They are designed to simplify data entry and allow a lower-level employee to enter information without incorrectly affecting reports. When set up and used correctly, they can help provide lots of valuable information on profitability of different components of the business. However, if the Items are not set up correctly or consistently used, then the problems start. Cleaning up Items can be time consuming and the errors can have a significant impact on the profitability and net worth of a company. And, a key concept to keep in mind is, journal entries do NOT affect Items – only the Chart of Accounts, so a journal entry won’t quickly fix the problem.
So what exactly is an Item? An Item is a tool that posts to your Chart of Accounts. It can be a product, service that your company buys and sells or a charge or tax from your company or vendor or a even a discount or payment. The first step in setting up an new Item is to select the Type.
While there are several Types of Items, the list below contains the basic ones.
Service – work, either performed BY your company for a client/customer or FOR you by a vendor/subcontractor.
Inventory – products you make or buy then sell; you keep these Items on hand for future sales.
Non-Inventory – products you buy or sell for a customer job/project, but do not stock.
Other Charge – shipping, delivery fee, fuel surcharge, finance charge.
Subtotal – totals Items above (up to the last subtotal); useful when applying discounts/surcharges or separating labor from parts.
Discount – subtracts a percent or dollar amount of the line above.
Many users, not knowing any better, select the wrong Type. Some users select Service because it’s first in the list. Some use Inventory because it’s something they have on hand – like different kinds of nails for the shop or bags of flour for baked products. However, if these are Items you use but don’t resell, then they’re technically not Inventory – so use non-Inventory. You can change Other Charge, Non-Inventory or Inventory to a different Type, but you cannot change Service, Payment, or Discount to another Type.
Check with your accountant on this. If this is your first year and your taxes aren’t done, then it’s probably okay to say yes, but this can affect previous years’ numbers, so most times, it might be best to say no and find other ways to fix numbers from old transactions. If an Item was setup as a wrong Type and can’t be changed, then make it inactive and create a new Item.
Is a Master’s Degree in Accounting Worth It?
A master’s degree in accounting is worth it because it can be the boost you need to a higher-level position in banking, taxation, insurance or any company with a financial division. You’ll gain superior analytical skills, deepen your knowledge of accounting principles and learn the latest technology. It can also be an important step toward certification as a public accountant.
Today’s accountants do much more than count money and balance the books. They help solve white collar crime. They are key players in U.S. healthcare reform. The Federal Bureau of Investigation (FBI) employs them by the thousands. Accountants are Chief Financial Officers of Fortune 500 companies, comptrollers, and international merger and acquisition experts. They are small (or any size, for that matter) business owners who need the sharp and well-rounded book-keeping skills taught by seasoned faculty. They teach at nearly every college and university.
The Difference a Master’s Makes
Master’s degrees in accounting are designed for those looking to get ahead as a public accountant, corporate accountant, auditor, fraud examiner, financial analyst and so much more. It can be the boost you need to a higher-level position in banking, taxation, insurance or any company with a financial division. With an advanced accounting degree, you’ll gain superior analytical skills, deepen your knowledge of accounting principles and learn the latest technology.
A master’s degree in accounting is an important step toward certification as a public accountant (CPA). The CPA exam is the most well-known designation in the accounting profession. While intense, it’s worth it. After passing the exam, accountants are able to file reports to the Securities and Exchange Commission, making them appreciably more marketable to potential employers.
Master’s in Accounting Salary and Job Options
Committing to a career direction is often a milestone decision in a person’s life. You want to be sure your investment in an advanced degree is worth the time, money and energy. Gut instinct is one of your most reliable advisors, but you can assess your own ambition to lead, salary and title goals and a job’s flexibility to help you determine if a profession like accounting suits your personality and life’s plan. There are many things you can do with an accounting degree besides accounting, but also many careers that require daily use of accounting-specific principles.
Accountant CV Example
If you are seeking an accountant position, you are likely good with numbers and math, but writing a curriculum vitae may be more of a challenge. Even people who have written them before can benefit from a review of the basic principles of a CV, so if you want to make your accountant CV the best it can be, consulting our accountant CV example as well as the included tips can help you get started on composing your own. With these resources at your disposal, you have everything you need to create a winning CV.
What Does Accountant Do?
An accountant, generally speaking, is responsible for handling much of an organization’s financial details and tasks. They may create a budget or design a quarterly forecast in collaboration with a company’s chief financial officer. Daily tasks include managing accounts receivable, completing payroll, and bookkeeping to track the company’s expenses and payments. Special accounting programs may be employed to assist in such tasks, and accountants are expected to be proficient in such platforms. If you are wondering how to include all of these qualifications in your CV, consulting our accountant CV example can give you an idea of where to start and how to make yours the best that it can be.
Tips for Creating a Great Accountant CV
Not all CVs are created equal, and if you want yours to stand out, consulting our example above is a great place to start. You might want some more guidance on how to make your accountant CV great, and the following tips offer exactly that:
-Do include details on your current accounting licensing and certification as well as the dates of validity.
-Don’t focus on generalities when you can be specific in naming the size of the companies you’ve worked for and the exact nature of the work you did.
-Do highlight complementary skills, such as managerial experience, that may put you above competitors for a job.
-Don’t describe job duties without offering the qualification and context of your accomplishments.
-Do focus on your attention to detail and development of skills throughout your prior work history.
-Don’t cite facts and figures that are not directly relevant to the role your position played in a company’s overall performance.
Business accounting: steps to tackling this like a boss
Managing finances doesn’t have to be the bane of your professional existence. Nor does it have to take you away from the personal reasons you started your business in the first place.
Instead, the basics of small business accounting come down to a handful of best practices and only three essential reports: your balance sheet, income statement, and cash flow statement. These might sound like they require a professional bookkeeper, but far from it.
Daily business accounting tasks
When it comes to daily accounting business needs, you have a pretty light plate. You have plenty of financial statements to review every week, month, quarter, and so on, but your daily business accounting responsibilities consist of the following
Check cash position
Since cash is the fuel for your business, you never want to be running on or near empty. Start your day by checking how much cash you have. Knowing how much you expect to receive and how much you expect to pay during the upcoming weeks and months is important, too.
Weekly accounting tasks
Weekly accounting tasks are a little more involved. Welcome to your weekly accounting tasks, otherwise known as the land of invoicing, financial data management, and other business bank account fun.
Record each transaction (billing customers, receiving cash from customers, paying vendors, etc.) daily or weekly, depending on volume. Although recording transactions manually or in Microsoft Excel sheets is acceptable, it is probably easier to use small business accounting software like QuickBooks. The benefits and control far outweigh the cost.
Accounting Interview Questions (With Answers)
“What were you responsible for in your last job?”
In any accounting job interview, you will face questions about what you did in your previous position. Employers are looking for similarities/overlap between past work and what you’d be doing in this job.
“How would you record this transaction?” (and similar technical accounting interview questions)
A good portion of your accountant job interview will focus on technical and situational questions like the one above. Even in an initial phone interview, you’re likely to hear a few basic technical questions to judge your ability as an accountant.
“Tell me about yourself”
Employers ask, “what can you tell me about yourself?” in almost every interview, and it usually comes right at the beginning, so you need a great answer.
Here are four key steps to answering:
First, employers want to know about your background as a professional when they ask this, not personal details. So stick to your professional career story. Start with how you got into the field of accounting, and when you began. If you just graduated with your accounting degree, you can start with why you chose this major.
“Why did you choose Accounting as a career?”
Employers are always going to want to know your reasons for choosing this career in an interview. Why? Well, if you don’t seem to enjoy your career or have any reasons why it interests you, then they’re going to worry about your ability to stay motivated, work hard, work through difficult days/weeks, etc.