Friday, 15 December 2017

Challenges Faced in Real Estate Bookkeeping and Accounting



No matter whether you are a property management company, owner of a real estate agency, real estate agent, REIT or an investor group, accounting for real estate industry poses tedious challenges. Real estate bookkeeping and accounting takes a valuable time  and efforts that owner can spend in growing business.

real estate accounting


Some of the challenges faced in real estate accounting are: 

1. Understanding the accounting rules in real estate industry

It's a biggest challenge for real estate owners to keep them up-to-date with changing rules and regulations dealing with expenses, valuations, ownership, taxes, and more, As the regulations change yearly, so it’s important for owners to hire real estate accounting firm who are familiar with all these and can stay on top of these changes and reduce your burden as well as expenses. 

2. Issues in Payroll Processing

Payroll Process should be precise because most of the real estate agents or brokers or property managers are on commission basis. For an agency, its little bit confusing in payroll every month as the staff paychecks fluctuate weekly. Real estate accounting firms have robust system or software of calculating such commissions that reduce chances of errors.

By partnering with your accountant, they may be able to take over the payroll for your business, ensuring accuracy and timeliness.

3. Complicated management of a remote work force and their accounts

In real estate industry, one cannot run his/her business while sitting in the office. The owner or agents or brokers all are in the field. In such situation its difficult for an owner to track the agents as well as maintaining accounts. 

Most real estate agents will be out of the office for much of the day. Cloud-based property management software can help keep all of your agents connected, so you'll have real-time information on transactions. The better solution is to outsource real estate accounting services that ensures accuracy and timeliness.

4. Common bookkeeping and accounting mistakes

The most common accounting mistakes done by the real estate clients are:  in-separation of personal and business accounts, false classification of costs, inaccurate classification of employees, improper record keeping.


By partnering with an accounting company or outsource real estate accounting services, you can focus on core business and generate higher revenue. Call at +1 646-688-2821 or email to info@cogneesol.com for a detailed discussion.

Thursday, 7 December 2017

4 Fundamental Ways to Have a Growth-oriented Back Office

When we talk about “back office”, it usually implies the process of setting up a workplace wherein the marketing, sales along with other customer-related divisions are placed in the front of the workplace whilst the everyday operations team would be placed at the back.


Essentially, the back office processes include finance and accounting, insurance supportlegal support, human resources and IT. Nevertheless, based on the size of the company and its niche, a few of these tasks would be handled by a full-fledged in-house team and the remaining would be assigned to a reliable back-office service provider.
A growing trend amongst a lot of businesses nowadays is to outsource back-office services so that they can pay attention to the core aspects of their business. By opting for outsourcing a few or entire back office tasks to a professional offshore company, it makes it easier for businesses to concentrate on expanding, maintaining and revamping their business, whenever required.
It is undoubtedly a great idea to outsource accounting back-office tasks for a more effective and streamlined workflow. By defining your key areas of managing the back office, assigning separate roles and responsibilities, and consolidating your accounting platform; you will certainly have the ideal back office in place.
To achieve the desired business results, it is essential for you to take into consideration the below-mentioned key areas of managing back office:

Accounting and Bookkeeping

Since money is the fuel that helps to keep your business heading off, high-quality bookkeeping processes are absolutely essential to continue your business to be on the right track. Your bookkeeping entails documenting each and every business relevant financial activity. These back-office bookkeeping tasks consist of:
  •       Accounts payable
  •       Accounts receivable
  •       Bank account and credit card reconciliation
  •       Payroll processing
  •       Tax preparation etc.
Evaluating exactly how, when and by whom are the tasks going to be completed can assist you in consolidating your back office, having more effective workflows or maybe more timely execution of tasks. This assessment is also helpful in determining any kind of left out or underperformed tasks, along with whether or not there exists a division of duties for better performance and fraud protection.

Accounting processes consist of:
  •       Handling accounts
  •       Reconciling invoices
  •       Monthly and annual closing
  •       Making sure that financial records are correct & insightful
Accounting is the building block when it comes to data as well as numbers. The company’s accounts need to be properly managed and reconciled on a regular basis.
Accounting is the process of executing all accounting principles of an establishment, be it GAAP, revenue assessment or perhaps the matching principle.

Controllership

In a number of smaller businesses, the CEO may additionally be working as the bookkeeper, or perhaps the controller, maybe even both. It is essential for organizational development that bookkeeping, as well as controllership, are kept as distinct procedures. The controller evaluates each and every action in the bookkeeping division while always keeping a watch on chances of fraud occurrence. Having an additional pair of eyes on the accounts is beneficial in determining cash flow issues and keeping a watch on the likelihood of in-house and extraneous fraudulent behavior or human miscalculations.
Considering the fact that a great number of businesses nowadays have limited resources and even though the responsibility of a controller needs to be kept separate from the bookkeeper’s responsibility, they usually get intermingled into one. The below-mentioned are a few job roles that a controlled must carry out:

Controller tasks comprise of:
  •       Monthly closeouts
  •       Reconciling balance sheets
  •       Financial auditing
  •       Accruals
  •       Financial reporting
  •       1099s
  •       Budgeting
Handling accounting, bookkeeping and then taking care of controller responsibilities can be too much for businesses. Therefore, it is better to outsource accounting and bookkeeping tasks to a reliable service provider. A benefit associated with outsourced accounting services is the fact that it offers an instant distinction of accounting tasks that gives a peace of mind to the stressed-out business owner. Looking for an accounting outsourcing company? Your search ends at Cogneesol! Call at +1 646-688-2821 or email to info@cogneesol.com for a detailed discussion.

Monday, 6 November 2017

Integrate Accounting with your Retail Business to Achieve Better Outcomes

retail shop accounting

Running a retail business is puzzling, as there are many things you need to organize in an efficient manner. In the retail sector, customer service is the key to triumph and when you treat your customers right, they come back and also refer others. But along with this increasing retail business demand,  necessity of a systematic accounting process also increases; that includes inventory, financial statements, payroll, and tax payments. With the constant change in the technology, the retail business is integrating its accounting process to improve business efficiency. Accounting integration is one such tool that connects retailer’s accounting/ ERP system with its e-commerce platform, CRM application or EDI trading partners and online marketplace.
Today’s retail business owners are using accounting integration solution to streamline their process with accuracy, speed and in a smarter way.

But that’s not enough…!

Go through these factors that accounting integration solutions, has brought in the retail business workflow:

Quicker- After adapting accounting integration solutions, retail business owners no longer have to bother about order backlog or crucial order processing. Instead, they are assured that orders will move to and from their ERP/ accounting in actual time, which means that orders can be packaged, processed and shipped out to consumers quickly. So, retailers who were pressurized during peak days like Black Friday and Cyber Monday, accounting integration ensures that no matter how much is the volume of transactions, orders will be processed quickly and efficiently.

Simpler- With the help of accounting integration, the business of selling has become easy. There’s no need to worry about orders getting lost or misplaced, as the software ensures that every order is processed, fastly and accurately. A fully bi-directional accounting integration solution makes sure that your business is running smoothly. It also excludes the need of a manual data entry person, as humans are prone to mistakes. And what if your data entry person is sick or on a holiday?

Smarter- Retail business owners who are using accounting integration knows that it’s a “clever” way to put their accounting process in the hands of integration solution providers that have years of experience. The providers make use of accounting integration and efficiently manage any number of order document volumes. These keen business owners know that they can add or remove connectors as their business changes or grows using a common integration platform that can virtually connect any accounting/ ERP system with the other business systems they are running.


Gather everything at one place- The way your buyers purchase products keep on changing. Regardless of whether they stepped into your store, or surfed to an online shop, their demands remain high. Disappoint them, and they’ll never come back. Delight them, and they’ll tell their friends. If you don’t know how to integrate accounting in your retail business, then the best way is to outsource your retail accounting process to a reliable firm. Their expert team will set up the software for you at an affordable price, so that it becomes easy to track your orders.

Friday, 29 September 2017

Tuesday, 29 August 2017

Capitalizing Account Receivable Management

Accounts receivable refers to the payments that are not yet cleared by the clients or it is also used to give a long term credit to customers/clients. It helps in gaining customer loyalty and allowing them to take product/services on credit basis that helps in boosting sales. Here account receivable management plays a crucial role, as this is the responsibility of management to track the history of customer and recover payments on time. Watch this video about benefits and importance of account receivable management.

Monday, 21 August 2017

Bank Account Reconciliation: Myths that Pulling you Down

Bank account reconciliation is a very needy task for your business when your periodic reports are not up to the mark or facing discrepancies. Outsourcing your bank account reconciliation is the best option but the only hurdle that doesn’t allow you to outsource is communication and data security which is the main concern for any business. But nowadays, outsourcing bank account reconciliation is much better than in-house employee without worrying about data security you can outsource your reconciliation task and save your time and cost with 24 hour support services that too with accurate results.


Thursday, 3 August 2017

What is the Objectives of Cash Flow Management?

Why is proper cash flow management important in business accounting? How can late payment affect your business? And what is the objective of cash flow management & how outsourced accounting services manage cash flow? All answer of these questions available in this Infographic.



How Legal Process Outsourcing Maximize Profitability of Law Firms?


Law firms across the globe work in a severely competitive environment on razor thin margins and reduced profitability. This is especially true for small firms that have to constantly look for ingenious ways to survive. One of the most accepted methods followed by law firms now to beat the system is outsourcing legal services, tasks that do not require a great deal of discretion and intensive supervision from lawyers and are not directly linked to court appearances. 

These include document review, legal research, contract management and form preparation. A great deal of money is saved which can be more optimally used for providing legal services at lower rates to rope in more clients as well as opt for business expansion.   

Here are some ways that you can adopt for legal process outsourcing (LPO) of your small firm and the safeguards that should be in place before you do so. 

Set Your Objectives – Have clear goals in mind as to why you want to opt for legal support services. Is it one project that needs fast resolving? Or do you want to opt for outsourcing on a long term basis? Are you looking to simply cut costs or want to avail external professional expertise by hiring top of the line lawyers at affordable rates? Once you are clear in your thoughts you can quickly choose the outsourcing agency that will be just right for you. 

Find the Best for You – Now that you know the type of services required, find a provider that exactly fits the bill. The agency should have legal experts specialized in the aspects of law that you need. Large providers will usually have lawyers on their rolls with experience in various facets of law. But do not stop there. Have detailed discussion with them to ensure that they maintain ethical standards. Check financial background and solvency and if possible the worth of the Directors. 
Further, focus on privacy concerns. While general legal matters are all in the public domain, certain areas like immigration, bankruptcy proceedings and tax cases contain sensitive information of clients and should be treated as such even if being outsourced to legal support service provider. The provider should be well conversant with Privacy standards prevailing in the USA.   

Advantage of Time Zones – One of the biggest benefits of LPO is quick and efficient completion of tasks. If you choose to outsource overseas you can take advantage of differing time zones. Upload the work at your end of day and get it in your system next day at start of business hours. This is in addition to the lower rates that you can avail of.  

A point has to be considered here. You have to follow ethical standards in billing even when you are outsourcing legal services. The American Bar Associate has decreed that what you are charged by the outsourced attorney should be the same that you charge your client.  

Study the LPO Scenario Thoroughly – Study the LPO scenario thoroughly before selecting a service provider. Emerging countries in this field are South Korea, Sri Lanka and India. For intellectual property laws, New Zealand regulations are almost similar to USA so that country too can be tried as an option. You need not look overseas only, explore domestic options too that offer cost effective solutions.  

Closely Monitor the Work – Outsourcing is not about offloading work and waiting for the processed matter to come back. You have to closely work with the outsourced company as the quality of the work attributed to your firm will be taken as your sole responsibility only.  

A very important factor that should not be missed out while outsourcing any legal work: Ethics demand that you should inform your client that you have outsourced their case to an external agency. Outsource the legal support services with care to ensure that there is no compromise on the quality of work and benchmarks of excellence you wish to set for your law firm.      

If you are looking for a top end outsourcing legal service provider, your first option should be Cogneesol. Our team of dedicated lawyers is well versed with every facet of law. To know more, call at +1 646-688-2821 or email at info@cogneesol.com.

Tuesday, 4 July 2017

Shape Your Efforts in Right Direction by Flash Reports

Flash reports include the analyses of your ongoing process. With this we can evaluate the performance of strategies. These reports are not meant to be 100% correct, but you can get 80-90% accuracy which is enough to lead a successful business strategy. Here is a perfect presentation on Flash Reports and get complete information how these flash report helps your business.



Friday, 23 June 2017

A Perfect Guide to Manage Account Receivable in QuickBooks



Due to late payment, nearly 50,000 businesses were closed in 2014 and still 77% business owners are struggling with late payment issues, this issue can be resolved with your account receivable management strategy. Here is the video to understand how you can manage your accounts receivable with effective strategies for removing the payment barrier to maintain the cash level and cash flow projection

Tuesday, 30 May 2017

6 Financial Indicators That Your Restaurant is Heading in the Right Direction


Based on what exactly is essentially the most commonly reported study by a well-recognized US-based University, 60% of restaurants usually do not survive after the very first year and 80% are unsuccessful with the first five years. These figures bear the question: why is it that certain restaurants achieve success while others fall short?

There is no question that the restaurants that achieve success have a number of crucial points in place: they have got an original concept, that fulfills consumer needs and they present an excellent consumer experience. Nevertheless, irrespective of having all these factors in place, restaurants still can lose out, in case their finances are not structured and correct.

Restaurants that maintain a close eye on their financial situation gain a lot better possibility of success. Listed below are 6 indicators that your restaurant’s financial situation is on the correct track:



Accounting is On Point

Having a suitable accounting program for your restaurant is answer to restaurant success. It doesn’t make a difference how great your sales are, or perhaps the number of outstanding testimonials you have got – when you don’t have an appropriate accounting program put in place, it’s very much possible that your restaurant won’t be successful. A well-organized accounting program is one which is consistent and that assesses as compared to industry benchmarks. A prosperous restaurant needs to seek the restaurant accounting services from a professional accounting firm that has experience particularly in the restaurant business and that understands precisely how financial entries must be reported.

Inventory is Accurate

Profitable restaurants handle their inventory in the right way. This implies that inventory is counted on a consistent basis, the numbering is accurate, the costs of products are up-to-date and the prices of goods traded are determined fairly often. The way for a restaurant to essentially understand the true cost of making a meal, is by correctly numbering inventory and understanding what the inventory variation is.

Every day and Weekly Financial Reports 

Profitable restaurants collect daily as well as weekly financial reports. It was in the past that just chain restaurants were able to pay for a technology discussion to produce these kinds of reports on an everyday and weekly basis. Nevertheless with the progression of cloud based restaurant bookkeeping systems, each restaurant big or small is able to get daily reports on starting and ending inventory and product sales compared to purchases. By producing easy to read reports, restaurants identify errors instantly, make any kind of needed modification, and make superior food selection choices and recruits correctly.

A Proper Ratio of Assets to Liabilities

In a profitable restaurant the ratio between assets and liabilities is normally 1:1 and by no means drops under 6:1. Restaurants which are heading in the right direction have an increasing number of assets consisting of: product sales, inventory balance, money, credit card trades, and accounts receivable versus liabilities which contain : bills, sales tax, rent payments as well as payday loans.

Inventory Levels are Precise

A productive restaurant by no means has a lot of resting inventory, which implies their food prices will never be too much. Restaurants that refrain from having a lot of inventory are not tying up their possessions and are lowering the chance of robbery and wastage. An efficient restaurant understands for each season, what their suitable par inventory ranges must be and when orders must be replenished.

Expenditures are Not More Than Sales

This may appear to be a totally obvious one, however restaurants that thrive cut back on expenditures than they put together in sales. Restaurants that find a way to achieve this recognize the variance between their variable and fixed costs. Variable costs, including acquisitions and labor expenses, must not be more than 67% of a restaurant’s operating costs. Restaurants that flourish discover ways to regulate their variable costs so as to increase earnings by keeping track of their expenditures and making changes, wherever required.

Tuesday, 16 May 2017

Few Things You Didn’t Know About Cloud Bookkeeping – Find Out Now!

In one of our previous posts, we discussed the most significant reasons that bookkeepers have to discuss with their clientele regarding cloud-based accounting program. Suppose you happen to be a bookkeeper or perhaps accounting professional yourself, nevertheless? Odds are, you might have learned about this type of software on a business website, nonetheless, you possibly won’t know about it from one of your business competitors.


That’s since there are a couple of points other bookkeepers and accountants certainly don’t prefer you to have knowledge of cloud-based accounting program apps:

Cloud-Based Accounting Applications Tends To Make Your Task Simpler

In case you’ve been a bookkeeper for over a couple of months, you understand the toughest aspect of the job IS NOT managing figures, creating reports, or analyzing bank statements it’s remaining atop your clients and obtaining the documentation you require from them.

With cloud-based accounting, these kinds of problems are cut down tremendously and use up way less of your time and effort. Since transaction entry could be automated, choices can be memorized for every particular client or bank account, and file-sharing may be accomplished electronically, a bookkeeper’s greatest time-wasters are flushed out. This implies more flexibility to accomplish your tasks, and lesser issues in the everyday operation of your bookkeeping business.

With Cloud-Based Accounting Program, It Is Easy To Take On a Lot More Clients:

Being an implication of all that time-saving, a bookkeeper or a bookkeeping outsourcing company that employs cloud-based accounting programs might take on more clients as compared to what they could in past times, and basically work lesser hours along the way. How much of a change will it cause in your life to assist more clients, carry out a better job for all of them, and benefit from a better work-life equilibrium?

A number of bookkeepers and accountants are amazed at simply how much they can thrive when they use the appropriate cloud accounting app to do the job. It may be the one key that unlocks a greater, better and more lucrative bookkeeping business for you heading ahead.

As Soon as You Switch to a Cloud-Based Accounting Program, it’s Tougher for Somebody Else to Steal Your Customers:

Generally, bookkeepers and bookkeeping outsourcing companies have to get through issues and challenges that lay far beyond their own influence. For example, you might have clients who seldom present prints of invoices, bills, or tax records at the occasions when they are expected to do so. Consequently, they might be plagued by fees, penalties, as well as other expenditures that cause them to be discontented with you, despite the fact that you did absolutely nothing inappropriate.

It’s not an incredibly far jump from that type of scenario to dropping the client or bank account completely. The truth is, the time your customer hears from a different bookkeeper – an individual who assures to magically resolve these problems that are beyond your control – your long term revenue from that business is at stake.

With cloud-based accounting, nevertheless, you’ll get a more convenient time retaining entrepreneurs and supervisors updated and in conformity. And the accounting procedure starts to feel less complicated for the women and men you work with. That, subsequently, causes it to be a lot more challenging for somebody else to swipe your customers off of you. 

At Cogneesol, we believe the advantages of cloud-based accounting talk for themselves, nevertheless, we don’t envision you’re likely to reveal to your co-workers and business competitors regarding it even after you’ve given it a go. Although it possibly won’t remain a secret for very long, it’s certainly smart to begin making the most of this technology at this time before somebody else makes use of it to try and swipe your clientele.

If you happen to be looking for a reliable company offering outsourced bookkeeping services, your search ends at Cogneesol. We have been in the finance and accounting industry for over 9 years now and can help you with all your finance management needs. To know more, get in touch with us at +1 646-688-2821 or info@cogneesol.com.

Monday, 8 May 2017

Obstacles in Finance and Accounting Operations Faced By Law Firms Nowadays

In comparison with a usual small business, the accounting preferences at law firms are different. The penalty fees for violations are a lot more upsetting as compared to a slap on the wrist or perhaps a huge fine — accounting infractions may result in disbarment. This aspect needs a “zero tolerance for error” rule in your law office along with the understanding to support it.





Law firm accounting is a fundamental, however enormously demanding, and task with regards to operating a law firm. Since attorneys are conventionally not accountants, law firm accounting often is extremely overwhelming, particularly for the small-scale firms. Since it fuels a law firm’s earning, prolonged success, and duty to abide by, accounting is important for any law firm.
Given that accounting is really important to a law firm’s prosperity, it is viable to have an understanding of where precisely these businesses most typically dwindle in their strategies. Listed below are the 5 most popular challenges faced by of law firms when handling legal accounting.


Client trust money is pooled into a single bank account:

Since attorneys utilize retainers to procure cash flow from clients in most cases, they have to account for each and every client's trust funds separately. Nevertheless, law firms face issues in this because all the money is pooled in a single bank trust account.
To make sure that one client’s money is not going to get mixed up with the other, law firms could certainly avert this situation through the use of legal-specific accounting software program that inhibits:

Over-drafting the client bank account book at the payment level
Adding transactions to an improper bank account
Not complying by ignoring the three-way bank account reconciliation approach

Addressing case costs similarly:

Just about all expenses charged from the outset of each case have to be accurately accounted for when managing law. Consequently, it is crucial for law firms to have an understanding that certainly not all costs can be considered as the same.
Based on the kind of case, you might have to address case expenses as possibly “Advanced Client costs” or perhaps “Reimbursable Expenses.” Although advanced client costs must appear as an asset on the firm’s balance sheet, reimbursable client expenses ought to be documented on the profit-and-loss declaration. Make sure to accomplish this correctly and regularly each time because inability to follow through can lead to IRS agreement concerns.

Furthermore, any kind of cost incurred by cash, loan, or even checks must also be accurately designated in an identical time period, or it will not be billed.

Filtering revenue and income:

A lot of law offices face issues with regards to differentiating revenue that includes incurred expenses from their precise income. To be able to prevent having imprecise figures in the books, a part of the revenue should first-be dispensed to incurred expenses whenever having to pay an invoice. This part must not be viewed as income and should be separately recorded.

Data entry mistakes whenever syncing the billing and accounting software program:

There exist law firms which make use of two separate platforms for their legal billing and accounts management, meaning to say all data has to be keyed in two times and completed across both platforms. Nevertheless, inability to correctly sync both of these programs of financial data leads to bookkeeping difficulties, billing issues, or ethics violations.

Thus, businesses ought to employ a practice management platform consisting of both billing and accounts management features in one set of data. This would prevent any kind of problems and put together a perfect set of data.

Making sense of the place the money originated from:

Last but not least, attorneys truly have difficulty checking income since it can be extremely complicated where the money originated from. Particularly any time the firm is lacking in correct data, this may have an effect on the attorney’s capability to make wise business decisions, leading to a deprivation in revenue.

Hence, law office management must maintain a record of their income by case nature, which results in new business possibilities along with worthwhile business intelligence for every distinct case type. Eventually, this enables the legal professional to invest its money more efficiently on assets and marketing.

Accounting for law firms often is a major, daunting hurdle for attorneys when managing their business; nonetheless, as long as they stay away from these five most typical challenges of legal accounting, they will get the chance to efficiently carry out their financial duties and expand their business.

Cogneesol is a well known ISO certified firm providing excellent accounting services in the reasonable price.  For further information, contact us at info@cogneesol.com or call us at +1 6466882821.