Telecommunications is a monumental industry in the United States and has an estimated value of 1.46 trillion US dollars. Because of the size of this industry, telecommunication companies are closely monitored by the IRS and have a heightened risk of being audited.
Telecommunications company tax planning, bookkeeping, and accounting, when properly executed, may mitigate audit risk and fraud and improve company cash flow. Acumatica is a cloud-based financial accounting software that may help telecommunication companies get a full picture of their profits, expenses, and liabilities.
Telecommunication Companies Need Ongoing Management of Accounts Receivable and Payable
The more accounts your telecommunications company has, the larger task managing accounts receivable and payable may be. You may need to track a variety of services across a wide customer base that stretches across multiple states or countries. Acumatica may help your telecommunications company CPA track the money owed to your company but not yet collected.
The Acumatica accounts receivable feature lets your business generate invoices, send up-to-date statements, and collect and verify payments. You can deliver custom reports and track commissions. The accounts receivable solution is fully integrated into all Acumatica modules.
Acumatica’s accounts receivable allows you or your telecommunications company CPA to create invoices for HTML or PDF delivery and create customized statements for your customers. You can accept PCI compliant credit card payment and enjoy the flexibility to void transactions, manually adjust charges, and offer refunds. You will also know in advance when your customer’s credit cards are on the verge of expiring.
If your telecommunications company has franchises or multiple branches, Acumatica’s accounts receivable software lets you configure parent-child relationships, giving you the power to manage credit control from the parent level. This means that you or your telecommunications company accountant can use Acumatica to set credit verification rules and consolidate dunning letters and AR reports that have merged data.
Acumatica will let you use deferred revenue codes on individual line items on your invoices to support revenue recognition requirements. At Fusion CPA our telecommunications company accountants expertly use Acumatica’s Accounts Receivable functions and will be happy to show you how they may bolster your telecommunications company bookkeeping.
How Telecommunication Companies Use Acumatica for Currency Management
The exchange rate of foreign currency is one of the biggest risks telecommunication companies that operate internationally face. Changes in exchange rates affect how much the final payment to an international supplier will be and can impact budgeting and investment strategies for long-term acquisition.
Acumatica attacks currency management. It automates calculations of different currencies around the globe. It also helps mitigate financial risk when currency values make a dramatic change. Acumatica allows you to automatically compute unrealized and realized losses and gains from foreign currency transactions.
Your telecommunications company bookkeeping will include entries for unrealized currency exchange losses and gains. You can prep auto reversing entries in your general ledger for documents that are recorded in foreign currencies. Acumatica telecommunications company tax planning is made easier as it automates the consolidation of your financial statements from various subsidiaries and combines them using its powerful general ledger module.
Get Financial Insights from a Telecommunications Company Financial Adviser
The telecommunications industry is facing a mix of long-term financial pressure and short-term unexpected risk. The industry-tailored telecommunications company CFO business advisory we offer at Fusion CPA may help you proactively expand your value proposition while mitigating the financial risk inherent to the industry.
Fusion CPA’s team of experienced accountants will show you how using accounting technology like Acumatica and expert analysis may help minimize financial risk and tax liability, maintain tax compliance and increase profits that can be used in financial strategies for future growth. You have options to successfully face financial challenges and regulatory requirements and we are here to help. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.