem protecting your privacy. Many new owners count on a spouse or business partner to perform the daily entries.</div> <bR> <div> While this approach seems to save money, doing your own bookkeeping can be expensive if it diverts your time from the task of running the business. You can spend hours poring over spreadsheets and looking at the results of various scenarios. Put a monetary value on your time to evaluate whether or not you can afford to keep your own books.</div> <bR> <div> At the opposite end of the spectrum, some business owners who want the best for their company start interviewing the most qualified accountants at the outset. An experienced accountant can be invaluable in helping you prepare your business plan and setting up your accounting system.</div> <bR> <div> From time to time, you'll be required to undergo an audit, such as in the course of undergoing due diligence prior to acquiring funding from an investor. Hiring a consulting accountant to review your books prior to an audit or having a specialist conduct the audit can be beneficial.</div> <bR> <div> Hiring a part-time accountant at an hourly rate has a number of benefits. Most accountants like to work from home, saving you the cost of office space and equipment. A professional accountant probably has the software and equipment, including tax documents and access to help lines, that (s)he will need to do the best job.</div> <bR> <div> <B>What Do I Have to Learn About Accounting?</B></div> <bR> <div> While having a few accounting courses under your belt is a great asset, you don't need much formal knowledge to start a business. You should, however, be an avid learner.</div> <bR> <div> Your relationship with your accountant is important, as he or she is likely to teach you a great deal about financial decision-making. In fact, a good accountant will guide you to making decisions that benefit your bottom line.</div> <bR> <div> What you need most is the skill to select the best accounting personnel for your money. When interviewing accountants and bookkeepers for your company, ask them technical finance questions about something you don't know well, and see how clearly they explain the concepts. If you can't understand most of the explanation, you probably won't be able to benefit from that person's recommendations when he's employed at your firm.</div> <bR> <div> Your most confidential business matters will be in the hands of your accounting personnel, so hiring someone you can trust is critical. While non-disclosure agreements and lawsuits are great tools for court battles, you can prevent disasters by hiring carefully.</div> <bR> <div> Most successful business owners avoid hiring accountants by scanning want ads and the yellow pages. Instead, they ask for recommendations from other business owners they trust. When you interview, ask for three or more references. Question these references about the nature of the applicant before you hire anyone. Be clear about your expectations and emphasize the accountant's consulting role.</div> <bR> <div> <B>Your Accounting Needs</B></div> <bR> <div> Your accountant or bookkeeper has to perform a wide variety of tasks, such as:</div> <bR> <div>     * preparing your weekly, bi-monthly or monthly payroll and managing related personnel matter such as overtime, vacation pay and benefits</div> <div>     * managing your cash flow, including your grants and loans, checking account and receipts</div> <div>     * tracking your assets and liabilities</div> <div>     * preparing a monthly financial statement</div> <div>     * anticipating deadlines and tax requirements</div> <div>     * generating reports and job costing.</div> <bR> <div> <B>Look for these attributes in the people you hire to work on your financial matters:</B></div> <bR> <div>     * discretion: The person you hire should understand the damage that can be done by sharing your private information.</div> <div>     * precision: Your employee has to have the skills to enter data correctly and use strategies to detect errors.</div> <div>     * skill: Look for someone who's comfortable with computers and accounting software. A qualified individual can build spreadsheets and merge them into text documents.</div> <div>     * knowledge: Although your bookkeeper may possess limited knowledge of taxation, he or she must understand basic concepts like assets, liabilities, equity, cash flow and depreciation.</div> <div>     * commitment: Accounting personnel should be serious about their tasks. Yet, they should also learn all that they can about the operation of your business in order to help you make sound financial decisions. They should understand the big picture and your ultimate financial goals.</div> <div>     * growth: A beginner who's willing to learn and keep current on emerging trends may be more of an asset than someone with experience who's unwilling to use new tools or change processes to benefit your company.</div> <bR> <div> Your accounting records should be up-to-date and organized in such a way that you or another employee can take over should your bookkeeper be absent or on vacation. Scan your accounts and checks regularly to catch errors and unauthorized expenditures. You can save yourself many hours of work and worry if you avoid crises before they have a chance to occur.</div> <bR> <bR> <bR> </td> </tr></table></body>