A Small Business Competitive Advantage: Outsourced Finance and Accounting Solution

People often point out that small business owners wear many hats, taking on the responsibility for marketing, sales, HR, technology, and other components of the business. But any business is only as strong as the people it hires to do the work. Thus, a small business with the owner taking on tasks in many of the business areas is only as strong as the owner's capabilities in all those areas. Many find out that their strength is not in handling the finance and accounting processes.
"A lot of small business owners are great at their business, but their books are a disaster," states Devin Miller, president and CEO of Premier Payment Systems, Inc. "This causes them to make poor business decisions that could sink their business. They may even be losing money and not know it."

Miller believes that there should be no difference in the mindset between Fortune 50 companies and entrepreneurs who open up a new business in their garages. "Both need to identify their strengths and find area experts or outsourced solutions to take on everything else."
So why don't most small business owners seek an outsourced solution for managing their bookkeeping or entire financial process? First, most small business owners have someone who gives them financial advice. Typically, Miller explains, it's a CPA, and they tend to advise owners to do their own books so they'll understand the finances of the business.

That's not bad advice, says the president of Bellevue, Washington-headquartered Premier Payment Systems (PPS). "But they have to do it well. The books have to be up to date and accurate to give business owners the information they need when they need it. Otherwise, handling the books themselves will be a business liability," warns Miller.

Limitations of the standard solution

The other part of the problem is that when small business owners decide to seek help, they usually turn to local bookkeepers and find only limited, often unsatisfactory solutions. A Google search reveals a shortage of individual bookkeepers in most areas of the United States. A bigger hindrance is the fact that most of them are small business owners too; so they're not usually bonded or insured, and their business is not scalable beyond a few clients. Further, the bookkeeper must be someone the business owner can trust.

In addition, sometimes this type of solution lacks professionalism. Miller cites an example involving a client with a small retail store. Before turning to PPS, the business owner hired a local bookkeeper. But the logistics didn't work. The business lacked office space, and the bookkeeper ended up standing behind the counter during business hours, doing the books for the business with customers going in and out of the store. The store owner wasn't impressed and figured he could find a better solution with greater capabilities and flexibility.

Drivers for an outsourced finance and accounting solution

Miller explains three typical scenarios that drive small business owners to turn to companies like PPS for an outsourced solution.Business owners who recognize they are too busy and don't have time to do the books Business owners who are great at their business but realize they are weak at finances, technology, or both Business owners who understand technology, try doing their own books - but fail - and as a result often have a financial mess to clean up

A typical example of the third scenario is a small nonprofit industry association. For the two women running the organization, it was a part-time job in connection with their full-time jobs in that industry. They managed the association's books through an Excel spreadsheet. Before turning to PPS for help, the board of directors challenged the women when they were unable to reconcile the books at year end and discovered thousands of dollars were missing. PPS found the error was an invoice marked paid twice in the books.

Another company's books were in bad shape and there was an immediate need to clean up the mess. It outsourced to PPS four months' worth of clean-up work that had to be finished within three to four weeks - much more time than a small business owner would be able to dedicate to such a project, no matter how crucial it might be.

Jim Manis is an example of a successful entrepreneur and small business owner in the first scenario. He has his hand in several businesses and has started several companies. When he first turned to PPS in late 2004, he served as global chairman of an international industry trade association intent on rebuilding the organization. "We turned a dead organization with 10 members into one with over 700 members," Manis recalls. With this quick growth, they needed to be able to keep accurate track of finances, and Manis needed to be able to focus on growing the business.

Source:http://www.outsourcing-journal.com/may2009-finance.html

Search engine optimization how it works?

Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" ("organic" or "algorithmic") search results. Typically, the earlier a site appears in the search results list, the more visitors it will receive from the search engine. SEO may target different kinds of search, including image search, local search, and industry-specific vertical search engines.

As an Internet marketing strategy, SEO considers how search engines work and what people search for. Optimizing a website primarily involves editing its content and HTML coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines.

If one wants to know any details or service provide first place they will go will be search engines... which are those search engines?????

The leading search engines, Google, Yahoo! and Microsoft, use crawlers to find pages for their algorithmic search results. Pages that are linked from other search engine indexed pages do not need to be submitted because they are found automatically. Some search engines, notably Yahoo!, operate a paid submission service that guarantee crawling for either a set fee or cost per click. Such programs usually guarantee inclusion in the database, but do not guarantee specific ranking within the search results.Yahoo's paid inclusion program has drawn criticism from advertisers and competitors.Two major directories, the Yahoo Directory and the Open Directory Project both require manual submission and human editorial review.Google offers Google Webmaster Tools, for which an XML Site map feed can be created and submitted for free to ensure that all pages are found, especially pages that aren't discoverable by automatically following links.

Search engine crawlers may look at a number of different factors when crawling a site. Not every page is indexed by the search engines. Distance of pages from the root directory of a site may also be a factor in whether or not pages get crawled

How to do SEO?

• Finding keywords is one thing, but managing them is another. Keyword management is very crucial for SEO success. For your site's content, keep track of Back links and PageRank for landing pages and other important site pages. Tools for link building help you from start to finish. Find the links, check their strength and quality, manage them from one place, and watch them over time.
• Post your website link in various directories
• Write an article about your website and make sure it gives very good information on your site
• Link Building work is what it takes for effective link building. But link building can be easier.
• Subscribe to http://www.submitterbot.com/index.php which will allow you to submit your site in different 527 directories at free of cost

India need not respond too readily to US TAX CODE CHANGE

SEVERAL MULTINATIONAL CORPORATIONS (MNCs) in the US that invest and create jobs overseas have begun lobbying against American President Barack Obama’s proposal to end their tax incentives. These firms hope to scuttle proposals on the sweeping changes in the US tax code, but their lawyers are advising them to gear up for any eventuality.
If Obama’s proposals go through, it would mark an end to tax-deferrals. US firms with foreign subsidiaries will not be able to claim a deduction for their expenses when they do not pay taxes on their profits in the US. They will also find it tough to take credit against their US taxes for foreign taxes paid on overseas profits.

More importantly, these firms cannot make their foreign subsidiaries disappear for tax purposes if the proposed reforms in check-thebox- rules — that allows them now to legally shift incomes of their subsidiaries to taxhavens — are implemented. These subsidiaries will then have to be considered as separate corporations for US tax purposes.

Tax experts admit that reforms in the deferral rules may have a rationale, but it will reduce the investment power of US multinationals. “The liberal regime helped US companies expand and grow worldwide. In a globalised world, it would be imprudent to assume that these proposals will prompt US companies to shift the jobs back home. Locational savings is a huge consideration for US companies outsourcing manufacturing and service operations. In the current state of the economy, companies will feel the pressure from their investors to optimise costs. Each government has to take a balanced approach to its tax policy. It must not hinder business and at the same time not sup-port blatant abuse of its tax incentives”, said Shefali Goradia, Partner, BMR Advisors.

The US administration, however, reckons that MNCs enjoy an unfair deal compared to firms operating only in the US who pay an overall tax of 40% on their corporate profits. The effective tax rate of MNCs, in contrast, was a mere 2.3% in 2004. They paid only $16 billion of US tax on $ 700 billion of foreign exchange earnings. US law firm Alvarez & Marsal, for instance, is ready with a list of dos and don’ts for these firms to brace up for a new tax regime. It has asked clients to give top priority to allocation and apportionment of all expenses. More so, for interest expenses that is seen as one of the most significant factors in inefficient foreign tax credit utilisation. One view is that it may be more favourable to carry debt at the subsidiary level than the parent company level. MNCs have also been advised to assess their holding company structures and exercise greater caution before making new check-thebox elections. A right mechanism to track earnings and profits of their subsidiaries is also a must. Any callousness could push the effective tax rate to 70%, say tax lawyers.

Source: Economic times

Live chat support Outsourcing

Support to customer augments trust and liberty with us. The one-on-one interaction leads our services more bolster and glue towards your old consumers. By captivating live chat services one will enjoy those customers who discard your site due to unavailability of help.

Organizations who wish to provide live help for their customers on the website can outsource live chat support services to a third party service providers.efficient live chat support executives will answer the queries of the end customers/just provide information to the visitors on your website.

Chat support services to your valued clients. With almost all the companies show-casing their products and services on the Internet, there are now several ways in which a customer contact center can assist the web visitors with live customer support services and online chat can be one of the most effective tools a modern day company can use in building efficient and cost effective customer relationships. For online live chat support services a company has to actually provide its customer with a human interface to help the customer navigate through various activities such as purchase processes, filing online domain purchase,hosting service,insurance claims, applying online for credit cards, technical support and endless other activities for which our friendly customer care executive will take your customer through all processes by providing the human interface required for an easy navigation.

Chat support service is ideal for:

• Prospecting clients
• Campaign management
• Website navigation help
• Domian management company for technical support and signing-up of services
• Online help Desk Management
• Trouble shooting support
• Live suggestion registration
• Live complaint registration
• Polling and opinion services
• Any event registration

What's the impact on IT/ITES sector from Obama's proposed tax reform?

Obama's Global Tax Raid has made talks all over the world especially in India and in particular Bangalore. President Obama on Monday spelled out his proposals to close corporate tax loopholes on U.S. multinational corporations and crack down on overseas tax havens.

Obama’s statement of "We have a tax code, "that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York." His main target was US companies having their off-shore development centre in India.

Tax deferral rules: Among the legislative proposals is a plan to reform the "deferral" rule, which lets U.S.-based multinationals deduct expenses for overseas operations, but defer paying income tax on the profits from those operations. That gets paid only if and when companies bring that money back to the United States.

Now Outsourcing will prove 50% dearer for US companies. American companies could see a 50% rise in the cost of outsourcing business processes to India if President Barack Obama’s new tax proposals is accepted. Even though outsourcing will still make business sense, industry watchers concede the move could act as a dampener.

In the current system expenditure by a US company outside the country will be treated as normal expenditure but from now onwards if Obama’s new tax proposal goes through, the company will not be able to save the $35. So the net outgo will be $100 instead of $65 — or 53.86% more than the present cost.

Obama has again invoked Bangalore to hit out at the US system. His targets are also US corporations with subsidiaries in foreign countries. These firms can defer paying US taxes on the profits of those subsidiaries until the money is transferred back to the US. “It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York,’’ Obama said at a White House event.

The Obama plan unveiled on Monday would, among other things, prohibit US firms from receiving foreign tax credits on income that is not subject to US taxes. It will also end a provision that lets the firms legally shift income from one foreign subsidiary to another, thus perpetually ducking taxes. As a result, companies such as General Electric, Google, Intel, and Hewlett-Packard, all of which have operations in Bangalore, will lose tax credits and be forced to pony up more tax dollars to Uncle Sam. Whether the multinationals, which get more bang — or Bangalore — for the buck outside the United States in terms of productivity, will take this lying down is another matter. Congress has to approve the plan, and not all lawmakers are in its favor. Past attempts to pass similar laws have failed.


Obama's point, since its corporate tax rate on foreign-owned companies can be as high as 55%. The President's argument is that U.S. tax-deferral rules make it more expensive for American companies to reinvest overseas profits at home than abroad. This, he claims, creates a perverse incentive for companies to "ship jobs overseas" and reduces investment and job creation in the U.S.

This proposed tax regulation spares US based research & experimentation (R&E) companies from his proposals.

Which are the companies likely to be hit by the proposed tax plan?

Agilent

Agro Tech

American Express
Amway

Avaya

Caltex
Caterpillar

CB Richard

Ellis

Cisco
Citigroup

Coca Cola

Cognizant
Colgate Palmolive

CSC

Cummins
Discovery

Dupont

EDS
Eli Lilly

Emerson

Electric

EXL
Federal Express

Ford

Franklin Templeton
GE

General Motors

Gillette
Honeywell India

IBM

Intel
Johnson & Johnson

JPMorgan

Kellogg India
Kimberly

Clark Kodak

McDonalds
Metlife India

Microsoft

Morgan Stanley
New York Life

Ogilvy and Mather

Oracle
Pepsico

Pfizer

Pizza Hut
Sun Microsystems

Texas

Tecumseh
Timex

Tyco

UPS India

Which are the companies likely to be benefited by the proposed tax plan?

All Indian based IT/ITES companies find the detailed list http://www.bpowatchindia.com/outsourcing_company_list.html

Intuit QuickBooks Certified User Program in India

Intuit QuickBooks Certified User Program

Intuit is pleased to announce the official QuickBooks Certified User Program.
The QuickBooks Certified User Program is a Web-based certification program designed for people who use QuickBooks in their day-to-day job, including bookkeepers, office managers and owners. The program is intended to broaden, deepen and verify users' knowledge of QuickBooks Financial Software (Pro, Premier editions and Enterprise editions) through training and testing.

Benefits of the program:

Sharpen and expand your current QuickBooks and bookkeeping skills
Save time and increase efficiency by incorporating tips and tricks into your daily work
Demonstrate your QuickBooks capabilities to current and future employers
Receive a professional-looking certificate of completion
Identify yourself as a QuickBooks Certified User on the QuickBooks Community Web site

If one looking for help in getting trained and get certified as Quickbooks user just you need to pay $49.95 and attend the training conducted by cosmic IT services in india (Cosmic has been providing corporate and individuals QuickBooks training for over 5 years. Our philosophy is to provide "Quality training at affordable rates". Cosmic unlike any other training institute provides you with hands on experience.)

for more detials login to www.quickbooksindia.com

Topics & Exams
The comprehensive QuickBooks training consists of three sections. Each section includes several modules followed by an exam at the end of each section. The training is specifically designed to cover the topics you will be tested on. The exam is designed to test a broad range of QuickBooks skills, key tasks and work processes. Below is an outline of the key topics covered in the training and exams.

Section 1: Essentials for the QuickBooks User
Module 1: Creating a New Data File and Entering Historical Transactions
Module 2: Lists
Module 3: Chart of Accounts and Financial Statements
Module 4: Items
Exam: Section 1
Section 2: Day to Day Transactions
Module 1: Customers, Sales and Receivables
Module 2: Vendors, Expenses and Payables
Module 3: Payroll and Time Tracking
Exam: Section 2
Section 3: Special Topics for QuickBooks User
Module 1: Reporting
Module 2: Customizing QuickBooks and Saving Time
Module 3: Security & Multi-User
Module 4: File Utilities
Module 5: Working With Accountants
Exam: Section 3


Sample test questions:

QST.1. How do you remove transactions from a company file without deleting existing lists, preference, and service subscriptions?
a. Click the Company menu and select Clean > Company Data
b. Click the File menu and select Utilities>Clean up Company Data from the menu. Then, choose the Remove All Transactions option
c. Click the File menu and select utilities > Purge Data from the menu
d. Click the Edit menu and select Delete All Transactions

Ans: B

QST.2. Which is the correct method to adjust sales taxes due?
a. Click the Vendors menu and select Sales Tax > Adjust Sales Tax Due
b. Click the Banking menu and select Pay Sales Tax with Adjustment
c. Click the Company menu and select Make General Journal Entries
d. Open the Sales Tax Payable account register and edit the ending balance

Ans: A