PayTraq Blog

PayTraq.com - Online Accounting Software

Costing and Inventory Valuation


Sooner or later all new entrepreneurs ask themselves: Why is costing necessary?

Cost analysis is vital for businesses because entrepreneurs cannot optimize expenses unless they clearly understand what they consist of and which business performance indicators will be impacted by the changes and which will not.

Costing is needed to valuate inventory objectively, determine the wholesale and retail prices, calculate and control the return on sales (ROS) of each specific item.
Knowing the unit cost, you can easily determine the required/minimum acceptable markup for the selling price to reach the projected profits.

One of the key factors contributing to accurate financial reporting is the correct inventory valuation. Inventory is considered to be short-term assets, and as working capital it should be valuated based on its acquisition cost.

Why is the cost generally not equal to the latest purchase price?

Current stock may include goods purchased at different times at

...
Read more  
Tags: inventory, warehousing, accounting, business, PayTraq U

Supply Сhain Management. Arranging Your Sales & Procurements

Depending on the requirements and specifics of your business, PayTraq offers a variety of options for your sales and procurements arrangement and planning. You can choose an option according to your specific business process or take advantage of its modified versions.

Below are some of the most commonly used sales and purchases workflows.

1) Sales if the product is in stock

(Sales Order) -> Invoice to Customer -> Outgoing Shipment

It is used to sell products which are available in stock.
The easiest and the most common way for selling a product is when the sales order is created, based on which then an invoice is issued.

An outgoing shipment from the warehouse is generated in the program automatically when the invoice is posted.

A simplified alternative of this workflow is when the invoice is issued right away, without the sales order being created.

For advance payment sales,

...
Read more  
Tags: automation, business, warehousing, PayTraq U

Advantages of Comprehensive Business Processes Automation


As technology and web apps become more advanced, business process automation, previously used only by large enterprises, is now available for small businesses as well. Unfortunately, a lot of people are unaware of many of the advantages of a complex approach to business process automation and never get a chance to benefit from them.

Automated billing is among users’ favorites. Undoubtedly, replacing Word or Excel with web-based services is a better and smarter solution which saves a lot of time. Professional design of generated documents, organized lists of issued bills with instant search option, clear information of who owes what, periodic billing, automatic invoice e-mailing, notifications about past due payments, as well as the possibilities for receiving online payments are what automated billing is all about, and that's why it increases performance compared to manual billing in text editors or spreadsheets. But this is just one business process.

By automating

...
Read more  
Tags: business, accounting, cloud, invoicing, automation

PayTraq Multi-Language Support


Do you know that PayTraq can be used in many languages? Users can view the accounting software interface in the chosen language in just one click.

With PayTraq, you can send invoices (orders, proformas, packing lists, etc.) in national language to your local customers and in English to your international customers.

Every country has its own localized version of the service. Chart of accounts, financial statements and tax reports are provided in the local language by default.

Currently we are adding a new feature specifically designed for businesses from non-english speaking countries - support for financial statements in English.

While most accounting programs support only one language, imagine you get a foreign partner who wants to see a standard set of financial statements of your company, such as balance sheet, profit and loss statement, and cash flow statement. This is when your accountant has to become a translator for a

...
Read more  
Tags: accounting, Financial statements, business, financial analysis, updates

Online payments options for your invoices. A special offer for PayTraq clients from Swipe Gateway


The benefits of the online payments options for your invoices were described in details earlier, so we would like to just remind you what the key points were.

By enabling the option to accept online payments straight from the online invoice link you give your clients the way to pay instantly and with ease. The more payment options you display on your invoices, the higher the chances your customers will pay you on time.

Statistically, by offering the option to pay online the invoices are paid twice as fast as those without it.

Accepting online payments is great for companies working with international clients. It helps to avoid waiting for international wire transfer.

It's worth mentioning that the number of corporate credit cards has been growing. So the client can pay using the card’s available credit, which comes in handy when there are not enough funds in the current

...
Read more  
Tags: business, online payments, invoicing

Understanding a Balance Sheet

Why do we need to understand a Balance Sheet?

A Balance Sheet (also known as Statement of Financial Position) is one of the three primary financial statements (along with the income statement and statement of cash flows) showing the company’s financial condition at a specific point in time. Unlike the income statement which shows the performance of a company over a period of time, the Balance Sheet shows the business’s current financial position.

A Balance Sheet enables you to analyze and evaluate the financial health of your business and share this information with others, such as your current or potential investors, lenders, and other persons outside the business who need to stay informed about the business’s financial affairs.

Business managers and anyone thinking of becoming an entrepreneur and starting a business should know how to understand financial statements and the accounting methods used to prepare them. With

...
Read more  
Tags: business, PayTraq U, Financial statements

Profit and Loss Statement

Financial statements contain substantial information about your company's operating results and financial position. The profit and loss statement (P&L) and the balance sheet are the two basic financial reports that give you this information. Taking the time to better understand these reports will give you more control and a clearer picture of your business and how it’s performing. If you were putting your P&Ls away without reading through them, you are not on your own. However, getting a grasp on your P&L is crucial to knowing how to operate your business efficiently.

Almost all entrepreneurs start businesses because they are excited about the main work of the business - which probably isn’t accounting. Therefore most entrepreneurs aren’t fully at ease interpreting the regular monthly financial statements they receive.

There are countless entrepreneurs who never view their profit and loss statements because

...
Read more  
Tags: business, PayTraq U, Financial statements

Activity Stream – A Personal Information Channel For An Accountant

Accounting is like put together a puzzle. You need to assemble a bunch of different pieces to get a complete and beautiful picture of your business. The puzzle certainly should be set team up with your colleagues, partners and customers.

Accountant rendering services to several companies, places together the pieces of many patchworks simultaneously.

Certainly, an accountant needs to always be updated on the client’s business processes. The accountant is actively engaged in resolving various issues and is always on time. He always should know when to put the "needed" piece of the puzzle in.

Though how to switch swiftly between the companies without wasting time on looking for initial point of document processing and elaborating the plan of work? This can be done quickly and naturally, using PayTraq, since it offers personal information channel called Activity Stream.

Activity Stream is an information flow that is formed

...
Read more  
Tags: business, accounting, PayTraq features

What you should be expecting from your accountant.

Are you getting the following from your accountant?

  • An understanding of your business results BEFORE the tax year is finished?
  • A proactive level of attention and a sense that you are their priority?
  • A level of service that goes beyond your tax return and financial statement?
  • Education and business mentoring to help you become a business machine?
  • A macro view of your business, not just a micro understanding?

Many people have a misconception about what they can expect from their accountant.

Your accountant shouldn’t be just a bookkeeper.

In fact using PayTraq it is possible to run your own bookkeeping.
PayTraq allows you to quickly enter transactions, send out invoices, record expenses and easily reconcile your bank statements. You can even run your own reports whenever you want them.

As for being your own accountant, it’s probably safer to leave it to the experts. Accountants provide informed analysis

...
Read more  
Tags: business, accounting

Get paid faster by starting to use online payments options.

Sometimes billing can be a cumbersome process especially for companies with small staffs who would rather focus on growing their company than sending out invoices to customers. Even after these invoices have landed in client inboxes, there’s no guarantee that you will be paid in a timely manner.

According to statistical data, invoices with an option to pay via PayPal or credit card receive payments much faster (actually twice as fast) than invoices without an online payment option. Letting your clients pay online means that they can pay you faster – no more waiting for a wire transfer.

We’re excited to announce the next PayTraq update to help you get paid faster: PayPal and payment gateway integrations. With this new feature, you can accept PayPal or credit cards payments straight from the online invoice link.

You can easily enable PayPal online payment option for your invoices. All you need

...
Read more  
Tags: business, online payments, invoicing