Accounting Tools Relevant for Freelancers

by | Sep 8, 2023 | Business Growth

Accounting tools Relevant for freelancers.

Introduction

Accounting Tools Relevant for Freelancers should be easy to use since several freelancers don’t have wide accounting knowledge.

As a freelancers it is however, essential that they know what accounting tools all are about. Accounting Tools are software that enables businesses to track and record financial activities in compliance with legal and taxation regulations.

It integrates several source documents like purchase order, invoice, bank reconciliation statement and so on together in one place. Also, because they have more valuable things to do than keeping accounting records. Moreover, they should have essential accounting functions, like expense tracking.

Furthermore, the only features useful to freelancers are tax calculation, mileage tracking, tracking number of orders. In addition, invoice tracking and having the accounting tools on cloud-based, which makes it easier for freelancers to manage.

How much money can freelance professionals make per year?

If you’re interested in freelancing, various types of work are available. Typically, professions that require more technical skills can earn more for freelancers.

In USA, there are 57 million freelancers’ (51%) say no amount of money can entice them to take traditional job. They enjoy the following.

  • Flexibility and
  • Ability to work and stay in any location.

CNBC report shows that the average hourly rate and annual salary for most in-demand freelancing jobs as stated below. This article put forward 13 professional freelancers with average hourly expectations..

  1. Writers: On average, a freelance writer earns $30-40/hr or around $42,000 annually.
  2. Editors: Freelance editors usually earn around $25 to $35 per hour, an average yearly salary of approximately $40,000.
  3. Programmers: Freelance programmers across different languages earn $60-70/hr or $120,000 annually.
  4. General developers:  A freelance developer typically charges $50-60 per hour, earning an annual salary of around $100,000.
  5. Mobile developers: Also, Mobile app developers typically earn an hourly rate of $55-65 as freelancers, equating to an annual salary of $100,000.
  6. Web developers: Freelance web developers earn an average of $90,000 annually by designing and creating websites at an hourly rate of $50-60.
  7. Graphic designers: A freelance graphic designer typically charges $40-45 per hour, earning an annual salary of around $90,000.
  8. Transcribers: Freelance transcriptionists can also earn an average of $20-25 per hour, adding to a yearly salary of around $32,000.
  9. Online marketers: Freelance digital marketers typically earn an hourly rate of around $50, resulting in an approximate annual salary of $100,000.
  10. Photographers: A freelance photographer has an hourly rate between $35-45/hr, with an annual salary of around $42,000.
  11. CRM managers: A customer relations manager (CRM) expects to make between $50 to 60/hr, with an year salary of approximately $120,000.
  12. Data analysts: A freelance who specialises on data analyst earn between $55 to 65/hr, annual salary of $100,000.
  13. Bookkeepers: Lastly, an individual who works as a freelance bookkeeper usually earns an hourly rate of $30 to $35, which translates to an annual salary of approximately $40,000.

8 Accounting Tools Relevant for Freelancers

As businesses increasingly expect growth, they must have accounting tools that cater to the needs of freelancers and content creators.

These accounting tools will help freelancers meet their business needs and fulfil their obligations to the government. With the growing demand, the average hourly wages of freelancers  can also increase, and proper data capturing becomes crucial.

  • QuickBooks

Two QuickBooks products are actually useful as Accounting Tools Relevant for Freelancers. They are QuickBooks self-employed and QuickBooks Online Simple Start.  

  • Wave

Similarly, Wave’s accounting software streamlines invoice and cash flow management, allowing entrepreneurs to focus on business growth.

  • Zoho Books

One of the best overall accounting tools important for freelancers. Zoho Books is an online accounting software that streamlines financial management, automating business workflows, and enables seamless collaboration across departments.

  • Freshbooks

FreshBooks provides time-saving tools to run your small business efficiently

  • ZipBooks

ZipBooks is a robust platform that simplifies the management of your business with its beautiful and intuitive interface.

  • Trulysmall Accounting

This tool streamlines invoicing by centralizing invoice creation, branding, previewing/sending, and receipt.

  • Freeagent

This tool is designed for freelancers to track and analyze their finances.

  • Fiverr workspace

Fiverr Workspace Blog provides effective payment and back-office management resources for small businesses and freelancers.

  • Bonsai

Freelancers will earn money, receive payments and also have debtors owing them for their services. Appropriate bookkeeping skills will always stand as the key difference between a performing or non-performing freelancing business.

Important of Accounting Tools Important for Freelancers

This a freelancers keeping records using accounting software

Source: Canvas.

  1. First, it makes them to keep track of incomes and expenses..
  2. It makes them to staying on top of all invoicing issues
  3. In addition, it makes them to keep accurate records for tax payment
  4. It makes them to appreciate the work of an accountant and auditor
  5. Also, is ensures the timely monitoring of daily business tasks and activities
  6. It provides  freelancers on how to take charge and defend business assets when bad times strike.
  7. Improves cashflow
  8. It makes  freelancers to be motivated of their performance
  9. It also protects  freelancers against the legal consequences of not keeping accurate records for tax purpose.
  10. It makes  freelancers to be more efficient
  11. It makes their work and reports to be more professional
  12. Lastly, it makes them to be organised and able to budget for the future earnings and expenses.

Conclusion

It is essential for every writer who earn income to be familiar with the accounting tools. Also, to submit documents come tax time and annual report to monitor financial performance. In addition, if you need help, there are many step-by-step tutorials on YouTube or contact ohimai consulting.

How accountant use drone technology

by | Sep 6, 2023 | Accounting Articles

Drone Techbology relevant to accountant

Introduction

How accountant use Drone technology to achieve their task depends on the sectors or schedule of activities. In addition, drones are unmanned aerial vehicles (UAVs) that can fly remotely.

The global drone market predicts to increase from $26.3 billion in 2021 to $41.3 billion by 2026. Also, in 2020, both US and the UK used drones to deliver drugs during the COVID-19 pandemic (Appelbaum et al., 2020).

Drone technology has proven helpful in war zones and intelligence gathering and also in a civilian role, such as:

  • Accounting and Auditing Profession,
  • Search And Rescue,
  • Traffic Monitoring,
  • Videography,
  • Surveillance,
  • Delivery Services,
  • Weather Monitoring,
  • Drone-Based Photography,
  • Firefighting, Agriculture,
  • Personal Use.
  • Land surveying

These Countries use of Drone Technology

 Countries that make use of drone technology and require permission for all aerial drones through regulation.

Moreover, the regulation addresses different types of civil drone operations and their respective levels of risk as stated by European Union Aviation Safety Agency

  • In Germany, there are limited zones outside protected areas with high urban density or people conglomerations.
  • Also, all EU Member States, including Norway and Liechtenstein.
  • Switzerland and Iceland are also expected to apply this regulation soon.
  • In United States for example, they used drone technology for their operation(Ovaska-Few, 2017).
  • In 2013, Poland passed a law allowing the commercial operation of drones, which led to the birth of Drone Powered Solutions.
  • South Africa that has entirely established drone regulations in place which was carefully integrated into existing aviation law.
  • Lastly, in Australia, Rio Tinto who has its facility in a remote area planned in 2016 to start using drone to monitor mine sites including the staff.

Companies that have used drone in their workplace and in others area of operations.

  • It was recorded that PwC completed its first stock count audit using drone technology. With the assistance of a drone, they were able to capture images at a coal reserve in South Wales and used them to measure the volume of the coal, based on the measurement of volume.
  • Amazon and Google are already testing ways to deliver packages with drones.
  • Facebook has started using drones to provide internet connections in remote locations.
  • Basin Electric’s utilization of drones has enhanced efficiency and safety while concurrently reducing costs.
  • Furthermore, Ford Motor Company filed a patent to start the use of drones for dead bateries. The patent was filed on 3rd February, 2017 and circulated on March 8th, 2022, and assigned serial number 11271420.

How Accountant Use Drone Technology to the Accounting Profession.

expert controlling drone technology.

Source: Naira Technology

With the help of drone technology, however, accountants can now complete their work in a shorter amount of time. Technological advancements have significantly changed the accounting and auditing profession in recent years.

In 2017, the emergence of drone technology has revolutionized the accounting and auditing profession. Drones have opened up new possibilities for accountants to perform their tasks more efficiently and effectively.

Emerging technologies like AI, blockchain, big data, the IOT, and drone technology have revolutionized accounting profession (Qasim et al., 21).

For example, accounting and audit firms that work with clients in mining and inventory can utilize drone technology to take thousands of pictures and measurements of a site (Ovaska-Few,2017).

Also, this can aid in accurate assessments of holdings, making tasks like physically measuring coal a thing of the past. An estimated volume can be obtained in less time with just a two-meter GPS Tracking pole.

What are the Benefits of Drone Technology to the Accounting and Audit profession.

Source: djm-aerial.com

These list below are the 18 benefits of how accountant use drone in the accounting and auditing profession.

  1. Revenue Recognition
  2. Perform physical inventory: Drone could recount inventory if required-data feed repeatedly into audit app that re-performs the process. Using drones to automate livestock inventory count reduced count time from 681 hours to 19 hours (Qasim et al., 21).
  3. Asset valuation and Verification: Visually inspect the asset for impairment, safety is not an issue.
  4. Time-efficiency and effectiveness: Drone devices help to improve and increase effectiveness and efficiency in the accounting and auditing profession.
  5. Accuracy: Produce accurate data that can be relevant for future forecast and planning. It depend on how accountant use drone technology to collect insight into the condition of assets. This is faster, cheaper, safer and more accurate than traditional methods (Johnson, 2022).
  6. Save Cost: Drones may save money for accounting clients, who can use them for stock takes, mapping, safety monitoring and to inspect bridges and building.
  7. Productivity: It can enhance productivity
  8. Also, Reduce the risk of injury: he benefit in health and safety as the need for someone to climb over the coal pile are removed.
  9. Speed: Helps speed up some business and accounting processes.
  10. Monitoring strategies . Help monitor staff, operation and some dangerous zone. For instance, drones can assist the firm or staff to take account area difficult to reach.
  11. Storage of Long-term data: Moreover, drone methods allow for storage of long-term data. This is useful to account for physical factors (like weather, light conditions and geomorphology of the beach) for more spatio-temporal analysis.
  12. Automate and accelerate repetitive accounting tasks (Qasim et al., 21).
  13. High Quality Data Acquisition
  14. Enhance Mobility
  15. Reduce Downtime
  16. It improves disaster Recovery situation
  17. Enhance Trend Analysis: It depends on how accountant use drone technology to conduct trend analysis.
  18. Lastly, Enhance Maintenance Standards

The technology produces massive amounts of data that require interpretation and translation into meaningful information for informed business decisions.

Also, as accountants keeping up to date with new technologies and understanding their potential to enhance efficiency and effectiveness is essential. Developing the necessary skills to interpret and present data will enable them to add value to their employers. Since the drones technology are control by expert . However, drones are prone to making mistakes just like any other technology, which is why one can exempt them from errors.

Source: Rewires

Furthermore, competent accountants who are conversant with latest technology, play a crucial role in helping companies thrive and maintain a competitive advantage. It is imperative that organizations have skilled accountants on their team to achieve these goals.

Implications of How Accountant use drone Technology to the Accountants and Auditors

  1. Be part of the at least 95% that will accept this new technology if they must prepare for the future.
  2. Develop a new skill that is all-encompassing for them to be relevant every time and drive the development of accounting profession.
  3. For companies to successfully transform, there will be a great demand for individuals with fundamental knowledge and expertise. For instance, such individuals must possess the necessary skills and understanding to support the company’s transformational goals.
  4. Also, become a consultant in the field to remain relevant and being in change of the world where we live by data.
  5. Become a strategic thinker.
  6. Apply professional judgement whenever is necessary and obtain a better results
  7. Establish Drone-focused department that enable accounting firms to handle all matter related to drone.
  8. Check the impact of drones on client’s business operations.
  9. Lastly, it is vital for every accountant or auditors to be familiar with the present drone regulations in their countries.

Conclusion

In this article, the writer examined how accountant use drone technology and to achieve their work on daily basis. Similarly, drones can improve the accuracy and efficiency of audits. However, how they can use it to collect data and perform inspections in hard-to-reach areas.

Consequently, the article highlighted the potential impact of commercial drones on the accounting profession, with predictions that this technology will revolutionize traditional accounting procedures (Ovaska-Few, 2017). Accounting professionals and academics need to recognize the significance of drone technology and patronize the suppliers as it is here to stay. In addion, the sooner we adapt to this technology and use it to their advantage, the better. Accountants and auditors are condition to embrace this new technology and see it as an improvement to their jobs instead of threat.

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Purchase Order

by | Aug 28, 2023 | Accounting Articles

Purchase order

Purchase Order

Purchase orders (PO) are essential for an accountant to help achieve financial goals and is one of the key Source Documents in Accounting. The buyer sends these orders to the vendor or sellers or suppliers, outlining what they expect for the order and when it should arrive. In contrast, a sales order generated by the supplier and sent to the buyer. Additionally, the supplier generates an invoice to show the buyer how much they owe for the purchased goods.

Benefits of Purchase Orders (PO)

  1. Controlling the procurement of products and services from external suppliers is easier with purchase order.
  2. The inventory process is more accessible with the help of PO. Once the supplier receives the PO, they will retrieve the items listed in the PO from their inventory.
  3. The Purchase Order acts as a legal document that helps prevent future transaction disputes.
  4. It prevent duplicate orders by keeping track of order and from whom, which can be challenging when a company decides to scale its business.
  5. Overall, a well-organized purchase order system helps simplify the inventory and shipping process by keeping track of incoming orders.

The process of initiating a purchase order should begin with:

When a buyer needs goods, they start by creating a purchase requisition. This document helps to keep track of the items ordered and is sent to the purchasing department within the company. It also helps the company keep track of expenses. The acountant can only create purchase order once an authorized manager has approved the purchase requisition.

Once the buyer has confirmed the goods they wish to purchase, they will initiate a PO. This document will include the date of the order, FOB shipping information, discount terms, buyer and seller names, a description of the goods under process, item number, price, quantity, and the PO number as shown in the attachment.

The seller can accept or reject a PO with all the transaction and buyer’s requirements. If the seller agrees with the PO, it becomes a legally binding contract.

Keeping a record of the purchase order is crucial for buyers. The demand remains active until the company receive all or part of the goods.

Goods Receive Note (GRN) is issue after successful delivery from suppliers. Each order has an assigned unique number associated with the Purchase order number. The accountant can use this number to ensure that the goods received match those ordered and listed on the GRN.

Before company accountant make payment, they will verify that the Purchase order number matches the invoice. This ensures that the charges to pay by the buyer are the correct amount for the goods before processing the payment.

Top 35 Source Documents in Accounting

by | Jan 3, 2023 | Accounting Articles

Top 35 Source Documents in Accounting that are relevant to accountant.

Introduction

Top 35 Source Documents in Accounting are relevant to help accountant in their job. Also, it is a document that serves as proof of transaction that is available in apps that provide such services.

Top 35 Source Documents in Accounting stated below:

1.Purchase Order

The buyer sends this to the vendor. They will then outline exactly what the order should contain and when it should arrive.


2. Sales Invoice

This is a process for managing account receivables. When the seller gives out goods, they will provide a document containing all relevant sale details.

3. Purchase Invoice

This is made for account payables. The seller will enter this as sales invoice while the buyer will enter it as purchase invoice.

4. Debit Note

This is evidence of reduction in purchases and can be useful to support purchases return journal. Furthermore, in customer books, debit note will reduce how much they owe to the seller.

5. Credit Note

This is evidence of reduced sales and support sales return journal. In addition to supplier’s books, credit note reduces the amount owed by the customer.

6. Cheque

This is a special bank note that represents the cash paid by the customer.

7. Revenue receipt

This is used to record the receipt of cash which is a proof that the payment is made.

8. Cash register receipts

This is a business paper that listed the money coming in from customers.

9. Bank or Credit advice

They are debit or credit bank advice. Bank credit advice is bank documents informing the business of an increase made in the business’s bank account. Unlike bank debit advice that is opposite to bank credit advice.

10. Deposit slips

When one receives cheque or cash from customer, the seller will take it to the bank and present.

11. ATM cards

The production of receipt from ATM machine can serve as evidence that money has been taken from the bank account.

12. Bank statements

This is a summary of financial transactions that occurred at a certain institution during a specific time period. For example, a typical bank statement may show your deposits and withdrawals for a certain month.

13. Bill of exchange

This is an unconditional order in writing, addressed by one person to another, signed by the person giving it. It also require the person to whom it is addressed to pay on demand.

14. Payroll report

This can also refer to the list of employees of a business and the amount of compensation due to each of them.


15. Cancelled Cheque

This is a check that has been paid or cleared by the bank

16. Cheque Stubs

This is the check kept by the payee with information such as the check number, date, and amount.

17. Employee Timecard

This is a method for recording and tracking the amount of an employee’s time spent on each job

18. Board minutes or minutes of meetings

The secretary of the board usually takes minutes during meetings.

19. Goods Dispatched Note (GDN)

This a document of the company that lists the goods sent out to a customer. Without a doubt, the company will keep one record of goods dispatched notes.

20. Goods Issues Note (GIN)

This is a physical record of the movement of goods or materials from the warehouse or store to production department.

21. Stock take Records

This is also called stock counting. It is when you manually check and record all the inventory that your business currently has on hand

22. Stock Record

A Bin Card is a card indicating quantitative records of the receipts, issues and balances etc.

23. Goods Received Note (GRN)

This is source document that shows the goods that a business has received from a supplier.

24. Remittance advice

This source document can confirm the amount paid and shows discrepancies that can easily be investigated.

25. Insurance Endorsement Certificates

This is where one party will add the other party as an “additional insured” on their commercial liability insurance policy.

26. Point of Sales Summaries

This can be used to record a number of sales at a cash register.

27. Memorandum

Memo is a written document businesses use to communicate an announcement, policy changes, price increases or notification to take an action, such as attend a meeting, or change a current production procedure.

28. Computer-generated Receipts

This is the kind of receipts is to be generated by the computer.

29. Lease Agreement or Rental Agreement

Lease contracts are formal documents that identify the lessor, lessee, what’s being leased, whether it’s an asset or a property.

30. Sales Tax Returns

This is the taxpayer’s document of declaration. This will enable the taxpayer to furnish the transaction details during a tax period and deposits his Sales Tax liability.

31. Cash Register Tapes

This allowed one to keep a record of all customer transactions and/or provide them with a receipt.

32. Adjustment Notes

This are issued to customers due to damaged, returned or undelivered goods

33. Employee Pay Advice

This source document that can helped to provide written evidence concerning employee income.

34. Payroll Advice Report

This payroll reports helped small businesses understand payroll costs and summarize payroll data.

35. Evidence of Sale or Disposal of Assets

This is the removal of a long-term asset from the company’s accounting records.

Conclusion

Indeed, all these top 35 source documents in accounting are integrated in several apps that offer such accounting services. Moreover, this App made it possible to have all these source documents in one place to make the accountant job easier and simple.

Kindly add your own source documents to the Top 35 Source Documents in Accounting listed above. This will help us to update our records accordingly.

Watch several videos of how to prepare financial statements from source documents

Prepare Financial Statements from Source Documents Part

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Best Consultancy Services

by | Sep 8, 2022 | Accounting Articles

Selected list of best consultancy services firms in Nigeria.

Some of the best consultancy services any expert can specialize on are financial and auditing services, tax management services, education services, cloud computing, accounting packages. Also, human resources management and career development, business and marketing development, professional training services, books and journal publication, self-publishing and lot more.

Kind of Consultancy services rendered by Ohimai Consulting

The selected list is among the best consultancy services as discussed below.

  1. Financial and auditing services. The consultancy will ensure that accounting and auditing of all their clients are handled professionally.
  2. Tax management services. The consultant manages all the taxes such as Pay-As-You-Earn (PAYE), company income tax, tax return fillings, creation of Tax Identification Number, VAT management, tax clearance, stamp duty. the consultant will ensure that all their clients don’t default or violate the tax law but ensures full compliance of their civil right and obligation.
  3. Educational Services. The consultant through the consultancy services will render helps to students and non-students in foreign land. Through these services, Ohimai Consulting now mentored students in the foreign universities.
  4. Cloud Computing. The consultant will be able to manage several firms without having to visit them in their various offices. These services can be rendered by the consultant from any location to their clients.
  5. Accounting Packages. The consultant will earn money from these services rendered to their clients. Services like sales a of accounting packages, training on how to manage the software and also the installation as well as the setting up of the book of account.
  6. Human Resources Management. Consultants will make money from rendering of recruitment services, training of company staff as well as professional and career development in all field.
  7. Self-publishing in Amazon. The consultant that can create content in writing and in video are position to make money from just publishing e-books for sales online.

In summary, consultancy is a profitable business where an expert can earn money from several sources. To learn area where an expert can earn more money, then watch the video below for more information.

https://www.youtube.com/channel/UCHNzs-6_tZFylpSRHk2AVDA

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