12 Accountant's Jargon Phrases Explained

If you are a new business and have not had the experience of accountancy, you may come across some terms that are regularly referred to by accountants. The terms used can seem confusing at first so we have prepared a jargon buster list to help give you some understanding of what the terms mean.

1. Accountant – An accountant is a person who looks after the business finances of companies. Services accountants offer may depend on the needs of individual clients. Accountants can provide analysis and advice and prepare financial reports, manage financial data and submit tax returns on behalf of their clients.

2. Actual Accounts – Actual accounts show a true and accurate record of a company’s business at year-end and this usually includes all assets and liabilities.

3. Audit – An audit is an official inspection of financial accounts for a company. Audits are usually done before the submission of the end of year accounts. It is worth noting that you should not ask your own accountant to complete an audit of your business account, this should be done by another accounting company.

4. Audit Trail – An audit trail is a set of documents that provide historic evidence of the transactions of a business. The main purpose of an audit trail is to help the auditor to verify all business transaction over a set period.

5. Balance Sheet – The balance sheet gives a snap shot of a company’s financial status at different points in time. It shows what a business is worth and includes all assets and liabilities.

6. Bookkeeper – A bookkeeper keeps an accurate record of all business transactions by recording them in ledgers or by using computer software. Bookkeepers can produce reports for submission to a client or accountant.

7. CIS Sub-contractors – The initials CIS stand for Construction Industry Scheme and applies to contractors and sub-contractors. The scheme applies to all payments made to the construction industry such as builders. If you have not used this scheme before it is best to seek advice from HMRC.

8. Capital Gains Tax – Capital gains tax is applied to any profit that has been made when assets have been disposed of by transferring the asset, selling, receiving compensation for the asset or by giving it away. HMRC has full guidelines to help clarify any exemptions from this rule.

9. Filing and Submissions – Filing and submissions are terms used for getting accounts to HMRC. This is done by either filing out a returns form or submitting the details on the HMRC website. Penalties can be made on those businesses who fail to file or submit their tax returns in the given time period.

10. Payroll – Payroll deals with accounting for wages of employees. This includes tax deductions, national contribution payments, and absence due to sickness or holidays. The details are submitted to HMRC using various forms such as a P45, P46, P35 employer annual return, P11d employee expenses including class 1A National Insurance …

Virtual Assets Marital Property?

Written by Wyckoff Nissenbaum [ www.MAFamilyLawBulletin.com]

A great tech blog, Gizmodo, recently featured an article titled “Virtual Assets Are Not Community Property”. For those who do not know, online gaming worlds have virtual goods for sale that cost real money. The article discussed a recent divorce ruling in China addressing whether virtual assets are includable in the marital estate.

Massachusetts General Laws Chapter 208 Section 34 lists 14 factors to consider in determining an equitable division of marital assets. While it is important to understand how the Court will ultimately divide the assets, first it is necessary to determine what is as a marital asset. The Court determined that “A party’s “estate” by definition includes all property to which he holds title, however acquired. Therefore, this provision gives the trial judge discretion to assign to one spouse property of the other spouse whenever and however acquired” See Rice v. Rice, 372 Mass. 398 (1977).

At the time of the Rice ruling, the Court most likely did not contemplate that there would be an online world containing virtual assets. So does this mean that assets in virtual land are not subject to division? The assets can probably be considered marital assets and these assets are worth big bucks. TechCrunch.com estimates that in 2011 sales of virtual goods will be approximately 653 million dollars and the social gaming industry will be worth over 1 billion dollars. When getting divorced everything either party owns may be considered marital assets, so it is important to find a lawyer that understands how to make the facts work for their client.

​…

Accounting Services are Very Handy in a Lot of Ways!

An accounting service provides various forms of assistance a business or an individual might be in the requirement of. These comprise but are not bounded to external auditing, managerial advisory, final accounts preparation, system design and normal tax services. Development of an accounting system works best for corporations and companies. It is done by analysing and evaluating the present control systems taken under use by the organization, finding out any areas that need improvement and then designing a system that match well the organization and its procedures. External auditing, in contrast, tops the line of services required by organizations and companies when they employ an accounting service. This normally entails an independently working as well as Certified Accountant who inspects an organization’s and company’s financial statements in the most serious manner to make sure that their contents are absolutely fair. Moreover, advisory services are offered by an accounting service for organizations that require help in managing their finances, budgets and all other policies, procedures, systems and each of the business activities that influence, indirectly or directly, the financial situation of the corporation or organization. In addition, tax services can be managed by an accounting service that manages the tax preparations as required by the organization and serves as a representative at the time of tax, investigations, assessments and similar events.

Further Benefits of Such Service

In general, an accounting service offers people a chance to save huge amount of money. While there are people who can do the task by themselves, there is no guarantee that they are capable to do that successfully. Accounting is a very complicated and taxing matter. It involves many details that can effortlessly be manipulated and may give rise to problems at some point. Having an educated and trained individual, or group of individuals, to manage everything can assist save time, money and related other resources.

These individual’s expertise in accounting reduces the chances of mistakes during and even after the complete accounting procedure. An accounting service provider company is made up of professionals who have finely taken training in the field of accounting and are always up-to-date with the most modern developments in the field. Due to these, they are most proficient of handling accounting matters. Moreover, these professionals are bound to have years of experience backing up the efficient services that they provide, giving one assertion of the job carried out the way it is expected to be done.

Apart from the kind of assistance one receives, there is the savings in terms of a lot of resources naturally utilized in accounting processes. Some companies and organizations prefer to hire and have their personal accountants on board. Though this might look cost-efficient in several cases, it is however sensible to choose outsourced accounting service provider company most of the cases. Employed or personal accountants charge more with the time. There are employee compensation to pay for, monthly salaries at less busy seasons and insurance, medical and the likes. Getting a accounting service outsourced …