Manufacturing companies are usually involved in the production and manufacturing of goods. These are large organizations with inventories in various stages of production. Most companies have three inventory accounts. Each inventory requires separate handling for proper calculation of the cost of goods sold. The three types of inventory are:
Inventory of raw materials
Work in progress inventory
The inventory of finished goods
To calculate the cost of goods sold for a manufacturing company, each of the above inventories needs separate calculations. After calculating one segment, you move on to the next. The systematic calculation of each cost and inventory will eventually lead to the cost of goodssold statement. However, the basic calculation of each cost subhead is similar:
Initial inventory
Add: Other addition to the inventory
Minus: Ending inventory
Equals: Goods transferred from manufacturing
What Costs are Linked to the Cost of Goods Sold Statement?
The essential aspect, which is a must for accountants, is to note and adequately label the amount transferred out from the account. It is crucial to write down the terminology. Using correct terms to identify each item is vital for proper calculations.
Inventory of Raw Materials
This inventory is the initial inventory placed right at the beginning of the cost of the goods sold statement. It includes all the raw materials purchased for manufacturing a specific product. While making the cost of goods sold statement, make sure that all direct and overhead raw material costs are accounted for.
After adding all raw materials, subtract the ending inventory from the inventory account for one period. These materials await transfer to the work-in-progress inventory, where the labor costs are included in the statement.
All raw materials left behind after the manufacturing process is complete must be included in the opening inventory of the next period. In the end, the statement will become:
Initial Inventory
Add: All raw material purchased
Less: Ending Inventory
Equals: Total raw material utilized in the production
Work in Progress Inventory
The work-in-progress inventory is the next step in completing the cost of goods sold statement. After adding different materials to the production line, there are three additional production costs. These costs include direct materials, direct labor, and overhead costs associated with manufacturing. All three costs are collectively called the “Manufacturing Costs.”
The total inventory will be added to the Total Manufacturing costs, and from this figure, the ending inventory will be deducted. The goods that transfer from the work-in-progress inventory are termed as Finished Goods. These goods are transferred to the finished goods inventory. The equation then becomes:
Initial Inventory
Add: Total Manufacturing Costs
Less: Ending Inventory
Equals: Cost of goods manufactured
The Finished Goods Inventory
The Finished Goods Inventory is the last and most crucial part of the cost of goods sold statement for a manufacturing company. All goods are transferred from the work in progress inventory to the finished goods inventory in this inventory. Now the equation becomes:
Initial Inventory
Add: Total Manufacturing Costs
Less: Ending Inventory
Equals: Cost of goods manufactured
Less: Ending inventory
Equals: Cost of Goods Sold
The final inventory includes all goods sold off after the entire goods transfer and manufacturing process is complete. Only the final products are sold off as final finished products. A more detailed statement includes overhead costs and other costs.
Conclusion
Regardless of the type of accounting system or tracking used, you must use the correct calculations, account for inventory accurately, note the progression on the balance sheet promptly, and understand the accounting inventory method used by the company. Consistency will result in more accurate calculations and keep companies out of dangerous territories such as over-valuing inventory.
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 Double Dip denotes a recession in which the business declines after a quarter or two of growth and comes back to grow for a short span and then again goes into a declining state.
When a business suffers a double-dip recession, the pressure to perform better increases more than ever. New challenges arrive, and the stress level is increased for entrepreneurs as well as employees. Managing a considerable workload and developing effective strategies to survive through a double-dip recession is highly stressful for entrepreneurs facing this.
The employees related to the business-facing double-dip challenges are often overwhelmed and stressed. Even if the economy is heading down, many business owners/entrepreneurs work on strategies to keep their businesses thriving.
Double Dip Survival guide
During a period of a double-dip, many companies do not survive in the second phase of recession. So, here comes a time for entrepreneurs to make a double-dip survival plan. Entrepreneurs can adopt many policies, techniques, and strategies to survive through a double-dip period and lead their companies towards a growing period.
Reassess pricing of products and services: It is not considered the best option to cut prices all at once. First, consider the adverse effects of cutting the price of your business products/services. Also, consider promotional offers such as a bonus product or service at the same price or placing business products on a limited sale to attract more customers and users of your business.
Keep searching for more opportunities: During a recession period, entrepreneurs should keep looking out for other companies that are losingmarket share.
As the other company loses its market share for the same product or services, try gaining your market share by moving into new markets. Try to win the customers of another company.
Review products and what changes can be made to them: In a period of recession or during double-dip survival, your products and services must be reviewed, and specific modifications and upgrades can be made to attract more customers. For example, try introducing more flavors in processed eatables. Try marketing them in bundles at a reduced introductory price like promotions.
Make agreements: Make agreements with other businesses/professionals. For example: Refer clients to each other and give commission as agreed upon by both parties.
Refresh the packaging: Entrepreneurs can look at the old packaging of their products and see if they are still appealing or not compared to their competitors in the market. Customers often love to buy the same product with new attractive packaging. This repackaging is an excellent technique to promote the same product with a better packaging point of view.
Raise the marketing: Try finding cheaper methods of marketing to reach your customers. Social media is an excellent option to reach your customers, get their feedback, and sort out the queries related to your products or services through social media sites.
Make accounts on social media websites and promote your rebranded products there as well. This rebranding and promotion might attract new customers, and existing customers may return to your product again.
Entrepreneurs must pay attention to loans, as vast sales earnings might have paid back interest. Cut down the inventory if possible and return the loans as much as possible.
Keep a check and balance on bookkeeping. Constantly take a look at your budget and bookkeeping efforts. Observe where you can cut back, where you are spending too much, and what changes can be made so that your company survives the recession.
Entrepreneurs must put all of their efforts and hard work into the business, especially during a double-dip survival period, but must never compromise their physical and mental health. Short breaks and weekly days off must be taken to refresh and come back to work with an eager attitude.
Conclusion
A double-dip survival period is a hard time for entrepreneurs. Many businesses do not survive in the second recession phase if good practices and techniques are not adopted. Entrepreneurs must remain vigilant and cope with stress well throughout the recession periods.
Entrepreneurs should try different strategies to survive and thrive in their business again. Reviewing products and services, promotional offers, managing inventory, building good terms with retailers and wholesalers, and searching for more opportunities are crucial to double-dip survival for entrepreneurs.
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.
Essential Small Business Accounting Tools for Success
Small business accounting tools are software platforms that automate financial management tasks including invoicing, expense tracking, bank reconciliation, and financial reporting to help business owners save time, reduce errors, and make data-driven decisions. These tools range from free solutions like Wave Accounting to comprehensive platforms like QuickBooks Online, each designed to streamline specific aspects of financial management while providing real-time visibility into business performance.
Over my 20+ years as CEO of Complete Controller, I’ve helped thousands of businesses transform their financial operations through strategic accounting tool selection. The right software combination can reduce bookkeeping time by 80%, recover thousands in missed tax deductions, and provide the financial clarity needed for confident growth decisions. In this guide, you’ll discover the exact tools and implementation strategies that successful businesses use to automate routine tasks, gain real-time financial insights, and scale operations without adding administrative burden.
What are essential small business accounting tools for success?
Essential small business accounting tools include core accounting software, expense tracking applications, invoicing platforms, payroll solutions, and financial reporting systems
Core accounting software handles daily transactions and generates financial statements
Expense tracking tools capture receipts and automate categorization for tax compliance Invoicing platforms accelerate payment collection through automation and online processing
Integration capabilities connect these tools for seamless data flow and reduced manual entry
Core Accounting Software Platforms That Form Your Financial Foundation
According to industry data, QuickBooks dominates the accounting software market with 62.23% market share, processing millions of transactions daily for businesses across every industry. This platform has earned its position through comprehensive features including automated bank reconciliation, customizable invoicing, and over 750 third-party integrations that connect with existing business tools.
The platform’s latest AI-powered Accounting Agent automatically categorizes transactions, identifies anomalies, and provides personalized recommendations based on your specific business patterns. For growing businesses, QuickBooks Online Plus adds advanced inventory tracking and project profitability analysis that many competitors reserve for enterprise-level plans.
Xero presents a compelling alternative, particularly for businesses with international operations or complex integration needs. Born in New Zealand, Xero offers unlimited user access at every pricing tier, making it cost-effective for businesses with multiple team members. The platform excels in automation capabilities and provides over 1,000 app integrations through its marketplace.
Small business bookkeeping software for specialized needs
Wave Accounting stands as the premier free solution for freelancers and micro-businesses managing straightforward finances. The platform provides unlimited invoicing, expense tracking, and essential financial reports while maintaining bank-level security protocols. Advanced features like automated bank connections require upgrading to Pro plans, but the free tier handles basic bookkeeping effectively.
FreshBooks specifically serves service-based businesses and consultants who bill by project or hourly rates. Its time tracking integration seamlessly converts logged hours into professional invoices, while automated payment reminders help reduce collection periods by up to 11 days according to company data.
Advanced Expense Tracking Solutions That Eliminate Receipt Chaos
Modern expense management extends beyond basic receipt storage to include automated categorization, mileage tracking, and seamless accounting integration. Businesses typically spend 25 hours weekly on manual data entry and reconciliation across disconnected systems, but proper expense tools can reduce this to just 3-5 hours.
Expensify revolutionizes expense processing through SmartScan technology that extracts data from receipt photos and creates accounting entries automatically. Employees photograph receipts using the mobile app, and the system generates expense reports that sync directly with QuickBooks, Xero, or other accounting platforms. This automation reduces processing time by 75% while improving accuracy and policy compliance.
Dext targets small businesses and accounting firms with advanced invoice and receipt processing capabilities. The platform connects directly with vendors to fetch bills automatically, then creates transactions in your accounting software without manual intervention.
Financial management tools for startups with unique requirements
Startups face distinct challenges including rapid scaling, diverse revenue streams, and investor reporting requirements that traditional accounting tools often can’t accommodate effectively. These businesses need platforms that adapt quickly to changing business models while providing the detailed analytics investors demand.
Zoho Books offers integrated functionality that works seamlessly with other Zoho business applications, making it ideal for startups already using Zoho CRM or Projects. The platform provides multi-currency support, project tracking, and customizable workflows that adapt to unique business processes without requiring expensive customization.
For startups requiring enterprise-grade capabilities, NetSuite provides comprehensive financial management in a scalable cloud platform. While more complex than basic accounting software, NetSuite offers real-time dashboards, custom reporting, and advanced automation that support rapid growth and multi-entity structures.
Cloud Accounting Benefits That Enable Modern Business Operations
The global cloud accounting software market reached $5.73 billion in 2024 and continues growing at 6.2% annually as businesses recognize the advantages of cloud-based financial management. These platforms provide automatic backups, bank-level security, and seamless collaboration capabilities that desktop software can’t match.
Cloud solutions eliminate risks associated with local data storage while enabling real-time collaboration between business owners, team members, and external accountants. Automatic software updates mean businesses always have access to the latest features and security patches without manual installation or downtime.
Affordable options for budget-conscious small enterprises
Budget constraints shouldn’t prevent businesses from implementing proper accounting systems. Free solutions like Wave and entry-level Zoho Books provide substantial functionality for businesses with straightforward needs, including unlimited invoicing and essential financial reporting.
For businesses requiring more advanced features, entry-level paid plans often provide better long-term value than free alternatives. QuickBooks Simple Start at $30 monthly includes features like mileage tracking and basic inventory management that free solutions typically lack, while still remaining affordable for most small businesses.
Measuring ROI and Optimizing Your Accounting Tool Investment
Successful accounting tool implementation requires establishing clear metrics before deployment and regularly assessing performance against benchmarks. Key performance indicators should include time savings on routine tasks, improvement in financial reporting accuracy, reduction in late payments, and enhanced cash flow visibility.
A technology company case study demonstrates potential returns: after implementing accounts payable automation, invoice processing costs dropped from $15-40 per invoice to just $5. With thousands of invoices annually, this generated approximately $250,000 in yearly savings against implementation costs of $90,000 annually.
Integration strategies for connected business systems
Modern businesses rely on multiple software platforms that must work together seamlessly. Popular integration platforms like Zapier enable connections between accounting software and hundreds of other applications, automating data flow and eliminating duplicate entry.
Successful integration requires mapping data flow between systems to maintain consistency and prevent conflicts. This process involves understanding how each system handles similar data types and establishing clear synchronization rules.
Implementation Best Practices for Maximum Success
Selecting the right accounting tools represents only half the equation; proper implementation determines whether businesses realize expected benefits. Successful implementations follow structured approaches addressing data migration, staff training, and process optimization.
Clean data migration from existing systems requires careful planning to maintain historical accuracy while establishing proper chart of accounts structures. Staff training must extend beyond software navigation to include accounting principles and workflow optimization for maximum effectiveness.
Final Thoughts
Throughout my career helping businesses optimize their financial operations, I’ve witnessed how proper accounting tool selection transforms struggling companies into thriving enterprises. The combination of right platforms, proper implementation, and ongoing optimization creates compound benefits extending far beyond simple bookkeeping automation.
Whether you’re a solo entrepreneur or leading a growing team, the accounting tools you choose today impact your business trajectory for years ahead. Take time to assess specific needs, understand growth plans, and select solutions that scale with your success. Ready to transform your financial management? Contact the experts at Complete Controller for personalized guidance on selecting and implementing the perfect accounting solution for your unique business needs.
Frequently Asked Questions About Small Business Accounting Tools
What features should I prioritize when choosing small business accounting software?
Focus on automated bank reconciliation, customizable invoicing with online payment processing, expense tracking with receipt capture, essential financial reporting capabilities, and multi-user access with role-based permissions. These core features handle most small business needs while allowing room for growth.
How much should my small business budget for accounting software?
Expect to spend between $0-50 monthly depending on features and business size. Most small businesses find excellent value in the $15-35 range with platforms like QuickBooks Simple Start ($30/month) or Xero Early ($13/month). Consider total costs including transaction fees and add-ons when comparing.
Can accounting software completely replace my bookkeeper or accountant?
While accounting software automates routine tasks like data entry and basic reporting, professional guidance remains valuable for setup, complex transactions, tax planning, and strategic advice. Software handles the mechanics, but human expertise provides interpretation and compliance assurance.
How long does accounting software implementation typically take?
Implementation ranges from 2-8 weeks depending on business complexity and data migration needs. Simple setups with clean data complete in days, while complex businesses with extensive historical data may require several weeks. Proper planning and training prove crucial for adoption success.
What signs indicate I’ve outgrown my current accounting software?
Common indicators include hitting user limits, needing unavailable features, requiring more complex reporting than your platform supports, or spending excessive time on workarounds. Most businesses can upgrade within their current platform first before considering migration to enterprise solutions.
US Chamber of Commerce. “10 Free Accounting Tools for Your Small 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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Starting a business is often exciting – yet scary at the same time! It is a bit like moving through immense fog where you can only see a few feet in front of the windshield. Hence, you do not know what is awaiting you until it is actually upon you.
However, the more experienced you are when it comes to entrepreneurship, the better you can navigate that fog. From bookkeeping to business management, your knowledge and expertise will enable you to make the right decisions. Here are nine critical factors or vital decisions at startup which can go a long way.
A good sense of timing
You need to understand this in two ways:
Picking the best moment to begin your startup: The ideal moment to start your company is typically a balancing act that is determined by several significant factors, including the availability of necessary startup funds, the success or failure of competitors, the ebb and flow of your industry, and your personal and family circumstances. For instance, you may delay the plan as you expect a baby in the next few months.
Immediate action to grab the opportunity: Since entrepreneurship is all about taking calculated risks, you must leverage an opportunity as soon as it appears. You can achieve this by completing your business plan and making decisive moves to get your company off the ground promptly. But always avoid a rush attitude. You must show diligence in the plan development. However, many startups fail simply because they are too sluggish and wallow to complete any task timely.
Avoid giving heed to statistics
Many people use statistics like 95% of businesses fail’ simply as an excuse to make themselves comfortable about giving up. Even if that number is correct, most of them do not commit to their goals, follow through to the end, or have money management skills.
Do something you love
Do not begin something you will not want to do in the next five years. Making your passion your business means you will still be enjoying and earning in the next five years. It could be anything like painting, singing, engineering, teaching, marketing, auditing, or bookkeeping.
Assess if you have to raise funds to launch your startup
It is often rare if an entrepreneur has enough savings and funds in his bank account to begin their business seamlessly. On the other hand, most startup enthusiasts have to raise finances to turn their idea into reality. Therefore, you might need to use bank loans, leverage assistance from family and friends, or put properties on the mortgage to arrange money to invest in your startup. Hence, assess your business goals to know how much you need to begin.
Know your team members before bringing them on board
The people behind your business are the most critical factor, particularly for startups. As recordkeeping is essential for bookkeeping and as products or services have to be iterated many times until they find their marketplace; similarly, it is all about having the right people doing the right job.
Their direction is more important than the pace of their performance. It would help if you focused on their background story, such as precious experience, companies and qualifications, and what nature of value they bring to the table.
Invest wisely
Warren Buffet says, “Instead of putting all your eggs in the same basket, make multiple investments.” Following this inspiration, you should also diversify your investments that help increase your chances of success and reduce the risk involved. Since these investments are for the long run, always show patience.
Avoid over or underinvestment
Starting a business can significantly affect you and your family financially. You must learn where and when to spend what amount. You should neither waste your precious dollars nor fail or delay to invest adequately where necessary, simultaneously. You often need to spend funds to earn money in any business. Hence, never skimp out or underestimate things your company needs.
Set up your cash flow tracking
Since you will be required to submit a self-employed tax return, you will need to have a good track record of all business transactions. Though opening up a separate business account is not necessary when you are setting up as a sole trader, it could be helpful to keep track. Several online tools help small businesses manage bookkeeping and maintain other accounts and enable large organizations to prepare audit reports and complex financial reports.
Start selling
You must know how to promote your product or service and who to target. Though you have already mentioned it in your business plan, it is time to put the matter into execution. Much of your early budget will be on advertisement and marketing, whether SEO, networking, telemarketing, or targeting retailers. Your first few sales will boost your confidence to show more commitment and dedication towards the business goals.
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 businesses are private firms, partnerships, or proprietorships. There are fewer employees, and annual income is lesser than a regular size business. A business is classified as small to qualify for government support and utilize tax resources specifically designed for small businesses.
Small businesses can range from bakeries, grocery stores, salons, service companies, software houses, lawyers, clinics, accountants, and the home industry. Accounting is the application of knowledge related to business bookkeeping systematically and comprehensively.
Accounting is a critical function in every business.
In a small business, accounting can be managed by a single person, while the accounting process needs more accountants in a large business. Accounting is a way to record bookkeeping, manage accounting statements, perform internal audits, advise tax payments, etc. Interpreting accounting statements correctly by the entrepreneur ensures successful entrepreneurship. Accounting explicit profit, loss, liabilities, tax, and equity in a business are essential.
Accounting Software
Accounting Software is a computer program specially designed for performing daily accounting tasks and business bookkeeping functions.
The importance of using accounting software in the business:
Hours are saved by using accounting software for business operations and bookkeeping tasks.
Accounting software aids in monitoring the cash flow in a business. It can create invoices, track expenses, and create a variety of accounting reports. Such software also aids in managing inventory.
Accounting software can be relied on to analyze business operations.
There is a vast range of accounting software in the market. This accounting software is designed to meet the needs of small to large size businesses specifically.
There is software for accounting that is so simple that a small business owner who has no background in accounting can use them efficiently.
Accounting Software for Small Business
An important and challenging step in business is to choose the right software per your business needs. Consider its cost, usability, and extra features for choosing suitable software for your small business.
Features of an Accounting Software
The following accounting tasks are essential for a small business:
Inventory management
Sales tracking
Contact management and contact history tracking
Account to accept credit card payments
Generating Invoices
Financial statements, cash flow statements, and balance sheet
Budget planning
Payrolls
Taxation matters
When choosing accounting software for small businesses, always search for the above features in the software.
Business Specific Accounting Software
There is software that is designed specifically for a specific type of business. Software for manufacturing businesses will require certain features specially designed for manufacturing units. A construction business requires a few features solely helpful in a construction business.
A Cloud-based Accounting Software or an Accounting Software for use on Desktop
Always discuss your requirements and expectations from an accounting software with the software programming company. Discuss with other experienced entrepreneurs and get to know their choices before getting software for you. Many software companies provide specifically designed software that will meet your demands.
Cost
Accounting software cost is an important issue to consider. First, plan out your business needs and finances. Purchasing costly software with highly advanced features will not help your small business. A small business owner can plan to purchase accounting software by giving a full payment at once, or he can give payments in installments or as monthly payments. Plan out which suits your business finances the best.
Modules to be added later
Accounting software often has modules to include features as your business grows. Much software can be upgraded as the requirements for accounting processes increase. For example, a Payroll Module is often added later in much small business accounting software.
Free trial
Go for software where you are given an option of a free trial.
Some Accounting Software for Small businesses is QuickBooks, SaaS, Freshbooks, Xero, Zoho Books, Wave.
Conclusion
Accounting software makes accounting work more accessible and helps on-time completion of accounting processes. Small businesses also need accounting software, just as large businesses do. The accounting software for small businesses is specifically designed with small business features. But good accounting software for small businesses gives an option of upgrading the software or adding modules to that software. Clarify your needs and expectations first, then go for purchasing accounting software.
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.
Parenting is certainly no easy feat. Throughout the journey of raising your children, you will hear extraordinary questions—from extremely silly to surprisingly technical —which you may not have answers to. Or perhaps, you will feel reluctant to answer them. When it comes to children, there is no definite playbook instruction manual that can teach you the precise way to handle challenging situations. Even the parenting manuals written by the most innovative people in the world can never guarantee you 100% positive results. Two of the most challenging conversations that give parents cold sweats are telling your kids about family finances and telling your kids about the birds and the bees.
Undoubtedly, both discussions have repercussions as kids do not have the brainpower to completely understand them. Being a parent, you must learn wise answers to spontaneous questions to tackle difficult situations. It is a tough job, no doubt. However, as a parent, we must establish ourselves as steady and honest mentors in our children’s lives. Plus, building a strong and effective communication platform with a conclusive dialogue is critically important. Your kids deserve to know the truth, but sometimes the truth needs to be watered down a bit for their minds to wrap around it. As a parent myself, I know how hard this can be.
Managing the Resources at Disposal
Not every family is privileged enough to have an exorbitant number of finances, which means they must stay within a budget defined each month. Along with money constraints comes natural worry and concern. And that worry mainly revolves around managing your family and kids. Moreover, young children are not always capable of understanding the clear picture of the family finances. Those who understand are either older, incredibly smart or have a brilliant sense of evaluating things independently. However, it is important to let kids be kids. While it is okay to teach them that money does not grow on trees, they should not take on the heavy burden of worrying about money each month.
Changing Perspective
Kids are strongly influenced by their social environment and peers. These influences often lead them to ask dicey questions that they may feel uncomfortable answering at times. For example, ‘Dad, why do we have an old car, whereas my friend John’s Dad has a Mercedes?’, ‘Mom, why do we live in an old house?’, etc.… Such questions are hard to answer as your kids are not yet exposed to the realities of life. Perhaps they are too young to understand financial matters or money-related issues. It is essential always to keep the lines of communication open between you and your children. You never want them to be afraid to ask you questions, even the tough ones. When these arise, change their perspective. Instead of comparing the differences between them and their friends’ families, encourage them to find the similarities or think about what they are grateful for in your family. Even from an early age, children can be taught that things are just things and are not an accurate representation of what family means.
Family Finances – What and How They Should Be Told?
Most kids below the age of 5 are understandably clueless about money. A change in approach, attitude and belief has encouraged parents to let their kids know about money matters in a family. However, different parents and even child experts bear different perspectives regarding this matter. Some argue that children should never be told about how much you earn, which parent earns more, who owes money, how much you spend on different occasional activities, etc. To the extreme, some parents also believe that children should never be told about family finances or family earnings and spending. Ultimately, it is up to you how you handle the money talk.
There are times when families may find themselves stuck amid financial crises, which may disrupt their regular monthly budget. In certain situations, it is better to share hardships with your kids to understand why things may look a little different from time to time.
The Younger Ones
Younger children between the ages of 2-4 do not have the brainpower to understand things well. To them, money talks may sound like Chinese. Therefore, attempting to share any financial information with them would yield no significant impact no matter how hard you may try. Child psychologists from around the globe recommend not sharing family finances or anything relating to money with children of such a young age because it is unhealthy for their brains.
The Older Ones
When kids get older, they understand things more thoroughly. This means that you can breathea sigh of relief and share money-related issues with your family, especially the older kids. Older kids have the brain capacity to evaluate and understand things which means they will better understand whether they can afford to buy something. As a parent, you need to teach your kids how to make optimal use of scarce resources to know the significance of money and savings. Sharing may be called caring, but it should be shared with kids when the age is right—not before that when it comes to family finances!
Conclusion
Parents often keep family finances private because they do not want their children to feel certain money-related pressures from an early age. However, as soon as kids grow older, they need to be told about finances to begin to understand the value and worth of hard-earned money.
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.
It can be challenging for individuals with a non-commerce background to identify the differences between bookkeeping and accounting. While you may observe some variation in how both accountants and bookkeepers appear related, there are some significant dissimilarities between the two functions and positions.
These differences could profoundly affect the services provided for your business and the cost that you incur in terms of hiring their services. Bookkeepers are responsible for handling the records of every day’s financial transactions, literally keeping the books.
On the other hand, accountants could hold a further consultative role by providing counseling to the administration, performing audits, and handling financial reports. Along with the responsibilities that coincide between accountants and bookkeepers, an accountant usually holds degrees and certifications when it comes to qualification. In contrast, bookkeepers might have a degree or diploma or none at all.
Bookkeepers vs. Accountants
Once you are indulged in searching for financial assistance, the way you outline the search might be further significant compared to your search findings. If your business is functioning efficiently, has a visible course towards the next level, and already has an employee who possesses finance knowledge. Only a little assistance would be required in terms of bookkeeping.
In such circumstances, the person in the role of the bookkeeper would add the most value to the business. The requirement is to concentrate on doing the math and organizing receipts into a meaningful idea. A knowledgeable bookkeeper would save both time and money by getting their head swiftly around the business structure.
In terms of record-keeping, scrutinizing, and balancing, the expertise of an accountant would be wasted. The best usage of an accountant’s services would be to make intelligent purchase decisions or secure better control over the cash flow to make the most out of investments.
Shifting Landscapes
Since the advent of bookkeeping and accounting software, a few accounting practices have been accumulated with the bookkeeping practices. For example, bookkeeping software is usually capable of producing financial statements. This capability of bookkeeping further diminishes a few customary boundaries between the practices of accounting and bookkeeping.
Similarities between Bookkeeping and Accounting
Accounting and bookkeeping might seem like experienced individuals because both accountants and bookkeepers deal with the financials. To adopt any of the fields, one must possess fundamental knowledge of accounting.
Within smaller organizations, bookkeepers are often hired to manage more accounting practices rather than just record-keeping. In small businesses, bookkeepers also categorize and produce reports with the help of financial transactions.
While bookkeepers might not possess the formal qualifications essential to perform such tasks in most circumstances, most of the accounting software these days has made classifying financial transactions convenient by remembering financial transactions and generating computerized reports. Similarly, an accountant also performs as a bookkeeper by recording the financial transactions for an organization.
How Do Businesses Figure Out Who They Need?
The debate associated with comparing a bookkeeper with an accountant is not easy to resolve because many businesses are not sure about their requirements. There have been significant dissimilarities between a bookkeeper and an accountant and, in specific circumstances, differentiating between the two.
In terms of a specific business, functions are concerned. It is not as easy as it seems. More frequently than not, the decision relies on various factors, including the industry to which the business is related, the need of the company to maintain a large volume of fixed assets, the volume of inventory, and the number of employees.
Once a business has figured out its actual requirement, it will realize whether it needs the services of a bookkeeper or accountant. Generally, bookkeepers are perfect in maintaining expenditures; however, hiring intermittent assistance from an accountant would assure an analytical overview of the performance of the business.
Conclusion
Few organizations learn to manage their finances on their own. Furthermore, few choose to employ a professional so the administration can concentrate on the other functions of the business. No matter what option one selects, making investments in the business financials helps assist with the growth of the 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.
How Much Equity is Required to Attract Investment Capital?
When starting a business, it isn’t easy to know how much equity is required to attract those who invest in the business. To get investors, you must establish that the company is worthy of public financing and investment. This establishment could be done by providing capital upfront or through a well-composed business plan.
Being Realistic for Attracting Investment Capital
Entrepreneurs are pretty commonly optimists, an attitude necessary for getting the business in the market. However, the ideas of unique products, skyrocketing sales, and weak competition turn out to be a mirage in the practical world.
In reality, no new business prevails without a comprehensive and careful business plan that perceives where you are today, where you need to be tomorrow, what issues may emerge, and how to resolve them.
The value of a business plan is that you are compelled to consider your potential business from the grass-roots level, challenge your uncertainties, and research when facts are not known. A comprehensive plan distinguishes and quantifies the capital that will probably be required to cover the initial investment and more.
This initial investment is significant for wooing investors and attracting investment capital. For the most part, brokers and potential financial specialists assess entrepreneurs and their capacity to deliver on the quality and fulfillment of their business plans.
Requesting Sufficient Money
The worst mistake an entrepreneur can make when bookkeeping for capital is requesting too little to have a chance for real progress in the business. Lacking adequate capital in the first place is similar to beginning a long trip with broken transportation and a half-tank of fuel; the chances that you will achieve your goal are slim to none.
When looking to attract investment capital, you should double what you need and assume you will get half. Presume that the worst-case scenario will happen, not the best-case. Instant profitability should not be anticipated, a typical mistake some first-time entrepreneurs make.
If you don’t raise enough capital at first to cushion your organization, if sales are modest or crises happen, it will be much more difficult to collect cash to keep the business going. Startup capital should, at any rate, cover all plant, hardware, and leasehold costs – in addition to no less than a half year of anticipated working expenses, including the proprietor’s pay.
How to Raise New Capital
The most well-known source of startup capital is simply the entrepreneur in credit card loans, home equity advances, and loans taken from relatives. Elected and state governments support various sponsored credits and encourage new companies through the Small Business Administration and its partners on the state level.
When these sources are depleted or inaccessible for any reason, entrepreneurs mostly look for capital from private sources. For example, businesses and investment banks set up private financial specialists to endeavor such opportunities, wealthy individuals, and venture capital funds. Their proposed venture is usually styled as debt, equity, or a mix of each:
The most well-known type of capital utilized by new businesses is an obligation. It is secured by the assets of the organization, including the personal guarantees of the owners. As time passes, the organization reimburses the owner of the principal amount.
While using equity, investors progress toward becoming proprietors of the business with the entrepreneur. The measure of possession held by each is reliant upon a transaction, which thus depends on the assets contributed and the agreed-upon value of the business. Business valuation is an art, not a science; the conclusion is constantly subjective and dependent on the bookkeeper’s point of view.
What Is the Value of the Business?
The estimation of an organization is vital because it is the reason for deciding the “cost” of the new capital when looking for value augmentations to the capital structure. To clarify, an organization with a $1 million valuation and no obligation looking for another capital of $1 million would be worth $2 million after the venture.
The old proprietors would claim half of the new $2 million organization (for their commitment to the old organization with a $1 million esteem). In comparison, the new financial specialists would likewise possess half enthusiasm for their $1 million money commitment. For the most part, a valuation considers four inquiries:
How much is the organization worth today?
How much might it be worth later on?
How long will it take to build future esteem?
What is the probability of making progress?
There are various diverse strategies used to value new businesses.
Seeing how your organization will be assessed and having the capacity to influence the valuation emphatically can empower you to get higher valuations and hold more special responsibility for the organization when the investment is subsidized. Attracting investment capital requires careful valuation of the capital.
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.
QuickBooks accounting software has acquired acclaim owing to its several benefits that have made business accounting and bookkeeping tasks such as invoicing, tracking cash flows, and creating accounting reports agile and effortless.
QuickBooks provides small businesses with the ability to manage accounting transactions adeptly, without the need to maintain day-to-day accounting information in manual books of accounting. Manual tasking has, thus, been reduced, and this has yielded a paperless and efficient work environment.
Features of QuickBooks Online
The online version of QuickBooks, which originated in the 2000s, has been embraced by small businesses since its introduction. This online version has the following eminent features that differ from those of the desktop version:
Requires internet connectivity. It offers a free 30-day trial to all users.
Entails automated features for processing invoices and receipts, generating and emailing reports, and downloading business transactions.
Since QuickBooks Online is cloud-based, it may be accessed remotely on any internet-enabled device from anywhere worldwide. Multiple device access is also one of its features.
Phone support feature that comes free of cost as part of the package.
Allows for automated data-encrypted back-ups as an inbuilt functionality.
Enables access to the latest product and feature updates and cloud access (hosting) free of cost. It also offers access for up to 5 users.
Requires a monthly subscription and allows for only limited customization relative to the Desktop version.
Features of QuickBooks Desktop
QuickBooks Desktop has been around since the 1990s. Its various features that differ from the online version have been listed below:
Requires an upfront software installation process onto the system. It can be accessed from one’s computer system regardless of internet connectivity.
Unlike the automated features available in QuickBooks Online, invoicing, billing, emailing, and report generation must be processed manually.
Installed on a computer and can only be accessed through it. Remote access is not a possibility in this version.
It does not allow for free support functionality, but phone support may be purchased for $89 for 90-days.
Automated data-encrypted backups can be purchased for $9.99 monthly.
Allows up-gradation for accessing product/feature updates. This annual upgrade costs $299. Cloud Hosting may also be purchased for each user monthly.
Comes with additional features such as calculation and re-billing of job costs and discount calculation for customers.
It has a customization feature available that any businesses per their specific needs may use.
It does not require monthly payments, but a single annual payment must be made.
Which Version is Right for your Business?
Given the available options, small businesses are often confused about which version of QuickBooks to choose for their new set of businesses.
Below, a distinction has been made to choose the version that may fit your diverse business needs well.
When QuickBooks Online is the Best Choice
Your business requirement is such that employees need to access the accounting records remotely. Moreover, if multiple access is required by different people simultaneously, the online version is best suited for your business.
Your business requires consistent and additional support.
Your business believes in the virtual reality of shared resources and coordination through a cloud-based system.
Your business believes in automation that comes at an affordable monthly charge.
When QuickBooks Desktop is the Best Choice
Your business has a single location.
Your business has poor internet connectivity available in the area of location.
Your business does not require remote access by multiple users; all data must only be accessed within the office premises.
Your business requires customization for features such as budget tracking and expense monitoring.
Your business believes in safeguarding its data on the desktop to avoid sharing critical information on the web.
The distinction between the various features of QuickBooks Online and the Desktop version can assist businesses in choosing either one for their specific business requirements.
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.
Dropshipping is a great way to sell goods without having to carry an inventory. Your designated product manufacturers produce packages and send the product out to your customers because you have provided them with a low-cost platform.
It is excellent for entrepreneurs as it is a low risk, low cost, and decidedly automated business model. You are not required to buy inventory in bulk for low costs because the costs are already pretty low. You can quickly sell the products at a market value with healthy profit margins.
Drop Shipping Tips
With drop shipping, you are ready to start with the business as soon as you sign up. Products are imported pretty easily from different vendors with a simple click. As the process is highly automated, the processing time is also significantly reduced, and the product can be delivered to the customer in a considerably less amount of time.
Because the business operations are pretty easy to handle, you can shift your focus to developing the other aspects of the business. Some of the tips below will guide you in this regard.
Focus on Marketing for Drop Shipping
As most aspects of this business are automated, you will have plenty of time to focus on the other aspects of the business, such as marketing. While basic marketing strategies suggest using logos, aesthetic websites, and graphics for the business model, you must attempt to gain deeper insights into SEO and customized videos to grow your traffic and customer base.
SEO and ads will drive most of the traffic to your website, and about 1–2% of those visitors are involved in a sale. Therefore, if your dropshipping business has less than 100 visitors, you will most likely not be making any sales.
It is also great for your business in the future, as a higher SEO ranking means your website will appear among the top searches, which is pretty significant in these times. Similarly, blog posts can also boost traffic and must be used alongside your other marketing strategies.
Videos have the highest conversion rate to sales among all marketing elements. They involve multiple senses of the onlooker at the same time, which generates solid emotional associations. Creating an association with the customer is critical for any business. It is even more critical for online businesses because it’s the closest real-time experience you can offer to the customers before they physically feel their product.
Make an Offer They can’t Refuse
Running a successful dropshipping business requires you to make a compelling offer to your customers. Sales and bundle offers are the most popular among consumers as it gives them better value for their money. Not having any of your products on sale may be bad for business. However, if your products are of more excellent quality, inspired by a compelling marketing campaign, you may not need to offer sales.
A bundle offer must consist of similar products as it is generally more persuasive. For example, if you are offering any hair products, try to include a variety into the bundle for the same category.
Don’t Under Price
The advantage you have with running a drop shipping business is that you can keep the production costs low. You are acquiring the products at a wholesale price, so the costs are already low. Now, you have the advantage of pricing your products at market value or lower depending on your planned profit margin.
Many businesses make the mistake of keeping product prices too low because they think customers will not buy if they don’t. Although the costs of acquiring the products are low, you still need to cater to all indirect costs related to marketing, payrolls, and other business expenses.
Also, consumers generally perceive low-cost products to be of lower quality. They don’t buy it just because the price is too low to be true. Don’t make that mistake. Price your products appropriately around their market value so that you can reap all drop shipping benefits.
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.
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.
