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Are You Certain of Your Answer?

Author: Keith Huggett 

If you are an owner of a small or medium sized business, you may think you are certain of your answer. But for most of us, the answer is often "No, I am not certain of my answer."  The reason for this is because we often hand over the controls to our financial department to what we consider to be our "financial staff" which consists of one or two trusted individuals and never think twice about it.  This can lead to employee theft. We're not saying that it always will, just that it can. Like everyone else, we like to look on the bright and shiny side of life too, and hope that the people we work with are honest and dependable, but you never know what can happen. Sometime life throws you something bad, and people are driven to desperate measures. So today, we have some tips for you that may help you prevent employee theft.

• Match up your client payments to your client invoices.
• Call your clients to make certain that payments haven't been sent that haven't been credited against their account.
• Use an expense account for each employee.
• Use online banking.
• Don't share passwords.
• Watch for dates being changed on transactions.
• Keep track of inventory by holding random inventory checks.
• Keep complete vendor records. Collect W-9s from each vendor prior to making payments to them.  Having complete W-9s is a good policy for tax time as well, as you may need this information at the end of the year should you need to send out 1099s.

There are many more tips and tricks to keeping track of the employees handling your financial data. For more in depth information, you can download this free whitepaper To Catch A Thief, Is Your Bookkeeper Stealing? Because small businesses are just that, small, they often lack the large financial staff and sophisticated controll systems inherent with large companies which makes it easier for employees to steal.  The United States Chamber of Commerce estimates that $50 billion dollars are lost annually to employee theft.  The FBI arrested 21,300 people in 2012 for embezzlement.

If you are concerned about the numbers shown above, and you suspect that maybe you have encountered theft in your office, now is the time to act.  The bookkeeping specialists at The Tax Office, Inc. can help you.  We specialize in outsourced bookkeeping, where you will have 24/7 access to your financial data. Contact us today.

Cloud-Based Accounting is Secure and Reliable

Author: Keith Huggett

When it comes to your company’s financial information, you’re naturally concerned about keeping your data confidential and secure. And even though cloud-based business applications are commonplace these days, some people still wonder whether accounting in the cloud is trustworthy.

In fact, the cloud is safer and more reliable because multiple stronger and redundant security features are embedded throughout the system. You might think of it as a triple-layer security net.

Cloud-based service and hosting providers wouldn’t be in business if they couldn’t ensure protection for themselves and their clients. The triple-layer net provides:

• Heightened physical security, by housing servers and other equipment in a physical environment much like what banks use.  
• Tighter electronic security, by using encrypted and/or virtual private network (VPN) connections for sensitive data.
• Well-protected remote access, by enabling data to move into or out of the system only after multiple internal security measures have been met.

In the past, and with traditional in-house data storage and retrieval systems, users could log in from unprotected or poorly protected computers, and the systems themselves were all-too-often just as poorly protected. With accounting in the cloud, you and your employees -- in some cases even your clients or customers -- can connect any time, from anywhere, confident that security is always assured.

This is especially valuable for small or mid-size businesses that couldn’t possibly afford the equipment, software and staff necessary to produce the highest levels of security.

With the triple security net, you can take advantage of the many benefits available via accounting in the cloud, including:

• Convenient 24/7 remote access.
• Greatly improved efficiency.
• Centralized data storage.
• Cost and space savings.
• Significantly enhanced security.

One Thing Hasn’t Changed

The partner you choose for accounting in the cloud is of paramount importance. Working in the cloud can provide maximum information security, but trust is built on individual client relationships. At The Tax Office, Inc., we rely on the latest technology to do our best work, but we also offer the knowledge, experience and personalized attention you expect and need to help your business thrive. Contact us today to learn more.

Cloud-Based Bookkeeping has Strong Advantages

Author: Keith Huggett

Whether you're a sole proprietor doing your own accounting or the manager of a company large enough to have its own dedicated bookkeeping person or staff, keeping your financial records up-to-date and accurate poses constant challenges.

QuickBooks can help, but the technology that supports it can cause its own problems. And the analytical information it provides is only as good as the data its users enter. So you're constantly battling potential accounting crises like:

• Software problems. You must install regular updates, keep company files from becoming corrupt, guard against viruses and malware, and maintain backups.

• Inaccurate recordkeeping. QuickBooks may be easy, but accounting is hard. If you or your staff don't have the proper training or knowledge of double-entry accounting, your accounts receivable and payable, payroll and tax filings may suffer from costly errors. You face unpleasant customer relations, potential loss of business and IRS penalties.

• Staffing difficulties. Your financial workflow never stops, even if the personnel responsible for it are sick, on vacation, traveling for business or otherwise unable to be in the office.

Accounting in the cloud can solve all of these problems. Often referred to as virtual accounting or online bookkeeping, it's a convenient, safe, cost-effective way to ensure that your financial records are processed accurately and in a timely fashion. Your service provider keeps a current version of your QuickBooks version  -- along with your data -- on its own secure servers. You can access it from any computer that has an Internet connection, 24/7.

The benefits of accounting in the cloud are clear. You have the flexibility to work from anywhere, anytime. You don't have to worry about software or network maintenance, and since your provider is an expert in both QuickBooks and accounting procedures, your financial books will be maintained accurately.

The experienced professionals at The Tax Office, Inc. can take on your virtual bookkeeping tasks. We have decades of experience in accounting, tax and payroll management, and we can simply help you run your business more efficiently. Contact us for a free consultation, and we'll work with you to provide just the services you need.

Accounting Data Security Always A Challenge

Author: Keith Huggett

The cloud has gotten a lot of press lately, but it's not really a new phenomenon. Once the Internet grew to the point that large amounts of data could be passed securely among individuals or companies, it quickly became clear that not everything had to be stored or maintained inhouse. Companies realized that they had the option to access software applications and information remotely, thereby reducing the cost and hassle associated with frequent updates and compatibility issues.

They also realized that rather than building their own server networks to handle record-keeping, they could transfer that information to an external vendor who would assume responsibility for ongoing access, security and storage.

The question, of course, is whether accounting data security is safer in the cloud versus on-site. It's definitely more convenient. For one thing, using the cloud for data storage reduces the need for large IT departments and ongoing hardware/software upgrades. It also makes it possible to access corporate data remotely, using the Internet or mobile technology to do the work that would otherwise have to be done in the office.

With regard to security, the cloud also has some clear advantages. Vendors that provide online data storage and management focus on one thing — data integrity. That means they're committed to doing whatever it takes to protect the data residing on their servers. Typically, that includes:

• Building an enterprise-class data center

• Installing technologically-advanced firewalls

• Conducting ongoing anti-virus scans

• Completing daily data backups

• Employing full-time security personnel

• Maintaining redundant power systems, backup generators and fire/flood protection

The list could go on and on. Does your company have the resources to undertake that kind of effort? If not, a cloud-based solution might be the just what you've been looking for — a viable way to reduce costs without sacrificing data security or quality. 

If you'd like to learn more about safe, alternative ways to manage your financial applications and data, The Tax Office, Inc. would love to help. By offering everything from tax preparation, payroll management and online bookkeeping to complete accounting services, we have the solutions you need to keep your business streamlined and secure. So contact us today.