Threats to e-commerce in cyberspace are on the rise. Every day, several websites are hacked, resulting in data theft or even a complete loss of data. Businesses have problems keeping their e-commerce sites safe from hackers and other forms of risks such as ransomware.
Cybersecurity for e-commerce sites is not an easy task. Managers and business owners often do not have technical training, and the lack of information can discourage even the most cautious and security-conscious business owners. This guide will be helpful for managers to secure their e-commerce websites to overcome security obstacles.
Identify the Most Vulnerable Areas
To protect a business from any threats related to cybersecurity, the initial precaution to consider is to identify the vulnerabilities of a website and the business it represents. If it is challenging to identify weaknesses, think about how these issues can be fixed.
Is there a lack of knowledge about the type of data that the company stores? Without accurate information about the data type, it’s challenging to know about its vulnerabilities to increase cybersecurity for E-Commerce sites.
Businesses have crucial data related to the intellectual property of the business, customer relationship management, crucial financial information, and inventory management.
Thorough Mapping of the Entire Business
Carry out a comprehensive mapping of all of the processes performed by staff members. Gather, secure, and properly dispose of this data to avoid threats to e-commerce in cyberspace. Information can be stolen from various transit locations.
It is essential to consider the adverse effects of a cybersecurity breach for the business, employees, and the relationships with customers and partners. The next phase is to start putting precautions in place, such as providing adequate protection to the computers and website servers.
Protection for Computers and Web Servers
Virtually all of the work that allows a business to operate goes through computers and other devices. However, these devices are always connected to the internet and a local area network, making them susceptible to a cyber-attack. Hire an IT service to provide adequate protection protocols for the computer equipment and servers to enhance the cybersecurity of your E-Commerce site.
Software Updates
Computer systems used by an e-commerce site are pretty vulnerable to an attack. Ensure their safety by keeping all software updated. Hackers are looking for loopholes in the software, exploiting the flaws to break into the system.
Hackers have different motives to hack into computer networks or websites. The most common reasons behind a cyber-attack are that the hackers want to make their political stance clear, make some money, or simply hacking because they have the capabilities to do so.
Hacking and ransomware are intrusions that can cause considerable harm to any business. Hence, they are threats to e-commerce in cyberspace. Hackers can steal crucial information like credit card numbers, social security numbers, and the identities of customers, clients, and employees.
The best approach to evade becoming the next victim of hackers is to update the software to improve cybersecurity for E-Commerce sites regularly.
Anti-Virus Programs
Viruses can do many things; they are malicious in nature and a virus can infect a computer system or an entire network. In general, they access essential data and delete or modify it. The computer virus spreads by making several copies of itself in email messages hidden in attachments.
If a computer on a network receives a virus, it can spread quickly and infect all computers and websites of a business—the virus outbreak results in significant data loss. The two most hazardous forms of viruses currently in circulation are “malware” and “ransomware,” which are significant threats to e-commerce in cyberspace.
Some differences exist between malware and ransomware. The malware works by prompting the victim to download specific software, thus, getting entrance to the latter’s computer. It can access the same things as you can on the computer, take confidential information, or spam an email address.
When launched successfully, ransomware is malware that can deny access to the targeted computer and prevent the user from accessing crucial data until the ransom is paid. Ransomware works by forceful encryption of your data; once the encryption is complete, it requires a unique key that the attacker holds. The attacker threatens to destroy or delete the data until the ransom is paid.
The WannaCry cyber-attack is an example of ransomware. Paying the ransom is not necessarily the answer. There is no assurance that hackers can unlock the files. Anti-virus programs must be updated regularly to avoid attacks like WannaCry. Businesses need to take precautions to increase cybersecurity for their E-Commerce sites.
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.
Overcoming Common Challenges as a Food Truck Owner
Food truck owner challenges encompass operational obstacles from securing profitable locations and managing cash flow to navigating permits and maintaining equipment in confined mobile kitchens. The most successful food truck operators transform these challenges into competitive advantages by implementing systematic approaches to location planning, financial controls, maintenance schedules, and operational processes that support sustainable profitability.
The food truck industry has exploded into a $4.52 billion market with over 58,000 mobile operations nationwide, yet 60% of new operators fail within their first year due to preventable business fundamentals. Over my 20 years leading Complete Controller, I’ve worked with food truck entrepreneurs across the country who taught me that great food alone won’t save a business lacking solid financial systems and operational discipline. This guide reveals the proven strategies that separate thriving food trucks from those constantly fighting fires, giving you the framework to build resilient operations that handle challenges before they threaten your livelihood.
What are the most common food truck owner challenges?
Operational efficiency depends on standardized processes, preventive maintenance schedules, and cross-trained staff
Success comes from treating challenges as systematic business problems requiring documented solutions
Finding and Securing Profitable Food Truck Locations
Location strategy forms the foundation of food truck profitability, yet mobile operators face unique obstacles that traditional restaurants never encounter. Food truck businesses must continuously identify high-traffic areas while navigating municipal regulations that vary dramatically between jurisdictions, creating a complex puzzle of permits, parking restrictions, and competition for prime spots.
Successful operators report that optimal locations can boost daily sales by 50% compared to poorly chosen spots, making location research a critical profit driver. The challenge extends beyond finding busy areas to building sustainable relationships with property owners, event organizers, and local businesses who control access to profitable parking opportunities.
Building a location portfolio requires systematic market analysis combined with community relationship development. Smart operators track foot traffic patterns, analyze demographic data, and test different locations while documenting performance metrics that guide future decisions.
Strategic partnership development
The most profitable food trucks cultivate win-win partnerships with established businesses that benefit from increased foot traffic during service hours. Breweries, coffee shops, and retail establishments often welcome food trucks that complement their offerings without competing directly.
Research businesses with outdoor space and complementary customer demographics
Propose specific schedules that align with their peak traffic periods
Offer revenue sharing or flat rental fees that create mutual benefits
Document successful partnerships to leverage when approaching new locations
Food Fleet transformed from struggling operators into an $18 million business by solving location challenges for other food trucks, demonstrating how understanding this fundamental challenge can become a business opportunity itself.
Managing Cash Flow and Financial Challenges
Cash flow volatility represents one of the most dangerous food truck business hurdles, with daily revenue swinging dramatically based on weather, events, and location success. Mobile operations face unique financial pressures including daily ingredient costs, fluctuating fuel expenses, and the challenge of maintaining working capital during slow periods.
The average food truck generates $346,000 annually, but profit margins depend entirely on disciplined financial management and expense control. Operators must balance immediate needs like ingredient purchasing against long-term requirements such as equipment replacement and permit renewals.
Building financial resilience
Smart operators implement comprehensive tracking systems that monitor every transaction and expense category. Point-of-sale systems integrated with accounting software provide real-time visibility into daily profitability without manual data entry.
Track daily sales by location, time, and menu item
Monitor food costs as a percentage of revenue
Calculate true hourly labor costs including prep time
Maintain separate reserves for maintenance and slow seasons
Review financial metrics weekly to identify trends
Weather disruptions and seasonal fluctuations require maintaining cash reserves covering 2-3 months of fixed expenses. Profitable months should build reserves rather than funding immediate expansion, creating financial stability that enables better long-term decisions.
Equipment Maintenance and Vehicle Management
Food truck equipment faces accelerated wear from road vibrations, temperature extremes, and confined workspace constraints that traditional restaurants never experience. Annual maintenance costs range from $2,000 to $10,000, with monthly budgets of $500-$1,000 recommended for routine service and unexpected repairs.
Mobile kitchens combine automotive systems with commercial cooking equipment, creating maintenance complexity that catches many operators unprepared. A single equipment failure during peak service can cost thousands in lost revenue beyond repair expenses.
Preventive maintenance systems
Successful operators treat maintenance as systematic business insurance rather than reactive crisis management. Documented maintenance schedules for both vehicle components and kitchen equipment prevent minor issues from becoming major failures.
Create weekly inspection checklists covering all equipment
• Schedule monthly deep cleaning and calibration procedures
• Track maintenance history to identify recurring problems
• Maintain relationships with multiple mobile repair services
• Budget maintenance costs as fixed monthly expenses
A Texas taco truck operation reduced equipment downtime by 75% through preventive maintenance tracking, extending equipment lifespan by 40% while improving service reliability.
Inventory Control and Food Waste Reduction
Limited storage space, combined with demand forecasting challenges, creates unique inventory management obstacles for food trucks. The confined workspace provides minimal storage compared to traditional restaurants, making purchasing precision critical for profitability.
Overordering leads to costly spoilage while underordering results in disappointed customers and lost sales during peak periods. Successful operators balance these risks through data-driven purchasing decisions based on historical sales patterns and external factors.
Menu engineering for efficiency
Strategic menu design maximizes ingredient utilization across multiple dishes while minimizing unique ingredients that increase complexity and waste. This approach reduces storage requirements and simplifies purchasing decisions.
Design menus where ingredients work across multiple items
Prioritize ingredients with longer shelf life
Track turnover rates for each ingredient type
Adjust portion sizes based on actual consumption data
Eliminate low-performing items that require unique ingredients
Digital inventory systems that track usage patterns and generate automated reorder alerts transform inventory management from guesswork into strategic planning that supports both profitability and customer satisfaction.
Building Effective Food Truck Teams
Staffing challenges for food truck operators stem from demanding work environments, irregular schedules, and the need for versatile employees who excel in confined spaces during high-pressure service. Team members must handle multiple responsibilities from food preparation to customer service while maintaining quality standards.
The mobile nature requires staff who adapt to different locations daily, work outdoors in various conditions, and represent the brand through direct customer interactions. Finding and retaining quality employees becomes critical for operational consistency.
Creating sustainable work environments
Successful operators develop predictable schedules that allow employees to plan personal lives while building skills through comprehensive training programs. Cross-training ensures operational continuity when team members are unavailable.
Develop clear job descriptions outlining all responsibilities
Create standardized training procedures with hands-on practice
Treating employees as long-term investments rather than temporary labor reduces turnover rates and improves customer service quality. Team members who feel valued deliver better experiences that build customer loyalty.
Marketing and Customer Retention Strategies
Food truck marketing faces the unique challenge of building brand recognition without a fixed location for customers to remember. Successful marketing strategies focus on community building rather than simple location announcements.
Mobile operators must continuously communicate their whereabouts while developing brand awareness that transcends geographic boundaries. Multi-channel approaches combining social media, events, and partnerships create the visibility necessary for sustainable growth.
Building digital communities
Social media platforms provide essential tools for location communication and relationship building. The most effective operators share behind-the-scenes content, highlight customer stories, and create anticipation for upcoming locations.
Post daily location updates with specific timing
Share preparation videos and ingredient sourcing stories
Feature customer photos and testimonials
Announce special menu items with limited availability
Respond promptly to comments and messages
Consistent brand messaging across vehicle graphics, menu design, and online presence reinforces identity regardless of location. This consistency builds trust and familiarity that encourages repeat purchases while supporting premium pricing.
Final Thoughts
Overcoming food truck owner challenges requires treating obstacles as systematic business problems demanding documented solutions rather than daily firefighting. The operators who thrive embrace financial discipline, systematic planning, and continuous improvement beyond culinary excellence alone.
Starting and operating a food truck requires completing an average of 45 government procedures with permit costs averaging $28,276 annually, highlighting why professional guidance proves invaluable. Success comes from mastering both kitchen operations and business fundamentals through proven systems and processes.
Ready to transform your food truck challenges into competitive advantages? The team at Complete Controller specializes in small business bookkeepingdesigned specifically for mobile food operations. Visit us today to discover how proper financial management systems can turn your passion for food into sustainable business success.
Frequently Asked Questions About Food Truck Owner Challenges
What percentage of food trucks fail in their first year?
Approximately 60% of food truck businesses fail within their first year of operation, primarily due to poor financial management, inadequate planning, and underestimating operational challenges rather than food quality issues.
How much should I budget for monthly food truck maintenance?
Budget $500-$1,000 monthly for routine maintenance plus an additional $200-400 reserve for unexpected repairs, with total annual maintenance costs typically ranging from $2,000-$10,000 depending on truck age and usage.
What are the most profitable food truck locations?
Office districts during lunch hours, brewery partnerships, special events, and established weekly spots at busy retail locations typically generate the highest revenue, with optimal locations boosting sales by up to 50%.
How do successful food trucks handle permit compliance across multiple cities?
Create a master calendar tracking all permit renewals and requirements by jurisdiction, maintain detailed documentation files, and build relationships with local officials who can clarify regulatory changes before they impact operations.
What’s the average startup cost for a food truck business?
Food truck startup costs range from $46,700 to $187,440, including truck purchase ($50,000-$175,000), permits and licensing ($2,000-$20,000+), initial inventory, insurance, and working capital for the first few months.
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.
Various elements must be considered by Small and Medium Enterprises (SMEs); however, bookkeeping strategies are crucial to the resolution of all business challenges. Over time, technology has provided new ways for SMEs to conduct effective operations, including bookkeeping methods.
Video-Conferencing Enables SME Bookkeeping to Remain Connected
Regarding bookkeeping and technology, incorporating technology into bookkeeping processes can enhance efficiency for SMEs. Videoconferencing can allow interactive collaboration between a business and its partners, such as suppliers or vendors. Once limited to bigger businesses, Videoconferencing is currently accessible as a moderate and hassle-free asset for SMEs. From Skype to more advanced membership services, gatherings are now prevalent for all intents and purposes, particularly for supply chain bookkeeping. Videoconferencing fundamentally diminishes the time it takes to visit different businesses physically, including travel to a particular premise. Virtual gatherings found broadly, or all-inclusive are held without travel-related expenses. This can reduce costs associated with bookkeeping.
Similarly, individual and personal interactions are essential in developing connections, and maintaining associations with partners, providers, and clients can be encouraged through videoconferencing innovation.
Technology and Customer Outreach
Videoconferencing and Live Streaming provide opportunities for meetings and interactions with a more significant group of customers. Meetings with different stakeholders related to bookkeeping and auditing can easily take place with video conferencing regardless of whether attendees are in the same city, town, or even country. Additionally, SMEs can conduct offshoring activities with videoconferencing. Although high costs can be incurred for maintaining a digital setup and the equipment required to live stream or record, travel time boundary and restrictive expenses can be recuperated if SMEs can invest in technologies that eliminate these barriers. One of the benefits of attending meetings in person is organizing and engaging in discourse, which can be challenging to reproduce on the web. However, the expertise of meeting attendees is readily accessible to all stakeholders regardless of locale. Videoconferencing empowers private ventures to exploit these open doors for self-awareness and progress that would not have been available to them previously.
Responsible Bookkeeping Frameworks
An effective bookkeeping framework must be considered by everyone responsible for your SME business. The bookkeeping system in a business should be reasonably systematic and accommodate responsibilities and information for key stakeholders, including employees, clients, and suppliers. It is only with an effective collaboration that a responsible bookkeeping framework can be established. Entrepreneurs should concentrate on considering workers responsible when implementing a bookkeeping framework. If you have a strong budgetary spending plan and a gauge set up, you should have the capacity to complete a financial statement examination on your SME company. Likewise, you should audit your money-related reports with your business group and other key workers to consider them responsible for the objectives you set. Utilizing your bookkeeping framework for responsibility is an excellent approach to keeping your business on track to achieve its objectives.
Versatility
Scaling an SME company can be troublesome, and scaling without an appropriate accounting framework makes it considerably harder. As private venture scales, they tend to be focused on deals. The entrepreneur mindset of needing to offer diverse products is commendable; however, it can be problematic. As such, you must ensure your bookkeeping frameworks are prepared for unstable development.
A legitimate bookkeeping framework setup will enable you to scale your business appropriately. You will have the capacity to distinguish both good and bad patterns and ensure you are meeting or surpassing your objectives. It is easier to set up the correct bookkeeping framework from the earliest starting point and make changes as you go than trying to accommodate changes when you are established. As you scale your business up, your accounting needs will change, and you will have to modify your framework to address those issues.
Investor-Oriented Approach
Many organizations will approach financial specialists for assistance without a bookkeeping framework setup. Businesses receive calls with demands from potential investors to see updated financial reports and statements, so business owners must be ready to provide these reports. Most investors would not contribute their resources to an organization without examining its financial strength. Similarly, if you anticipate fundraising for your business, it is imperative to maintain your accounting functions. It is important to accommodate your accounting framework and have your accountant approve your books frequently.
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.
Not so long ago, the e-commerce platforms exploded and took the industry by storm, forcing more retailers to initiate online shopping experiences for their customers. It seemed as though days of brick-and-mortar retail stores were numbered.
In the global shift to online shopping, multinational retail brands and smaller businesses have been forced to have an online presence. This shift has raised serious concerns in the retail industry because it is limiting brick-and-mortar businesses.
E-commerce giants such as Amazon and eBay continue to be a viable threat to physical stores. This threat is the main reason many multinational retail brands such as Walmart and Macy’s began closing physical store locations and expanding their online businesses.
Stats Reveal an Exciting Story
There have been many ups and downs in the retail sector, especially over the past decade when e-commerce shook the industry. There is certainly no denying that online stores have captured a significant market share and have become a direct competitor to brick-and-mortar stores.
However, you might be surprised to know that the brick-and-mortar retail business model still leads the retail industry at the front. According to a Harvard business review, 92% of total retail sales worldwide are still accumulated through brick-and-mortar store channels.
According to the study, with a staggering 14.5% increase from 2016, total retail sales worldwide are estimated to be $26.29 trillion by 2019.
How Can Retention of Shoppers Be Make Possible?
Despite the significant increase in online shopping, most customers prefer the brick-and-mortar business model. Stats indicate that the doom around the retail industry is temporary and that the brick-and-mortar setting will continue to thrive and prosper in the future.
One thing is clear. Physical stores will need to enrich their customers’ buying experience and offer more than just their products to survive. In the era of unlimited opportunities and buying options, it’s your temperament to deliver the best to your clients that matters—not just a physical store. The truth is shoppers expect to visit brick-and-mortar retail stores that offer a unique overall experience to them.
Retaining shoppers is only possible when you provide them with what they want under the shades of exceptional services cape and ambiance. It’s safe to say that the future of traditional brick-and-mortar retail stores is safe, predictable, and secure. Here is what you can do to future-proof your brick-and-mortar store.
Create an Experience-Rich Servicescape
Today, the retail world has realized the significance of providing an enriched shopping experience to its customers. Every retail store aims to convert first-timers into regular visitors and turn them into brand-loyal customers.
This customer grab is the sole motivation behind creating an experience-rich brick-and-mortars store. In older times, physical stores were more or less used to hold inventory and a dumping house for stocking non-essential items.
Now, display and theme-based customization of a brick-and-mortar store setting, coupled with providing an exceptional shopping experience, has become the tools of the retail trade. Suppose you are successful in creating a dynamic and experience-rich shopping culture. In that case, you will be able to grow and expand your business operations in other cities and countries at an incredible pace.
However, if you expect to empower and keep your customers coming back, you need to provide them with a unique shopping culture. Attracting shoppers to your store, again and again, requires you to build a healthy relationship with your customers, perhaps by thinking beyond the typical scale.
Conclusion
Brick-and-mortar stores are here to stay. Retail businesses around the globe are investing significantly to future-proof their retail businesses. It’s time for the retail industry to do something unique and develop ways to sell things differently to ensure the longevity of their brick-and-mortar store.
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.
To properly handle your business’ financial needs, you need to make the right decision when selecting a bank. Unlike the bank you use for your personal needs, you need your business’ bank to offer you business-specific products and services.
You need to begin by looking at the business products and services offered by the banks that operate in your area. Here are the things you should consider when choosing the right bank for your business.
What Do You Want from Your Bank?
Having explicit knowledge about your business’s services requires a bank to help a lot in finalizing your choice. Interact with the banks on your list to shortlist the few that offer the services you require.
For example, if you identify good customer service as an essential prerequisite in selecting your bank, then you might want to call them and check out the time it takes to reach a representative who has the information to satisfy your queries. You can check their email response time.
Ideally, it should be within 24 hours. This window of time will help you know beforehand whether your bank would be cooperative in times when you need assistance and customer support.
Small Banks and Large Banks
Banks with large nationwide networks might offer you competitive interest along with a wide range of services for your business. Smaller banks are more interested in the growth of local businesses, thus making it easy to get a loan from them. A bank that would mail you your statements can help a lot with your bookkeeping.
Smaller and regional banks are also well acquainted with local market status and requirements. As the Wall Street Journal states:
“Smaller, regionally focused banks may be better because they know local market conditions. They often provide more one-on-one access to a loan officer and emphasize a borrower’s character rather than just applying a credit-score model. And they can be more flexible during tough times, such as covering overdrawn accounts without imposing stiff penalties.”
Become Aware of the Fee Structure
In the world of banking, you will be charged for almost everything in one way or another. Call the banks on your list and consult the representative to take a clear look at how much the bank charges for different kinds of services, from ATM withdrawal fees, checkbooks, and account statements. Ask about the other charges that your business might need, such as credit cards and wire transfers.
The Reputation of the Bank Matters
You can consult other business owners when choosing your bank.
Owners of businesses with similar financial needs might be able to help you out by telling you about their experience with their banks. Their satisfaction with their bank might help you make your decision and enhance the trust you have in your banking services.
It is better if the bank you choose qualifies as an SBA (Small Business Administration) lender. When applying for an SBA loan, it is essential to have a good relationship with your bank as it makes getting approval for an SBA loan a whole lot easier.
The Small Business Administration’s Preferred Lender Program can help you identify the banks that easily give out SBA loans. The SBA says that the preferred lenders have a “streamlined paperwork process,” which can help your small business get its loan approval easily.
Work on Your Relationship with Your Bank
Once you have finalized your decision regarding which institution’s banking suits the financial needs of your business the most, it is essential for you to build a strong relationship with the bank’s staff, which provides you services.
This relationship will prove to be very resourceful, as it can identify ways that the bank can assist your business. It might also help you get the credit you need during times of loss or crisis. Consulting the banker about prospects can help you learn a lot about the services you’ll need for your business in the future.
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.
Although it may be difficult to digest, there are several situations when even the best mortgage rates turn out to be the worst financial option. You may find that home mortgage refinancing is tempting when you have enough money to make a big purchase. New furniture, luxury vehicles, Recreation Vehicles, expensive cruises, vacations, or boats are typical big purchases. The issue with making such large purchases is that they instantly decrease in value while increasing debt, whereas your assets do not increase your debt. Instead of building wealth to take advantage of low mortgage rates, repeated cash-out refinancing ideas negatively impact your personal net worth.
However, even when you avoid taking cash out, you can still make a financial error by refinancing. Households who frequently refinance rarely pay off their debts within thirty years, thus increasing the amortization period and accruing thousands of more dollars in interest. This ultimately puts their families at risk during uncertainties or emergencies like a job loss or significant illness. Refinancing can be wise and potentially advantageous to your monetary future. Unfortunately, there are various circumstances when it is a financial misstep.
Refinancing for the Wrong Reasons
Cash-Out Refinance
Borrowing money against the equity your home has earned since you last negotiated your mortgage is known as ‘cashing out.’ This is an undesirable option in the following situations:
Cashing out refinance for new buyers. New home buyers will take a mortgage above the value of their home and take the balance in cash. This can be problematic because the borrowers have a large debt balance that will need to be repaid over and beyond what they initially needed.
Serial refinancing with extra funds. Continually refinancing and using the extra funds will keep the borrower in debt longer.
Refinancing with 30-Year Term
Although most homeowners do not opt to cash out when refinancing, some of them aim to borrow funds at a lower interest rate to mitigate their periodic mortgage costs. However, by reaching out for another 30-year term, the applicants will eventually miss out on potential interest savings.
Refinancing for Smart Reasons
Although refinancing to a reduced rate is financially sensible, sometimes obtaining the most appealing mortgage rate results in borrowing more money for commodities they do not need. Falling into the vicious cycle of repeat refinancing is easy but results in an increased mortgage, more interest overall, and extending the repayment date longer into the future. Consequently, before you sign the refinancing papers to prolong or increase your mortgage, always ask yourself the following essential questions:
Why are you refinancing?
What will be the impact and use of adding extra money to the mortgage? As well as their consequences to your long-term financial goals?
How many years does refinancing add to the mortgage?
Do you hold a mortgage tinged with any pre-payment penalty? If so, how much?
What are the ending costs of refinancing, including all set-up and application charges, legal fees, and appraisal?
How long may it take you to recoup the mortgage refinance expenses? Will you stay in the same house for the minimum of that long duration?
Does my financial advisor and/or bookkeeper approve my step?
Understanding why, when, and how to refinance your mortgage is critical in making a wise financial decision.
Cash-Out Refinance is Advantageous in Many Ways
Certain circumstances do permit refinancing with extra funds, especially when you reduce your total borrowing expenses and do not expand your amortization duration back to the original fifteen or thirty-year term. Some households use their finances to complete renovations, improve their property’s value, enhance their education, increase their income, or obtain better employment. Others make the most of refinancing to eventually increase their net value and decrease damaging credit card payments by combining heavy interest rate loans into a reduced interest mortgage rate. However, these activities can be harmful as it turns unsecured debt into secured debt with the help of your property. Consequently, if you default, you could lose your house.
Refinance and the Mortgage Term
Obtaining a rate that lowers your periodic payment while offsetting the refinancing costs is common logic to refinancing. The longer the amortization duration to pay off the debt, the more interest charges you pay with extra interest payments, which can deplete your savings made through a lower refinancing rate.
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.
As a corporate proprietor, it is imperative to be involved in all aspects of your operation. Although, that does not mean that you must be an expert in every aspect. Business holders may wear those strategic and customer-relations hats well, but many have a difficult time with the accounting piece of the business. Even worse, financial mistakes can significantly hinder growth or adversely impact your bottom line. Accounting errors can impede cash flow, attract undue attention from the Internal Revenue Service (IRS), or damage relationships with suppliers, customers, and staff.
To avoid those situations, listed below are 10 accounting mistakes business owners tend to make and the reasons why these errors can be so harmful.
1. Falling Behind in Entries and Reconciliation
Time is not on the side of the small business proprietor, especially when there may be daily issues to address. Months can quickly pass without making any entries in the books or reconciling any business checking statements, credit card statements, sales tax accounts, or other financial accounts. This means financial statements and reports are not current, and without up-to-date information, it is challenging to make sound business decisions.
2. Not Understanding Software
In a rush to get the business set up, some business holders may not have spent the time correctly learning the accounting software they have chosen. Not knowing what the bookkeeping software can do means you could make a mistake or miss out on a beneficial functionality. Not setting up a software system properly could also lead to unused reporting capabilities and incomplete information that results in poor business choices.
3. Not Using Reports
Accounting is not just an instrument for entering financial data to achieve state and federal tax protocols or tell you how much money is in the bank. Instead, bookkeeping is a powerful mechanism that provides answers to questions connected to how a business owner’s tactical decisions are functioning or not functioning. As a result, using reports within financial software is vital, and failing to do so can be catastrophic.
4. Mixing Business and Personal Finances
One of the most common accounting mistakes business proprietors make is to mix their business and personal finances. Keep these separate and distinct to provide a more precise track record of what was really used for business and what was specifically related to personal use only.
5. Throwing Away Receipts
Paper trails still count, but even those can become digitized. However, receipts are to be kept so they can be recollected and input into accounting software. Receipts provide solutions to any mistakes or gaps in bookkeeping records, and many offer supplementary deduction opportunities during tax preparation.
6. Making Mathematical Errors
In the haste to get the accounts done after a long day, math mistakes can easily happen, even when using automated accounting solutions. Math mistakes can also result from posting entries to the wrong account or even just making clerical errors.
7. Concentrating on the Short-Term
With the daily matters of running a business, it is easy to become preoccupied with short-term issues and neglect planning for the future. Bookkeeping, though, is not just keeping track of today’s statistics. It is also about estimating future growth and recognizing any financial risk from current financial decisions or results.
8. Hiring the Wrong Person
Hiring the wrong person can create financial problems that go beyond just making uninformed resolutions. Trying to save money by hiring someone with less experience at a lower salary or hiring a loved one to help them out can lead to financial issues, including audits or penalties. Employing the wrong person can create problems that haunt your business for many years to come, so take time and invest in your personnel like you would any other company asset.
9. Thinking Technology is the Answer
Spending money on technology does not guarantee accounting mistakes will be evaded. After all, you still need to make the technology work properly and use it to its fullest. Also, not all technology was created equally in quality or is relevant to your specific business. Find and use the technology that helps you work efficiently.
10. Not Letting Go
Business proprietors may experience circumstances where not seeking professional help is a mistake. For example, you may not want to confess that accounting is not your area of expertise. You likely started a company with an idea or solution that had nothing to do with accounting, and that is where you should focus. However, trying to be responsible for an area that is not your strength can negatively impact your business. Let go of areas you can outsource or seek assistance from experts who can manage troublesome tasks.
Conclusion
Accounting can make or break your business. Learning when to use tools or professionals to help in areas you struggle with can be one of the most significant decisions for a company to make.
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.
We live in a cyber era where the world is a global village and, with the help of science and technology, has created more opportunities for interaction and business. With this increased productivity, the global economy has demands to be met and supplied, so supply chain commentary helps manufacturers use the latest means and methods with an effective ecosystem strategy. Today’s international commerce scene is relatively different than it was 20 years ago, and the speed at which development is implemented has changed drastically. Modern supply chains are consistently monitoring the need for innovative new ways to decrease complexities in world trade. Acting like the blood vessels of today’s collective global economy, supply chains provide manufacturers with the means to satisfy orders that need to be delivered.
Today, customers have higher needs than ever before. With an emphasis on automation and mechanized industry, supply chain commentary reveals how quickly consumers expect supply. An ecosystem strategy is adopted to achieve exhaustive manufacturing prowess in many industries that share global resources. With this strategy, much of the world’s supply chain problems would be simplified. The population explosion has made manufacturers and industries work overtime to supply demands, and, with time, the demands continue to become complicated and unpredictable. Products and brands of all sorts have been flooding markets to generate competition, but supply chain commentary helps make it possible to bring sanity in a world of commercial chaos. By using an ecosystem strategy, modern progress will minimize its contribution to an already depreciating world. Already struggling to keep up, manufacturers are barely able to make a profit. The needs of modern-day consumers have reached higher levels than ever before which means a needed change in approach. Due to present-day production networks, serious challenges lay ahead, including capital suffocation and rigid laws spread out geographically that are misaligned across the globe but could benefit from an ecosystem strategy.
A recent survey determined that only one out of four manufacturers have a global operations model that enables them to move resources and activities in reply to supply chain commentary, market situations or developments, or any changes in demands. Manufacturers are using techniques to roll their resources in a more flexible way inducing ease of supply. Also, partly due to the conversion of all technologies from the analog format to digital, many manufacturers can still turn towards digital technologies. As the world has embraced the digital trend and some form of ecosystem strategy, only three out of ten manufacturers have successfully implemented digital technologies related to manufacturing. In supply chain commentary, a single manufacturer cannot manage to deliver and supply the demands of today’s markets, hence making an ecosystem strategy even more viable and essential. It can also be assumed that companies trying to compete alone in the market without the help of an ecosystem strategy will be shuttered. Eventually, the future of manufacturing relies on ecosystem relationships and partners, so denying this structure will have drastic effects on a business fighting alone. Research has proven that manufacturers who use more third parties for activities are likelier to have more efficient output, revenue, and profit margins than others who rely only on supply chain commentary, their own services, and resource networks. To ease complex issues and capitalize on the collective capabilities for an ecosystem strategy, manufacturers need to develop more innovative and creative ways to structure and operate their business activities.
How to Build Strengthened Manufacturing Ecosystems
Leverage Partners
Asking other manufacturers to join the team and leveraging newer roles to shoulder design and services or third-party utilization. This means that associates and affiliates can now combine their resources to facilitate the joint benefits of everyone involved.
Introduce New Team Members
Bringing in new team members is an excellent way to enlarge the circle of trust in an ecosystem strategy. Third-party products and manufacturing design services, for example, which can loop their own services such as engineering, safety, quality assurance, etc., can help aid the collective cause.
Try New Concepts
For manufacturers, the new era has brought about more than just digital technologies and supply chain commentary. It has also brought application development and other software-based applications that help with specific needs. Also, manufacturers that have Maintenance Repair and Operations (MRO) centers can reuse them for hubs for parts or types of equipment related to various industries.
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 Master’s in Business Administration (MBA) graduate or accountant with profound accounting and financial knowledge may determine a clear distinction between the terms Profits and Profitability. For a businessperson, it is not that hard either since we know that any business stands strong in the market because of the profits it makes. When it comes to business growth and expansion, Profits and Profitability play an influential role in defining what is suitable and what is right for a company, whether the financial grounds or bookkeeping records are favorable or not. One thing is clear, regardless of size, businesses need to track their profit margin to make wise financial decisions that are important to the organization’s objectives and strategies.
Profit vs. Profitability
Profit and profitability are two terms that are often used interchangeably; however, they are not the same. The interpretation of both terms is different, and those who can interpret them correctly can expect to experience financial success in their company. To determine whether a company is financially sound or not, business owners and investors need to track the company’s profit apart from its profitability. To keep the business afloat, you need to ensure a smooth working capital and cut business costs and expenses as much as possible. In simplest terms, whatever amount is left after subtracting the total expenses from the total revenues is profit. Similarly, the profit margin is the ratio between the net income and total sales as it is measured as a ratio or percentage.
Defining Profit
If you are a professional accountant or bookkeeper, calculating a company’s profits will not be difficult. You need to add the total revenues and subtract the total expenses to get the amount of total profit. Essentially, profit is an absolute term, and there is a simple formula for calculating it. If you need to determine profit, follow the formula below:
Total profit= Total revenue – Total expenses
Evaluating Profit
When we evaluate profit from a business perspective, we know that a company’s core objective is always to make a profit. Without making a profit, no company can survive in the market for long. Generally, if what is earned is invested back into the business, a company will grow slowly and gradually. However, profit alone as a measure of success can be deceiving. There are different routes to calculating a profit margin, and business owners need to note minor shifts in costs. Your income statement shows you whether you are making a profit or not. If the results are negative figures, you need to cut or readjust your business expenses or costs to ensure a profit.
Defining Profitability
The application for calculating profitability is a bit more complicated than calculating a normal profit. It involves percentages or ratios which show that profitability is the measurement of profit. Business owners need to ensure that their profitability index is positive to yield enough profit to sustain and grow, especially when the market competition is intense. A business requires careful financial tracking and controlling.
Profitability is the degree to which a business yields a financial gain. Although the company may be showing or realizing a profit margin and figures may seem to be attractive initially, this does not necessarily mean that the company is profitable. Profitability is matched and contrasted against many aspects of the business; you must learn the art of the game before calculating the exact profitability index for your firm. Since profitability is the relative amount (a ration or percentage), it shows or expresses a ratio between profit and revenue. The formula for calculating profitability or profit margin can be:
Profitability=Profit/Revenue*100
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 business owner loves their family and works hard for them. To give them a comfortable standard of life, they often establish and build a business growing it into a profitable venture. It is a family crisis when the business owner suddenly passes away or becomes unable to manage the business. Emotionally and often financially deprived, the family cannot decide what to do with the business and household finances.
As noted, a crisis may be due to sudden death, a health crisis, disability, or accident, so proper planning beforehand is crucial to set families up to cope with and handle this sort of tragedy. Following are the few legal plans that one should make to secure their family in a crisis.
Trust
The settlor creates a trust for beneficiaries. In a trust, the trustee is the one who holds the assets of the trust and manages them, while beneficiaries are the ones who benefit from the profit generated from the assets of the trust.
Beneficiaries may include a spouse, friend, children, or anyone declared by the settler, and the trustee may be a bank, financial institution, or individual. The trust is used during life or upon death by beneficiaries. There may be a dynasty trustee, which means it continues forever, and a trust can be either revocable or irrevocable. Irrevocable is a trust that cannot be changed, while the settlor can change revocable at any time.
Will
A will is generated during life and is applicable upon death. It is the document prepared by the property holder in which they declare to whom their assets will be distributed after their death and in which proportion.
There are a few types of property that do not come under a will. Non-probate property includes trust assets, jointly held property (joint tenants with right of survivorship (JTWROS), and life insurance. For a will to be valid, specific legal requirements of the local area must be fulfilled; otherwise, the will is not valid. For example, in a few states, it is required that a will be signed in the presence of two witnesses who are not related.
In intestate means, if a person dies without a will, the state has a default will. Default rules define to whom property and assets will be given after death.
Property Power of Attorney
A property power of attorney (POA) specifies the individual who may take control of your finances. It is designed during life when an individual cannot decide for themselves for various reasons. Forms of POA cover almost all categories of property and assets. The property which is not covered under POA can also be enlisted in these forms. An experienced and competent legal professional can be consulted for the most appropriate property power of attorney. Insurance, safety deposit boxes, business accounts, personal belongings, and real estate are covered under this designation.
Health Care Power of Attorney and Advanced Directives
A health agent is an individual who decides health-related issues in critical situations when you are unable to decide on your own. A trustworthy and responsible person is selected, and they are required in critical stages of health. A Health Care Power of Attorney form specifies who that individual is. That form is also known as “health care sudden emergencies and in long-term disease and designation,” “durable health care power of attorney,” and “health care proxy” in different states. This is effective during life and not upon death. This person must make the following decisions:
When to be admitted into the hospital and when to discharge
Which treatment or procedure is to be taken or refused
Consent for the treatment
When to withdraw life-sustaining treatment
Conclusion
Proactive planning for a business and loved ones should be done to secure their well-being when you can no longer care for them.
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.
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.
