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Posts Tagged ‘Outsource Accounting’

Consolidation of Subsidiaries in Accounting Software

Mr. John (Giancarlo) Meazzo, M.A. President of GMA noticed that at times clients are uncertain on how to set up consolidated companies in their accounting software.  Company consolidation lets you combine the charts of accounts (and general ledgers) of a number of existing companies to create a new consolidated chart of accounts. The new consolidated company created in this way will let you see consolidated financial statements for a number of subsidiary companies (different entities) operating under an umbrella organization.  Naturally a chart of account can be set up in a single company with various department (same legal entity e.g.one balance sheet).   It is important (and at times clients do not know) that different general ledgers be maintained for each of the subsidiaries.  GMA used various software such as Peachtree, MAS90, ACCPAT, BIP, Software International, and others.

 

For example, say your company is a food service organization that incorporates a restaurant, a food distribution service, and a catering service. You could combine the charts of accounts of these three sub-companies to create a new consolidated chart of accounts for the entire organization.

Consolidated companies you create act exactly like any other company in your general ledger. You can add to their charts of accounts, maintain customers, vendors, and employees, and report on company just as you would in any other company.

The result would be a company that contains the charts of accounts of the three subsidiary companies. Now you’d be able to track general ledger information, budget, and create financial statements and general ledger reports for all the subsidiary companies within your new consolidated company. This would greatly simplify and streamline your financial duties for the three subsidiary companies.  GMA is the guru in setting up accounting systems and converting from one software to another.

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Surviving a Recession or Reduction in Business Sales

Is your bottom line getting smaller? Are you concerned about the future of your business?  Mr. John (Giancarlo) Meazzo, President of GMA3000.COM, the guru of budgeting and financial management and planning has assisted companies in strategizing ways to increase revenues and decrease costs.  Without experience the typical business owner or leader will not be ready for the financial economic impact.  Learn what the best businesses are doing to survive the recession. Not every manager is educated or trained to take measures to maintain the financial viability of the business. In bad times be proactive rather than reactive in using profit improvement and advanced cost reduction methods.  Business should be ready with a defined plan on ways to reduce costs in the event in permanent reductions in business sales.   The plan should comprise the cost reduction in phases or priorities. The reductions may be cutback in management salaries; voluntary unpaid leave of absence; find savings opportunities, such as buying vs. leasing (e.g. PR time clocks; postage stamp machine, etc.); reviewing telephone services and contract services;

You should always look ahead, understand the economy and change the course of   operations and possibly your mission, if necessary for financial survival. Here are the main opportunities: Maximize your cash flow quickly; Reduce your costs rapidly; Coach your team on how to control costs; Make your staff part of the solution.

At times it is hard for management to determine how to cut costs and what to cut. An independent consultant without any attachments to people or operations can suggest obvious ways to reduce costs. In theory when a company is having financial problems, it reduces operating costs and increase marketing and sales costs. Bringing additional revenues may be one of the best ways to maintain fiscal stability. Just consider some of the cost and saving statistics of specialist in the cost reduction management industry:

• Up to 20% of profits may be spent on excessive supplier charges

• A high percentages of NNN commercial leases include overcharges by their landlords

• Approximately 70 % of businesses pay more than they should for basic utility services

• Nearly 9 out of 10 telecommunications audits result in lower rates and/or reduced costs

Managers always look at reduction of everyday business costs as part of their responsibilities.  Many operational costs such as salaries, rent, typically occupy the mind of most managers and financial officers. But the amount paid for healthcare, energy, and telecommunications is often not looked at by administration. The reason? Most companies simply don’t have the knowhow and internal resources to undertake an in-depth audit of their operating costs.

GMA’s consultants know where cost reductions can bring more dollars to the bottom line. These cost reduction experts generally start with a comprehensive audit – usually at no cost to the client – with the goal of reducing costs without impacting the quality of a company’s service or operation. Consultants can potentially help a business to eliminate waste and save thousands of dollars yearly.

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