I have nothing against sitting on a beach, love it actually, but how did that become the standard selling point when people talk about cloud accounting?
Once you've migrated to Xero, most things are pretty straightforward. However, the trickiest part is matching your outstanding receivables (aka your outstanding invoices) and your outstanding payables (aka the outstanding bills you owe) to the ending balances from the prior period that are being imported. I've attempted to help illustrate this with the video below.
I took a tour of the NYSSCPA location on Wall Street today. Nice improvement. Same 19th floor as on Park Ave. But more natural light, more tech friendly (wifi throughout, outlets at each desk for classes). Overall, nice place and pleasant tour.
Christians have a day, today, actually, to celebrate the Transfiguration of Jesus. Well, you might ask, what is that and what does that have to do with the tax code? OK, here goes.
In the ancient Jewish society there was what is considered 'Mosaic Law'. This started with the 10 commandments from God to Moses but over the years ballooned to 613 (remind you of anything?). One day Jesus was summoned up to a mountain (allegedly Mount Tabor) where he met with Elijah (a prophet), and Moses (the man who received the 10 commandments from God). Now, how this happened and the supernatural forces at play, I won't delve into, but the result was that Jesus became 'transfigured' into a more radiant and beautiful being, and additionally or alongside this, the commandments were distilled from 613 into basically two: 1)Love God and 2)Love your neighbor as yourself.
So, again, what does this have to do with the tax code?
Well, there may actually be a lesson here. Think of all the pronouncements, publications, rules & regulations in the IRS tax code (and this is not even considering the states), they number way more than even 613. What if the tax code could be distilled into a couple key principles - like 1) each person shall pay the government a tax in the same proportion of their net income and 2) the sales of assets and services are all treated equally.
Christians would acknowledge that Jesus encouraged others to perform greater acts than even he had done...and this from someone who served the poor, walked on water and raised the dead back to life. In many ways, 'transfiguring' the tax code would be like moving mountains...and then, of course, we could move to the legal system.
Obviously, what you call something matters. I mean, it needs to be identified, after all. But what happens when we bastardize standard nomenclature in a given industry? Yeah, I know, we figure it out eventually, but wouldn't it be nice if we established a 'standard' and then kept it?
Ok, I'll explain further. But first a story. C.S. Lewis once commented on the use of the word 'gentleman'. The word gentleman once was a factual term. If a man owned land, that person was called a gentleman. The person could have been a downright louse, but if he owned land he could technically be called a gentleman. Now, how this term was ever conceived, I'm not sure. Possibly aspirational or hopeful i.e. ok, you are my landlord but you are also a gentle man...right?
Anyway, fast forward to today. The term is no longer fact-based but value-based. "Act like a gentleman", we tell our boys and men. We mean, of course, to imbue them with the embodiment of the terms 'gentle' and 'man'. One can only now be a gentleman if one is seen as embodying their understanding of what a 'gentleman' is.
The problem, of course, (well not really a problem, but a conundrum) is that now we move to other words to define land owner, but the term 'gentleman' is no longer a valid way of describing a land owner but is now used as a way to define a 'good' fellow...whatever 'good' means.
So, what does this have to do with accounting?
Well, as more and more accounting programs, CRMs, Project Management SAASs, etc. flood the market, we have many terms with which to call the money that comes in and the money that goes out. I won't rehash all of them but wouldn't it be nice (sung to the Beach Boys tune) if we could all agree on a few key terms and everyone would abide?
Yeah, I know, pie in the sky wish, this is democracy, yada, yada. But this actually does then become a 'market' decision because there is a value for consistency between programs. For example, if revenue is referred to as sales...well, I understand the point, but I have ticket sales, donations, and investment income...each of which I broadly consider revenue. And yeah, I may define my expenses as purchases but depreciation, for example, is an expense but not purchase.
You see my point?
I'm not saying this a winnable argument, nor should it be, necessarily. This may be an evolution (revolution) in the world of business. Or even if it isn't, I'm not naive enough to think something like logic wins in the marketplace, either. But in the universal language of accounting, it would be nice to have a few common, finite terms that we could all use to speak the same language. Ah, but there is Babel, is there not?
Managing cash flow plays into almost every decision that a business has to consider. While it is important to control expenses, having a process for collecting on revenue can be equally important.
Ask us how we can help you link a ZenCash account to your Xero.com accounting software to service and stay on top of your invoicing and collections.
And let us know if you have any of your own tips (ethical & legal, of course ;) ) on how you manage your receivables.
If you are a service provider you know this dilemma: You need to be a hero to your client but you also need your suppliers at the top of their game in order to deliver.
The challenge, of course, happens when the supplier/contractor/vendor software crashes, contractor doesn't show up, part breaks, etc.
Has something like this ever happened to you? How did you handle it?