Charting the Cool: How One Item Fits Several Bookkeeping Accounts

Ray-Ban is the epitome of cool.  Those Aviator sunglasses look so sleek, you can forget they perform an important function, and that is protecting your eyes from sunlight and glare.  They have been must-have accessories of those who work in bright light and glare for nearly 80 years.  In that time, Ray-Ban has pushed the design envelope creating better and better styles, and features such as gradient lenses that fade from light to dark.  As an item purchased for use by a company, once the receipt has been received by the bookkeeper, a decision must be made to charge them to the proper expense category, based on their usage.  So even though a pair of Ray-Ban Aviator’s may be remembered as the sunglasses that made Tom Cruise look good in a movie years ago, to a bookkeeper, they may be just another item she will account for using the company’s chart of accounts.

If the company is a farm related business, those glasses could be classified as an office supply because the boss throws them on whenever he hops in his plane to do a little crop dusting.   They may be an expensive office supply, but that’s one way to categorize them based on how they are used.  And that’s not to be confused with writing them off on your taxes as clothing bought and maintained for business either.  Although they are worn for crop dusting, that same pair can be worn to go fishing on the weekend.

Suppose we were handing over the receipt to a bookkeeper on the movie Top Gun.  That same pair of glasses could have been paid for under the set and scenic account, if they were used on a movie set.  Rather than buy a pair, the company would have rented them from a hand prop room, and been charged about a tenth of their value per week, for the duration of the film’s production.  That is, if no one handled them, and they were just laying on top of a bookcase in the background of the scene.  If a character had a bit of business with them and moved them or examined them for fingerprints, per the script, they would be charged to props.    Most likely, the Aviators worn by Tom Cruise were charged to wardrobe, because they were a key factor in his character’s development.  One item, four different accounts to charge them to depending on how they were used by the business that owned or rented them.

If you decide to buy a pair of Ray-Ban’s for yourself, search Groupon for a money saving code first and apply it at checkout to save you some dough.  You can charge that to being cool.

Making the Choice Simple for Bookkeepers Melbourne

Choosing bookkeepers Melbourne can often get many people confused. It isn’t hard to understand why many struggle to choose between one bookkeeper and the next. There are quite a few different bookkeeping services available today and that does have a lot of problems. Yes, it may be great to have such a large selection of services to choose from but making your final choice is a head-scratcher. However your choice can be made simple for you; read on to find out more.

Get an Idea of What You Actually Require From a Bookkeeper

Bookkeepers Melbourne really is great but before you hire someone you need to fully understand what you need. You wouldn’t buy a product unless you were fully aware of what you required from it and it’s the same with bookkeepers. If you want to make the choice considerably easier for you then you have to set out the basics of what you need from the bookkeeper. This will make the choice much easier for everyone and both you and the bookkeeper know what is expected from one another.

Set Out a Budget for Bookkeeping Services

You probably already know this but every bookkeeping service charge a fee for their service. However, the fees can vary significantly depending on what the bookkeeper wants to charge. There will be some who will be reasonable and others who will charge a more expensive fee. The truth is that it’s hard to know for sure what a bookkeeper will charge until you hire them. However, it will be important to make it easier on you when searching by having a budget. Budgets may not be something you like but they really are good and it will help to make the choice much simpler for you also.

Stick To a Local Bookkeeper

A lot of people don’t understand why local bookkeepers are necessary when it comes to hiring bookkeeping services but the truth is that you have far greater control than you do with a company miles away from you. It isn’t always easy to get in contact with a bookkeeper especially if they have several clients and are running things by themselves. However, if they have a local office then you know you can pop into the office at any time and you can also feel more assured because you probably have heard something good about them. Local services are sometimes the sensible and often safer option.

Make a Careful Decision

When it comes to hiring a new bookkeeper you have to be aware this isn’t a decision to be taken lightly. You have a lot of options to consider and it will be important to carefully look at each option so that you can be sure you have the very best. It may be a confusing time but it doesn’t always have to be like that not if you know a few ways to make it easier on you. Finding the right bookkeeper can be simple and don’t let the endless services confuse you.

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Bookkeeper Certification

A great way to assure clients and employers of your skill as a bookkeeper is to earn and display your credentials via certification. The right credentials lend credibility, not to mention the ability to increase your rate. For freelance bookkeepers, certification distinguishes them as true professionals who have taken the time to prepare for and pass a difficult exam, and arms them with skills that make them an asset to employers.

The Importance of Bookkeeper Credentials

Why Getting Certified Would Increase Your Desirability

If you’ve decided that this career is for you, there are two main organizations that currently offer certification in the United States. Both require some measure of paid experience as a bookkeeper. Both also require extensive preparation and a nominal fee. When considering getting certified, it is helpful to keep in mind your goals. If you have a solid understanding of bookkeeping principles and a few years of experience under your belt, certification may be a wise next step.bookkeeper certification

The National Association of Certified Public Bookkeepers offers certification via the Uniform Bookkeeper Certification Exam. The online exam presents 50 multiple choice questions and simulations, and tests skills and knowledge in such things as accounting basics, payroll, and financial statements. Candidates must earn at least an 80% in order to qualify for certification. If necessary, an additional exam may be administered after one week. The fee for this exam is currently $100 for members and $150 for non-members. The fee includes the exam, as well as a certificate and use of the NACP logo upon earning a passing score. In the case of re-examination, fees range from $50 – $75.

The Certified Bookkeeper designation is offered by the American Institute of Professional Bookkeepers. Potential candidates for this certification must prove at least two years full-time experience as a bookkeeper or the freelance equivalent. Candidates must also pass a four-part national exam, which includes two parts that must be taken at their local testing center. Additionally, all applicants must agree to sign an ethics code. The passing score for the in-center exam is 75% while the passing score for the online component is 70%. The cost for the exam is $25 for members and $60 for non-members. Upon earning a passing score on the exam, the successful candidate receives a certificate and the use of “CB” after their professional title. To maintain certification, an additional twenty hours of continuing professional education must be completed and reported each year. A certification from the AIPB indicates that the certified bookkeeper the ability to handle the books for a company with up to 100 employees. Find out more information here.

It is a worthy exercise to ask yourself what your goals are for your bookkeeping practice. If you plan to start your own freelance practice, or are already self-employed and would like to increase your rate, bookkeeper certification will go a long way towards landing clients and building your business. In this current tough financial climate, small businesses need clean books now more than ever, and the demand for certified professional will continue to grow. Credentials bring higher standards not only to your own practice but to the field of bookkeeping as well.

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