Author: Jennifer Brazer

The correct credit score is essential because strong business credit scores can help business owners secure improved interest rates in financing. It might also contribute to decreasing the circumstances to prepay for a particular good or service. It also helps to ensure enhanced trade terms along with valuable suppliers in a specific industry.

One of the chief reasons people in business lack funding is the failure to understand their credit. In the American Dream Gap Report of 2015, approximately one in four trade companies do not know why their loan applications were rejected. Yet, trades that knew their business credit scores had 41% or more likely to get accepted for minor business financing.

Putting the Business on Map

If you have just initiated the business or are about to start the company, it might not be necessary to put yourself on the map. You can’t establish credit before building the business. For this reason, acquiring a business phone number and getting listed in the directory might be the most appropriate option. A credible company must obtain a phone number. Depending on your business’ nature, you might also be willing to open the bank account with your official business name and pay the bills with your official business account. 

 

The Establishment and Maintenance of effective Credit Relationships with Vendors and Suppliers

From a business perspective, an unbroken line of credit with vendors associated with an industry is the gold standard. Effective relationships are likely to assist you in preventing the payment upfront for services or goods. If you can secure a line of credit terms with suppliers who report the payments to business credit reporting agencies, you can create a positive business credit history. Your suppliers or vendors are not bound to report to the credit bureaus. Thus, it will be beneficial for you to be proactive and open accounts with these suppliers or vendors. The formation of effective credit relationships with the vendors or suppliers requires bookkeeping, to avoid payment-related ambiguities.

Acquiring the Employer Identification Number

In the business world, it is also beneficial to acquire Federal Tax Identification Number, also stated as EIN. This social security number is useful for your business. It depends on the nature of your business, and you may require opening the bank account by using your business name. Acquiring the employer identification number is likely to contribute towards securing your business contracts.

Credit monitoring

Approximately 25% of the business owners reported that credit reports are likely to possess significant errors. In this regard, the strict and regular monitoring of your business’s business credit history might assist you in identifying false issues and blemishes. In case you found the errors by yourself, you must file a dispute by contacting the reporting agencies.

Always Pay on Time

Paying on time is the first and foremost rule aligned with any favorable credit situation. Payment of bills within the provided timeframe indicates the reliability and ability of management, alongside the amount of debt conclusively. Considering late payments, specifically including obligations, tend to affect the rating of credits and harm the status of the company.

Access to a Business Credit Card

Possessing a credit card for business with an organization that already has an extensive credit report is a practical approach for creating commercial financing. However, be careful to avoid over-expansion of personal business financing.

Consider incorporating your business.  When adding Inc. or LLC to your company, you will legally separate your business and personal data. If you choose not to do so, your business and personal credit cards (among other things) will be legal.

Transfer business expenses away from personal finances

Once you have opened a credit card, a credit line, and a bank account, those accounts will be associated with your company’s legal name, keeping your accounts separate. Add your new company or Limited Liability Company; it will create a great distance.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 credit score is a powerful indicator in assessing the economic status of an individual. The lenders and banks mainly utilize it before providing you the loans for different purposes. Several businesses have started to use a credit score to make decisions about giving loans to individuals. Through the credit scores, lenders also evaluate your future capability to pay back loans and determine the risks of loan money. It also provides the basis for setting the interest rates on your loans and credit cards and deciding whether to approve the request of a credit card. Companies that give car insurance also use the credit score to set the rate of monthly installments. Utility companies also evaluate a credit score before establishing new services for you. To offer a job, a promotion, or to increase your salary package, some employers also consider credit history.

Payment History

The payment history comprises 35% of the total credit score. The way you manage your payments impacts the credit score. Payment issues such as bankruptcy, charge-offs, foreclosure, and repossession can have adverse effects on credit score. Timely payments of your bills can positively affect your credit score and prevent you from having future difficulties in applying for multiple types of credit.

Level of Debt

Your debt level is 30% of your total credit score. It happens that despite your timely payments of bills, your requests for credit cards and loans can still get rejected due to your debt level issues. The calculations of credit scoring like the FICO score cover a few factors that impact your credit scores, such as the overall amount of debt, ratio of credit card balance and credit limit, and the association of total loan amount and your loan balances.

If you possess higher loan balances or higher levels of debt, it could impact your credit score unfavorably. Fortunately, it is possible to reduce the credit score by paying down the loan balances.

Age of Credit History

Your credit score also considers the period for which you have been using credit. The age of your credit history includes the average age of all the accounts in your possession and your older account’s age. It comprises 15% of your credit score. The older credit age is beneficial for credit scores as it shows that you have a vast experience of handling the credits. On the other hand, new accounts present on your record history harm your credit score and decreases the credit age. In this scenario, the opening of several new accounts is typically not suitable for loans or insurances. However, if you manage your timely payments, it would not have many effects on the credit score. 

Types of Credit Used by you

The FICO formula also uses your types of credit while determining our credit score that whether you use a mixed kind of credit or not. Types of credit mainly cover 10% of the total credit score. There are two major types of credit accounts, which are installment loans and revolving accounts. Suppose you have both types of credit accounts than it would positively affect your credit score. It indicates that you have the experience of various kinds of accounts, which is beneficial for your credit score. However, if you do not have any of the accounts, it would not affect your credit account due to its lesser percentage. Other accounts include store accounts and mortgages.

Credit Inquiries

Every time you apply for the loan, credit card, or insurance with the requirement of credit check, then an inquiry shows on your credit account, which shows your credit-based application. It also encompasses 10% of your credit score. Few queries do not have much impact, but when the number increases from two within a shorter period, it costs tens of points and affects the credit score. For this purpose, make fewer applications at one time and this can prevent you from this issue. Fortunately, the inquiries made during the last 12 months are considered suitable for the credit score. Note that bookkeeping is an effective way to check your credit score by keeping records of financial matters.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Similar to almost anything in life, an accounting career has its pros and cons. There is nothing wrong with the career path itself, but it may not be right for certain people, while it may be the perfect option for others.
These positives and negatives of the career path can help you determine if it is right for you.  

Pros

1. A clear career path

Studying accounting means learning practical skills about analyzing costs and crunching numbers required by employers. This education means your career path is more apparent than a person studying subjects like Philosophy or English, for which it can be hard to determine the possible career options.

2. It is a growing and stable field

The job prospects for a career in accounting are growing year over year. Accountants will be required as long as people need help with taxes and business finances. 

3. There is potential for growth

Once you graduate, you may start with an entry-level associate job, but there is an immense potential to grow professionally in this career path. Many people who graduate with an accounting degree begin their career path as junior auditors, staff accountants in public accounting, or controller’s assistants in private accounting. However, once they gain experience and get established, they can advance their careers through additional certifications or education such as CPA or MBA and job performance.

4. Good earning

Anyone would love to make enough money to be able to live comfortably and cover all their expenses. An accounting career can help you afford a good lifestyle.

5. You can find work anywhere

Unlike other career paths, you do not need to relocate to an industrial hub and disturb your personal life. Considering how accounting is a universal need, everyone from farmers to IT companies requires accounting services. This need gives accountants flexibility when deciding on location in which to live and work.

6. There is potential to become an entrepreneur

The accounting profession puts being the one in charge of everything within reach. Unlike many other professions, it is a common habit for accountants to start their accounting firm. While it carries its risks and may not be a good idea for everyone, it is undoubtedly an excellent choice to have.

Cons

1. Ongoing education

Unlike other fields, you need to continue learning even when you have graduated with an accounting degree. To advance your career, you must continue your education even after getting a degree. However, there is a benefit to that, too, as higher education means increased status and pay.
Once you start as an entry-level accountant, you must look into further certifications. There several accounting credentials such as CPA (Certified Professional Accountant), CFA (Chartered Financial Accountant), and CMA (Certified Management Accountant). Earning these will require the right amount of effort and time, so it can be helpful to know what you are putting yourself through beforehand.

2.  It can get boring

The everyday work of accounting involves a lot of math and investigation, which some people may find boring and dull. However, finding something boring is subjective. Some people may find this work fascinating.

4. It can get stressful

There is going to be a lot of pressure on you if you are accountable for an organization’s finances. For this reason, you need to determine if you can handle the pressure. Suppose you get easily frazzled by stress, then maybe it is not the right career choice for you. 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

If you find that your computer is acting differently or if a particular program is running extremely slow, there can be several explanations for it. Although it could be that there is something wrong with your processor, or that you don’t have enough RAM in your system, you can’t exclude the likelihood that someone has hacked your system.

Such situations are quite alarming. Therefore, we have listed below eight symptoms proving that your online security is compromised.

 

1. Sudden Mystery Charges Appear on Your Debit or Credit Card Statements

If you receive unexpected charges on your debit or credit card account, that could signify that someone out there who is doing something wrong. Although, you shouldn’t just be vigilant or wary of significant charges. 

That is why you should call your issuer, disregarding how small or how big the mysterious charge is. It can help you discover if the transaction is made unlawfully or is just a mistake.

2. Credit Card Is Declined

An unexpected decline of your credit or debit card is one of the signs your account is compromised. That is why you should not be relaxed if a vendor says that their system is not accepting your card.

If your card gets denied, immediately check your account to verify whether your online security is breached. If your resources are intact, call your issuer and ask for help to find out why the transaction failed.

 

3. Products You Never Ordered Gets Delivered To Your House

Take it as a bad sign when the merchandise you do not recognize arrives at your house. This unexpected delivery can be an indication that someone has gained access to your online accounts. It could be that the hacker used your credit card and overlooked changing the default shipping address.

If you think there is a breach, call the retailer and arrange to get the merchandise returned. Also, modify the password linked to your compromised account. Request your credit card company to get the card flagged or replaced for future deceitful activity.

 

4. You Get A Call from A Debt Collector for Dues You’ve Not Heard Of

If you get a call from a debt collector who asks to collect a debt you have no idea of, there is a chance someone is using your identity. That is why it is recommended never to ignore such calls after your first contact. 

Take this as an opportunity to find as much information about your purported debt as you can. You can take the necessary steps to eradicate it.

 

5. Your Friends Start Receiving Emails from Your Email Address

If you find that someone is emailing spam from your email address, you need to alter the password linked to all other ones. In case you find yourself locked out from your account, immediately request your service provider and have your compromised account discontinued.

 

6. You No Longer Receive Your Monthly Billing Statements

Strange and sudden activities relating to your financial accounts are a red flag. For example, you notice that you are no longer receiving your monthly billing accounts. It could be that the billing address mentioned in the statement is different, or some other vital account information changed.  

If in case you find yourself in a position, get in touch with your issuer, bank, or service provider.

 

7. Your Personal Data Showing on Your Credit Account Is Inaccurate

Don’t ignore if your data mentioned on your credit report is not matching with your records. If you notice that the residential address is one you’ve never resided in, contact your credit bureau to probe how the wrong address got there.

 

8. Your Credit Score Plunges All of a Sudden

You should be concerned if you have checked your credit scores before and suddenly find them surprisingly low. It’s time for you to investigate and find out the reason. You can only do this if you are up to date with your bookkeeping accounts that you know your credit scores have gone down.

 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 bookkeeper’s role is to record and ensure every day-to-day financial transaction clearly and systematically. Gone are those days when companies could trust their employees blindly, but they surely no longer can. Why? Because the chances of fraud have risen, lack of motivation to complete tasks on time and employee’s opportunistic behavior is indeed leading companies to disaster.

No matter how much trust you may have on your bookkeeper, it would be best if you always double-check your bookkeeper’s work. The company’s financial decisions use bookkeeping records; the more accurate they are, the better are the decisions. Since business owners have to ensure other vital aspects of the business, bookkeeping activities often get neglected. This lack of care raises serious concerns about the company’s future, and this can even kick a business out of the competitive race if things are left unattended for long. So, you should keep a proper check and balance system in place for your future and the company’s growth and prosperity.

Encourage Questions

As the owner of the business, you can take possible measures to verify your bookkeeper’s work by asking questions about his/her job duties. You need to make sure your bookkeeper fulfills responsibilities to the best of his/her knowledge and skills. So, you should encourage questions and give your bookkeeper a collaborative and productive environment where he/she could satisfy your claims. As a business owner, going into the investigation for knowing about a complex financial transaction is your right. Your bookkeeper is liable to give a proper justification for every transaction, along with satisfying details. For example, a receipt of $20 from a gas-station could be a meal, gas, or something else, and your bookkeeper needs to be specific on spending.

Review Your Income Statement Every Month

Although some business owners ignore reviewing and cross-checking their income statements, you can get a clear picture of your finances. To avoid discrepancies, you need to review your income statement every month. This review is the best way to know how your business is performing. If it is not performing up to your expectations, there will undoubtedly be some fault with your bookkeeper.

Review Your Balance Sheet

If you have specific business goals and objectives, you can ask your bookkeeper to explain your balance sheet if you aren’t sure it is correct, or if you need clarification. It is ideal for reviewing bookkeeper’s work and keeping your accounting and financial manager in the loop for interpreting your balance sheet and its impact on your firm’s finances. Why? Because this is where most bookkeepers trick business owners since owners lack proper bookkeeping or accounting knowledge to comprehend the balance sheet themselves.

Have Scheduled Meetings Regularly

Most bookkeepers have a habit of delaying tasks assigned to them. This delay creates problems because sometimes, they forget to record vital financial transactions that increase issues and keeps companies from meeting their financial goals and objectives. By having scheduled meetings regularly with your bookkeeper, you can expect to have complete yet accurate results.

Update Your Bookkeeping Network

There is a specific type of business that uses bookkeeping or accounting software to record their day-to-day business transactions. So, if you are one of them, you need to ensure that your bookkeeping software is updated and produces optimal results. If you have hired an in-house bookkeeping expert, you need to keep a close eye on your entire bookkeeping network and ensure everything is in order and yield the right results. 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Maintaining a healthy financial cash flow bears immense importance for any business. Regardless of the size, scale, and location, businesses need to watch their working capital to ensure smooth business operations continuously. Those who ignore their finances and credit can expect to face financial problems, which can hurt their business financially and cause irreparable damage to their reputation. The point is you need to stay true and fair to your vendors and stakeholders as business reputation builds on fair dealing and honesty. Good credit can put any business on the right track and help enable individuals and organizations to grow exponentially.

What’s important for a good credit score? Proper Tracking and Scheduling Of Credit

There is no denying the fact that most businesses consider credit cards and loans to be the only two things that affect their credit score. However, this is totally wrong! There are specific applications or late payment schedules that can hurt credit score as well. So, organizations need to identify those aspects that can hurt their good credit, and they need to come up with a relevant strategy or prevention plan to maintain and ensure their credit availability all the time. This indicates that proper tracking and scheduling of business expenses, including virtual payments, is important in maintaining a healthy financial lifecycle.

Keeping the things above in mind, it convinces me and makes me feel safe to say that ‘some of the finer points of credit scoring isn’t well-understood by most of the business owners.’ So, business owners need to educate themselves in maintaining and achieving a good credit score. Why? Because there are certain underlining factors other than credit card debt and loan that can lead to a negative impact on your good credit.

What else?

Those underlying factors include delayed payments, lack of incorporation of expense details into firm’s bookkeeping records on time, applying for more credit, transferring balances to a single card, canceling zero-balance credit cards, not having enough credit diversity, unpaid medical bills, unpaid parking tickets, renting a car without a credit card, applying for several credit cards at once, cosigning a loan or credit with someone else, not using a credit card at all and other similar things.

What Can Hurt Your Good Credit?

So, whatever expenses you make, they need to be duly tracked for maintaining a healthy working capital and credit. Here five things, as mentioned earlier in this article, can hurt your good credit.

Not Paying All of Your Bills on Time

Without a doubt, late payments or not paying all of your utility bills that include payments on rent, phone, utilities, and the loan can all negatively impact your credit score. So, you need to maintain a record of everything you pay, which means what goes in and out of your company, and when—only then, you can see the impact on your credit.

Canceling Zero-Balance Credit Cards

You need to hold onto it, even if you have paid off a credit card. Why? Because canceling zero-credit cards can hurt you two ways: it can shorten the age of your credit history, it reduces your total credit amount. The reduction means it can raise your credit utilization ratio. 

Holding High Credit Card Balances

If your credit card balances continuously creep up towards your credit limit, then it will definitely hurt your good credit.
Tip: keeping your credit utilization ratio around 30% or less is better and favorable for your business credit in every sense.

Ignoring Your Credit Report

Undoubtedly, ignoring your credit report is bad news for your business, as doing this can lead to creating problems. So, you need to monitor and track your credit report to identify potential errors, which can hurt end up hurting your credit score.

Unpaid Medical Bills

If you forget to pay your medical bills or deliberately ignore them, then those bills can be sent to collection agencies for recovering bills, which can be added to your credit report.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Small retail business

Owning a small retail business can be difficult. One can likely feel it is impossible to keep up with consumer demands because of the increasing competition in the online business sector. Small retailers have to face financing pressure and marketing challenges.

A small retail business is a set of entrepreneurial activities that involve the sale of goods directly to the customer. Small Retail business can take place in a variety of forms, for example, in personal sales, trade-in specially designated areas, or through communications (Internet, TV).

A small retailer should be able to perform the following functions.

• To organize active commodity circulation to points of sales.
• Form stocks of products and maintain them at the required level.
• Produce trade and technological operations with the goods.
• Stimulate sales through marketing activities.
• Investigate the demand for a particular product and analyze the level of the current market supply. The market price depends on the relationship between supply and demand.
• Analyze the effectiveness of various forms of trade and focus on the most effective.
• Organize a service that facilitates the buyer’s purchase of goods (for example, accepting applications by phone, credit offers).
• Improve the methods of trade and regularly improve professionals’ skills working directly with the buyer (through training, master classes).

Problems Faced by Small Retail Businesses

The retail sector is vital for the country’s economy, represented by a large number of enterprises, mainly small and medium-sized businesses. Small retail businesses usually face many problems that are difficult to solve alone. Starting with the location and attracting the buyer to it and ending with the issues of personnel management. The owners of small retail businesses sometimes do not have the critical information they need to carry out commercial activities and planning for long-term retail business development.

If you own a small retail business, you must be struggling with many challenges and consequences. The top five problems that a retail small business owner consistently face are:

• 40% of unsold goods occupy an essential place in the warehouse of small retail businesses.
• The funds invested in unsold goods settle in the form of unclaimed stuff.
• The market associated with clothing and footwear is dynamic, which means it focuses on changing fashion trends. The value of a fashionable product falls with each month, often the term “peak” value is calculated in weeks. As a consequence, the small retail business faces a progressive increase in losses.
• The mechanisms of discount and sales systems are still a mystery for the small retail businessman.
• “Floating” quantity of the goods in the warehouse, as a result of imperfect accounting systems, leads to bookkeeping’s impossibility for “conserved” money.

 

In addition to this, the inability to cope with problems prevents retail outlets of small retail businesses such as clothing and footwear from pursuing a more flexible and efficient assortment policy. The overcrowded warehouse and lack of available funds in the small retail stores are some of the most common problems. Customer loyalty largely depends on the constant presentation of the current fashion collections. The small retailers are unable to afford them usually.

 

Another problem in small retail businesses is the lack of attention to regular customers. The modern consumer focuses on the quality of service and the personal attention paid to him. The current urban environment, depersonalized and indifferent, needs compensation. A good entrepreneur provides such benefits as an individual approach to every potential customer.

The owners of the small retail business should be able to maintain a good sense of the products that they have in stock. They must know where their inventory is low and how they can improve it. Due to limited funds and space, keeping the inventory well-organized and well-stocked can be difficult for the retail small business owners.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

As per the FBI, cybercrime is rapidly growing and is rising among different businesses. Cybercrime involves criminal activities to affect the company’s security or to steal the data and financial information of a company. Most of the businesses that are operating online have to deal with this serious issue. According to the latest survey, 67% of the companies had experienced at least one type of cybercrime. Fighting this crime can sometimes be very expensive. Most of the time, it evolves again as new threats emerge from your security system.

Internet security might not be the priority while starting a business, but neglecting the potential risks could harm the company. One of the mistakes made by the executives and managers is that they assume their business is at a low risk of cyber-attack as compared to the bigger businesses. However, small businesses are also at an equal chance of becoming the victims of cyber-crime. The most common reason for this is that small businesses might not have the resources that large companies have, making them more vulnerable to cyber-attacks.

While considering the security of your business, it is vital to notice the essential nature of cyber-attacks. Internet-related offenses may fall under two general categories:

• Data Theft
• Digital Vandalism

Data theft involves the misuse and stealing of financial data, customers’ records, or any sensitive information regarding a specific product or any strategic plan for the business. On the other hand, digital vandalism consists of viruses, several kinds of malware, hacking of the business website, or business-related social network accounts. No matter in which category a cyber-attack might fall under, it can cost your business massively. The financial data and all the account work of a company get recorded with bookkeeping.

 A cyber-attack can cause severe damage to a business. Cybercrime is capable of severely affecting your bottom line, the reputation of your business, and your client’s trust. How cyber-crimes can impact business can be classified into three major categories which are:

• Financial
• Reputational
• Lawful

Economic Damage of a Business

One of the most common impacts of cybercrime is economic damage to a business. Cyber-crimes can result in a considerable financial loss that can arise from:

• Theft of business data
• Theft of economic data ( for example, bank details and details of payment cards)
• Stealing of money through online transactions
• Interruption to trading (for example, incapability of carrying out transactions online)
• Loss of contract or business

Businesses that have to deal with cyber-attacks also usually experience the costs associated with repairing affected networks, devices, and systems.

Damage to Business’s Reputation

Cybercrime can impact the reputation of a business as well. In business, trust is an essential element for building a relationship with customers. Cyber-attacks can harm a business’s reputation and can affect the trust that customers have in your business. In an aspect of business reputation, cyber-crimes can lead to:

• Loss of potential clients
• Sales loss
• The decrease in profits and productivity

The effects of reputational harm can have adverse impacts on the suppliers of a company. Additionally, it can affect the relations that you have built with your partners, stakeholders, and other parties that have invested in your business.

Legal Consequences of Cyber-attack

Data security and protection laws require a business to manage the privacy and security of a company’s financial data, its employees, and its customers. If the information is compromised deliberately or accidentally, and you fail to deploy the proper safety measures, a company might face fines and regulatory permissions.

It is essential to take all the safety measures to minimize the impacts of cyber-attacks on a business. An effective cybersecurity incident response plan can help a business in reducing the risks and effects of cyber-attacks. It can help you in:

• Reducing the impacts of the cyber-attack
• Cleaning up the system and networks that are affected

Increasing the efficiency of a business and getting it running in a short period. 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 filing system is an essential record-keeping system for an organization. It helps you to be systematized, systematic, efficient, and transparent. Accounting professionals in a company are responsible for a lot of paperwork. Without a proper filing system, things can quickly turn in to chaos. It’s a standard procedure for accounting departments to have several filing cabinets, including locked ones, to safeguard payroll and critical information about the business.

Access to file systems in an accounting environment should be available to authorized personnel. Having a system in place is to maintain all the documents and records accurately. It is imperative for all kinds of businesses; therefore, it must be a priority.

Features of an appropriate file system

Record keeping varies from modest folder filing systems to intricate electronic systems that maintain real-time data—whether simple or complex, keeping files should be easy for everyone to use and must offer sufficient storage and recovery of files. A bookkeeping system suited to your business’s particular needs will fit well into your accounting environment. The category, scope, and intricacy and available resources are the primary factors determining the precise file system for your business.

Detail tracking

While running a business, you will be required to track a variety of information related to the customers, sales, inventory, and payrolls. If you do not have a proper file keeping system, you are likely to miss the critical details in all the concerned departments. Knowing about your target market and their needs is vital for your business to thrive as your product or services have to cater to the specific customer need specifically. Knowing when and what to pay or receive depends on the accuracy of maintained records in your business accounting environment. 

Planning

Planning for the future is another important aspect that businesses have to contemplate. A business owner who has not devised a file system to track its customers cannot determine the inventory quantity that he must keep for optimum performance. Only through careful analysis of all the numbers can a business owner make futuristic decisions, which can eventually reap fruits. Retail businesses like clothing are required to update their inventory every season. Without an active accounting environment, they can never predict accurately.

Legal compliance

As a business owner, you are likely to get into contracts and business deals with partners and clients, which would require proper documentation for everyone to be on the same page. You will be holding licenses and permits to conduct business and have to maintain a file system on payroll expenses and other documents for tax purposes. Legal compliances fit into three subcategories. 

• Contracts, leases, copyrights
• Licenses, permits, and insurance
• Personnel and payroll

An adequately maintained record-keeping system ensures that your business’s accounting environment remains good throughout the year, including tax times. IRS is quite strict about companies filing their taxes accurately, and errors can lead them into trouble. 

Records retention

A well-maintained record-keeping system ensures the right decision-makers in the current situation and accumulated valuable data for future reference. Based on your previous data analysis, you can predict future sales patterns, manage your resources well, and avoid the shortcomings. Many unforeseen situations can arise, which can require you to refer back to the file system. If your business lands into a dispute with a former client or an IRS, you will have all the relevant documents to clear your stance. Apart from saving yourself from many troubles, a record-keeping system is essential for maintaining a healthier accounting environment in any 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Bookkeepers and accountants share common goals and support business in different financial life stages but are undoubtedly different from each other, especially when it comes to executing organizational roles and tasks.

Bookkeeping and accounting top the list of most important aspects of running a business, and regardless of the size and scale of the company, it requires close tracking of expenses and cash flow. Business owners need to ensure their finances and data are recorded, assessed, and processed correctly. They base their financial decisions on the company’s financial status. While this all may seem easy at first glance, but the reality is, it is time-consuming and more complicated than you realize. Hiring a bookkeeper or accountant to do specific business tasks such as bookkeeping and accounting is ideal in every sense. Specialized expertise allows you to focus more on core business operations. This focus means that the books’ successful management gets you one step closer to claiming the top spot in the industry.

There is often a misconception that accountants and bookkeepers have similar tasks and duties, which they need to ensure collectively. However, this is not the case. They both are undoubtedly different from each other and have different roles to play in the organization. It is true that both bookkeepers and accountants support your business in various areas of business and stages of the financial cycle and share common goals. Still, they are undoubtedly different from each other. Bookkeeping involves admin related tasks such as transactional and administrative when it comes to recording critical financial transactions. At the same time, accounting is more subjective and requires accounting decisions based on bookkeeping records and information. Both have individual characteristics and help a business achieve its long-term goals and ambitions. So, accountants and bookkeepers are, one way or another, different from each other!

What Is Bookkeeping?

Bookkeeping is a baseline where day-to-day transactions are recorded consistently (without a gap). It is a key that unlocks the doors to a financially successful business. Besides financial transactions, it includes producing and settling vendor invoices, posting debits and credits, completing payroll, calculating GST, designing and reviewing accounting systems, preparing initial financial statements, reconciling accounting and making reports, and more. 

What Is Accounting?

It wouldn’t be wrong to say that accountants base their accounting decisions on bookkeeping records. Accounting is instead a high-level process that uses sensitive financial data prepared and processed by a bookkeeper for making crucial business decisions. The big picture involves preparing company financial statements, completing and filing tax returns, analyzing costs of operations, financial management advice, auditing, business establishment assistance, corporate reporting and compliance, and more. 

Shifting Landscape

In today’s corporate workplace, most small to mid-sized businesses shift to bookkeeping and accounting software as they lack resources to hire in-house talent. Hiring professional accountants and bookkeepers are costly to companies. That’s the motivation that leads them to incorporate accounting software in their companies. Businesses used to have second thoughts of whether to use such software. Now owners are readily using them in their companies as they have produced fantastic results.

Hiring a Financial Professional

Ensuring the financial accuracy of day-to-day transactions and using the bookkeeping data to make future-proofing decisions require you to hire a financial professional’s expertise. The accounting software can help you out to a certain extent. Businesses that are growing will need to consider hiring accounting specialists.

Since accountants have to make decisions on bookkeeping records, hiring a professional agent seems fair.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.