Author: Complete Controller

There is a contrast between the financial principle of a nonprofit organization and a regular company. However, the primary purpose of a nonprofit organization is awareness or fundraising for a social cause. The government and the public scrutinize their every move.

Unlike profit-generating ventures, a nonprofit organization relies on fundings and public support in donations, program revenue, and grants. They must prove the credibility of their financial records how, when, and where the money is spent—all to be clear in the public eye.

Taxation laws are different and complex for nonprofits. Therefore, Nonprofit accountants must keep the organization’s books up to date in conformity with state and federal regulations. Failure to keep the books to legal requirements jeopardizes the organization’s tax-exempt status and exposes it to legal risk.

Here are some details to give you an idea of tax accounting for nonprofits.

Tax exemptions and deductions

Most charitable and fundraising organizations can apply for tax exemption from federal income taxation. 

According to section 501 of IRS:

This tax code section pertains to charitable, nonprofit, and religious organizations exempt from paying federal taxes to the IRS.

While the IRS and federal law may determine tax-exempt status, state law determines nonprofit status. As a result, before filing for tax-exempt status, the IRS needs you to secure a nonprofit group from your state.

While they can exempt from income taxes, there can be exceptions if the organization has generated revenue by working outside their set scope and unrelated to their mission & vision. Then they will be responsible for tax payments on this profit if their gross income is more than one thousand dollars. It is called unrelated business income tax UBIT.

However, up-to-date tax accounting strategies can help to reduce taxable profits. A nonprofit organization can deduct any payments paid to corporate officials as well as wages provided to employees. They can deduct maintenance and repair charges, loan interest, employee benefit programs, and charitable contributions. They can record any losses experienced while attempting to earn profit through commercial activity.

Bookkeeping:

To develop effective accounting strategies, the first step is a nonprofit-friendly bookkeeping system. There are many manuals to automate options for bookkeeping. But the primary goal of this is to obtain receipts that should be recorded and organized (i.e., donations or in-kind contributions). You should keep track of spending (i.e., payouts from funds your nonprofit controls or expenditures it makes), Keep track of your cash disbursements, accounts receivable, accounts payable, and payroll.

Financial statement:

Nonprofits are not required to pay taxes, but they must produce a yearly return to explain how they spent their cash and met their objective. Tax-exempt organizations are set to an extremely high standard. Donors, the government, the media, and the public can expect to scrutinize their operations. As a result, their financial statements must demonstrate their mission. In addition, if a nonprofit organization fails to file an annual report or submits it late, the IRS may levy penalties and taxes.

As discussed above, bookkeeping can help in tax accounting as well as generating financial statements. Getting these statements ready as quickly as possible during tax season can be time-saving and stress-free. There is a more straightforward way. It is preferable to let your nonprofit accounting software prepare the financial statements required for nonprofit tax accounting most of the time.

Activity statements:

Profit-based businesses leverage the profit and loss statements to describe their income & expenses. Whereas nonprofits must submit a detailed and precise account of activities to show income generated and cost. The information of activities, also known as the operational statement, is the nonprofit equivalent of the revenue statement. These incomes obtain funds, donations, and grants. And costs include the utilities, wages, rent, office supplies, etc. 

In nonprofit tax accounting, two types of financial statements are prepared for external evaluations: 

1. Cash Flow Statement: Descriptions of Cash inflows and outflows.
2. Functional Expense Statement: Describes the expenses incurred throughout the reporting period.

Hence, a proper taxation system is a crucial part of any nonprofit organization. And with tax accounting, nonprofits can do their level best.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Taking care of a family is difficult enough, but managing funds might be even more difficult. Not only do you want to give them everything you have, but you also want to do it all on a budget.

Here are some top tips for creating and managing a budget that will supply your family with what they require.

Keep a record of your spending habits:

There are various free tools available online that can help you keep track of your current spending habits. Mint.com has a fantastic budgeting tool that categorizes all your income and expenses as they enter and exit your account. It will allow you to spot patterns and identify when you spend a little more than you want in a particular category.

Make a reasonable budget:

Budgeting might be tricky, so make one that is realistic to your life. Use the information you’ve gained from tracking your spending habits to create a rent, mortgage, utilities, entertainment, and groceries budget. Look for places where you might minimize costs to put more money into investments and savings.

Consider both the long and short terms:

It is vital to plan from week to week or month to month. However, planning for emergencies, down payments on autos, house improvements, and other expenses is critical. To ensure that you are putting money down for the long term, consider splitting your salary into various accounts.

Bring the entire family on board:

It’s challenging to be a budget enforcer, especially when it comes to things like eating out. When you’re weary and the kids are hungry, it’s tempting to just run through a fast-food establishment. Instead, allow children to assist in the selection of dinner menus. It will be easier for you to make selections like these if they agree with you.

Strategize your savings:

There are numerous options available to assist you in paying less for the products you require. Consider using coupons or joining a rewards program at your favorite businesses. Americasaves.org gives some excellent advice on how to save more money.

Set up bill payment days as per your budget:

Setting aside time to focus solely on getting things paid and dealing with any unique issues with a vendor is critical. Make a consistent schedule, whether it’s the same day every week or the 15th and 30th. Find a way to reward yourself because the procedure can be tedious. Cappuccino and jammies are both excellent choices.

Take some time to re-evaluate your budget:

Budgets fluctuate as your family’s needs change. Prepare to make changes to your budget after a few months of trial and error. If you realize that you aren’t spending nearly as much on groceries as you expected, but part of that money into an area where you could benefit from a cushion.

Look for a substitute to make some more earnings:

Find creative ways to make money on the side to put a few extra dollars in your pocket. You can earn points by viewing movies, filling out surveys, and doing quizzes with incentive systems like Swagbucks and Memolink. You may then use your points to purchase gift cards from some of your favorite stores.

Limit your credit card expenses:

Although credit cards have numerous advantages, many people get into difficulty when they charge things with money they don’t have. If you obtain the benefits with a credit card, make sure you pay off the balance at the end of the month. Leaving a balance on your card might result in interest and financing costs, resulting in you paying more for an item than it is worth.

Make a budgeted home shopping list:

Using lists is one of the most effective strategies to keep to a budget. Make a list of what you’re planning to buy before you even enter the store. Take your list with you and only purchase the goods on it.

To assist you in managing your household budget, put all or any of these suggestions into practice. Though keeping track of your finances can be tedious, the benefits will be well worth the effort.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The covid-19 pandemic compelled treasures in a few business organizations to slow down the cash flow burn that many organizations might have experienced. However, the majority of cash flow forecasting practices varied from companies resulting in crises. Financial forecasts are not just for larger enterprises; they are significant for every company stage, especially during the current unprecedented times. If you are worried about your company’s cash flow position due to the adverse impact of the pandemic on businesses, preparing a financial forecast would be a wise move. 

How to create a cash flow forecast:

Undoubtedly, cash flow forecasting can be a complex task, as it includes both the factual data from the past and the present determining the future. Chiefly, you may have to anticipate whether you will have enough cash available to continue preventing the funding issues. You can create a cash flow forecast utilizing one of the following methods. 

Direct forecasting:

This method is usually applied for a temporary cash-flow and involves estimated cash receipts from account receivables and account payables. Direct forecasting is comparatively more dependable as it contains more factual data. 

Indirect forecasting:

This method is feasible for a long-term strategy and includes a projected income statement and balance sheet. 

When you assist in cash flow forecasting solely or with the guidance of a reputable firm, you should be able to develop a sales forecast representing your expectations regarding profit and loss that combines your income with the expenditures. Once you get these two documents, you will complete cash flow forecasting. 

Utilize your sales forecast to calculate how much cash you believe will enter your business, including PPP loans. Deduct the costs from your profit and loss forecast, add up all the expenditures you will have every month, and subtract it from the total cash. 

Benefits of preparing a cash flow forecast:

As a business owner, have you ever considered the financial influence of losing clients, delayed payments, or several other scenarios, including a workplace closure? It is helpful to gauge whether you require additional funds to support your business or if you can meet the market demands and explore fresh opportunities. 

You can also implement your cash flow forecast to evaluate scenarios, and if an employee asks for a loan, how would you grant him and make the repayment policies.

In ordinary circumstances, you might review the former year’s figures to generate the sales and profit and loss forecast, which would provide the data required to see your cash flow trends and variations. With the current environment, you need more assumptions and flexible thoughts. 

Cash reserves in the business:

Through constant reviewing and updating your cash flow forecasts, you must identify the pinpoints where the risks of financial failure lie and the opportunities for quick cash generation. 

Developing efficient methods for cash collection and adjusting the terms of payment to both vendors and suppliers is significant to minimize the monetary impact. Quick implementations require across critical areas, including online sales, equipment management, and servicing the unguarded during the pandemic is sometimes necessary. However, take time to consider the consequences. 

Discounts and concessions:

There is a variety of actions you can apply. Where your clients and debtors are concerned, introduce more effective billing and receiving processes. Also, you can negotiate with the potential customers for the payment beforehand by offering a valuable discount or concessions. 

It is advisable to take approximate direct and indirect costs out of business to protect cash flow. By doing so, if you get to continue at an innovative and profitable level, you can move excess cash from other areas of the company into your capital account. Fortunately, many governments, during this challenging time, are proactively supporting businesses. 

Robust cash flow forecasting permits you to value your priorities. Remember that your key vendors and clients are ring-fenced and that both assist through this pandemic. The most prudent suggestion amid this uncertainty is to simplify the company’s financial procedures. By concentrating on limited areas, you might end up with a slight change in operations, but with a healthier conclusion and a more secured customer base. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business owners find more comfortable ways to quit the workforce, leaving their businesses to shut down. The absence of succession planning is approaching at an alarming state. To secure their business, the business owners must focus on the sustainability of their practices and train and develop the following line of succession.

Business owners may not find a competent person in their in-house team. You may look for someone from the industry. There are chances that you might be left alone with no resources if you do not allow your team to run your business as the industry’s top companies will recruit them.

Although the need for succession may not be unique, successors may be. Improving a firm’s succession viability necessitates embedding a succession process into the culture and day-to-day activities. Here are three strategies for navigating the succession process and ensuring your company’s long-term viability.

Start grooming your successors at the initial stages:

It is essential to groom your employees ever since they join your company. Training your team as per your company values, objectives, mission, vision, culture, and client services are recommended. Developing the foundation services among your employees is very important. The foundational understanding will aid you in identifying future leaders who will reinforce your company’s distinctive success elements. Business owners should create teams for succession planning, assign duties and set timelines.

Create a succession planning team with roles, duties, and timelines. Business owners can outsource the specialized team from outside the industry. With proper planning and strategy, efficient succession planning can be made successful.

Delegate tasks to specialized persons:

Job delegation is a crucial element in any organization. Business owners do not complete all the client tasks themselves. Instead, delegate the tasks to the most specialized person. It is highly recommended to know your best employee. Ensure that current and future partners are working in positions that allow them to provide the best possible service to clients. They aren’t stuck in roles that are better suited for firm managers, IT specialists, marketing and business development professionals, and other specialized team roles. Be willing to promote someone who isn’t a CPA to the owner’s position, especially if they have good administrative and operational management skills. If you must outsource specialized positions, do so.

Have flexible work schedules:

Flexibility is an essential element that you should consider. Remote working has taken a boom globally since the pandemic. Work flexibility can increase the success rate of the business as this can

Two part-time partners, for example, might be a better fit if an outgoing owner worked full-time and had a substantial chunk of client business. When it comes to your senior leadership needs and what will lure the best succession prospects, don’t be afraid to think outside the box.

Every business finds out different ways and approaches and different methods for their succession planning. Business owners are highly encouraged to define their succession plans so that reaching the objective can be made easy.

Let your partner run your business:

If you founded your company with a partner or partners, you might be considering them as potential successors. Many partnerships have a mutual agreement that if one of the partners dies or becomes disabled unexpectedly, the surviving partners will agree to purchase the dead partner’s family business interests.

This arrangement can help both the business and the family cope with the stress of a sudden transition. A spouse who wants to keep their shares but doesn’t have the time or skills to help it expand may be unable to do so. A buy-sell agreement ensures that they are adequately compensated while allowing the remaining co-owners to retain control of the business.

The earlier a person gets involved in the business plan, decision-making, and rainmaking, the more likely a pool of possible successors forms. There is no such thing as a small or large company that cannot begin the process early.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Since the pandemic struck us, the workforce operating from the offices has shifted to remote working. And it is not new; many companies have been hiring remote employees before as well.

It is a tricky task to find the best team that can fill the skill gap of your business. And if you are a new recruiter, you might have a few questions too. Like where do I post for these jobs? How to build my recruiting brand? What type of skills are needed for these jobs, and what kind of questions should be asked during the interview? But first, why give preference to Remote workers?

Because Remote working is a blessing in disguise, at first, it is a hefty task to hire someone out of your geography. But it is cost-effective, minimizes your expenditures, and is an effective way to hire the best talent among the potential candidates.

According to USA Today, by working remotely, an employee saves four thousand Dollars By not commuting to work, spending on office wear, and eating lunches away from home. Consequently, a business can save as much as 10,000 dollars per employee by cutting down on office space and other Tangible job benefits like office supplies, parking passes, etc.

Here is a guide on how to hire remotely:

Which is the best platform to hire remote workers?

Job searching websites can be the best source to narrow down your options on the deserving candidate in the pool of freelancers. Websites like

1. Career builder
2. LinkedIn
3. Behance
4. Monster.com etc.

Some of these websites focus on specific skills.

Detailed job descriptions:

Always pen down clear-cut and descriptive job listings so the applicant can get a clear picture of the role they are applying for. Elaborate on the skills required for the job. It is a crucial part of finding appropriate hires. Before writing a job description, you can take ideas from similar job listings by your competing companies or other brands from your industry on LinkedIn or Monster.com to note the main points.

By addressing each, the description will help candidates learn more about you and the role. Keep in mind that you want to make a compelling case for someone to collaborate with your company rather than just execute activities. Include different facets of your company culture and why someone might want to join your team.

Look for these attributes in Remote workers:

It is a reminder that not every professional individual can work from home. Therefore, when recruiting remote employees, make sure to hire someone who can be a pro in online working. Always look and consider the following skills to evaluate their potential.

• Time management
• Ability to freelance with or without a team.
• Organization skills
• Communication skills
• Adaptability to newer technologies
• Dynamic
• Does not shy away from asking for help.

A good recruiter is the one who figures out the needed skill set is there or not by seeing the resume. Extensive Questioning about the candidates and their skillset during the interviews can be fruitful too.

Online Presence:

Today, the world is influenced by social media. Therefore, to attract the best talent, an enterprise should have a trustworthy image online. Remote candidates strongly rely on the social media presence of a company to check the authenticity.

Company websites, social media handle play a big part in this. The career pages on your site must convey your work ethics, Vision mission & help them visualize themselves as team members and understand the terms and conditions before applying for any job.

Schedule an interview:

Compile the questions you wish to ask in a standard interview. You can start by asking about their home work environment and how they will balance their work time and personal time. How can they avoid getting distracted? Schedule a video call interview with the candidates you have shortlisted. Acquire about their tech skills and the reasons for their preferences to remote work. Discuss the remote work policy of your company and ask if they are willing to abide by it.

Remote working can fill any skill gap, but the most common skills that do not require a specific location are web development, Virtual assistants, writing and editing, Graphic designing, and Marketing.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A clear vision of your perfect client is critical to the success of your organization. You’ll be able to identify the most likely people to buy, eliminate those who don’t require your services, and gain a more excellent grasp of how your products and services genuinely make a difference.

One of the most typical mistakes made by new business owners is attempting to help everyone they can. While this may appear to be a good concept at first, the problem is that the larger your target market becomes, the more difficult it becomes to connect with them in a meaningful way.

What kind of customers are you looking for?

It is an ideal question which tells you about the customers of your client. This question gives you the knowledge of which type of customers your clients will be targeting. Some of your clients might have smaller customers, whereas those with million-dollar customers would be more beneficial for you.

What external issues do you have to deal with?

Understanding the day-to-day operation is vital for you. It is highly recommended to know the problems your client is going through during daily operations.

External issues are the issues that others can see and are dealing with on the surface. Continuing with the social media manager, a potential external concern for their ideal customer could be an uneven Instagram feed lacking aesthetic cohesion.

What internal issues are you dealing with?

Internal issues are the opposite of outward issues. These are the thoughts, emotions, and sentiments connected to an issue or a source of discomfort.

Returning to our social media manager’s ideal customer: They’re presumably embarrassed by their Instagram feed’s visual inconsistencies. Perhaps they’re concerned about what others think of them because they don’t post regularly, and their photos aren’t of excellent quality.

The ability to recognize and accurately describe your prospective client’s internal issues will aid you in developing a solid relationship with your audience and gaining community trust. Yes, external problems are crucial to comprehend and resolve since they are visible to the rest of the world. However, it is resolving internal issues that foster connection and loyalty with your ideal client.

What value do they look for?

Understanding your client’s customer is very important. It is not always possible that the services you provide to clients meet their customer requirements. It may seem like you offer accounting services to your clients, but what value them the most is how you respond to them and what value you provide them.

What services are you looking for and your expectations?

If you provide multiple services, it is best to ask the client about the services he would purchase from you. It is best to discuss the services, their nature, and the scope of the services. Your client may look for an accounting and taxation service. Thus, offering them an IT consulting service would be a waste of time and loss of expectation. Budget vs. actual evaluations, asset management services, and strategic planning may be a natural next step if they’ve already engaged in tax and cash flow management. Asking these questions with your leadership team can help you make smarter decisions about investing in marketing and business development, technology, talent, and procedure to attract your ideal customer.

What are the expectations from these services?

Understanding the client’s expectations is very important. Client purchases the services to enhance their sales and meet the company objective. The firm must provide these services in alignment with the client’s business objectives. It is not worth assisting if the client’s goals have not happened. The resources allocation on the client’s project happens by the expectations of the client.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Most people are unable to distinguish between an accountant and a bookkeeper. Although these financial jobs support the accounting process at various phases, they all have the same aim. It’s critical to know the distinction as a business owner.

Before moving forward, let us first understand the difference between bookkeeping and accounting.

Accounting

Accounting is the process of recording, summarizing, analyzing, consulting, and reporting financial data for a firm. It is a vital part of every business. Generally, a certified professional accountant (CPA) performs accounting duties.

Analyzing financial data to assist you in making business decisions is an essential element of the accounting process. With the reflection, as a business owner, you will better understand your company’s profitability and cash flow. You can also transform your general ledger into meaningful insights and reveal the company’s forecasting. Accountants can help business owners with strategic planning, financial analysis, forecasting, and even tax filing.

Bookkeeping

Bookkeeping is the process component that records and stores all of a businesses’ financial records (including day-to-day transactions) in a database. Bookkeepers don’t need a license, but they might choose to be certified instead. The certifications or permits an individual or an employer must have vary based on where they work.

The most important aspect of bookkeeping is maintaining the general ledger of the business. The general ledger records the revenue and the expenses of the company. With the company sales, the bookkeeper should keep up the account ledger to date.

• Accounting begins where bookkeeping ends.
• Because bookkeeping is a part of the accounting process, the work of bookkeepers and accountants sometimes overlaps.
• A bookkeeper keeps track of and organizes a business’s daily financial operations, such as sales, payroll, and bill payments. They are more concerned with maintaining correct records than with understanding data and analytics.
• Accounting reports are prepared based on the information provided by the bookkeeper. Here is what an accountant usually does:
• Examine the financial statements that a bookkeeper has ready.
• Analyze and understand the data gathered and compiled by the bookkeeper.
• Make a report out of the information (or records) that summarizes and makes analysis understandable for the decision-makers.
• Give counsel based on what they’ve observed.

The accountant’s advice to leadership will come from the records supplied by the bookkeeper. The documents reported by the bookkeeper will determine the business’s general health. You cannot overstate the importance of each step in the financial process.

So, what is essential to your business? A Bookkeeper or an Accountant.

It is critical to determine if you require the services of a bookkeeper or an accountant. This decision is influenced mainly by the industry and the necessary level of knowledge.

Industries that deal with sophisticated financial systems and high-volume transactions, such as government agencies, colleges, and hospitals, need accountants.

When it comes to expertise, a seasoned bookkeeper with years of experience is likely to be more suited to manage your company’s finances than a fresh-out-of-college CPA.

When sifting applications, keep this in mind: don’t assess an applicant solely based on their schooling.

It’s never too early to hire a competent accountant. Business entrepreneurs that engage financial help early in their growth rarely, if ever, regret their decision.

The bookkeeper’s organized financial records and correctly balanced finances, combined with wise financial strategy and precise tax filing by the accountant, all contribute directly to a company’s long-term success.

Some business owners learn to manage their finances independently, while others engage a professional to focus on the aspects of their company that they like the most. Regardless of which choice you select, investing time or money into your business financials can only help your company flourish.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The corporate market is full of scammers. They are smart enough to magnetize the maximum amount of profit and revenue without being caught. You cannot always handle such frauds from the root, but you can take a few measures to avoid them on general grounds. There are numerous ways you can dodge these cheating techniques of trying to rob all that you earn. The person involved in committing these frauds can be anyone associated with the business you run. They can be:

• An Employee (Accountant, Manager, etc.)
• Supplier
• Vendor

Be strict and severe about the financial matters of your corporation. Apart from being alert, the owner must be a keen observer. Financial thefts always revolve around businesses and start-ups. Indeed, we cannot come up with a single solution to overcome these threatening calls. But the most efficient methods around the circle are:

Adopt A Cynical Attitude

Being skeptical will always be your shield in mitigating the risk of financial frauds and rip-offs. To glide safely and survive among hungry competitors floating in the broad sea of the corporate world, keep a hawk-eye on each matter of your business. Ensure to note each detail while undergoing any deal or transaction, whether it is a pea-sized one or a giant-sized one.

Identify Points Your Business Is More Susceptible To

This trick can be great assistance to prevent cons and frauds. Develop an image and figure out the points a scammer might find to nibble from the profit you earn. So, to stop scams and financial thefts, seal these loopholes both internally and externally. Constantly analyze the systems and applications you use to diminish any possible risks. Strictly order and monitor your employees to do the same.

Business Accounts Inspection

The first step you must take to avoid scams is quitting manual banking and switching towards automated banking. Online banking makes it relatively hassle-free to view the details and transactions you made. Yes, it will be a crucial and critical solution to stay miles and miles away from potential loss of finances. Scrutinize your bank and bookkeeping accounts regularly. Go for installing software to prevent every possible human error. 

Secure Your Credit Card Information

Frauds occurring through credit cards are always in headlines, and countless business individuals have fallen victim to such cons. So, every business owner must ensure to separate their business and personal accounts once you have split your accounts, head on towards the protection of every slightest detail associated with your credit card. Many cases face a credit card loss and do not take any legal and sensible actions against the loss. As a result, they end up losing confidential information and cash as well.

Hire A Team of Digit Professionals

The most common mistake that business individuals make is that to save salaries, they hire a single person to manage the accounts and digital transactions of the company. The business owners fail to realize that this step can cost them a lot more than their imagination. Take the best measures to save your progressive corporation from drowning down. Never give a single person the entire responsibility of bookkeeping, as it can be dangerous. Hire professionals and split the team, assigning different financial obligations to them. It will protect your business from financial cons and deceptions.

Quick Recap

Creating, establishing, and maturing a business takes a lot of time, risks, and effort. In the storm of these day-to-day arising challenges, the biggest threat to trade is the trail of unseen financial scams and cons. Preventing these frauds is a must to ensure a prosperous business. You have to be extra quick and alert while tackling your business matters and account details. Indeed, we cannot eliminate these threats, but we can take some effective measures to decrease the risk of financial harm and loss. The article you are going through will surely help you manage the ways you handle and prevent these cons and rip-offs. On a final note, hire professionals to supervisors and managers to inspect every detail before approving the employee’s timesheet for the payroll process.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Creating a for-profit subsidiary was always regarded as unusual and niche, but tax-exempt organizations have become increasingly common in recent decades. This arrangement arose in response to several issues that tax-exempt organizations frequently face, including managing unrelated business activities, separating activities that deviate from the exempt owner’s original purpose, and protecting the organization’s assets from legal liability.

Here are a few things you need to know before you create a for-profit organization

The structural hierarchy of the organization: The owner must first determine how the successor entity’s ownership will be structured. The business can be wholly-owned, partially owned, or controlled by a small group of people. For the sake of simplicity, we’ll concentrate on wholly-owned and majority-owned corporations in this article because most owner companies want to maintain control over their new subsidiary.

There are three methods for establishing authority over a newly formed organization:

1. The owner could assert influence over the subsidiary by overlapping boards of directors or proclaiming in the governing documents that the owner has the authority to select the board of directors.
2. The subsidiary could be a membership organization with the owner, giving it complete control over the composition of the board of directors.
3. The subsidiary could issue shares, with the majority of all of them going to the owner.

Shareholder rights and ownership: The subsidiary must establish itself as a separate legal and tax entity from the owner. The IRS scrutinizes owner-subsidiary ties that appear to lack a bona fide intent to perform genuine and substantial business functions.

Because the owner retained a controlling interest in the subsidiary, there were overlapping workers between the two businesses sharing information. The subsidiary’s activities were eventually attributed to the owner.

Organizational expense sharing: Exempt owners will pool resources with the taxable subsidiary (via a cost-sharing or managed services arrangement). It can include, among other things, shared personnel, offices, facilities, and equipment. It must be done on a per-use basis rather than assigning resources. Any subsidiary receivables should be paid as quickly as feasible, ideally with no balance due at the end of the tax year.

Transfers and Capitalization: Following the official formation of the company, the owner may contemplate providing funds to the new subsidiary to pay vendors and staff, as well as to operate as a for-profit firm in general. According to IRS rulings, exempt owners may form, capitalize, and use an associate corporation to further the charitable goal. It can be accomplished in a variety of ways by the owner organization. The first alternative is to lend the money to the subsidiary on a no-interest basis (meaning terms generally offered to the public). It demands the formation of a legal instrument that governs the loan and sets the interest rate and deadline for repayment.

Exemptions: The owners must demonstrate that they intend to use the vast assets of their subsidiaries to achieve their goals. In some cases, this means giving the owner dividends; in others, the IRS has advocated selling a subsidiary’s asset or stock to raise funds for the owner’s program. Finally, the owner should not use exempt assets to boost the subsidiary’s commercial activity, originating through charitable contributions or membership dues.

Possession by minorities: If the subsidiary is organized as a stock corporation, it will sell stock and ownership to other people. It can be beneficial in acquiring cash for the subsidiary or attracting the skills and talent required to manage the company successfully. In general, this type of stock issuing is legal and will not compromise the owner’s tax-exempt status. However, an exempt owner should be aware that the inherent risk of dealing with third-party stockholders is that the tax-free owner may use charitable assets to enrich private third parties. This behavior may undermine the owner’s exempt status and be damaging to the organization’s overall activities.

Management of payment: Compensation must be reasonable and cannot exceed the fair market worth of the payer’s services. The owner’s annual information return should include any fee paid by the subsidiary to the owner’s executives, directors, trustees, or key workers. It is because wholly-owned or majority-owned subsidiaries should be treated as a single entity. Stock options for taxable subsidiary employees, as well as an employee stock-ownership plan, are options that are typically studied deeper due to the potential for excessive remuneration. On the other hand, sharing ownership by anyone other than the exempt owner raises the value.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Disasters can hit you anytime, so it is better to get ready for these emergencies and issues before they happen, and you do not have any preparations for them. You must see many things before preparing for an emergency because, in case of an emergency, you are into a hassle that you do not have time to prepare at that time. The situation at that time was very frustrating and challenging to handle. There are some tips and tricks for business owners to prepare for emergencies and cope with the troubles.

Learn about new software

Many business owners are still using old desktop-based software, and now it is time for them to move to the new and advanced type of cloud-based software such as QuickBooks and Xero. This software will help bookkeepers to work with their clients and without overwriting other professionals’ work. If you are still using old software that does not allow you so much, then, in this case, there is a Ledger software for you that mails and emails on your behalf, and it is 1099 software. Although you must pay before using this software, it helps you a lot so you can say that it is worth buying it.

Make a communication Portal for clients

Many taxpayers are using software that will draft emails on their behalf, and there is a love-hate relationship between the bookkeepers and emails. Sending emails is vital in this field, but we still must remind most of our customers not to send sensitive and personal information through emails because it is too dangerous in this field. Luckily, a substantial number of tools are available to streamline client communication and document sharing with each other. In the past, those clients who did not know how to use this software had to face a lot of difficulties in this case, but nowadays, there are different software such as client hub, and it is straightforward for clients to use them. The client communication portal has a lot of benefits, such as keeping your inbox clean and protecting the sensitive information of present clients. It also helps to interact with your team members. If there is any difficulty they are facing in this procedure, they can contact through emails.

Make plans

Make plans for your emergency because it will help you to take situations under control suddenly. There is a lot of online software and toolkits that will help you to make better plans. These toolkits also help you fulfill your business’s basic needs and necessities and assist you in times of emergency. Before planning, focus on disasters that may affect your business in the future, so it will help you make your plan according to the situation. You will not get confused during emergencies because you have already made plans for them.

Take help from professionals

There is also a plus point of having competitors and professionals in your field. If your competitors face any emergency, you can learn how they met that situation and how they plan for it. You can also hire a professional to help you. For example, you can employ A certified public accountant for your business, which will help you get rid of tax problems such as tax reduction and tax-paying, and other tax problems that businesspeople face during the tax season. Take advice from your professionals and then learn what they teach you because it is not just learning these things. Still, you must implement them in different situations to get ready for an emergency. If you prepare for that situation, it will help you quickly eliminate it before any detrimental effects on your business.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.