Management inSites

Basic Best Practices for Accounting and Bookkeeping

When it comes to accounting and bookkeeping, there isn’t much room for error. Keeping sloppy books is not only bad business, but it can also be expensive in the event of an audit. There are some missteps, though, of which even a good bookkeeper can be guilty. Here are some to keep in mind when reviewing your accounting practices:

Source documents

Paperwork, such as purchase orders, invoices, remittance details, shipping documentation, bills of lading, and proof of delivery are vital to keep filed. These items prove that the transaction occurred, that you and your vendor have agreed on terms, and they also protect you in case of a dispute. If a problem arises, you can always go back to the source documents for backup. While it might be tedious to get source documents from everyone involved, the effort is well worth it. This small step can keep things flowing smoothly.

Your chart of accounts is important

When entering information into your software, make sure you’re coding your transactions correctly. This is essential because it ties back to your tax return and how your expenses are handled. This detail will determine what you may be able to write off down the line.

Monthly reconciliation

In order to catch common mistakes, a monthly reconciliation is extremely important. This will account for unrecorded transactions and will catch errors. Do it monthly so the errors don’t snowball. This is especially vital for accurate cash flow.

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How can we help you?
Contact us or submit a business inquiry online.
Read more
  • To Palletize or Not to Palletize?

    When it comes time to ship inventory to the United States, many foreign companies are unaware of the standards surrounding palletizing their shipments. While it is possible to ship a container oversees without pallets, it might not be the most cost-effective solution, especially when using an established warehouse or 3PL.

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    When considering entry into the U.S. market, it is imperative to remember how vast the U.S. is. While the water in most areas of another country with a small geographic footprint might be similar to one another, that is not the case here.

    July 26, 2021
  • The Changing World of 3PLs

    Third-party warehouses (3PLs) have historically provided companies with an invaluable service: the ability to store inventory and ship it out to customers around the globe. These warehouses are experts at packaging products to maximize order fulfillment.

    July 1, 2021
  • International Shipping and Incoterms

    When dealing with shipping internationally, especially from abroad to the U.S., setting the terms of the transaction from the moment the customer requests a quote is incredibly important. To avoid problems, unwanted costs, and even potential legal issues, there should be no room for confusion or ambiguity in the contract you set up with your customer.

    March 8, 2021
How can we help you?
Contact us or submit a business inquiry online.

Basic Best Practices for Accounting and Bookkeeping

In our previous post on the topic, we covered some important things to remember when setting up your company in the U.S. market. Beyond operations, sales, and marketing, a manager would be remiss not to focus on how cultural differences might impact the success of a subsidiary.

The U.S. is not homogenous

Unlike several other countries, the U.S. is vast – and not just in its size. Americans tend to break up the country into its East and West coasts, and the Midwest. But there are even more segments, like the South, Pacific Northwest, the Northeast, Florida, and Texas – all of which differ greatly from each other. There are several big cities, countless medium-sized markets, and even more rural or suburban areas. Interacting with people living in big cities will differ greatly from interacting with people in smaller towns. While it would be unwise to generalize, it is best to understand the culture of the part of the U.S. in which you are doing business before having expectations.

Patience is not always a strength among Americans

When in negotiations or conducting business, Americans tend to want to just get the deal done. While many other cultures take their time, get to know everyone involved, and move along at a comfortable pace, those in the U.S. do not always see a need to drag things out. Get ready for what looks like impatience, when in reality it is just a desire to be efficient and effective.

Don’t plan on in-person meetings 

At least not all the time. The tendency for Europeans and Asians to conduct most business in person is not the same in the U.S. Phone calls, emails, and now even video conference calls are the norm. Businesspeople like to work efficiently, and don’t gather in person unless it is necessary. First meetings, larger negotiations, and important topics are generally discussed in-person. Otherwise, don’t be offended or surprised if many of your interactions are taking place remotely.

Open-minded over traditions

A positive aspect of Americans in general is their ability to have an open mind. Many other cultures rely heavily on traditions, and act in certain ways because history dictates that they should. That is not the case in the U.S. Americans tend to welcome new ideas and concepts perhaps more freely than their foreign counterparts.

That being said, Europeans tend to rely on strongly forged bonds in which trust is paramount. Loyalty is key. Americans tend to be looser and more pragmatic when it comes to doing business. They don’t necessarily need to have known someone for years to begin working with them. At the end of the day, it’s about getting the deal done.