Accounting Information

7 Barriers to Power Point Presentations That Your Audiences Don’t Hate

2008-11-25T08:51:00.000-08:00

Do you automatically open your Power Point templates every time you get ready for a business presentation or speech? Power Point has become the medium of choice of speakers giving business presentations today yet most audiences will say they don’t like it.

Here are 7 common barriers to making your Power Point presentations work for your audiences and how to overcome them.

The starting point for every presentation you write is to ask the question: “What does the audience care about?” The answer must be about a pain or difficult situation they are facing and how you can help them face it. Once you know the answer, you can overcome the barriers to bad Power Point presentations.

#1) Too many bullets: You load your slides with bullets because you don’t want to forget something that the audience needs to know.

Solution: Be ruthless in examining whether they really need to know it all. They will not be tested on your content. Remember these sayings still apply: “less is more” and “a picture is worth a thousand words.”

#2) Bullets are too long: You write full sentences with two or three thoughts in each one.

Solution: Make your bullets short and comprised of only nouns and adjectives. “Highest quality help desk” says a lot more than “We offer highly trained help desk staff and the help desk is staffed 18 hours per day.”

#3) Complicated graphics: your graphics depict every detailed step you would talk about if you were training someone in the process.

Solution: Get way to up to 50,000 feet. Your audience will get the lay of the land. Then you spend your speaking time making the full story interesting and compelling and based on your expertise.

#4) Too much information: you are presenting not teaching

Solution: Go back to your answer to the question “What does the audience care about?” Then only give them the information that provides a solution to the thing they care about. No history or an overview or the background. Just the content that is narrowly focused on addressing their current problem or issue.

#5) Special effects: the IT folks who developed Power Point get their job satisfaction from creating more bells and whistles.

Solution: Special effects belong in movies not in your presentation. They force you to distort your expertise and ruin your ability to deliver a compelling presentation that works for your audience (see “What does your audience care about?”). Keep it simple-no builds, no flying text, just lots of white space surrounding your carefully thought out short list of short bullets.

#6) Hard to see: there’s a huge difference between what looks great on your computer and what projects well.

Solution: Use the tried and true rules of the road: fonts 12 point or larger; no italics; light text on dark background; large graphics and photos; non-custom colors.

#7) Badly presented: Even the best written power point deck can fail to move the audience if the presenter is poor.

Solution:

Speak only about what you know
Double the amount of time you think you need to practice
Do not use pointers. If you must call attention to something on the screen, gesture towards it with your hand.
Remember: you are the presentation and the slide deck is your back up. Speak towards the audience and tell them what is important or interesting

#7.5) Using slides when you don’t need them: Not every bit of your spoken content needs to be covered by a slide.

Solution: Insert some blank blue slides into your deck at the places when you’re going to tell a story or use a prop or invite audience participation

Bonus Tip: What would happen if you tried to overcome just one of these barriers in your very next presentation? You would see an immediate improvement. Then you would start overcoming the rest of the barriers, one by one until you are writing and delivering Power Point presentations that make your audiences happy.

Written by: Susan Trivers

How To Make Sure Your Customers Pay The Bill

2008-11-04T11:57:00.000-08:00

Performing Collections Is A Necessary Evil Of Business

Getting paid is probably the single most important aspect of running a business and one of the hardest things to accomplish. Especially when the economy is slow like it is now. Most businesses start to tighten up their purse strings in such an environment which can make getting your money a real challenge. But assuming you’ve taken the time to develop a solid credit policy. It will soon become time to make sure that your customers do pay the bill.

Getting Paid Starts With The Invoice

The process of getting paid on time starts from the point that you write the invoice. To start your invoices have to go out in a prompt manner. When the job is done the bill goes out. Everyday that you fail to write up an invoice and get it sent out is an extra day that you have given the customer to make a payment. If you have a contract that allows for periodic billing then don’t miss that billing period. Too many people procrastinate when it comes to writing up an invoice. But if they don’t have the bill you won’t be paid.

Keep Your Invoices Clean

Your invoices also need to be clear and concise. Make sure you are specific about what the bill is for. The date issued needs to be accurate, the due date, and the terms. You should also state what penalties will be enforced if the bill is paid late and if you give a discount for early payment. Most accounting programs allow you to customize your invoices which will let you to include all of these details.

Beating The Payment Deadline

Another thing to keep in mind is that many large businesses only send out payments once or twice a month. So if your invoice is late getting to them you may have to wait until their next payment cycle. The flip side of this is if you beat the deadline you may get paid early. Knowing the accounting practices of your customers is always a good thing. As well as being on a first name basis with the accountant that sends out the checks.

Being Prompt With Your Follow Up

Just as you need to get your invoice out on time you also need to be prompt about giving them a call. You can give a customer a courtesy call about 10 days before an invoice is due. It’s not uncommon to find out that they didn’t receive the invoice and so this allows you to get them another copy. If after thirty days you haven’t received a payment then it’s time to make a collection call. You don’t necessarily have to call on day 31. A grace period of 5-10 days is usually ok. Many businesses will wait until day 30 to cut the check. That way if you do charge penalties they can cite the date on the check to show it was not paid late.

Making The Collection Call

When it comes to collection calls remember the person on the other end of the line is just doing a job. Being rude or pushy with them is not going to win you any friends and most likely will just make them more resistant to paying the bill, not less. Just as with your customers and suppliers you want to develop a relationship with them. Because you’ll probably find yourself talking to them in the future. And they may provide you with some very helpful information.

Don't Give Up

If you still are having problems getting paid then you must persevere. Collection letters will most likely find their way into the trash. You have to keep making those calls. And make them regularly until you get the desired response. As a last resort you may have to pay them a visit. Make sure to inform them that you are coming. Set up a meeting if possible. And if all else fails it may be time for a collection agency or even your lawyer. Most collection efforts never go that far. But once in a while they may. And in the collection business you need to be prepared for anything.

By Justin Miller

Do Not Sacrifice Profits for Sales

2008-11-04T11:54:00.000-08:00

Don't Trade Profitability for Growth

The bottom line in business is that you have to make money. But all new business ventures do exactly the opposite. They lose money. The biggest question for surviving is exactly how long can you afford to lose money? Every business, whether it is brand new or has been around for years, reaches a point where it had better turn a profit or it is not going to last much longer. And once that point is reached the fall can be mighty quick.

Becoming a Victim of Success

One of the biggest pitfalls a company can get into is to become a victim of its own success. Now this can happen to a brand new venture with a spitfire of an idea as well as a company that has been around for a few years and has been steadily plugging along. Businesses both old and new get in what might be termed as the expansion trap. And they begin to expand beyond their means. What might have started as a profitable little enterprise begins to sacrifice those profits so that they can expand that top line, sales.

Your Cash Cannot Keep Up

In either case what happens is simple. The business takes off and the cash can’t keep up. Say for example you have a service business. The type of service you provide is dependent upon having more employees, vehicles, equipment and what not. But because the growth comes at you in a surge you inevitably never have enough of these things. Quite possibly to get the business started you borrowed the money from a bank, friends or investors. And to get what you need you start to pump that money into the business fast. In return you see the effects, sales start to grow.

Are You Making Money?

But are you making money? Probably not. Why? Bcause businesses go through growing pains. Owners and employees make mistakes. You buy things you may not really need. And eventually that funding grows tight. But you say to yourself demand is still increasing, sales are still growing and we need to invest the money we are making into that growth. And it’s at this point that you get hammered!

You Keep Spending

You get hammered because to grow your sales you spend money. The money you spent on an item such as a vehicle may only need to be spent once. Or so you think. But if your sales continue to grow then eventually you may need another. These supposed one-ime expenses are the onesthat kill your profitability. And eventually your business. You need to avoid getting ahead of yourself. And you need to keep some of your profits in your pocket.

Don't Get Caught u in the AdrenalineRush

It really is a great feeling when a business is growing by leaps and bounds but as an owner you can’t let yourself get caught up in that adrenalinerush. Eventually your business venture needs to turn a profit. You need to rebuild the war chest. Otherwise you’ll burn through all your cash and be left without a penny in the bank. Remember you’re in this for the long haul. Short term adrenalin rushes are great but they can eventually cause your business to come crashing down.

By Justin Miller

Managing Your Accounts Receivables Is Critical

2008-11-04T11:51:00.000-08:00

Tight Management of Collections Is Crucial

If your business sells products or services to other businesses then you may be in the position of having to extend credit to your customers. If you do extend credit then your business, like many others, may be having a hard time getting paid. And although no one really likes having to be the bad guy someone has to make sure that your customers are paying their bills. If they don’t then you may find yourself in the unenviable position of not being able to pay your own bills.

Are Your Customers Being Tight Fisted?

With the economy the way it is right now most businesses are trying to hold onto their cash as long as they possibly can. Most likely you are doing the same thing too. But once the job that you were hired to do or the product you supplied is delivered then that money they are holding really belongs to you. And as long as they have it then it cannot be made to work for you.

So Who Gets to Be the Bad Guy?

So who gets to be the bad guy? Well that depends on you. There are two basic options. Either you do it in house which, depending on the size of your company, might actually require you to do it or you can hire an outside firm. Each system has its advantages and disadvantages. In the case of an outside firm you get professionals in the collections business. The problem that can sometimes surface comes from the tactics they use to get your money. Often they will try to pressure a customer into paying their bill. This of course can be counter productive to your relationship with that customer. So if you are looking at using an outside firm then you need to question them first about the collection methods they use.

Doing Your Own Collections

If you are planning on doing it yourself or designating someone within your company to handle your collections then you need a system to govern your methods. To start you are going to need information. What is primarily needed is contact information. Phone numbers, addresses, and the person that it would be best for you to deal with. Once you have that information then you need to decide how aggressive you want to be in collecting your money. Most businesses allow 30 days for a customer to pay. If that is your policy then you need to try and stick to it. Because if you allow your customers more time then they may try to take advantage of you.

Preserve Your Customer Relationships

The most important thing to remember when dealing with money you are owed is that you need to preserve your relationship with the customer. If you don’t do that then all the effort you put into building that relationship will have been wasted. It even matters how well you treat their bookkeeper. Treating them well will help you in the future when the time comes again that you have to ask them to pay a bill. All you need to do is ask yourself what kind of a response you would give to someone that is rude or pushy when they are trying to get you to pay a bill. Keep that in mind when you want someone to pay your bill. Remember collections is a dirty job but someone has to do it.

By Justin Miller

Straight-Line and MACRS Method

2008-11-04T11:49:00.000-08:00

Financial Reports and the IRS -- Accounting for Depreciation

A company may choose to use the straight-line method for depreciating assets on their financial statements, but this method is not correct for income tax purposes. The straight line method of depreciation for financial reporting purposes is an acceptable method according to generally accepted accounting principles (GAAP), but the Internal Revenue Service requires that companies use the Modified Accelerated Cost Recovery System (MACRS) to compute depreciation for income tax purposes.

Straight-Line Method

The benefits of using the straight-line method for book purposes are that it is simple and easy to use, and is a fairly reasonable transfer of costs for financial reporting purposes. A simple spreadsheet is all that is required to use this method. An accountant simply calculates the depreciable cost of the asset, and divides this amount by the estimated useful life. The entry can be recorded monthly on the books for financial reporting purposes by debiting depreciation expense and crediting accumulated depreciation.

As an example, if a company purchased a light-duty truck to use in their business at a cost of $20,000, with an estimated residual value of $5,000 at the end of five years, the depreciable cost would be $15,000 ($20,000-$5,000). Divide this by the five year useful life and the monthly entry for this would be a debit to depreciation expense-company vehicles for $250 ($15,000/5=$3000/12), and a credit to accumulated depreciation-company vehicles. At the end of the year, the financial statement would reflect a total expense of $3,000 for depreciation expense-company vehicles. Therefore, the net income on the financial statement of the company would be reduced by $3,000 each year for five years using the straight-line method.

MACRS Method

For tax purposes, the MACRS method should be used. According to the IRS, the two most common asset classes besides real estate are the five-year and the seven-year asset class. Asset classes are similar types of assets grouped together. The five-year asset class includes automobiles and light-duty trucks, while the seven-year class includes most machinery and equipment, which means that all automobiles and light-duty trucks should be depreciated for five years, and most machinery and equipment should be depreciated for seven years. When using the MACRS method, the residual value is ignored. All fixed assets are assumed to be put in and taken out of service in the middle of the year. Therefore, for the five-year class assets, depreciation is spread over six years. The depreciation rates for the five-year class are as follows:

Year 1---20.0%
Year 2---32.0
Year 3---19.2
Year 4---11.5
Year 5---11.5
Year 6---5.8

These total 100%, and at the end of year 6, the asset will be fully depreciated. Using the MACRS method with the example above, the depreciation computed for tax purposes in year 1 is $4,000 ($20,000x20%). The straight line method for year 1 is $3,000; therefore the MACRS method reduces taxable income by an additional $1,000 in year 1. It isn't until Year 4 that the MACRS method produces a lower depreciation deduction than the straight line method.

Not only is the MACRS method required for tax purposes by the IRS, it can be more beneficial to the company because it reduces taxable income which in turn reduces the tax liability of the company. It is acceptable for a company to use the MACRS method for both financial statement and tax purposes, but only if it does not result in significantly different amounts than would have been reported using other GAAP methods such as the straight-line method, or the double declining balance method.

However, using the MACRS method for financial reporting purposes may not be the best choice. Showing a profit on financial reports to shareholders and stakeholders is an important goal for any business, and the MACRS method reduces net income more significantly than other methods in the first few years of an assets life. This is one of the reasons that many businesses choose to use other methods for depreciation on the financial reports, and then adjust the depreciation expense on the income tax return to reflect the MACRS method required by the IRS.

Even though GAAP provides for uniformity in financial reporting, different rules may exist for tax purposes. Therefore, it is possible for the financial reports of a company to differ from the tax returns prepared for the IRS because of the use of different accounting methods. In order to comply with both the requirements of GAAP and the IRS, it may be necessary to consult with a competent tax accountant or CPA.

By Justin Millier

The Proper Way to Use a Revolving Credit Line

2008-11-04T11:40:00.000-08:00

How to Properly Use Your Business Line of Credit

One of the most valuable tools a growing business can have is a revolving line of credit issued by your bank. But it is a tool that must be used wisely or you could lose it. So what exactly is a revolving line of credit? First off it is not a credit card. You are not issued a piece of plastic that can be whipped out whenever you need something. Instead it is a line of credit issued by a bank which is intended to cover the short term cash requirements of a business. It is normally used to cover the gap that occasionally occurs between receiving payment from a customer and making payment to a vendor. It is usually good for a period of one year but can be renewed at the end of each year.

How Does Your Bank Make Money?

So how does your bank make money off you? Well besides the fees they charge for establishing the credit line they make money on the interest. But just like a credit card they only charge interest on the money currently being borrowed. Not on the amount available to you.

Why You Need to Manage Your Line Carefully

Now just as you have to manage other aspects of your business a credit line must also be managed. The better you manage your credit line the more likely it will be that your bank will renew it. Along with your bank renewing your line of credit the possibility exists that they may increase the amount of the line if you ask and can prove to the bank the benefits of doing so.

What Is Your Bank Looking for?

So what exactly does your bank want to see? They want to see you use it properly of course. To them this means borrowing and repaying it regularly. A bank credit line is not a long term loan. You want to borrow what you need from it to pay particular bills and when your customer has made their payment to you then what you borrowed needs to be repaid. The more times this occurs the better the bank will like what you are doing.

Use Your Credit Line During Good Times as Well as Bad

Even if times are good and you don’t need to borrow money from it you should. By keeping the account active you show your bank that you value the line of credit you have and would like to keep it. If times become somewhat tight and you need to borrow regularly from it remember one rule above all concerning a credit line. Show the bank you can pay it off even if you have to borrow again the next day. Your banker will sleep better at night knowing the line of credit they issued is in good hands.

By Cash Justin Miller

Current Accounts- Meeting the Needs of Businessmen

2008-10-27T14:57:00.001-07:00

Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. who have to perform numerous daily banking transactions. In this account, the customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds in his credit. They are meant neither for the purpose of earning interest nor for the purpose of savings. These accounts are only for convenience of the business.

A proper introduction by an existing customer or a respectable person known to the bank is essential for opening the current account. The account holder can access his account from any branch of the concerned across the country. The cheques of the customer can be payable at par at all branches of the Bank across India. For this purpose you need for a demand draft. The customer can also give standing instructions to carry out his regular payments like Insurance premium, rent, taxes etc., with the current account provided sufficient balance is maintained in the account. The account holder also avails the facility of transfer of funds by means of Mail Transfer/ Telegraph Transfer/ Demand Drafts.

The current account can be opened with a minimum deposit, as stipulated by the Banks from time to time. The prospective account holder/customer needs to give a declaration that he/they are not enjoying credit facilities with any other bank or branch of the same bank at the time of opening the account. The Prospective account holder(s) should fill in the Account Opening Form, sign it and furnish the operational instructions to avail the current account facility.

Loans and credit cards charge you interest on the basis of an Annual Percentage Rate (APR) on the amount you borrow, whereas current accounts pay you an Annual Equivalent Rate (AER) on your credit from that account. This rate indicates what the amount would be if interest is paid on annual basis. The higher is the AER, the more is the interest the account holder earns. It works in the same way for any overdraft withdrawal, but money is deducted rather than credited from the savings amount. Current account interest rates are subject to change; both the provider and the Reserve bank of India can change them. However, the concerned banks notify of any interest rate changes before they take effect. To make a balanced decision regarding current account interest rates, you should look at the interest rate for both when in credit and if you are overdrawn. A high interest rate on your credit and a low interest rate on your overdraft is all about opening best bank current account

The account holders should watch out for interest rates on disarranged borrowing . When the account holder goes into the red or over the agreed overdraft limit, he is not only charged,but also can face a high rate of interest on this unauthorised borrowing. Some banks offer current accounts with tiered interest rates. Therese accounts work on the basis that different interest rates are applied to your money according to the balance available on your account. The tiered interest rates can mean the interest paid on your credit will drop once you pass a certain financial threshold. Similarly the interest on your overdraft amount can rise if you borrow over a certain limit.

Comparing before Opening best bank current account makes a significant difference. Comparison can help you reduce the cost of having an overdraft by helping you find an account with a lower rate of interest charged on your borrowing or overdraft. It can also help you find the best available rate of interest on your balance so you can earn more while your money is lying idle in your account. You need to compare the interest rates.
Current accounts- meeting the needs of businessmen

Summary: Current Accounts come with the answer of all kinds of business requirements.These accounts have been customised to ensure efficient fund management, quick transfers and instant availability of your funds across the network of the bank.

Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. who have to perform numerous daily banking transactions. In this account, the customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds in his credit. They are meant neither for the purpose of earning interest nor for the purpose of savings. These accounts are only for convenience of the business.

A proper introduction by an existing customer or a respectable person known to the bank is essential for opening the current account. The account holder can access his account from any branch of the concerned across the country. The cheques of the customer can be payable at par at all branches of the Bank across India. For this purpose you need for a demand draft. The customer can also give standing instructions to carry out his regular payments like Insurance premium, rent, taxes etc., with the current account provided sufficient balance is maintained in the account. The account holder also avails the facility of transfer of funds by means of Mail Transfer/ Telegraph Transfer/ Demand Drafts.

The current account can be opened with a minimum deposit, as stipulated by the Banks from time to time. The prospective account holder/customer needs to give a declaration that he/they are not enjoying credit facilities with any other bank or branch of the same bank at the time of opening the account. The Prospective account holder(s) should fill in the Account Opening Form, sign it and furnish the operational instructions to avail the current account facility.

Loans and credit cards charge you interest on the basis of an Annual Percentage Rate (APR) on the amount you borrow, whereas current accounts pay you an Annual Equivalent Rate (AER) on your credit from that account. This rate indicates what the amount would be if interest is paid on annual basis. The higher is the AER, the more is the interest the account holder earns. It works in the same way for any overdraft withdrawal, but money is deducted rather than credited from the savings amount. Current account interest rates are subject to change; both the provider and the Reserve bank of India can change them. However, the concerned banks notify of any interest rate changes before they take effect. To make a balanced decision regarding current account interest rates, you should look at the interest rate for both when in credit and if you are overdrawn. A high interest rate on your credit and a low interest rate on your overdraft is all about opening best bank current account

The account holders should watch out for interest rates on disarranged borrowing . When the account holder goes into the red or over the agreed overdraft limit, he is not only charged,but also can face a high rate of interest on this unauthorised borrowing. Some banks offer current accounts with tiered interest rates. Therese accounts work on the basis that different interest rates are applied to your money according to the balance available on your account. The tiered interest rates can mean the interest paid on your credit will drop once you pass a certain financial threshold. Similarly the interest on your overdraft amount can rise if you borrow over a certain limit.

Comparing before Opening best bank current account makes a significant difference. Comparison can help you reduce the cost of having an overdraft by helping you find an account with a lower rate of interest charged on your borrowing or overdraft. It can also help you find the best available rate of interest on your balance so you can earn more while your money is lying idle in your account. You need to compare the interest rates.

By RahulSen

Putting Service First is Key at Danbro the Contractors Accountant

2008-10-27T14:55:00.000-07:00

At Danbro, we understand the importance of looking after all of our clients. We recognize that customer service plays a key role in the success of a service including the Umbrella Service sector and is one of the main ways we differentiate ourselves from other umbrella service providers.

With an ethos of "it’s always the small things that make a big difference", we are constantly striving to ensure a high level of customer service. In order for DANBRO to maintain such a high level of service we are constantly carrying out training for all of our employees right across the company and pushing the importance of providing a quality service.

We regularly receive feedback from contractors expressing their positive views about our service, many of which can be found on our website www.danbro.co.uk. One client recently explained, "the customer service is excellent and I trust the people at Danbro. Any queries are dealt with quickly and you never feel you are being ‘fobbed off’." (K. Berry, 04/2008).

Evidence of this high quality service can also be found on many of the umbrella comparison websites, including Umbrella Supermarket and Bytestart. These sites compare the 100’s of different Umbrella Companies, helping contractors to choose the right umbrella company for them.

Umbrella Supermarket’s rating system does not solely rely on the site’s personal opinions but compiles the votes of thousands of contractors. They recognize that a contractor’s experience of an Umbrella Company’s online facilities is very important together with customer service and of course the contractor’s net pay. Danbro is positioned second from top on the Umbrella Company League with an overall rating of 81%. This is a very encouraging figure not only for the contractors but the whole team here at Danbro.

Danbro - Accounting Solutions for Contractors

Danbro Accountants on Track in Building Relationships

2008-10-27T14:53:00.000-07:00

Contractor accountant specialists Danbro got off to a racing start with a “getting to know you” event for recruitment agencies.

Many of Danbro’s contractor – or freelance – clients work through recruitment agencies and the Blackpool-based company already has close links with a number of these companies.

On 2 September, Danbro took an innovative step to help it explore ways of working more closely with recruitment agencies, to further improve services to their mutual clients, by inviting agency representatives to the Donnington Park race track in Derbyshire.

The Donnington Park MSVR Blast in the Park Championships featured a packed programme of motor racing entertainment, including two rounds of the British T Car Championship for 14 to 17-year-olds.

Danbro was supporting 16-year-old Joe Hopkins, who stands equal second in the championship points table after the Donnington Park event.

Damian Broughton, from Danbro, said: “We were delighted to welcome around 35 representatives from 11 different recruitment agencies – both new and existing contacts - to Donnington Park.

“We had a very successful day, which has proved extremely useful in building bridges with recruitment agencies towards our shared aim of giving our contractor clients the best possible service. We are delighted to have achieved such a positive and productive result.”

For more information, please contact Danbro on 01253 600140 or visit our website Danbro - Accountants for Contractors

Danbro Accounting Solutions

Beginner’s Guide For Buying Accounting Software: Understand Basics Of Accounting First

2008-10-17T14:13:00.000-07:00

By: Ashish Jain

Having decided to go for an accounting software, what you must understand is that the best accounting software is the one that performs all the conventional accounting functions promptly and accurately. All additional features are secondary to the basic functions. Never forget, it is the “rigid rules” of “accounting” that make the software so consistent throughout.

Since most of businesses deal in cash in some form or the other, the foremost accounting function is Cash Book maintenance, which ensures that all cash transactions are monitored for a certain period of time.

Next, comes the Bank Book, wherein all the records related to bank transactions are kept and can be easily sorted out for any specific time period.

Then, there is the Journal Book, which is what one needs to refer to for all such transactions that are neither related to cash, nor have anything to do with the bank.

Besides, there is Purchase Book and Sales Book. While the Purchase Book keeps track of all the purchases made and all such transactions that have anything to do with purchasing, Sales Book, as the name suggests, records the sales.

These books come in handy to prepare Trial Balance, which demonstrates the accounting accuracy of the involved transactions. The Trial Balance has a Debit and a Credit side. To find out if the transactions have been recorded properly or not one has to tally the sum total on Debit side with that on the Credit side. If they tally accurately, it indicates that the transactions have been accurately recorded. However, the tallying is effective only when the transactions are recorded using the double entry concept. The Double entry concept works on the principle that for every Debit, there has to be a Credit.

Now, if you are about to choose an accounting software, make sure that it performs these basic functions efficiently and accurately. Another thing that you must bear in mind is the user friendliness of the software because getting a technologically complicated software may make accounting complicated, which, surely, is not what you are getting the software for. So, settle for a software that is easy to operate and gives accurate accounting results.

How to Stop Waste, Fraud and Abuse

2008-09-23T12:06:00.000-07:00

by: Chris Anderson

Each year, businesses write-off six percent of revenue to waste, fraud and abuse. But why would managers throw all that hard-earned money away when there is a reliable way to eliminate waste, fraud and abuse using accounting policies & procedures to create internal controls. Internal controls eliminate uncollectible receivables; prevent theft or embezzlement; optimize inventory; and stop waste, fraud, and abuse. Utilizing just a single control will add real money to your bottom line each month.

Look for Easily Customizable MS-WORD files to Save Time

You can quickly and easily develop customized procedures and internal controls for your organization, no matter what size it is. WORD templates reduce the stress of writing clear internal controls, policies or procedures; of staying late at the office to research “best practices” or of worrying over what format to use.

Use Prewritten Text by Industry Experts

It's much easier to edit prewritten controls than to develop them from scratch. Let experienced CPAs, auditors, and business process experts think through the steps for each procedure or form. Then, save even more time by using the resulting content that technical writers have edited in MS-WORD instead of re-entering the text.

Vital Procedures Resource used by Thousands

Accounting Policies and Procedures is one such vital resource used by thousands of executives and managers to strengthen their financial operations. Such a manual contains an introduction to accounting, an explanation of how to create your own controllers manual, an example of a complete prewritten manual, ample policies, procedures and forms for the most common processes (revenue, cash, assets, purchasing and administration), a detailed index to every keyword, phrase and regulation used, plus a Guide to Embezzlement Prevention.

Examples for Every Owner or Executive

Every month executives share their stories about satisfying their auditors with new controls, of increased earnings found in their business and how much time was saved. So, if you want to increase the profits of your business then consider an Accounting Policies & Procedures manual.

Help Your Business Grow Now

Can you afford to let a single precious hour pass without finding out what Policies and Procedures can do for your business?

Non-Profit Organizations - What Are They?

2008-09-23T12:05:00.000-07:00

by: John Day

Definition of Fund; Assets; and Fund Balance

According to the “Financial and Accounting Guide for Not-For-Profit Organizations” written by CPAs Gross, Larkin, Bruttomesso, and McNalley, (fifth edition, pg 25) the definition of a these three terms is as follows:

- A fund is any part of an organization for which separate account records are kept.

- Assets are valuable things owned or controlled by the organization. Types of assets include cash, investments, property, and amounts owed to the organization.

- Fund balance is the mathematical number obtained by subtracting total liabilities from total assets; it is a numerical representation of the net worth of the organization, but has no other significance. Fund balances do not exist except on paper; unlike assets, they have no intrinsic value and cannot be spent. Both assets and fund balances (as well as liabilities, revenues, and expenses) are part of the accounting records of a fund.

What are non-profit organizations?

A few years ago, a dentist client of mine, who did a lot of work for low-income patients under the California medical assistance program called “MediCal”, asked me a bizarre question. He wanted to know if he could be considered a “non-profit organization” since he did so much MediCal work. At first, I thought he was joking, but he was serious. I told him that just because he charged less for his services did not qualify him to become exempt from paying taxes. In fact, he made a very nice profit. However, this is a good example of how non-profit organizations (NPO’s) are misunderstood by a large segment of the general public.

Most countries around the world have NPO’s, but outside the U.S. they are called non-governmental organizations (NGOs) or civil society organizations. These organizations are exempt from paying taxes because they provide some sort of public benefit. They are said to enhance the fabric of society. They differ from a business organization in that there are no owners. A Board of Directors oversees operations of the organization. An Executive Director, who reports to the Board, functions like a CEO of a business. Usually there is a lengthy application process to establish the mission or purpose of the organization before exempt status is granted.

According to Independent Sector, an organization that serves as an information resource for non-profit boards, there are 1.5 million non-profits that, when combined, have general annual revenues totaling more than $670 billion dollars. They report that six percent of all organizations in the U.S. are non-profits and one in twelve Americans work for a non-profit. That’s big business and has caused profit-making businesses to become alarmed that some of these NPOs are competing unfairly. Think about a private hospital as compared to a non-profit hospital. The profits of the private hospital are taxed, but the NPO hospital can apply all their profits to higher salaries, more equipment, etc. Hence, there is high scrutiny of NPOs by the Internal Revenue Service, state Attorney General offices, private watchdog organizations, and the press.

There are all types of non-profit organizations. Public charities are exempt under the Internal Revenue Service code 501(c)(3). These organizations, such as hospitals, museums, orchestras, private schools, churches, scientific research organizations, soup kitchens, etc., obviously do much more than provide free care and services to the needy. To qualify for exempt status, these organizations must show broad public support, rather than funding from an individual source. In addition, there are private foundations, colleges, universities, social welfare organizations, professional and trade organizations, and many more. Governmental organizations such as communities and agencies are also non-profit organizations, however, their accounting and record keeping is handled quite differently from 501(c)(3) organizations.

How are non-profit books organized?

Briefly, the books of an NPO are organized in the same way as a profit-making business except for a few differences. It’s okay for a non-profit to make a profit because there may be many uses the board has planned for the extra money. But, NPOs traditionally refer to profit as “Excess Revenues over Expenses” to avoid being mischaracterized as a profit-making organization. A net loss is called “Excess Expenses over Revenues”. Recall the fundamental equation that makes double-entry accounting work:

ASSETS = LIABILITIES EQUITY

Instead of the term EQUITY, a non-profit will substitute the words FUND BALANCE or more recently NET ASSETS. The concept is still the same. After subtracting liabilities from assets the difference is what is owned by the organization. Where NPOs differ in their financial statement presentation from profit-making businesses is what is called Fund Accounting. Obviously, the presentation varies depending on the purpose and size of the organization. For instance, a Little League baseball organization may only have one fund for which they have to account. They also may not have any restrictions placed on the usage of contributions they receive. Everything is straightforward.

Or, a scientific research organization may be working on various projects at the same time with funding sources made up of private and governmental grants or contracts, private donations, sales of research documents, some of it restricted to specific expenditures and the rest unrestricted. The accounting challenge is to report the revenue and expenses accurately for each fund or project and be able to combine all the funds into one cohesive financial statement.

The problem in the past for the contributors was that they could not easily tell from the financial documents what funds were restricted and unrestricted and whether their contributions were being spent properly. The Financial Accounting Standards Board (FASB) decided that all external accounting should be done using the “Net Assets” approach as opposed to the “Fund Balance” approach. Essentially, the net assets approach requires that the equity of the organization be presented with three classes of assets, i.e., Restricted Assets; Temporarily Restricted Assets; Unrestricted Assets. You can still use Fund Accounting for internal bookkeeping purposes, but for external reporting purposes you are required to disclose your restricted and unrestricted funds. If you have no restricted funds, then it is not much of a challenge.

One of the key factors in setting up non-profit books is a well thought out Chart of Accounts. In other words, this is choosing which general ledger accounts are the most appropriate for recording revenue and expenses, etc., and organizing them in such a way as to provide meaning. Some U.S. organizations simply follow the same format found on the 990 IRS form for non-profits. They do this so that their financial statements are in conformity with the way that return is organized. This makes it easy to transfer information from their financial statement to the 990 form.

Nevertheless, the main thing is to design your accounts so that they tell you exactly where your revenue came from and what expenses are related to that revenue. I have worked with NPOs that have not done a very good job of this in the beginning, and I can testify that it is no fun trying to straighten the accounts out later. It may be well worth the money to hire a competent accountant to guide you through the set up phase. Better yet, let your accountant review your books a couple of times a year just to make sure you are on track and save yourself some year-end grief.

Accounting Methods – Cash and Accrual

2008-09-23T12:04:00.000-07:00

by: Richard A. Chapo

When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.

Cash Method

If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example.

I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return.

Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method.

Accrual Method

The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind.

Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred.

Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year.

In Closing

As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional

7 Things to Consider Before Buying Small Business Accounting Software

2008-09-23T12:03:00.000-07:00

by: William Siebler

The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.

Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals.

1. Scalability

Businesses change over time so it's critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily
upgraded when needed with minimum disruption and cost to your business.

2. Support

It is important that any software has great support for when something goes wrong (and it always does). Most major companies offer support but you also need to think about support in your local area. It's often much easier to have someone locally come in and do things you need done with your software than have someone trying to help you over the phone. Make some
enquiries with other businesses about the package they use and who helps them.

3. Accountant Interface

It's most unlikely you will handle every aspect of your businesses accounting. Your accountant is an important factor in making the right decision. What software are they used to working with and what do they prefer? Can you easily supply them data and reports from your package without the need for any extra work (which you'll have to pay for). Don't be afraid to ask their opinion as they live and breathe this stuff.

4. Best Value For Money

Once you have selected the right package for your business you may as well get the best value. Shop around as the price can vary greatly and the product is exactly the same. Online merchants such as Amazon may offer better pricing because of the sheer volume of products they sell. However price is only one part of the equation so if their is great merchant locally with support or installation assistance this may be far more valuable.

5. Major Brands

There are two major players in the small business accounting software market. They are QuickBooks and Peachtree. Microsoft is expected to enter the market soon. I recommend choosing a major brand so that you can get regular updates and you know the company will be around as long as your business needs them.

6. Ease of Use

Ease of use is a personal thing but it is worth trying the software before you buy it if you can. Remember to get the person who will be the main user to test the software as well. Also consider how well the package can interact with other software you use. This is an advantage the Microsoft package may have when it's available.

7. Features Needed

I touched on this earlier when talking about thinking ahead as to where you business will be in 5 or 10 years time. Most accounting software packages come in several different versions. If you don't need certain features now and can't see a need for them in the future then don't buy them. The major differences are usually - number of users allowed, inventory management capability and number of reports available.

To sum up think ahead when planning your purchase of small business accounting software. You will make a much smarter business decision that will save you plenty of trouble and money in the future.

Asset and liability basics

2008-09-23T12:01:00.000-07:00

by: Mansi gupta

Knowledge of accounts can make life much easy. If you are to invest in a new business or joining your forefather’s business, planning to take some loan, looking for job in any marketing company, desire to be the manager of a multinational company or have the onus to manage your own assets and liabilities, knowing some basics of accounts becomes mandatory.

Broadly, accounting is bifurcated into two categories-

Cash Bases Accounting

Accrual Accounting

The Cash Based accounting pertains to the management of an individual’s personal monetary transactions. In this case, he keeps a track of the money he withdrew, deposited, gave or received from someone etc. This accounting comes to life when actual cash transactions take place.

The Accrual Accounting requires an accountant who notes the transactions even if no money has been actually exchanged. This method works on the principle of comparing or seeing the ratio of the expenses to expenditure. If the expenditure is more, you need to cut down your luxuries, if not then it’s always good to have some savings for future. This type of accounting tells you the amount that you owed; this might not match with the figure of your bank balance.

In the language of accounting there are several key terms that one needs to be familiar with. Some of the crucial ones are discussed below-

The Assets- the assets are generally those possessions of an individual that have a good market value or are quite valuable. Assets are mainly classified into three types-
Current Asset- the cash is the most basic asset of any individual. The money that is being held in accounts like the checking and savings accounts is also included in the cash. Also inclusive are the marketable securities in the form of bonds, stocks, shares etc. The money lent or payments due from clients, even form a part of it.

Fixed Asset- comprises of all the tangible valuable things like property, machines, equipments, land and the like that are not meant to be sold.

Intangible Asset- incorporates all the untouchable things like copyrights, patents, trademarks etc. that have tremendous monetary significance.

The law of opposites governs the nature; where there are assets, there will be liabilities. These are the debts that you have to pay back to your creditors. This can be done through giving cash or any other asset like jewelry, some other goods etc. Liabilities again are of two kinds-

1. The Current Liabilities- the liabilities that are to be paid back within a certain time limit and most often through your current assets. These include the accounts payable i.e. type of bill that you have to monthly, the Notes Payable-loans taken from banks meant to be repaid within 30 days and the Accrued Expenses- the compulsory expenses like taxes, wages, interests etc. where the bills are not received but the balances of each must be repaid.

2. Long Term Liabilities- those debts that can be repaid at ease for the tenure is more then a month.

The Financial Capital- is the economic capital. It is any liquid medium or merchandise that stands for wealth or other styles or capital. There are four ways to manage and display the financial capital. First, this capital is needed when a contract is made with any sort of capital asset. The financial instruments work in the form of currency in case of sale, purchase or trade of goods i.e. the medium exchanges. Second, it works as a settled medium or mode like gold for the
Standard of Deferred Payment. Third, The Unit of Account has a market value attached to it which in turn varies with the economy of the country. Fourth, The Source of Value is concerned with financial capital that needs to be saved and recovered. It is a collection of things like gold, real estate, collectibles etc.

Petty Cash is an important factor in business. It is the smallest account within a business setting or the cash in bills and coinage required to pay little expenses.

Types of Business- there are several kinds of business one should be aware of like

Sole proprietorship- where a single individual who starts the business owns it too.

Partnerships- the companies or businesses started by two or more persons where they conjointly own it.

Corporations- involve lot many shareholders or investors who are responsible in taking decisions for the company.

Limited Liability Companies- can be said to be sisters of corporations. Here the business members are not under a legal obligation to pay the debts if the business fails.

Payrolls- the term payroll designates the manner in which you will be paying the employees of your company and even yourself. Many multinational companies cater to payroll service provider companies that do the work quite efficiently.

These are some of the broad guidelines that will help you grasp the basics of accounting. It is essential to have some such wisdom for accounts as it is fruitful in all walks of life.

After the latest and accurate help in relation to accountancy

2008-09-23T11:59:00.000-07:00

by: Tom

When you are looking for high-class advice concerning accountancy, it will be hard sorting out the best information from foolish accountancy proposals and guidance so it's best to know ways of moderating the information offered to you.

NetSuite: Small Business Accounting
NetSuite offers an integrated online accounting application with ecommerce, sales, inventory, shipping and support. Free Trial.

Now we would like to offer you some advice which we advise you to use when you are searching for information about accountancy. You need to realize the guidance we put forward is only pertinent to internet based information concerning accountancy. We don't really offer any direction or assistance when you are also conducting research in books or magazines.

OpenPro: Web Based Accounting
Offers Web-based, open source ERP accounting system with financials, supply chain, manufacturing, CRM and ecommerce features.

An interesting tip to pursue when you're presented with information and suggestions on a accountancy website would be to determine who owns the site. Doing this could reveal the owners accountancy credibility The easiest way to reveal who owns the accountancy web site is to find the sites 'about' page.

Any reputable site providing information concerning accountancy, will always have contact information which will record the site owner's contact details. The details should make known some key points concerning the owner's requisite knowledge. You can then arrive at a decision about the webmaster's depth of experience, to offer guidance about accountancy.

How to Choose the Right Accounting Software for Your Business

2008-09-23T11:58:00.000-07:00

by: Brandon Hall

With any good luck and a good amount of hard work, you're having the same problem many business owners today are facing. Your business is growing rapidly and you're having problems controlling your finances. Time and time again, that Microsoft Excel spreadsheet you've been using just isn't getting the job done for you.

So, you’ve decided that you’re ready to take the next step, and buy a full-featured accounting software program. Many options are available to choose from, but I believe the best solutions to be Quicken Premier Home and Business by Intuit, QuickBooks Pro also by Intuit, and Peachtree Accounting by Sage. In order to decide on the right package for you, you need define the type of business that you operate.

With the rise of self-employment (businesses with one or more owners but no paid employees) a need has arisen to manage business and personal finances on one platform. Intuit has released Quicken 2005 Premier Home and Business to fill this need.

This software is perfect for the small business owner who receives income from investments, real estate, and/or internet
marketing. Also, Quicken 2005 Premier Home and Business is well priced at only $89.95.

For more typical brick-and-mortar business owners, you will usually need a more robust solution like QuickBooks Pro or
Peachtree Accounting for functions like payroll reporting and check producing. Each piece of software has its advantages,
but don't forget that QuickBooks has been the standard in business accounting software for many years now. As for features and basic operations, both applications will provide you the same functionality and convenience for your business.

One additional factor to consider in your decision is that Peachtree Accounting is less expensive than QuickBooks. Both
starter versions of Peachtree and QuickBooks are priced at $99.95 each, but the full-featured version of Peachtree is priced at only $199.95 while the full-featured QuickBooks Pro is priced at $299.95.

At the end of the day, the biggest advantage QuickBooks offers over Peachtree is compatibility with other applications. For example, most commercial banks (Bank of America, SunTrust, etc...) provide you with files designed to work directly with

QuickBooks, so that you can read, study, and decipher transaction details. Also, some banks will allow you to update account information in real-time with QuickBooks. Check with your bank to see what accounting software their online services support, and you should be able to make your decision.

Do You Need Accounting Software For Your Small Business?

2008-09-23T11:56:00.000-07:00

by: Jakki Francis

If you’re anything like me then you dislike with a vengeance doing your accounts and taxes.

So how can you make this process easier, less painful and cut your accountancy fees?

Well buying an accounting software package is one way.

First of all you need to decide whether you are going to keep your accounting records manually, that is using pen and paper, or whether you are going to computerize the process.

If you decide that computerizing the process is the way to go then you need to decide whether to buy an accounting software package, for example Sage or Quicken, or whether a spreadsheet, such as Microsoft Excel will suit your needs better.

As a general rule if you are a cash business that just needs to record income and expenditure then you are better off using a spreadsheet.

So, should you choose an accounting software package? Yes if:

· You have customers to whom you extend credit and you buy goods in the same way

· You process in excess of 50 transactions per month

· Your business is an Incorporated Company (Limited Company in the UK)

and

· You are computer literate or are willing to learn!

Before choosing the accounting software, speak to your accountants – they will be familiar with the various accounting software packages on the market and will be able to advise you. Most accountants use software in their office to process the bookkeeping for their clients and will have a working knowledge of the accounting software package they use. It may be cheaper for you to use the same one they do, because they can advise you how to get it up and running and will be on hand to answer questions, plus at your financial year end when your accounts need preparing it will be less expensive, believe me to have a compatible program.

I also recommend doing some research yourself, you may be able to obtain a demonstration disk or download of the most popular accounting software packages and this will give you an idea of how they work and if they are user-friendly.

The cost may also be an issue, so you need to decide on your budget. But consider how your business is likely to expand - you may outgrow that budget accounting software quickly and end up buying the more expensive one anyway.

Accounting software providers may also try and up-sell you a maintenance contract. Save your money! In my experience the established software providers will not have bugs in their systems. They will also try and upgrade you to the next version on a regular basis, but if the software is doing everything you need then there is no need to upgrade.

Of course, you could also pay someone to do your accounts for you, either your accountant or a bookkeeper – the payoff being you don’t have to do it yourself and it frees you up to actually run your business!

Surprise! Accounting is the Hot New Major

2008-09-23T11:54:00.000-07:00

by: Donna Monday

There was a time when accounting was the boring college major that many people regretted signing up for. A constant barrage of numbers, statistics and spreadsheets was none too interesting.

Boy, have times changed! Thanks to recent accounting scandals by companies like Enron, there is a high demand for accountants and auditors.

According to the Job Outlook 2005 survey, accounting comes out on top as the most in-demand major on college campuses. Forget dot com start ups. Cleaning up a company’s accounting books is what’s in.

But can accounting be sexy?

“All the focus on accounting created a perception to students that accounting matters and is perhaps even sexy,” says Ira Solomon, head of the department of accountancy at the University of Illinois at Urbana-Champaign.

Colleges are scrambling to find more accounting teachers and professors to replace those retiring. Not an easy task, since there are twice as many accounting faculty openings than applicants to fill them.

Here are the top 10 most in-demand college majors as surveyed by the National Association of Colleges and Employers (NACE):

1) Accounting
2) Electrical Engineering
3) Mechanical Engineering
4) Business Administration/Management
5) Economics/Finance
6) Computer Science
7) Computer Engineering
8) Marketing/Marketing Management
9) Chemical Engineering
10) Information Sciences and Systems

If you’re good with numbers and a stickler for details, you might want to consider accounting as a good career choice. However, you’ll probably have to take a number and wait in line behind all those other future accountant hopefuls.

Accounting Police: Do They Exist?

2008-09-23T11:32:00.000-07:00

by: John Day

Who created accounting principles? Who sets and revises accounting standards? What if you don’t follow all the rules, do you go to jail? Is there an accounting police force that investigates and arrests violators? It would seem that there must be some regulatory force to make sure that providers of financial statements conform to the rules. There is, up to a point, and here is how it works:

Mainly, it’s all voluntary and it works pretty well. First, double-entry accounting originated in Italy in the 1400’s, so its been around awhile. Accounting principles have evolved over the years just as have accounting standards. The reason why the system works is that the business community could not function if there was not commonality and consistency in financial statement reporting. It would be chaos, much like if there were no driving rules of the road.

Therefore, in the United States, a body of experts known as the Financial Accounting Standards Board (FASB pronounced Fasbee) was established in 1973, which superseded another board called the Accounting Principles Board (APB). The FASB members go through a lengthy process of analyzing and reviewing problems in the accounting field that are brought to them. After much thought, they will make a pronouncement as to what they think the new or revised way of approaching the treatment of an accounting issue should be.

They are a non-governmental organization that has private financing. A big supporter of FASB is the American Institute of Certified Public Accountants (AICPA). Many Certified Public Accountants (CPAs) belong to this prestigious organization and are obligated to abide by its guidelines and principles of behavior. Other countries no doubt have similar organizations that require high levels of accounting professional conduct.

FASB established an accounting code called “Generally Accepted Accounting Principles” or (GAAP). The assumption is that if a business financial statement is prepared according to GAAP, then the user of that financial statement could rely on or trust the information more readily than if not prepared according to GAAP. Those businesses that deviate from GAAP, and many smaller businesses do, cannot say that their statements are prepared under GAAP; in fact, they should inform the reader that they are not. However, let the buyer beware.

One governmental body that has a policing function is the Securities Exchange Commission (SEC). It is primarily concerned with public companies because their job is to protect investors from unscrupulous acts. Recently, the SEC has gotten into the act of establishing accounting standards. It has its hands full today.

Since most businesses use their financial statements to prepare their required income tax returns, the Internal Revenue Service (IRS) may audit those tax returns and review the financial statements upon which the tax returns are based. Not following the rules can get you in trouble with this governmental body.

You can see that in many ways compliance to the principles and standards is a mixture of voluntary and regulatory behavior. Currently, there is an effort underway to set international accounting standards due to the inexorable globalization process. This is a massive undertaking that will take years, but it is obviously necessary and inevitable.