Advantages And Disadvantages Of Manual Labour Staffing

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With the plethora of software options available for accounting and bookkeeping tasks, manual systems may seem a thing of the past. Yet double-entry manual accounting proves robust enough that many accounting applications re-create the features of the double-entry system within their software, such as the power and natural error-correction potential. When you weigh the options, manual entry systems may still have a place in your offices.

How Manual Accounting Works

Any contemporary accounting system records transactions relating to business activity with a view to communicating your company’s financial health to stakeholders, whether they are staff, bank managers or private investors. The systems is separated roughly into four cycles:

• Revenue
  
• Purchase
  
• Payroll
  
• General Journal
  

Manual accounting systems use physical records, pads of paper and books, onto which transactions are entered by hand. Accounting pages have four or more printed columns and multiple rows, natural divisions for the necessary information, such as date, description and dollar amounts. Numerical entries typically have space for every digit.

Journals and ledgers comprise the working and final copies of documents, often with separate books for the various accounts. Cash sales could be one set, for example, while payroll may be another. The results of these working documents are usually combined in the company’s general ledger.

Advantage: Error Correction

Despite the convenience and market penetration of computer-based accounting systems, manual accounting still offers several advantages that make it a viable alternative. The first is error correction. Double-entry accounting, attributed to Luca Pacioli, a 15^th century Italian, provides a natural way to guard against data entry errors and number transpositions. Every transaction gets entered as a debit in one account, and a credit in another account. Trial balances compare all debits and all credits. If these don’t match, an error is made somewhere in the accounts.

Advantage: Data System Errors and File Corruption

Computer systems store data in ways that aren’t commonly understood by many users. Opening the wrong file with old data or encountering a data file with digital errors can ruin the validity of your current data. Higurashi daybreak pc. Manual systems use a single file, the ledger, for each account. There’s no other version with similar data that may be confused.

Advantage: Always Accessible

Power or internet outages won’t prevent you from working on accounts unless you’re thrown into complete darkness.

Disadvantage: Data Entry Errors

Double-entry accounting in a manual system is laborious, since every transaction must be recorded by hand, twice. Many accounting programs use a double-entry method, but second entry is created automatically. While this won’t stop a wrong number from being entered, it does eliminate discrepancies between the first and second entries.

Disadvantage: Potential Loss of Physical Copies

While digital data can be corrupted, effective backups can protect data, including copies off-site, such as in cloud server storage. Journals and ledgers, being physical books, are prone to loss. Theft or fire could mean that all of a company’s accounting data is lost. Duplicating and storing the general ledger off-site can be a time-consuming task, compared with many digital storage options.

Disadvantage: Knowledge of Accounting Procedures

Unlike many commercial software packages, manual accounting system aren’t optimized for ease of use, nor can you expect client support or proprietary help. A bookkeeper or accountant will be necessary to start up and maintain your manual accounting system.

About the Author

With degrees in Photography and Recorded Music Production, Scott spent over 20 years as an Operations Manager with Kodak before starting a second career as a freelance content creator specializing in business, accounting and tax topics. Periodicals include FIVE Magazine and Your Business for the Your Magazines Canada group and online clients include TurboTax, Office Depot, Hyundai USA and VISA. www.shpak60.ca

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Business owners need to consider many factors when hiring talent. The No. 1 reason you should hire someone is that they are the best person to do the job. As the U.S. workforce becomes more diverse, more immigrants are entering the talent pool. Consider the advantages and disadvantages of immigration employment before you make any final decisions on your next hire.

Advantage: Fill Labor/Wage Shortage

Business owners may need temporary workers or people willing to do a particular job at a lower rate than others. This niche is where immigrant workers have been able to find work. They are willing to do the jobs for lower pay than other applicants are willing to accept. The job market is competitive for talented candidates, yet there is a need for many companies including small businesses to find talent that fits the budget.

Advantage: Wider Pool to Find Best Talent

To find the best possible talent for any position, employers must sometimes look outside the normal channels for talent. This has led to an increase in work visas issued under the H1-B nonimmigrant visa that seeks to bring in the most knowledgeable people from around the world to work for U.S. companies. While this is a nonimmigrant visa, it allows foreign workers the legal right to enter and work in the United States. Many use this situation as a platform to eventually immigrate after establishing themselves in the U.S. workforce.

Advantage: Indentured Loyalty

Download one piece full episode subtitle indonesia mp4. Immigrant workers often must have a job to remain in the country lawfully. This means businesses get an employee with every reason to succeed and keep his job. This loyalty isn't the normal loyalty bred from a strong corporate culture and passion for the company's mission. Some would refer to it as being indentured to the company. Regardless of the reasoning behind the loyalty, the employee is motivated to show up for work, do a good job, and continue to meet performance standards to maintain gainful employment.

Disadvantage: Language Concerns

Once upon a time, immigrants were found only in specific immigration hot spots around the country. The U.S.-Mexico border has a lot of Hispanic immigrants. New York was a hub for immigration from around the world. These hot spots still exist, but the immigrant labor force is integrated in additional parts of the country. In some instances, the language barriers between immigrant employees and managers or customers are problematic. Castelnuovo tedesco caprichos de goya pdf. Business owners need to find ways to address this problem as immigrants make their way to America from diverse places around the world and speak languages that aren't common in most parts of the country.

Disadvantage: Legal Issues

Hiring an immigrant may have legal issues that the small-business owner might have to deal with. At the least, an immigrant files a Form I-9, Employment Eligibility Verification instead of a Form W-9 when completing payroll paperwork. Immigrants don't have Social Security numbers; they have a Tax Identification Numbers recorded on Form I-9. If an employee needs an H1-B visa, there are costs associated with applying for and maintaining the visa. There are also calendar requirements and quotas that affect application approval. For example, only 65,000 regular H1-B visas and 20,000 master's degree H1-B visas are issued annually.

About the Author

With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii.

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